case study on rural development for class 12

Chapter 6: RURAL DEVELOPMENT

• CBSE Class 12
• Indian Economic Development
• Chapter 6: RURAL DEVELOPMENT Notes

RURAL DEVELOPMENT

• MacroEconomics & Indian Economy Book Class-12
• Publication
• PathSet Publications

Rural Development& Agriculture

• Agriculture, with a maximum share of the rural economy, has grown at a meager rate of 2.7% in the last fifty years. During 2007-12, agriculture output has grown by 3.2%.
• The share of the agriculture sector to GDP was on a decline and there has been increasing in the share of the industrial and service sector. However, the population dependent on the agricultural sector did not show any significant change.
• Moreover, after the economic reforms of 1991, the growth rate of the agriculture sector decelerated to 3% p.a. during 1991-2012, which was lower than the earlier years.

Meaning of Rural Development

Definition: Rural Development refers to the continuous and comprehensive socio-economic process, of attempting to improve all aspects of rural life .

• In India, agriculture is the major source of livelihood in the rural sector, with more than two-thirds of India's population depending on it. Therefore, development in agriculture will contribute to the betterment of rural areas and rural people. However, the term rural development includes not only agricultural development, but it involves all those aspects, which improve the quality of life of people. It aims at improving the economic and social conditions of people living in villages.
• Rural people account for about 34% of the total population. However, they have always lagged much behind the overall progress of the economy.
• In order to overcome this undesirable trend, special programs for rural development began to be designed in the seventies, in addition to provisions of the Five-Year Plans of the country.

Process of Rural Development

• Proper attention to literacy (specifically on female literacy), education and skill development; and
• Better Health facilities for physical growth.
• Improvement in electricity, irrigation, credit, marketing and transport facilities (including the construction of village roads and feeder roads to nearby highways);
• Better facilities for agriculture research and extension and information dissemination.
• Elimination of exploitation in land relations;
• Actualization of the goal of 'land to the tiller';
• Improvement of socio-economic conditions of rural poor by widening their land base;
• Increasing agricultural productivity and production.
• Alleviation of Poverty: Around 30% of the total population is still below the poverty line. So, there is a serious need for taking serious steps for alleviation and bringing significant improvement in living conditions of weaker sections. –
• Development of the productive resources of each locality to enhance opportunities for employment (particularly other than farming).

RURAL CREDIT

Rural Credit

• Growth of the rural economy depends on the timely infusion of capital, to realize higher productivity in agriculture and non-agriculture sectors.
• In agriculture, farmers are in strong need of creant due to the long time gap between crop sowing and realization of income.
• Farmers borrow from various sources to meet initial investments on seeds, fertilizers, implements and other family expenses of marriage, death, religious ceremonies, etc.
• So, credit is one of the important factors, which contribute to agricultural production. An efficient and effective rural credit delivery system is crucial for raising agricultural productivity and incomes.

Sources of Rural Credit

There are two sources, from which the farmers can raise loans:

Non-Institutional Sources

Institutional Sources

Non-institutional sources have been the traditional source of agricultural credit in India. Major non-institutional sources are:

• Moneylenders: From the very beginning, moneylenders have been advancing a major sh. of farm credit. The peasants are exploited through exorbitant (very high) rates of interest. Quite frequently, their accounts are manipulated without their knowledge.
• Relatives: Cultivators borrow funds from their own relatives in times of crisis. These loans are a kind of informal loans and carry no interest and are normally returned after harvest.
• Traders and commission agents: They provide credit to the peasants on the mortgage crops at high rates of interest, on the condition, that the crops will be sold to them at low prices.
• Rich Landlords: Small as well as marginal farmers and tenants take loans from landlords for meeting their financial requirements. Landlords also charge high rates of interest on such loans and exploit the peasants, particularly small farmers and tenants.

The various non-institutional sources were used to exploit small and marginal farmers by lending to them at high-interest rates and by manipulating the accounts to keep them in a debt-trap.Ă major change occurred after 1969 when India adopted the institutional credit approach through various agencies.

Government established the institutional sources with the following objectives:

• To provide adequate credit to farmers at a cheaper interest rate
• To assist small and marginal farmers in raising their agricultural productivity and maximizing their income. Some of the important institutional sources of agricultural credit are:
• Co-operative Credit: The primary objective of the co-operatives is to liberate the Indian peasantry from the clutches of moneylenders and to provide them credit at low rates of interest.
• Land Development Banks: They provide credit to the farmers against the mortgage of their lands. Loans are provided for permanent improvement of land, purchasing agricultural implements and repaying old debts.
• Commercial Bank Credit: Initially, commercial banks played a marginal role in advancing; rural credit. However, after nationalization in 1969, they expanded their branches in rural areas and started directly financing the farmers.
• Regional Rural Banks: They are opened up in those areas where there are no bank facilities. Their main objective is to provide credit and other facilities, especially to small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in rural areas.
• The Government: The loans provided by the government are known as taccavi loans and are lent during emergencies or distress, like famines, floods, etc. The rate of interest charged against such a loan is as low as 6%.
• Its objective is to promote the health and strength of credit institutions (namely, cooperatives, commercial banks and regional rural banks).
• Besides providing finance to credit institutions, NABARD also provides financial assistance to the non-farm sector, to promote integrated rural development and prosperity of backward rural areas.
• Their focus is largely on those rural poor, who have no sustainable access to the formal banking system.
• So, their target groups comprise small and marginal farmers, agricultural and nonagricultural laborers, artisans, etc.
• SHGs promote thrift in small proportions by a minimum contribution from each member. • From the pooled money, credit is given to the needy members at reasonable interest rates, which is to be repaid in small installments
• By March 2012. more than forty-three lakh SHGs had reportedly been credit-linked.
• SHGs have also helped in the empowerment of women. However, the borrowings are mainly confined to consumption purposes and a negligible proportion is borrowed for productive purposes.

Critical Appraisal of Rural Banking

Rapid expansion of the banking system had a positive effect on a rural farm and non-farm output, income and employment. After the green revolution, credit facilities helped famines avail a variety of loans for meeting their production needs. With buffer stocks of grains, famines became events of the past.

Some of the problems faced in rural banking are:

• Insufficiency: The volume of rural credit in the country is still insufficient in comparison to its demand.
• Inadequate Coverage of institutional sources: The institutional credit arrangement continues to be inadequate as they have failed to cover the entire rural farmers of the country.
• Inadequate Amount of Sanction: The amount of loan sanctioned to the farmers is also inadequate. As a result, farmers often divert such loans for unproductive purposes, which dilute the very purpose of such loans.
• Less attention to poor or marginal farmers: Lesser attention has been given to the credit requirements of needy (small and marginal) farmers. On the other hand, well-to-do farmers are getting more attention due to better creditworthiness.
• The basic reason for growing overdue is the poor repaying capacity of farmers. As a result, credit agencies are becoming cautious about granting loans to farmers.
• Agriculture loan default rates have been chronically high. It is alleged that farmers are deliberately refusing to pay back loans. It is a threat to the smooth functioning of banking system and needs to be controlled.
• Except the commercial banks, other formal institutions failed to develop a culture of deposit mobilization, lending to needy borrowers and effective loan recovery.

To improve the situation:

• Banks need to change their approach from just being lenders to building up relationship banking with the borrowers; and
• Farmers should also be encouraged to inculcate the habit of thrift (saving) and efficient utilization of financial resources.

AGRICULTURAL MARKET SYSTEM

Agricultural Market System

Meaning of Agricultural

Definition: Marketing Agricultural marketing is a process that involves assembling, storage, processing, transportation, packaging, grading and distributing different agricultural commodities across the country.

Agricultural marketing system is an efficient way by which the farmers can dispose of their surplus produce at a fair and reasonable price. It involves different activities for the movement of farm produce from the producer to the ultimate consumer.

Problems faced by Farmers

• Manipulations by Big Traders: Prior to independence, farmers suffered from faulty weighing and manipulation of accounts while selling their produce to traders.
• Lack of Market Information: Farmers were often forced to sell at low prices due to a lack of required information on prices prevailing in markets
• Lack of Storage Facilities: They also did not have proper storage facilities to keep back their produce for selling later at a better price. Even today, more than 10% of goods produced on farms are wasted due to a lack of storage.

Therefore, government intervention became necessary to regulate the activities of private traders.

Measures to Improve Agricultural Marketing:

• Regulated Markets: The first measure was the regulation of markets, to create orderly and transparent marketing conditions. Regulated markets have been organized with a view to protecting the farmers from the malpractices of sellers and brokers. This policy benefitted farmers as well as consumers.
• Infrastructural Facilities: The Government aims to provide physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage and processing units. The current infrastructure facilities are quite inadequate to meet the growing demand and need to be improved
• Inadequate coverage of farmer members;
• Lack of appropriate link between marketing and processing cooperatives;
• Inefficient financial management
• Different Policy Instruments: In order to protect the farmers, the government has initiated the following policies:
• Minimum Support Prices (MSP): To safeguard the interest of farmers, government the minimum support prices of agricultural products, like wheat, rice, maize, cotton, sugarcane, pulses, etc. Such a price may be regarded as an offer price, at which Government is willing to buy any amount of grains from the farmers.
• Maintenance of Buffer Stocks: The Food Corporation of India (FCI) purchases wheat and rice at the procurement prices, to maintain buffer stock. Buffer stock is created CS years of surplus production and is used during shortages. It helps to ensure regularity in supply and stability in prices.
• Public Distribution System (PDS): The public distribution system in our country operates through a network of ration shops and fair price shops. Fair price shops offer essential commodities like wheat, rice, kerosene, etc. at a price below the market price, to the weaker sections of the society.
• Agricultural markets are still dominated by private traders like moneylenders, rural political leaders, big merchants and rich farmers.
• The quantity of agricultural products, handled by the government agencies and consumer cooperatives, constitutes only 10%, while the rest is handled by the private sector.
• It is often argued by some scholars that the commercialization of agriculture offers tremendous scope for farmers to earn higher incomes provided the government intervention is restricted.

Emerging Alternate Marketing Channels

• Apni Mandi in Punjab, Haryana and Rajasthan;
• Hadapsar Mandi in Pune; "Apni Mandi" is an initiative to encourage farmers to directly
• Rythu Bazars in Andhra Pradesh; and market their products without being exploited by middlemen or traders
• Uzhavar Sandies (farmers market in Tamil Nadu).
• They encourage the farmers to cultivate farm products (vegetables, fruits, etc.) of the desired quality.
• They provide them with not only seeds and other inputs but also assure procurement of the produce at pre-decided prices.
• It is argued that such arrangements will help in reducing the price risk of farmers and expand the market for farm products.

DIVERSIFICATION OF AGRICULTURAL ACTIVITIES

Reason for Diversification

The need for diversification arises because:

• There is a greater risk of depending exclusively on farming for livelihood; and
• To provide productive sustainable livelihood options to rural people.

Benefits of Diversification

Much of the agricultural employment activities are concentrated in the Kharif season. During the Rabi season, it becomes difficult to find gainful employment in areas where there are inadequate irrigation facilities. Therefore, diversification into other sectors is essential:

• To provide supplementary gainful employment;
• To enable them to earn higher levels of income; and
• To enable rural people to overcome poverty and other troubles.

Types of Diversification

Diversification includes two aspects:

• Diversification of Crop Production (Change in Cropping Pattern);
• Diversification of Productive Activities (shift of workforce from agriculture to other allied activities and non-agriculture sectors).

Diversification of Crop Production

• It involves a shift from a single-cropping system to a multi-cropping system.
• Diversification involves a shift in cropping patterns from food grains to cash crops. The main aim is to promote a shift from subsistence farming to commercial farming.
• In India, agriculture is still dominated by subsistence farming and farmers give prime importance to the cereals in the cropping system.
• Multi-cropping system reduces the dependence of farmers on one or two crops as they are engaged in growing a wide variety of crops.
• There is a need to encourage farmers to take up the cultivation of a wide variety of crops. It will also raise their income.

Diversification of Productive Activities

• It would provide alternative avenues of sustainable livelihood and would raise the level of income.
• Non-farm Activities have several segments. Some segments of non-farm activities possess dynamic linkages that permit healthy growth, while others are in subsistence, low productivity propositions.
• The dynamic sub-sectors include agro-processing industries, food processing industries, leather industry, tourism, etc.
• Those sectors, which have the potential but seriously lack infrastructure and other support, include traditional household-based industries, like pottery, crafts, handlooms, etc.

NON FARM EMPLOYMENT IN RURAL AREAS

NON-FARM AREAS OF EMPLOYMENT

Animal Husbandry and Dairying

Animal Husbandry

Meaning: Animal Husbandry (or Livestock farming) is that branch of agriculture, which is concerned with the breeding, rearing and caring of farm animals.

• Under livestock farming, cattle, goats and fowls (duck, goose, etc.) are the widely held species.
• India owns one of the largest livestock populations in the Sheep Rearing is an important Income augmenting activity in rural areas world.
• Livestock production provides increased stability in income, food security, transport, fuel and nutrition for the family, without disrupting other food-producing activities.
• The livestock sector provides alternate livelihood options to over 70 million small and marginal farmers, including landless laborers.
• A significant number of women also find employment in the livestock sector.
• In India, poultry accounts for the largest share of 58%, followed by others (camels, asses, horses, ponies and mules). Poultry has the largest share of total livestock in India.

Meaning: Dairying is that branch of agriculture, which involves breeding, raising and utilization of dairy animals for the production of milk, and the various dairy products processed from it.

• Dairying is the business of producing, storing and distributing milk and its products.
• The performance of the Indian dairy sector over the last three decades has been quite impressive.
• Due to the successful implementation of Operation Flood', India ranks first in the world in milk production. India's milk production increased from 17 million tonnes in 1950-51 to 102.6 million tonnes in 2006-07 and increased to 165.4 million tonnes in 2016-17.
• Under the Operation Flood system, all the farmers pool their milk produce according to different grades and the same is processed and marketed to urban centers through cooperatives. The farmers are assured of a fair price and income.
• Gujarat state is held as a success story in the efficient implementation of milk cooperatives, which has been followed by many states.
• Meat, eggs, wool and other by-products are also emerging as important productive sectors for diversification.

Evaluation of Livestock Farming

• In terms of numbers, our livestock population is quite impressive. However, its productivity is quite low as compared to other countries.
• (ii) There is a need for improved technology and the promotion of good breeds of animals, to enhance productivity.
• (ii) Improved veterinary care and credit facilities for small and marginal farmers and landless laborers would enhance sustainable livelihood options through livestock production.

Meaning: Fisheries refer to the occupation devoted to the catching, processing, or selling of fish and other aquatic animals.

Important Points about Fishing

• Fishing community regards water bodies as 'mother': The water bodies (sea, oceans, rivers, lakes, natural aquatic ponds, streams) are considered as 'mother' or 'provider' as they provide a life-giving source to the fishing community.
• The volume of Fish Production: Presently, fish production from inland sources contributes shout 64% of the total fish production and the balance of 36% comes from the marine sector (sea and oceans).
• Share of Fishing in GDP: The total fish production accounts for 0.8% of the total GDP. In India, West Bengal, Andhra Pradesh, Kerala, Gujarat, Maharashtra and Tamil Nadu are major fish-producing states.
• Women Participation in Fishing: Even though women are not involved in active fishing, still, 60% of the workforce in export marketing and 40% in internal marketing are women. There is a need to increase credit facilities in the form of cooperatives and self-house groups (SHG) for fisherwomen to meet their working capital requirements for marketing.
• Widespread Underemployment;
• Low per capita earnings;
• Absence of mobility of labor to other sectors;
• High Illiteracy rate and indebtedness.

Evaluation of Fishing

• Problems like over-fishing and pollution need to be regulated and controlled.
• Welfare programs for the fishing community have to be reoriented in a manner, which can provide long-term gains and sustenance of livelihoods.

Horticulture

Meaning: Horticulture refers to the science or art of cultivating fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops.

• India has adopted horticulture as it is blessed with varying climate and soil conditions.
• It is an important sector for potential diversification and Emphasis on Horticulture value addition in agriculture. is on a continuous increase in the country

Important Points about Horticulture

• Contribution: The horticulture sector contributes nearly one-third of the value of agricultural output and 6% of the Gross Domestic Product of India.
• Share in World's Production: India has emerged as a world leader in producing a variety of fruits, like mangoes, bananas, coconuts, cashew nuts and a number of spices. With the production of 74.877 million tonnes of fruits and 146.554 million tonnes of vegetables in 2010-11, India is the second-largest producer of both fruits and vegetables in the world.
• Improvement in Economic Condition: Horticulture has improved the economic condition of many farmers and has become a means of improving livelihood for many unprivileged classes too.
• Great Scope for Women Employment: Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food processing are highly remunerative employment options for women in rural areas.

Evaluation of Horticulture

Horticulture has emerged as a successful sustainable livelihood option and needs to be encouraged significantly. Enhancing its role requires investment in infrastructure, like electricity, cold storage systems, marketing linkages, small-scale processing units and technology improvement and dissemination.

Information Technology

Meaning: Information Technology (IT) refers to that branch of engineering that deals with the use of computers and telecommunications to retrieve and store and transmit information .

Important points about Information Technology.

• Through appropriate information and software tools, the government has been able to predict areas of food insecurity and vulnerability, to prevent or reduce the likelihood of an emergency.
• It also has a positive impact on the agriculture sector as it circulates information regards emerging technologies and their application applications, prices, weather and soil conditions for growing different crops, etc.
• It acts as a tool for releasing the creative potential and knowledge embedded in society. It also has the potential for employment generation in rural areas.
• The aim of increasing the role of Information Technology is to make every village a knowledge center; it provides a sustainable option for employment and livelihood.

SUSTAINABLE DEVELOPMENT & ORGANIC FARMING

SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING

Conventional agriculture relies heavily on chemical fertilizers and toxic pesticides etc., which enter the food supply, penetrate the water sources, harm the livestock, deplete the soil and devastate natural ecosystems. So, efforts have been made to evolve technologies, which are eco-friendly and are essential for sustainable development. One such eco-friendly technology is ‘Organic Farming'.

Meaning of Organic Farming

Meaning: Organic farming is the form of agriculture that relies on techniques such as crop rotation, green manure, compost and biological pest control.

• Organic farming is the process of producing safe and healthy food, without leaving any adverse impact on the environment.
• In short, organic agriculture is a whole system of farming that restores, maintains and enhances the ecological balance.
• There is an increasing demand for organically grown food, to enhance food safety throughout the world.

Benefits of Organic Farming

• Economical Farming: Organic Farming offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilizers, pesticides, etc.) with locally prod cheaper organic inputs.
• Generates income through exports: It generates income through international export demand for organically grown crops is on a rise.
• Provides Healthy Food: It provides healthy food as organically grown food has more nutritional value than food grown through chemical farming.
• Source of Employment: Organic farming generates more employment opportunities as requires more labor input than conventional farming.
• Safety of environment: The produce of organic farming is pesticide-free and is produced in an environmentally sustainable way.

Challenges before Organic Farming

• Less Popular: Organic farming needs to be popularized by creating awareness willingness on the part of farmers, to the adoption of new technology. There is a serious for an appropriate agriculture policy to promote organic farming.
• Lack of infrastructure and marketing facilities: Organic farming faces problems with inadequate infrastructure and marketing facilities.
• Low Yield: Organic farming has a lesser yield in the initial years as compared to modern agricultural farming. As a result, small and marginal farmers find it difficult to adapt to large-scale production.
• A Shorter food life: Organic produce has a shorter shelf life as compared to sprayed produce.
• Five-Limited choice of crops: The choice in the production of off-season crops is quite limited in organic farming. Inspire of all these limitations, organic farming helps in the sustainable development of agriculture

EVALUATION OF RURAL DEVELOPMENT

Evaluation of Rural Development

• The rural sector will continue to remain backward until and unless some spectacular changes occur. Some of the changes which need to be taken for the development of the rural sector are outlined below:
• Stress on Diversification: There is a need to make rural areas more vibrant through diversification into dairying, poultry, fisheries, vegetables and fruits.
• Rural and Urban Linkage: Efforts should be made to link up the rural production centers with the urban and foreign (export) markets to realize higher returns on the investment for the products.
• Infrastructure elements like credit and marketing;
• State agricultural departments;
• Farmer-friendly agricultural policies;
• Constant appraisal and dialogue between farmer's groups.
• The aim is to achieve the full potential of the rural sector.
• More emphasis on Sustainable Development: There is a need to invent or procure alternate sets of eco-friendly technologies that lead to sustainable development in different circumstances.

Related Chapter Name

Chapter 1: india on the eve of independence.

• ADVENT OF EAST INDIA COMPANY IN INDIA
• INDIAN ECONOMY BEFORE COLONIAL RULE
• BRITISH POLICIES AND THEIR IMPACT ON INDIA
• DEMOGRAPHYDURING COLONIAL RULE
• OCCUPATIONAL STRUCTURE IN COLONIAL INDIA
• INFRASTRUCTURE DURING THE BRITISH RULE
• IMPACTS OF BRITISH RULE

Chapter 2: INDIAN ECONOMY (1950-1990)

• CENTRAL PROBLEMS OF AN ECONOMY
• TYPES OF ECONOMIC SYSTEMS
• ECONOMIC PLANNING
• AGRICULTURAL SECTOR
• INDUSTRIAL DEVELOPMENT
• FOREIGN TRADE

Chapter 3: LIBERALISATION, PRIVATISATION & GLOBALISATION

• ECONOMIC REFORMS
• CLASSIFICATION OF 1991 MEASURES
• MAJOR POLICIES OF 1991 REFORMS
• LIBERALISATION
• PRIVATISATION
• RECOGNITION TO PSUs
• GLOBALISATION
• CRITICAL APPRAISAL OF LPG POLICIES
• DEMONETISATION
• DIGITALISATION
• GOODS & SERVICES TAX

Chapter 4: POVERTY

• VICIOUS CIRCLE OF POVERTY
• TYPES OF POVERTY
• POVERTY LINE
• GLOBAL MULTIDIMENSIONAL POVERTY INDEX
• URBAN v/s RURAL POVERTY
• POVERTY & AGRICULTURE SECTOR

Chapter 5: HUMAN CAPITAL FORMATION

• PHUSICAL v/s HUMAN CAPITAL
• RELATION BETWEEN HUMAN CAPITAL & GROWTH
• HCF (Importance and Problem)
• HUMAN CAPITAL v/s HUMAN DEVELOPMENT
• HCF IN INDIA

Chapter 7: EMPLOYMENT

• IMPORTANT TERMS
• WORKER POPULATION RATIO
• GROWTH & CHANGING STRUCTURE OF EMPLOYMENT
• UNEMPLOYMENT
• GOVERNMENT POLICIES & EMPLOYMENT GENERATION

Chapter 8: INFRASTRUCTURE

• INFRASTRUCTURE
• STATE OF INFRASTRUCTURE IN INDIA
• HEALTH SECTOR

Chapter 9: ENVIRONMENT & SUSTAINABLE DEVELOPMENT

• ENVIRONMENT
• GLOBAL WARMING
• OZONE DEPLETION
• INDIA'S ENVIRONMENT
• LAND DEGRADATION
• SUSTAINABLE DEVELOPMENT

Chapter 10: COMPARATIVE EDEVELOPMENT EXPERIENCES OF INDIA & ITS NEIGHBOURS

• DEVELOPMENT JOURNEY
• ANALYSIS OF CHINA
• ANALYSIS OF PAKISTAN
• COMPARATIVE STUDY - INDIA, CHINA & PAKISTAN
• ANALYSIS OF DEVELOPMENT STRATEGIES

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CBSE Class 12 Economics Important Case Study Based Questions for 2023 Board Exams

Cbse class 12 economics important case study based questions: class 12th economics exam is just a few hours away. get important case study questions to practice before cbse class 12 economics board examinations scheduled to be conducted on march 17, 2023. .

Important Case Study Based Questions for CBSE Class 12 Economics Board Exam 2023

Read the following case study paragraph carefully and answer the questions on the basis of the same..

Q1 The central bank of India i.e. Reserve Bank of India, is the apex institution that control the entire financial market. It's one of the major functions is to maintain the reserve of foreign

exchange. Also, it intervenes in the foreign exchange market to stabilise the excessive fluctuations in the foreign exchange rate.

In other words, it is the central bank's job to control a country's economy through monetary policy; if the economy is moving slowly or going backward, there are steps that central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all Involve injecting more cash into the economy. The simple supply and demand economic projection occur and currency will devalue.

When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices.

Whatever the central bank does or in fact don't do, will affect the currency of that country.

Sometimes, it is within the central bank's interest to purposefully effect the value of a currency.

For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country's commodities will seek cheaper supply; hence directly effecting the economy.

1 Which of the following tools are used by the central bank to control the flow of money in domestic economy?

(a) Fiscal tools (b) Quantitative monetary tools

(c) Qualitative monetary tools (d) Both (b) and (c)

• a) Tighten the money supply in the economy
• b) Ease the money supply in the economy
• c) Allow commercial banks to work under less strict environment
• d) Both (b) and (c)

3 Which of the following steps should be taken by the central bank if there is an excessive rise in the foreign exchange rate?

(a) Supply foreign exchange from its stock

(b) Demand more of other foreign exchange

(c) Not intervene in the market as the exchange rate is determined by the market forces

(d) Help central government to stabilize the foreign exchange rate.

Answer: 

1(d) Both (b) and (c)

2(a) Tighten the money supply in the economy

3(a) Supply foreign exchange from its stock

Q2 Changes in aggregate demand bring about changes in the level of output, employment, income, and price. These changes are generally cyclical in nature. These changes, more generally, follow a cycle of four different stages namely boom, recession, depression and recovery. The cyclical nature of economic activity is known as trade cycle or business cycle. Boom is a stage of economic activity characterized by rising prices, rising employment, rising purchasing power.

• During the time of ‘excess demand’, Govt. should .................. the public expenditure.
• a) Reduce b) increase c) unchanged d) none of these.
• Investment depends on: a) Supply b) income c) saving d) Both (a) and (c)

Answer: Income.

Q3 In the modern world, govt. aims at maximizing the welfare of the people and the country. It

requires various infrastructure and economic welfare activities. These activities require huge govt. spending through appropriate planning and policy. Budget provides a solution to all these concerns. Budget is prepared by the government at all levels.

Estimated expenditure and receipts are planned as per the objectives of the government. In India, budget is prepared by the parliament on such a day as the president may direct. The parliament approves the budget before it can be implemented. The receipts and expenditures as shown in the budget are only the estimated values for the upcoming fiscal year, and not the actual figure.

• a) Reallocation of resources.
• b) Re distribution of income
• c) Reducing expenditure
• d) Economic stability.

Answer: c) Reducing expenditure

Answer: False

Q4 India’s balance of payments position improved dramatically in 2013-14 particularly in the last three quarters. this moved in large part to measure taken by the government and the Reserve Bank of India (RBI) and eat some part to the overall macro-economic slowdown that fed into the external sector. current account deficit (CAD) declined sharply from a record high of U.S. dollar 88.2 billion (4.7% of GDP) in 2012 -1/3 to U.S. dollars 32.4 billion (1.7% of GDP) in 2013 -14. After staying at perilously unsustainable levels off well over 4.0 percentage of GDP in 2011 -12 and 2012 -13, the improvement in BOP position is a welcome relief, and there is need to sustain the position going forward. This is because even as CAD came down, net capital flows moderated sharply from U.S. dollars 92.0 billion in 2012 -13 do U.S. dollar 47.9 billion in 2013-14, that two after a special swap window of

The RBI under the nonresident Indian (NRI) scheme / overseas borrowings of banks alone yielded U.S. dollar 3 4.0 billion. This led to some increase in the level of external debt, but it has remained at the manageable levels. the large depreciation of the rupee during the course of the year, note with standing sizable accretion to reserve in 2013 – 14, could partly be attributed to frictional forces and partly to the role of expectations in the forex market. the rupiah has stabilized the recently, reflecting an overall sense of confidence in the forex market as in the other financial markets of a change for better economic

prospects there is a need to nurture and build upon this optimism through creation of an enabling environment for investment inflows so as to sustain the external position in an as yet uncertain global milieu. --------- The Hindu, archives

• a) credit, capital account
• b) debit, capital account
• c) credit, current account
• d) debit, current account
• a) current account
• b) revenue account
• c) capital account
• d) official reserves
• a) outward flow of foreign exchange
• b) inward flow of foreign exchange
• c) decrease in the level of external debt
• d) decrease in future claims

Answers: 1.b 2. c 3. b 4. d

Q5 The green revolution for the third agricultural revolution is the set of research technology

e-transfer initiatives earring between GNE E and the late 1960 that increased agricultural

production worldwide beginning most markedly in the late 1960 the initiative resulted in

the adoption of new technologies including high yield varieties of CSR rules of cells

especially does wheat and rice it was associated with chemical fertilizers agrochemicals

and controlled water supply and newer methods of cultivation including machine isolation

National bank for agriculture and rural development is and apex development finance

institution fully owned by government of India the bank has been entrusted with Martyrs

concerning policy planning and operations in the field of credit for agriculture and other

economic activities in rural areas in India.

1 Who among the following is known as the father of green revolution

(a) Dr. M S Swaminathan

(b) Dadabhai Naoroji

(c) Vikram Sarabhai

(d) all of these

2 Green revolution is also known as ..................

(a) Golden revolution

(b) milk revolution

(c) Wheat revolution

(d) None of this

3 Which of the following institutions were setup as the apex body in rural areas to support the small farmers in the adoption of modern farming methods?

4 Green revolution was the ............... set of agricultural reforms brought in India

Answer: 1 (a) 2 (c) 3 (d) 4(c)

• Narasimha Rao. This policy opened the door of the India Economy for the global exposure for the first time. In this New Economic Policy P. V. Narasimha Rao governmentreduced the import duties, opened reserved sector for the private players, devalued the Indian currency to increase the export. This is also known as the LPG Model of growth. New Economic Policy refers to economic liberalization or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes to expand the economic wings of the country. Former Prime Minister Manmohan Singh is considered to be the father of New Economic Policy (NEP) of India. Manmohan Singh introduced the NEP on July 24,1991. Main Objectives of New Economic Policy – 1991, July 24 The main objectives behind the launching of the New Economic policy (NEP) in 1991 by the union Finance Minister Dr. Manmohan Singh are stated as follows:

The main objective was to plunge Indian Economy in to the arena of ‘Globalization and to give it a new thrust on market orientation. The NEP intended to bring down the rate of inflation.

1 New Economic Policy of India was launched in the year 1991 under the

• P. V. Narasimha Rao
• Atal Bihari Bajpayi
• Sharad Pawar
• None of these

2 .................................. is also known as the LPG Model of growth. ((choose

the correct alternative)) (New Economic Policy / New Education Policy)

Answer: New Economic Policy

3 State whether the given statement is true or false:

Former Prime Minister Manmohan Singh is considered to be the father of New Economic Policy (NEP) of India. ((choose the correct alternative))

True / False

Answer: True

Q7 Both forms of capital formation are the outcomes of conscious investment decisions. The decision regarding investment in physical capital is taken on the basis of one’s knowledge in this regard. The ownership of physical capital is the outcome of the conscious decision of the owner the physical capital formation is mainly an economic and technical process.

Human capital formation takes place in one’s life when she/he is unable to decide whether it would maximize her/his earnings. Children are given different types of school education and health care facilities by their parents and society. Moreover, the human capital formation at this stage is dependent upon the already formed human capital at the school level. Human capital formation is partly a social process and partly a conscious decision of the possessor of the human capital.

• a) Human capital is intangible whereas physical capital is tangible.
• b) Human capital can cope up with the changing technology whereas physical cannot.
• c) Human capital generates both personal and societal benefits whereas physical capital generates only personal benefit.
• d) Human capital gets obsolete with time whereas physical capital does not.
• In the context of the paragraph, it can be argued that human capital depreciates faster than the physical capital. The given statement is:
• c) Partially true
• d) can’t comment due to lack of proper estimation mechanism
• Machines and industrial tools are examples of _
• a) Physical capital
• b) Human capital
• c) Both physical and human capital
• d) Natural capital
• Investment in education by parents is the same as_______
• a) Investment in intermediate goods by companies
• b) Investment in CSR activity by companies
• c) Investment in capital goods by companies
• d) None of the above

Answer: – c) Investment in capital goods by companies

Q8 The central government will spend Rs. 9800 crores on livestock development over the next five years in a bid to leverage almost Rs. 55000 crore of outside investment into the Animal Husbandry Sector. It would do this by merging a slew of schemes of the Department of Animal Husbandry and Dairying into three main programmes, focused on indigenous cows and dairy development, livestock health and infrastructure development, an official statement said. The Cabinet Committee on Economic Affairs approved the implementation of the special livestock sector package by revising and realigning the various components of the existing schemes in order to boost growth and make animal husbandry more remunerative for the 10 crore farmers engaged in it.

1) Livestock production provides ------------- for the family without disrupting other food producing activities

(a)Increased stability in income 

(b) food security

(c)transport and fuel 

Answer: (d) all of these

2) The central bank undertakes to invest on livestock development in ----------- (horticulture/ animal husbandry) sector

Answer: animal husbandry

3) State one limitation of livestock sector in India

Answer: The livestock productivity is quite low as compared to other countries

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Cbse notes and sample papers, rural development class 12 economics notes | studytution.

April 2, 2020 Mehak Economics 1

In India, majority of the poor people live in rural areas, where they do not have access to the basic necessities of life. Around 30% of our total population still lives below the poverty line. Agriculture, with maximum share of rural economy, has grown at a meager rate of 2.7% in the last fifty years The share of agriculture sector to GDP was on a decline and there has been increase in the share of industrial and service sector. However, the population dependent agricultural sector did not show any significant change. Moreover, after the economic reforms of 1991, the growth rate of agriculture sector decelerated to 3%, which was lower than the earlier years

MEANING OF RURAL DEVELOPMENT

Rural Development refers to continuous and comprehensive socio-economic process, attempting to improve all aspects of rural life.

• In India, agriculture is the major source of livelihood in the rural sector, with more than two-third of India’s population depending on it. So, development in agriculture will contribute to the betterment of rural areas and rural people.

• However, the term rural development includes not only agricultural development, but it involves all those aspects, which improves quality of life of people. It aims at improving the economic and social conditions of people living in villages.

• Rural people account for about 3/4th of total population. However, they have always lagged much behind the overall progress of the economy.

• In order to overcome this undesirable trend, special programmes for rural development began to be designed since the seventies, in addition to provisions of Five-Year Plans of the country.

PROCESS OF RURAL DEVELOPMENT

Rural development aims at comprehensive change and improvement of rural life in all the aspect sum of the areas which a challenging and need fresh initiatives for development of India includes.

1. Development of Human Resources:

The quality of the human resource needs to be improved through following measures

• Proper attention to literacy (specifically on female literacy), education and skill development; and

• Better Health facilities for the physical growth

2 Development of Infrastructure:

It involves:

• Improvement in electricity, irrigation, credit, marketing and transport facilities (including construction of village roads and feeder roads to nearby highways);

• Better facilities for agriculture research and extension and information dissemination.

3. Land Reforms:

It includes the following objectives:

• Elimination of exploitation in land relations;

• Actualisation of the goal of land to the tiller’;

• Improvement of socio-economic conditions of rural poor by widening their land base;

• Increasing agricultural productivity and production.

4. Alleviation of Poverty:

As stated earlier, around 30% of total population is still below the poverty line. So, there is a serious need for taking serious steps for alleviation of poverty and bringing significant improvement in living conditions of weaker sections.

5 Development of the productive resources of each locality to enhance opportunities of employment (particularly other than farming)

In agriculture farmers are in the strong need for credit due to a long time gap between crop sowing and realisation of income

Sources of rural credit

There are two types of rural credit

• Non Institutional sources

• Institutional sources

Non institutional sources of credit have been the traditional source of agricultural credit in India the major non institutional sources are

1. Moneylenders:

From the very beginning, moneylenders have been advancing a major share of farm credit. The peasants are exploited through exorbitant (very high) rates of interest. Quite frequently, their accounts are manipulated without their knowledge

2. Relatives:

Cultivators borrow funds from their own relatives in times of crisis. These loans are a kind of informal loans and carry no interest and are normally returned after harvest.

3. Traders and commission agents:

They provide credit to the peasants on the mortgage of crops at high rates of interest, on a condition, that the crops will be sold to them at low prices.

4. Rich Landlords:

Small as well as marginal farmers and tenants, take loans from landlords, for meeting their financial requirements. Landlords also charge high rates of interest on such loans and exploit the peasants, particularly small farmers and tenants.

Institutional sources

The various non-institutional sources used to exploit small and marginal farmers by lending to them on high interest rates and by manipulating the accounts to keep them in debt-trap.

1. Co-operative credit:

The primary objective of the co-operative is to liberate the India peasantry from the clutches of moneylenders and to provide them credit at low maximizing their income.

2. Land development banks:

They provide credit to the farmers against the mortgage of their lands. Loans are provided for permanent improvement of land, purchasing agriculture implements and for repaying old debts.

3. Commercial bank credit

Initially, commercial banks played a marginal role in advancing rural credit . however , after nationalization role in 1969, they expanded their branches in rural areas and started directly financing the framers.

4. Regional rural banks:

They are opened up in those areas where there are no banking facilities . Their main objective is to provide credit and their facilities , especially to small and marginal farmers , agricultural labourers , artisans and small entrepreneurs in rural areas.

5. National bank of agriculture and rural development (NABARD:

It is the apex bank which coordinates the functioning of different financial institutions, working for expansion of rural credit.

• Its objective is to promote health and strength of credit institution (namely , cooperatives , commercial banks and regional rural banks)

• Besides providing finance to credit institutions, NABARD also provides financial assistance to the non-farm sector, to promote integrated rural development and prosperity of backward rural areas.

Recently, self-help groups (SHGs) have proportion of poor rural households could not avail credit facilities because because of their inability to provide some kind of collateral.

Self-help group (SHG) bank linkages programme for micro finance: SHG has emerged as the major micro finance programme in the country in recent years.

• Their focus is largely on those rural poor, who have no sustainable access to the formal banking system.

• So, their target groups comprise of small and marginal farmers , agriculture and non-agriculture laborers , artisans, etc..

• SHGs promote thrift in small proportions by a minimum contribution from each member .

• From the pooled money, credit is given to the needy members at reasonable interest rates , which is to be repaid in small proportion installments.

• By march 2012 , more than forty three lakh SHGs had reportable been credit linked.

• SHGs have also helped in the empowerment of women. However , the borrowings are mainly confined to consumption purpose and negligible proportion is borrowed for agricultural purposes .

CRITICAL APPRAISAL OF RURAL BANKING

Rapid expansion of the banking system had a positive effect on rural farm and non-farm output , income and employment . after the green revolution , credit facilities helped farmers to avail variety of loans for meeting their production needs.

1. Insufficiency :

The volume of rural credit in the country is still insufficient in comparison to its demand.

2. Inadequate coverage of institutional sources:

The institutional credit arrangement continues to be inadequate as they have failed to cover the entire rural farmers of the country.

3. Inadequate amount of sanction:

The amount of loan sanctioned to the farmers is also inadequate . as a result, farmers often divert such loans for unproductive purpose , which dilute the very purpose of such loan.

4. Less attention to poor or marginal farmers :

Lesser attention has been given on the credit requirement of needy (small and marginal) farmers. On the other hand, well-to-do farmers are getting more attention due to better credit worthiness.

5. Growing overdues:

The problem of overdues in agricultural credit continues to be an ccarea of concern.

• The basic reason for growing overdues is the poor repaying capacity of farmers as a result, credit agencies are becoming cautious of granting loan to farmers.

• Agriculture loan default rates have been chronically high. Moreover, 50% of the defaulters were categorized as ‘wilfull defaulters’, which is a threat to the smooth functioning of banking system and needs to be controlled. Thus, the expansion and promotion of the rural banking sector has taken a backseat after reforms. Expect the commercial banks , other formal institutions failed to develop a culture of deposit mobilization , lending to needy borrowers and effective loan recovery.

To improve the situation

(I) Banks need to change their approach from just lenders to building up relationship banking with the borrowers; and

(II) Farmers should also be encouraged to inculcate the habit of thrift (saving) and efficient untilisation of financial resources. For “features of an effective rural credit system ‘’, refer power booster section.

AGRICULTURAL MARKET SYSTEM

Rural people not only face problems with regard to finance, but also encounter difficulties in marketing their goods. Thus, issue of ‘ agriculture marketing ‘ needs urgent attention in the scheme of securing rapid rural development .

MEANING OF AGRICULTURE MARKETING

Agricultural marketing is a process that involves assemble , storage , processing , transportation , packaging , grading and distribution of different agriculture commodities across the country. Problems faced by farmers

• Manipulations by big traders :

Prior to independence , farmers suffered from faulty weighing and manipulation of accounts while selling their produce to traders.

• Lack of market information :

Farmers often forced to sell at low prices due to lack of required information on prices prevailing in markets .

• Lack of storage facilities :

They also did not have proper storage facilities to keep back their produce in farms are wasted due to lack of storage.

Measures to improve agricultural marketing

After independence , the government of India adopted the following measures to improve the system of agriculture marketing :

1. Regulated markets:

The first measure was regulation of markets ,to create orderly and transparent marketing conditions. Regulated markets have been organized with a view to protect the farmers from the malpractices of sellers and brokers. With a view to protect the farmers from the malpractice of sellers and brokers this policy benefited farmers as well as consumers.

2. Infrastructural facilities :

The government aims to provide physical infrastructure facilities like roads , railways , warehouses , godowns , cold storage and processing units. The current infrastructure facilities are quite inadequate to meet the growing demand and need to be improved .

3. Cooperative marketing :

The aim cooperative marketing is to realize fair price for farmers products . under this , marketing societies are formed by farmers to sell the output collectively and to take advantage of collective bargaining , in order to obtain better price.

However, cooperatives have received a setback during the recent past because of

# inadequate coverage of farmer members;

# lack of appropriate link between marketing and processing cooperatives;

# inefficient financial management.

4. Different policy instruments;

In order to protect the farmers, the government has initiated the following policies;

• Minimum supporter price (MSP) : to safeguard the interest of farmers government fixes the minimum support prices of 24 agricultural products like wheat, rice ,maize , cotton, sugarcane pulses , etc… such a price may be regarded as an offer price , at which government is willing to buy any amount of grains from the farmers.

• Maintenance of buffer stocks: the food corporation of India (FCI) purchases wheat and rice at the procurement prices, to maintain buffer stock . buffer stock is created in the years of surplus production and is used during shortages. it helps to ensure regularity in supply and stability in prices.

• Public distribution system (PDS) : the public distribution system in our country operates though a network of ratio shops and fair price shops. Fair price shops offer essential commodities like wheat , rice , kerosene , etc.. at a price below the market price , to the weaker of the society.

Emerging Alternate Marketing Channels

1. Origin of Farmers Market:

Farmers can increase their income, if they directly sell their produce to consumers. As a result, the concept of “Farmers Market” was started, to give boost to the small farmers by providing them provide direct access to the consumers and eliminating the middlemen. Some examples of these channels are:

• ApniMandi in Punjab, Haryana and Rajasthan;

• Hadapsar Mandi in Pune;

• Rythu Bazars in Andhra Pradesh; and

• UzhavarSandies (farmers market in Tamil Nadu).

Alliance with National and Multinational Companies:

Several national and multinational fast food chains are increasingly entering into contracts/alliances with farmers. • They encourage the farmers to cultivate farm products (vegetables, fruits, etc.) of the desired quality

• They provide them with not only seeds and other inputs, but also assure procurement of the produce at pre-decided prices.

It is argued that such arrangements will help in reducing the price risk of farmers and expand the market for farm products.

DIVERSIFICATION OF AGRICULTURAL ACTIVITIES

The need for diversification arises because:

(i) There is greater risk in depending exclusively on farming for livelihood; and

(ii) To provide productive sustainable livelihood options to rural people. Benefits of Diversification

Benefits of Diversification

. To provide supplementary gainful employment;

• To enable them to earn higher levels of income; and

• To enable rural people to overcome poverty and other troubles.

Types of Diversification

Diversification includes two aspects:

(i) Diversification of Crop Production (Change in Cropping Pattern);

(ii) Diversification of Productive Activities (shift of workforce from agriculture to other allied activities and non agriculture sector).

Diversification of Crop Production

It involves a shift from single-cropping system to multi-cropping system.

• Diversification involves a shift in cropping pattern from food grains to cash crops. Basically the main aim is to promote shift from subsistence farming to commercial farming.

• In India, agriculture is still dominated by subsistence farming and farmers give prime importance to the cereals in the cropping system

• Multi-cropping system reduces the dependence of farmers on one or two crops as are engaged in growing a wide variety of crops.

Diversification of Productive Activities

As agriculture is already overcrowded, a major proportion of the increasing labour force needs to find alternative employment opportunities in other non-farm sector.

• It would Provide alternative avenues of sustainable livelihood and would raise the level of income.

• Non-farm Activities has several segments, Some segments of non-farm activities posses dynamic linkage that permit healthy growth, while others are in subsistence, low productivity propositions.

• The dynamic sub-sectors include agro-processing industries, food processing industries,leather industry, tourism, etc.

• Those sectors which have the potential but seriously lack infrastructure and othersupport,include traditional household-based industries, like pottery, crafts, handlooms etc.

Animal Husbandry

Animal Husbandry (or Livestock farming) is that branch of agriculture, which is concerned with the breeding, rearing and caring for farm animals.

• Under livestock farming, cattles, goats and fowls (duck, goose, etc.) are the widely held species. India owns one of the largest livestock population in the world.

• Livestock production provides increased stability in income,food security, transport, fuel and nutrition for the family,without disrupting other food producing activities.

• Livestock sector provides alternative livelihood options to over 70 million small and marginal farmers, including landless laborers

• A significant number of women also find employment inthe livestock sector.

• In India, poultry accounts for the largest share of 58%,followed by others (camels, asses, horses, ponies and mules).

Dairying is that branch of agriculture which involves breeding, raising and utilisation of dairy animals for the production of milk and the various dairy products processed from it.

Dairying is the business of producing, storing and distributing milk and its products.

• The performance of the Indian dairy sector over the last three decades has been quite impressive.

• Due to the successful implementation of ‘Operation Flood’, India ranks first in the world in milk production. India’s milk production increased from 17 million tonnes in 1950-51 to 102.6 million tonnes in 2006-07 and increased to 165.4 million tonnes in 2016-17.

Operation Flood (or White Revolution) was started by National Dairy Development Board (NDDB) in 1970 under the expert guidance of then chairman, Dr. VergheseKurien. The objective of this programme was to create a nationwide milk grid.

• Under the Operation Flood system, all the farmers pool their milk produce according to different grades and same is processed and marketed to urban centres through cooperatives. The farmers are assured of a fair price and income.

• Gujarat state is held as a success story in the efficient implementation of milk Co-operatives, which has been followed by many states.

• Meat, eggs, wool and other by-products are also emerging as important productive sectors for diversification.

• Fishing community regards water body as ‘mother’:

The water bodies (sea, oceans, rivers, lakes, natural aquatic ponds, streams) are considered as ‘mother’

• Volume of Fish Production:

Presently, fish production from inland sources contributes about 64% to the total fish production and the balance 36% comes from the marine sector

• Share of Fishing in GDP:

The total fish production accounts for 0.8% of the total GDP.

• In India, West Bengal, Andhra Pradesh, Kerala, Gujarat, Maharashtra and Tamil Nadu are major fish producing states.

• Women Participation in Fishing:

Even though women are not involved in active fishing, still, 60% of the workforce in export marketing and 40% in internal marketing are women.

• Problems faced in Fishing:

A large share of fishworker families are poor. Some of the major problems faced by these communities include:

1. Widespread Underemployment;

2. Low per capital earnings;

3. Absence of mobility of labour to other sectors;

4. High Illiteracy rate and indebtedness.

Horticulture

Horticulture refers to the science or art of cultivating fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops. These crops play a vital role in providing food and nutrition, besides addressing employment concerns.

• India has adopted horticulture as it is blessed with a varying climate and soil conditions.

• It is an important sector for potential diversification and value addition in agriculture.

Important Points About Horticulture

1. Contribution:

Horticulture sector contributes nearly one-third of the value of agriculture output and 6% of GDP of India

2. Share in World’s Production:

India has emerged as a world leader in producing a variety of fruits, like mangoes, bananas, coconuts, cashew nuts and a number of spices. With production of 74.877 million tonnes of fruits and 146.554 million tonnes of vegetables in 2010-11, India is the second largest p-oducer of both fruits and vegetables in the world.

3. improvement in Economic Condition:

Horticulture has improved economic condition of many farmers and has become a means of improving livelihood for many unprivileged classes too

4. Great Scope for Women Employment:

Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food are highly remunerative employment options for women in rural areas.

Information Technology

Information Technology (IT) refers to that branch of engineering that deals with the use of computers and telecommunications to retrieve and store and transmit information.

Information Technology Information Technology (IT) refers to that branch of engineering that deals with the use of computers and telecommunications to retrieve and store and transmit information. Information Technology has revolutionized many sectors in the Indian economy. There broad agreement that it will play a critical role in achieving sustainable development and to security in the 21st century. Important points about Information

• Through appropriate information and software tools, government has been predict areas of food insecurity and vulnerability, to prevent or reduce the likelihood of an emergency

• It also have a positive impact on agriculture as it circulate info about modern technology and its application price weather and soil condition.

• It act as a tool for realizing the creative potential and knowledge embedded in society.

SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING

Conventional agriculture relies heavily on chemical fertilisers and toxic pesticides etc., which enter the food supply, penetrate the water sources, harm the livestock, depletethe soil and devastate natural eco-systerlit

Meaning of Organic Farming

Organic farming is the form of agriculture that relies on techniques such as crop rotation, green manure, compost and biological pest control. This method avoids the use of synthetic chemical fertilizers and genetically modified organisms.

• Organic farming is the process of producing safe and healthy food, without leaving any adverse impact on the environment

• In short, organic agriculture is a whole system of farming that restores, maintains andenhances the ecological balance.

• There is an increasing demand for organically grown food, to enhance food safety throughout the world.

Benefits of Organic Farming

Organic Farming is beneficial because of following reasons:

1. Economical Farming:

Organic Farming offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilisers, pesticides, etc.) with locally produced cheaper organic inputs.

2. Generate income through exports It generates income through international exports as demand for organically grown crops is on a rise.

3. Provides Healthy Food:

It provides healthy food as organically grown food has more nutritional value than food grown through chemical farming.

4. Source of Employment

Organic farming generates more employment opportunities as it requires more labour input than conventional farming

5. Safety of environment:

The produce of organic farming is pesticide-free and is produced in an environmentally sustainable way.

Challenges before Organic Farming

1. Less Popular:

Organic farming needs to be popularized by creating awareness and willingness on the part of farmers, for adoption of new technology. There is a serious need for an appropriate agriculture policy to promote organic farming.

2. Lack of infrastructure and marketing facilities:

Organic farming faces problems of inadequate infrastructure and marketing facilities.

3. Low Yield:

Organic farming has a lesser yield in the initial years as compared to modern agricultural farming. As a result, small and marginal farmers find difficult to adapt to large-scale production.

4. Shorter food life:

Organic produce has a shorter shelf life as compared to sprayed produce.

5. Limited choice of crops:

The choice in production of off-season crops is quite limited in organic farming. In Spite of all these limitations, organic farming helps in sustainable development of agriculture and India has a clear advantage in producing organic products, for both domestic and international markets.

EVALUATION OF RURAL DEVELOPMENT

1. Stress on Diversification:

There is a need to make rural areas more vibrant through diversification into dairying, poultry, fisheries, vegetables and fruits.

2. Rural and Urban Linkage:

Efforts should be made to link up the rural production centres With the urban and foreign (export) markets to realise higher returns on the investment for the products.

3. Better facilities:

Proper efforts should be made to develop:

• Infrastructure elements like credit and marketing;

• State agriculture departments;

• Farmer-friendly agricultural policies;

• Constant appraisal and dialogue between farmers groups. The aim is to achieve full potential of the rural sector.

4. More emphasis on Sustainable Development:

There is need to invent or procure alternate sets of eco-friendly technologies that lead to sustainable development in different circumstances.

First a fall mam thanku you much for you proving the notes but mam i also need a sample paper for class 12 arts plz mam

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NCERT Notes for Class 12 Economics Chapter 6 RURAL DEVELOPMENT

Class 12 economics chapter 6 rural development.

NCERT Notes for Class 12 Economics Chapter 6 RURAL DEVELOPMENT , (Economics) exam are Students are taught thru NCERT books in some of the state board and CBSE Schools. As the chapter involves an end, there is an exercise provided to assist students to prepare for evaluation. Students need to clear up those exercises very well because the questions inside the very last asked from those.

Sometimes, students get stuck inside the exercises and are not able to clear up all of the questions.  To assist students, solve all of the questions, and maintain their studies without a doubt, we have provided step-by-step NCERT Notes for the students for all classes.  These answers will similarly help students in scoring better marks with the assist of properly illustrated Notes as a way to similarly assist the students and answer the questions right

WHAT IS RURAL DEVELOPMENT?

• Rural development essentially focuses on the action for the development of areas that are lagging behind in the overall development of the village economy.
• Agriculture is the major source of livelihood in the rural sector.
• Rural development include:
• Development of human resources including – male and female literacy,
• education and skill development,
• focusing both sanitation and public health.
• Land reforms.
• Development of the productive resources of each locality.
• Infrastructure development like electricity, irrigation, credit, marketing, transport facilities etc.
• Special measures for alleviation of poverty.

CREDIT AND MARKETING IN RURAL AREAS

• From time-to-time growth of rural economy primarily depends up on capital to realise the higher productivity in agriculture and non-agriculture sectors.
• At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap.
• After 1969 India adopted social banking and multiagency approach to meet the needs of rural credit.
• In 1982 as an apex body, National Bank for Agriculture and Rural Development (NABARD) was formed to coordinate the activities of all institutions involved in the rural financing system.
• In 1995, a thrift and credit society was started as a small savings bank for poor women with the objective to encourage savings. ( The Poor Women’s Bank )
• The institutional structure of rural banking today consists of a set of multiagency institutions, such as commercial banks, regional rural banks (RRBs) , cooperatives and land development banks.
• Self-Help Groups (SHGs) have emerged to fill the gap in the formal credit system.( Such credit provisions are generally referred to as micro-credit programmes )
• SHGs have helped in the empowerment of women.

Rural Banking — a Critical Appraisal:

• Formal credit institutions have failed to develop a culture of deposit mobilisation.
• Agriculture loan default rates have been chronically high.
• The expansion and promotion of the rural banking sector has not all performed well.
• The relationship between rural farmers and credit institutions were not up to the mark.

AGRICULTURAL MARKET SYSTEM

• Prior to independence, farmers selling their products to traders. Traders followed faulty weighing and manipulation of accounts.
• Farmers did not have any information on prices prevailing in the market.
• To improve the marketing condition, the first step was to regulate the markets, to create orderly and transparent marketing condition.
• Second component is provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storages and processing units.
• Cooperative marketing is the third aspect of government initiative for marketing system.
• The fourth element is the policy instruments like:
• assurance of minimum support prices (MSP) for agricultural products
• maintenance of buffer stocks of wheat and rice by Food Corporation of India and
• distribution of food grains and sugar through PDS.
• These instruments are aimed at protecting the income of the farmers and providing food grains at a subsidized rate to the poor.

Emerging Alternate Marketing Channels

• By these farmers directly sell their products to consumers, it increases their incomes.
• Several national and multinational fast-food chains are increasingly entering into contracts or alliances with farmers to encourage them to cultivate farm products of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices.

DIVERSIFICATION INTO PRODUCTIVE ACTIVITIES

• Diversification includes two aspects one relates to change in cropping pattern and the other relates to a shift of workforce from agriculture to other allied activities (livestock, poultry, fisheries etc.) and non-agriculture sector.
• Diversification reduces risk from agriculture sector and to provide productive sustainable livelihood to rural people.
• As agriculture is already overcrowded, a major proportion of the increasing labour force needs to find alternate employment opportunities in other non-farm sectors.
• The dynamic non-farm sectors include agro-processing industries, food processing industries, leather industry, tourism, etc.
• Majority of rural women find employment in agriculture while men generally look for non-farm employment.

(i)Animal Husbandry

• India, the farming community uses the mixed crop, cattle, goats, fowl livestock farming system
• Livestock Production provides increased stability in income, food security, transport, fuel, and nutrition for the society.
• Milk production in the country has increased by more than eight times between 1951-2014. This can be attributed to the successful implementation of ‘Operation Flood’.
• Meat, eggs, wool and other byproducts are also emerging as important productive sectors for diversification.

(ii)Fisheries:

• The fishing community regards the water body as ‘mother’ or ‘provider’.
• The water bodies consisting of sea, oceans, rivers, lakes, natural aquatic ponds, streams etc. are an integral and life-giving source for the fishing community.
• Today total fish production accounts for 0.8 per cent of the total GDP.
• A large number of fish worker families are poor.
• Underemployment, low per capita earnings, absence of mobility of labour to other sectors and a high rate of illiteracy and indebtedness are some of the major problems fishing community face today.

(iii)Horticulture

• India has adopted growing of diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices, and plantation crops.
• These crops play a vital role in providing food and nutrition and helps in reducing unemployment.
• Horticulture sector contributes nearly one-third of the value of agriculture output and six per cent of Gross Domestic Product of India.
• India has emerged as a world leader in producing a variety of fruits like mangoes, bananas, coconuts, cashew nuts and a number of spices.
• Flower harvesting, nursery maintenance, tissue culture, food processing etc are largely created employment opportunities for women in rural areas.
• Notable change in horticulture occurs during the period between 1991-2003.(golden revolution)
• Horticulture has emerged as a successful sustainable livelihood option and needs to be encouraged widely.

(iv)Other Alternate Livelihood Options

• Now days IT has revolutionised many sectors in the Indian economy.
• IT can play a critical role in achieving sustainable development in agriculture, food security etc through technologies and its applications.
• It played a vital role in employment generation in rural areas.

SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING

• In recent years, awareness of the harmful effect of chemical-based fertilisers and pesticides on our health is widely noticed.
• Conventional agriculture relies heavily on chemical fertilizers and toxic pesticides etc.
• It will adversely affect the food supply, water sources, livestock, soil and natural eco-systems.
• Technologies which are eco-friendly are essential for sustainable development .
• One such eco-friendly technology is organic farming.
• Organic agriculture is a system of farming that restores, maintains and enhances the ecological balance.
• In October 2014, The Government of India introduced a new scheme called Saansad Adarsh Gram Yojana (SAGY). Under this scheme, Members of India’s Parliament need to identify and develop one village from their constituencies.

Benefits of Organic Farming

• Organic agriculture offers a means to substitute costlier agricultural inputs with locally produced organic inputs that are cheaper and thereby generate good returns on investment.
• Organic agriculture generates income through exports.
• Organically grown food has more nutritional value than chemical farming, thereby providing us with healthy foods.
• It is pesticide-free and produced in an environmentally sustainable way.
• Organic farming helps in sustainable development of agriculture.  Organic products had both domestic and international demand.
• The limiting aspect of organic farming is that the yields from organic farming are less than modern agricultural farming.
• Popularising organic farming requires awareness and willingness on the part of farmers to adapt with new technology.
• Choice in production of off-season crops is quite limited in organic farming

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Important Questions Class 12 Economics Chapter 6 – Rural Development

Important Questions with Answers for CBSE Class 12 Economics Chapter 6 – Rural Development , which is outlined by expert Economics teachers from the latest version of CBSE (NCERT) books

CBSE Class 12 Economic Chapter-6 Important Questions

In brief, explain rural development.

Rural development refers to the implementation of the plan for the social and economic upliftment of rural areas.

What does the Micro Credit programme mean?

(a) Credit provision made by small farmers

(b) Credit provision made by self-help groups to its members

(c) Credit provision made by large farmers

(d) None of the above

(b) Credit provision made by self-help groups to its members.

What is the full form of NABARD?

(a) National Bank of Agriculture and Rural Development

(b) Native Bank of Agriculture and Rural Development

(c) Native Bank of Agriculture and Real Development

(d) National Bank of Agriculture and Real Development

(a) National Bank of Agriculture and Rural Development.

Non-institutional sources of agriculture credit are?

(a) Commercial Bank

(c) Regional Bank

(d) Traders

(d) Traders.

Why is a short term loan required by the rural population?

(a) For buying cattle

(b) For buying tractors

(c) For meeting consumption expenditure

(d) For paying old debt

(c) For meeting consumption expenditure.

Which of the following is false regarding SHGs?

(a) Small and informal association for a poor person

(b) Provide rural credit by mobilizing their own resources

(c) Introduced in 1982

(d) Improve rural poor access to a formal credit system

(c) Introduced in 1982.

Below mentioned are the major producers of the marine product except

(a) Gujarat

(c) Maharashtra

(b) Punjab.

Write two instruments to safeguard the interest of farmers by the government.

The two instruments that help in safeguarding the interest of farmers are fixation of minimum support price (MSP) and Buffer stock.

Rural population require long-term loans

(a) To buy fertilizers

(b) To buy agricultural machinery

(c) To buy seeds

(d) To make minor improvements on land

Question 10

What is a microcredit programme?

Microcredit programmes refer to the credit provision or the process of offering small loans made by the self-help groups to its members for assisting in self employment.

Question 11

What is agriculture marketing?

Agriculture marketing is one of the marketing methods where the agricultural products are distributed with the help of wholesalers or retailers so that it reaches the end-users.

Question 12

What is horticulture?

Horticulture is a section of crop agriculture that incorporates forestry and agronomy. In a traditional way, horticulture markets garden crops like nuts, vegetables, fruits, spices and herbs, ornamental plants and beverage crops, etc.

Question 13

How does horticulture work?

Horticulturists perform research in plant propagation, crop production, plant breeding, genetic engineering, plant biochemistry and plant physiology. They help in improving the way we use plants, for food and other human desires, as well as restoring the environment and personal aesthetics.

Question 14

Explain TANWA.

The word “TANWA” refers to Tamil Nadu Women in Agriculture. This project was initiated with the aim of encouraging and giving training to the Tamil Nadu women in the latest agriculture technique.

It involved women to actively participate in agricultural activities and raise the family income. The women with their savings would later promote small household activities like doll making, soap manufacturing, mushroom cultivation or any other income generating activities.

Question 15

Define the adoption of a village.

The adoption of a village is also known as Sansad Adarsh Gram Yojana (SAGY). It is a development programme focusing on the social and cultural development of the rural people.

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Key Notes: Rural Development | Economics Class 12 - Commerce PDF Download

Introduction:.

• Rural development aims to improve economic and social conditions in rural areas.
• Key areas of improvement: employment opportunities, agricultural productivity.
• Significance: Over two-thirds of the population dependent on agriculture, one-third living below the poverty line.

Objectives of Rural Development:

• Enhancing agricultural sector productivity.
• Creating supplementary sources of income.
• Improving education and healthcare facilities.
• Developing infrastructure.
• Enhancing human resource development.
• Mitigating poverty.

Key Initiatives in Rural Development:

• Crop diversification.
• Organic farming.
• Human resource development.
• Improved healthcare.
• Sustainable livelihood alternatives.

Rural Credit in India:

• Historical dependence on moneylenders.
• Introduction of social banking in 1969.
• Role of National Bank for Agriculture and Rural Development (NABARD).
• Various financial institutions supporting rural credit.

Sources of Rural Credit:

• Informal sources (moneylenders, relatives, traders).
• Formal sources (cooperative credit, commercial banks, government institutions, NABARD, self-help groups).

Reasons for Rural Credit:

• Extended time lag between sowing and revenue.
• Input purchases (seeds, fertilizers).
• Personal expenditures.
• Support for agricultural marketing.

Agricultural Marketing:

• Involves assembling, storing, processing, transporting, and distributing agricultural commodities.
• Measures to improve marketing: regulated markets, cooperative marketing, infrastructural facilities, standardization and grading.

Policy Instruments:

• Minimum Support Price.
• Buffer Stock.
• Public Distribution System.

Diversification of Agricultural Activity:

• Promoting crop diversification and non-agricultural activities.
• Animal husbandry, fisheries, horticulture, IT industries.
• Goal: Sustainable livelihoods beyond farming.

Role of IT Industries in Agriculture Development:

• Information technology's impact on agriculture.
• Predicting food insecurity and vulnerability.
• Circulating information on technologies, prices, and weather.
• Making every village a knowledge center.

Organic Farming:

• Cultivation without synthetic chemicals or GMOs.
• Advantages: affordability, export potential, nutrition.
• Disadvantages: lack of awareness, infrastructure, high production costs.

Operation Flood:

• Milk cooperative network launched in 1966.
• Focus on milk collection through cooperatives.
• Success in increasing milk production and market value.

Conclusion:

• Rural sector development is crucial.
• Need for diversification into various industries.
• Infrastructure development, farmer-friendly policies, and communication are key to rural transformation.

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Rural Development Class 12 Important Questions and Answers Indian Economy Chapter 6

We have given these Economics Class 12 Important Questions Indian Economy Chapter 6 Rural Development to solve different types of questions in the exam. Go through these Rural Development Class 12 Important Questions and Answers Solutions & Previous Year Questions to score good marks in the board examination.

Important Questions of Rural Development Class 12 Indian Economy Chapter 6

Question 1. Rural development is important for India. Why? Answer: Rural development is important because around two-third of India’s population lives in rural areas.

Question 2. State the various infrastructural facilities which should be developed in rural areas for their development. Answer: Infrastructural facilities such as electricity, irrigation and transport facilities should be developed to promote rural development.

Question 3. Explain why do farmers need credit? Answer: Farmers need credit to buy additional land, tools, fertilisers and seeds, for paying off old debt and even for personal expenses like marriage, death, religious ceremonies, etc.

Question 4. Why are Indian farmers caught in a debt trap? Answer: The Indian farmers borrow year after year and are not in a condition to pay off debts taken at high rate of interest. The debt mounts year after year. This has created a class of landless labourers who are in a debt trap.

Question 5. Why have Self Help Groups (SHGs) been established? Answer: Self Help Groups (SHGs) have been set up to fill the gap in the formal rural credit system which has proved to be inadequate and has not been fully integrated into the rural, social and community development.

Question 6. Explain the meaning of rural development. Answer: Rural development is a process through which attempts are made to improve the standard of living of rural people.

Question 7. State any two challenges in rural development. Answer: The two challenges are as follows

• Provision of adequate credit in rural areas.
• Improving agricultural marketing.

Question 8. What is meant by rural credit? Answer: Rural credit means providing credit for the farming community.

Question 9. Name any two institutional sources of credit. Answer: Two institutional sources of credit are as follows

• National Bank for Agriculture and Rural Development.
• Regional Rural Banks.

Question 10. Categorise the borrowing needs of farmers. Answer: Borrowing needs of a farmer can be categorised as follows

• Productive borrowings These borrowings include loans to buy seeds, fertilisers and agricultural equipment and implements.
• Unproductive borrowings These borrowings include loans for social purposes such as marriage and festive occasions, or to meet expenditure on illness, death, etc.

Question 11. Explain how Kisan Credit Card fulfills the credit needs of rural population? Answer: Kisan Credit Card (KCC) scheme is an example of credit facility which was introduced by the government in 1998-99. It facilitates access to credit from commercial banks and Regional Rural Banks. Under the scheme, the eligible farmers are provided with a Kisan Card and passbook from the relevant bank. The farmers can make withdrawals and repayments of cash within the credit limit as specified in the Kisan Credit Card (KCC).

Question 12. Enumerate the functions of cooperative credit societies. Answer: The cooperative credit societies pursue the following functions

• They ensure timely flow of credit to the farmers.
• They provide adequate credit support, covering all areas of needs of farmers.

Question 13. Discuss the importance of credit in rural development. (NCERT) Answer: The rural economy can grow only if it has adequate flow of finance. It is capital only which can ensure higher productivity in agriculture. Provision of rural credit enables a farmer to buy improved seeds, fertilisers, organic pesticides and equipments. All these inputs help hire to increase his agricultural productivity and his income.

So, importance of credit in rural development can be perceived as a means to break the!vicious circle of low capital, low productivity and low savings of the rural poor.

Question 14. Explain the role of micro-credit in meeting credit requirements of the poor. (NCERT) Answer: Micro-credit plays an important role in meeting the credit requirements of the poor. Under micro-credit programmes, farmers get adequate credit at cheaper rates. Micro-credit programme promotes thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members, which is repayable in small instalments at reasonable interest rates. Micro-credit programme removes the need of any kind of collateral. It also helps in women empowerment.

Question 15. Write a brief note of Saansad Adarsh Gram Yojana. Answer: In October, 2014, the Government of India introduced a new scheme called Saansad Adarsh Gram Yojana (SAGY). Under this scheme, Members of Parliament (MPs) need to identify and develop one village from their constituency. MPs are expected to facilitate a village development plan, motivate villagers to take up activities and build infrastructure in the areas of health, nutrition and education.

Question 16. Discuss the traditional and modern challenges related to rural development. Answer: Traditional challenges are those which the rural areas have been facing for a long time. Rural credit and agricultural marketing are examples of traditional challenges.

Modern challenges are those which the rural areas face with the changing times. Diversification of agricultural activities and problems related to organic farming are examples of modern challenges.

Question 17. Chtegorise rural credit on the basis of time pehriod. Answer: Rural credit may be classified as

• Long-term credit These loans are for a period of 5 to 20 years. These loans are required to acquire permanent assets like I tractors, land, costly equipment, tubewells, letc.
• Medium-term credit Such loans generally Stretch over a period of 12 months to 5 years. These loans are required for purchasing machinery, constructing fences and digging wells.
• Short-term credit These loans are for a period of 6 to 12 months. These loans are required for buying seeds, tools, manure, fertilisers, etc. These loans are given to the needy borrowers by cooperatives moneylenders and banks.

Question 18. Rural banking has not been able to fulfill the credit needs of farmers. Why? Answer: Rural banking has not been able to give adequate credit to farmers. This is mainly due to lack of proper infrastructure and instruments to dispense credit to needy farmers. It has also failed to develop a culture of deposit mobilisation, lending to worthwhile borrowers and effective loan recovery. Agriculture loan default rates are also high with high incidence of overdue instalments by the farmers.

Question 19. As an agriculturist, suggest any two measures to improve the existing system of agricultural finance. Answer: As an agriculturist, I would offer following suggestions to improve the existing system of agricultural finance

• The supply of finance should be fully institutionalised and dependence on private sources for credit should be eliminated.
• It should be ensured that finance is used for production. Loans can be given in the form of goods like seeds, fertilisers, etc.

Question 20. Why is rural development important for India? Answer: Rural development is important for India because of the reasons stated below

• Even today, nearly 70% of the population of India resides in rural areas. So, if there is growth and prosperity in these areas, it will fesult in the growth and prosperity of the nation as a whole.
• Rural development will help to create employment opportunities in the rural areas. This will not only raise the standard of living of the rural population, but also check the problem of migration.
• Rural development creates opportunities in . rural areas for education and skill development. This helps to increase the efficiency, productivity, mobility, income and standard of living of the people.

Question 21. What steps should be taken relating to finance, so that the objective of rural development is achieved? Answer: To achieve the objective of mral development, following steps related to finance can be taken

• The general interest rate should be low. The banks should charge different rates for different uses.
• The basis of credit should not be mortgage of any security. Production or productivity of land should be the basis for the approval of loans.
• The conditions of repayment of loans should be different so as to suit different circumstances.
• It should be ensured that finance is used for production. Loans can also be given in the form of goods like seeds, fertilisers, etc.
• There should be adequately trained and devoted personnel to manage the financial institutions. The persons should have full knowledge of agriculture and interest of farmers.

Question 22. Give the advantages and limitations of rural banking. Answer: Advantages of rural banking are as follows

• Farm and non-farm output raised with the help of advisory services and credit facilities.
• Food security is achieved. Abundant buffer stock of grains is available now.
• Credit has been provided for self-employment schemes, leading to increase in rural employment levels.

Limitations of rural banking are as follows

• Small and marginal farmers receive only a very small portion of the institutional credit.
• Rural banking is suffering from the problems of large amount of over dues and default rate.
• The sources of institutional finance are inadequate to meet the requirements of agricultural credit.
• There exist regional inequalities in the distribution of institutional credit.

Question 23. Write a short note on NABARD. Answer: NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions involved in rural credit. The main functions of NABARD are

• To grant long-term loans to the State Government for subscribing to the share capital of cooperative societies.
• To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs) and primary cooperative societies.
• To promote research in agriculture and rural development.
• To serve as a refinancing agency for the institutions providing finance to rural and agricultural development.
• To help tenant farmers and small farmers to consolidate their landholdings.

Question 24. What do you mean by rural development? Bring out the key issues in rural development. (NCERT) Answer: Rural development is a comprehensive term which essentially focuses on action for the development of areas that are lagging behind in the overall development of the village economy. It is a process whereby the standard of living of rural people, especially rural poor people, rises continuously. Following are the key issues in rural development

• Development of the productive resources of each locality.
• Development of human resources by providing opportunities for adult literacy, female literacy, education and skill development.
• Development of human resources by providing health facilities, addressing both sanitation and public health.
• Honest implementation of land reforms.

Question 25. What is the meaning of regulated markets? Answer: Regulated markets have been established by the government where sale and purchase of agricultural produce is monitored by market committee consisting of representatives of government, farmers and traders.

Question 26. Why do people look for employment in non-farm sectors? Answer: As agriculture is already overcrowded and cannot offer additional employment, people seek employment in non-farm sectors.

Question 27. Name any two non-farm activities which should be developed in rural areas. Answer: The two non-farm activities which should be developed in rural areas are

• Handicrafts

Question 28. Name some horticultural crops. Answer: Fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops are the examples of some horticultural crops.

Question 29. Name the major states which are producers of marine products. Answer: Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.

Question 30. What do you mean by agricultural marketing? (NCERT) Answer: Agricultural marketing is a process that involves assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country. The agricultural marketing system is a link between the farm and the non-farm sectors.

Question 31. Which policy assures a minimum income to the farmers? Answer: The policy of Minimum Support Price (MSP) assures a minimum income to the farmers.

Question 32. Which government body maintains buffer stocks of crops? Answer: Food Corporation of India

Question 33. Which period is referred to as the ‘golden revolution’? Answer: The period between 1991 and 2003 is referred to as golden revolution.

Question 34. What is the role of buffer stocks in the context of agricultural marketing? Answer: The Government of India has adopted the policy of buffer stocks to minimise the fluctuations in the food prices. Buffer stocks serve as shock absorbers in the economy and provide a defence mechanism against the widely fluctuating price levels.

Under the buffer stock policy, the government builds up stocks of food through direct purchases from the farmers and releases these stocks for sale in the domestic market where prices are increasing. Also, buffer stock operations aim at eliminating unduly low prices consequent to bumper crops.

Question 35. What is the importance of developing proper storage facilities in rural areas? Answer: Farmers are forced to sell their crops at very low prices to traders because of the fear of it getting damaged from fire, rodents or pests due to lack of proper storage. It is essential to develop proper storage facilities in rural areas so that farmers can wait for better price for their produce in the market.

Question 36. Explain the meaning of the term ‘distress sale’? Answer: Lack of agricultural marketing infrastructure often forces the farmers to sell their produce at low prices for fear of spoilage or to pay off an imminent debt. This is termed as distress sale. Farmers tend to suffer highly on account of these sales, because they not only get a low price for their produce, but are also cheated by use of false weights and are charged a high commission.

Question 37. Write a brief note on ‘Operation Flood’. Answer: It is a system whereby all the farmers can pool their milk produced according to different grading {based on quality) and the same is processed and marketed to urban centres through cooperatives.

In this system, farmers are assured of fair price and income from the supply of the milk to urban markets. Gujarat state holds a success story of the efficient implementation of milk cooperatives, which has been followed by many states.

Question 38. What is organic farming and how does it promote sustainable development? (NCERT) Answer: Conventional agriculture relies on chemical fertilisers and toxic pesticides for higher yields of crops. These chemicals and pesticides enter the food supply, penetrate the water sources, harm the livestock, deplete the soil and damage the natural environment. Organic farming is an eco-friendly technique of growing crops, which promotes sustainable development.

In other words, organic agriculture is a whole system of farming that restores, maintains and enhances the ecological balance and enhances the food safety, thus encouraging the practices towards sustainable development.

Question 39. Has globalisation helped the farmers in marketing their produce and raising their standard of living? Answer: Globalisation has expanded the market of the national companies and has allowed various MNCs to operate in India. So, several national and international fast food chains and hotels have been opened in India. These organisations enter into contracts with the farmers to supply them farm products of the desired quality at reasonable prices, thus helping the farmers to market their produce.

Question 41. Explain the role of multinational companies in rural development. Answer: Economic reforms offered the opportunities to multinational companies to expand their functions all around the country. Many multinational companies are entering in the rural marketing.

They are doing well for the sake of farmers as stated below

• They are making contracts with farmers.
• They are motivating farmers to grow desirable food, fruits and vegetables of the desired quality.
• They are providing them seeds and other inputs.
• They are offering them pre-decided prices.

Question 42. Why is agricultural diversification essential for sustainable livelihoods? (NCERT) Answer: Diversification is essential because there is greater risk in depending exclusively on farming for livelihood and to provide productive sustainable livelihood options to rural people. Most of the agricultural employment activities are concentrated in the Kharif season while during the Rabi season it becomes difficult to find gainful employment in areas lacking in irrigation facilities.

Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in realising higher levels of income for rural people to overcome poverty and other problems. Hence, there is a need to focus on allied activities, non-farm employment and other emerging alternatives of livelihood for providing sustainable livelihoods in rural areas.

Question 43. Mention some obstacles that hinder the mechanism of agricultural marketing and create a need for the government to interfere in this sector. (NCERT) Answer: Some obstacles that hinder the mechanism of agricultural marketing are

• Faulty weighing and manipulation of accounts by traders which results in exploitation of farmers when they sell their products to traders.
• Farmers do not have proper storage facilities to store their produce for selling later at a better price. Hence, they are forced to sell even at lower price to save the produce from decaying.
• Due to lack of knowledge about the prices prevailing in the markets, farmers are forced to sell their produce at low prices.

Question 44. What are the alternative channels available for agricultural marketing? Give some examples. (NCERT) Answer: Alternative marketing channels were developed to bring the farmers in direct contact with the consumers. These channels help in increasing farmers’ share in prices paid by the consumers’. Some examples of these channels are

• Apni Mandi (Punjab, Haryana and Rajasthan)
• Hadapsar Mandi (Pune)
• Rythu Bazars (vegetable and fruit markets in Andhra Pradesh)
• Uzhavar Sandies (farmers markets in Tamil Nadu)

Further, several national and multinational fast food chains are increasingly entering into contracts/ alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the products at pre-decided prices.

Question 45. Do you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss. (NCERT) Answer: Government has adopted various measures for improving agricultural marketing such as regulation of markets, provision of physical infrastructure, co-operative marketing and policy measures like MSP, etc. But even after these measures taken by the government, agricultural markets are still predominated by moneylenders, rural political elites, big merchants and rich farmers which are doing private trade.

The current infrastructure facilities are inadequate to meet the growing demand, and need to be improved further. Cooperatives are also suffering from problems like inadequate coverage of farmers as members, lack of appropriate link between marketing and processing co-operatives and inefficient financial management.

Question 46. Explain the role of non-farm employment in promoting rural diversification. (NCERT) Answer: Agricultural sector in India is already overcrowded and suffering from the problem of disguised unemployment. A major proportion of the increasing labour force needs to find alternate employment opportunities in other non-farm sectors.

Animal husbandry, fisheries, horticulture and information technology are the key areas of non-farm activities which have helped in promoting rural diversification. Rural workforce is actively engaged in various non-farm activities to augment their earnings.

Question 47. “Information technology plays a very significant role in achieving sustainable development and food security.” Comment. (NCERT) Answer: Information technology plays a very significant role in achieving sustainable development and food security in the following ways

• It can act as a tool for releasing the creative potential and knowledge embedded in our people.
• Issues like weather forecasting, crop treatment, fertilisers, pesticides, storage conditions, etc can be well administered, if expert opinion is made available to the farmers.
• The quality and quantity of crops can be increased manifold, if the farmers are made aware of the latest equipments, technologies and resources.
• It has potential of employment generation in rural areas.

Question 48. Enlist some problems faced by farmers during the initial years of organic farming. (NCERT) Answer: The problems faced by farmers during the initial years of organic farming are

• Organic farming requires inputs like organic manure, bio-fertilisers and organic pesticides. Though they are cheaper yet farmers find it difficult to get them.
• The yield from organic farming is much less than that of modern agricultural farming.
• The price of organic food is high, so it is difficult to sell them.
• Organic products generally have more . blemishes and shorter shelf life.

Question 49. Explain the steps taken by the government in developing rural markets. (NCERT) Answer: Following are the steps taken by the government in developing rural markets (i) Regulation of markets: The government has established regulated markets where the sale and purchase of the produce is mbnitored by Market Committee consisting of representatives of government, farmers and traders. Regulation of markets helps to create orderly and transparent marketing conditions.

(ii) Improvement in physical infrastructure: Through this measure, the government ensures the improvement in physical infrastructure such as roads, railways, warehouses, cold storages etc.

(iii) Cooperative marketing: The government encourages farmers to form producer marketing cooperative societies so that they get better price of their produce through collective sale.

(iv) Supportive policies: In addition to the above policies, the following supportive policies have also been introduced to develop rural markets

• Minimum Support Price (MSP): The government fixes MSP for agricultural output. This policy assures a minimum income to the farmers.
• Maintenance of buffer stock of wheat and rice: When market price falls much below the MSP, then government purchases the produce from the farmers at MSP and maintains buffer stock.
• Distribution of foodgrains and sugar The buffer stocks are distributed among the poor through the Public Distribution System (PDS) at subsidised prices.

Question 50. Differentiate between ‘Green Revolution’ and ‘Golden Revolution’. Answer: Difference between ‘Green Revolution’ and ‘Golden Revolution’:

Question 51. Bring out the importance of animal husbandry, fisheries and horticulture as a source of diversification. (NCERT) Answer: (i) Importance of animal husbandry: The following points bring for the importance of animal husbandry as a source of diversification

• Today, this sector alone provides alternate livelihood options to a significant number of women and over 70 million small and marginal farmers including landless labourers.
• Milk production of the Indian dairy sector has increased by more than five times between 1960-2009 with the successful implementation of ‘Operation Flood’.
• Meat, eggs, wool and other by-products are also emerging as important productive sectors for diversification.

(ii) Importance of fisheries The water bodies consisting of sea, oceans, rivers, lakes etc are a source of living for the fishing community. This sector is important for the reasons enumerated below:

• Today, toted fish production accounts for 0.8 % of the total GDP. Kerala, Gujarat, Maharashtra and Tamil Nadu are the major producers of marine products.
• Fishing has become a source of women empowerment. Even though women are not involved in active fishing, about 60% of the workforce in export marketing and 40% in internal marketing are women.

(iii) Importance of horticulture Diverse horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and aromatic plants, spices and plantation crops are grown in India. This sector is important for the reasons enumerated below:

• These crops play a vital role in providing food and nutrition, alongwith sustainable employment opportunities.
• During 1991-2003, ‘Golden Revolution’ took place. Horticulture became highly productive during this period due to planned investment and the sector emerged as a sustainable livelihood option.
• India has emerged as a world leader in producing a variety of fruits like mangoes, bananas, coconuts, cashew nuts and a number of spices and is the second largest producer of fruits and vegetables.
• Economic condition of farmers engaged in horticulture has improved.
• Flower harvesting, nursery maintenance, hybrid seed production and tissue culture, propagation of fruits and flowers and food processing are highly remunerative employment options for women in rural areas.

Question 52. Identify the benefits and limitations of organic farming. (NCERT) Answer: Following are the benefits of organic farming

• Organic fanning substitutes costlier agricultural inputs such as HYV seeds, chemical fertilisers, pesticides, etc with locally produced organic inputs which are cheaper and thereby generate better returns on investment for farmers.
• Organic farming generates income through exports as the global demand for organically grown crops is increasing.
• Organically grown food has more nutritional value than food grown through chemical farming thus creating a positive effect on health.
• Organic farming is appropriate for India as organic farming is more labour intensive than conventional farming.
• Organic farming promotes soil that is teaming with life and rich in micro nutrients which can be used for decades to grow crops virtually year round in many parts of the world.

Following are the limitations of organic farming

• Organic farming is labour intensive. Thus, it is beneficial only for small farmers who have abundant labour in his/her family.
• Organic farming is very expensive, the farmer has to carry out the transition, modify the soil structure, etc.
• Organic produce is not traded in many markets, therefore marketing is difficult.
• Organic food prices are not stable and keep fluctuating time to time.
• Organic farming requires a lot of time and greater interaction between a farmer and his crop.

Multiple Choice Questions

Question 1. What percentage of India’s population is dependent on agriculture for their livelihood? (a) One-fourth (b) One-half (c) One-third (d) Two-third Answer: (d) Two-third

Hint: Even today more than two-third of India’s population depends on agriculture which is not generating enough output to provide a decent living for them.

Question 2. Which one is not a challenge in rural development? (a) Poverty (b) Illiteracy (c) Low productivity (d) None of these Answer: (d) None of these

Hint: Challenges in rural development includes lack of credit, irrigation, marketing facilities, high illiteracy and poverty and low productivity due to use of old technology.

Question 3. Which one is not a source of non-institutional rural credit? (a) Friends (b) Self help groups (c) Relatives (d) Landlords Answer: (d) Landlords

Hint: Non-institutional sources are those sources or credit which are not attached to any formal institution. These include friends, moneylenders, landlords, relatives etc. Self help groups comes under institutional source of rural credit.

Question 4. Which of the following is/are the function(s) of agriculture marketing? (a) Assembling and grading (b) Storage and transportation (c) Packaging (d) All of the above Answer: (d) All of the above

Hint: Agriculture marketing is a process that involves functions of assembling, storage, processing, packaging, transportation, grading and distribution of agricultural commodities throughout the country.

Question 5. Which one is not a government measure to improve agriculture marketing? (a) Regulation of markets (b) Cooperative marketing (c) Development of physical infrastructure (d) None of the above Answer: (d) None of the above

Hint: Government measures to improve agricultural marketing includes supportive policies, regulation of agriculture markets, cooperative marketing, development of physical market infrastructure etc.

Question 6. Which government agency purchases and maintain buffer stocks of food grains (wheat and rice)? (a) Food Corporation of India (FCI) (b) Public Distribution System (PDS) (c) Food Safety and Standards Authority of India (FSSAI) (d) Reserve Bank of India (RBI) Answer: (a) Food Corporation of India (FCI)

Question 7. Which of the following is/are the key challenge(s) in rural development? (a) Honest implementation of land reforms (b) Development of productive activities (c) Improving agricultural marketing (d) All of the above Answer: (d) All of the above

Question 8. Why non-institutional sources are not good sources of rural credit? (a) They charge high rate of interest (b) They manipulate accounts (c) They keep land or other assets as collateral (d) All of the above Answer: (d) All of the above

Hint: Non-institutional sources are exploiting farmers by charging high interest rates and manipulate credit accounts. They also keep farmer’s land or other assets as collateral security.

Question 9. Why farmers need rural credit? (a) To purchase seeds, fertiliser, pesticide and insecticide (b) To purchase tractors, tube well and animals (c) To repay previous loans (d) All of the above Answer: (d) All of the above

Hint: Farmers require agricultural credit to purchase seeds, fertiliser, pesticide, insecticide, tractor, crop insurance, tube well, animals and to repay previous loans.

Question 10. Which of the following is/are the feature(s) of diversification of crop production in agriculture? I. Shifting of single cropping system to multi-cropping system. II. Growing cash crops. III. Diversification providing ecological balance. (a) Only I (b) Only II (c) II and III (d) I, II and III Answer: (d) I, II and III

Hint: Diversification of crop production includes multi-cropping and cash cropping. It is good for ecological balance in agriculture and help the farmers to earn more money.

Question 11. Diversification of agricultural activities includes (a) animal husbandry (b) fisheries (c) horticulture (d) All of the above Answer: (d) All of the above

Hint: Diversification of productive/non-farm activities is a part of diversification of agricultural activities, which includes animal husbandry, fisheries, horticulture etc.

Question 12. Organic farming is a part of (a) economic growth (b) economic development (c) sustainable development (d) green revolution Answer: (c) sustainable development

Hint: Sustainable development includes organic farming. Organic farming is traditional way of farming without use of chemical inputs.

• CBSE- Rural Development
• Important Questions

Rural Development-Important Questions

Chapter 6: rural development.

• What do you mean by rural development? Explain its objectives.
• Explain the key issues in rural development?
• Discuss the importance of credit in rural development?
• Define the process of agricultural marketing?
• Regulated Market
• Cooperative marketing
• Minimum support price
• Standardization and Grading
• Why is agricultural diversification essential for sustainable livelihoods?
• Mention some obstacles that hinder the mechanism of agricultural marketing?
• Explain diversification of agricultural activity?
• What is organic farming and how does it promote sustainable development?
• Identify the benefits and limitations of organic farming?
• Define sustainable development?
• Do you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss.
• Operation food
• Labour intensive process
• IT plays an important role in the development of industries. Explain?
• Explain the role of non-farm employment in promoting rural diversification?
• Enlist some problems faced by farmers during the initial years of organic farming?
• STUDY MATERIAL FOR CBSE CLASS 12 ECONOMICS
• Chapter 1 - Aggregate Demand and Related Concepts
• Chapter 2 - Balance of Payments
• Chapter 3 - Banking: Commercial Banks and The Central Banks
• Chapter 4 - Basic Concepts of Macroeconomics
• Chapter 5 - Circular Flow of Income
• Chapter 6 - Development: India and its neighbours
• Chapter 7 - Employment: Growth, Informalisation
• Chapter 8 - Environment and Sustainable Development
• Chapter 9 - Excess Demand And Deficient Demand
• Chapter 10 - Foreign Exchange Rate
• Chapter 11 - Government Budget and the Economy
• Chapter 12 - Human Capital Formation in India
• Chapter 13 - Income Determination and Multiplier
• Chapter 14 - Indian Economy (1950–1990)
• Chapter 15 - Indian economy on the eve of independence
• Chapter 16 - Infrastructure
• Chapter 17 - Liberalisation, Privatisation, Globalisation
• Chapter 18 - Measurement of National Income
• Chapter 19 - Money
• Chapter 20 - National Income and Related Aggregates
• Chapter 21 - Poverty
• Chapter 22 - Rural Development

Comprehensive Guide: Class 12 Rural Development Q&A

Get ahead in your Class 12 Economics Chapter 5 Rural Development studies with our comprehensive guide on Important Questions Answers! Explore key concepts, demystify FAQs, and find expert answers to important questions in this essential resource. Ace your exam with confidence!

"Success is the sum of several small efforts repeated often day in and day out."

Rural Development Class 12 Important Questions & Answers

Q. No. 1) Multiple-Choice Questions (MCQs)

i. Which of the following is the priority in terms of rural development?

a. Land reforms

b. Development of human resources

c. Infrastructural development

d. All of the above

Ans. Option (d)

ii. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The major policy initiatives i.e. land reforms and the green revolution helped India to become self-sufficient in food grains production.

Reason (R): The proportion of people depending on agriculture did not decline as expected.

Alternatives:

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

c. Assertion (A) is true but Reason (R) is false.

d. Assertion (A) is false but Reason (R) is true.

Ans. Option (b)

iii. Which among the following is the major reason for the dismal performance of the agricultural sector even after the reforms?

a. Adequate infrastructure

b. Lack of alternate employment opportunities

c. Decrease in the casualization of employment

d. Decline in public investment

iv. National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the_________body to coordinate the activities of all institutions involved in the rural financing system. (Fill in the blank with the correct alternative)

a. cooperative

c. micro credit

d. private credit

v. Identify which of the following is a source of non-institutional credit in the rural areas of India.

b. Regional Rural Banks

c. Money Lenders

d. Commercial Banks

Ans. Option (c)

vi. Which among the following can be cited as a limitation of micro-credit programmes?

a. It empowers the womenfolk in rural areas

b. It encourages the habit of thrift in rural people

c. Borrowings from such programmes are done for consumption purposes

d. None of these

vii. Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – The emergence of Self-Help Groups (SHGs) ensured the reduction in the fissures of the formal credit system.

Statement 2 – The borrowings from SHGs are mainly confined to consumption purposes by its members.

a. Both statements are true.

b. Both statements are false.

c. Statement 1 is true and Statement 2 is false.

d. Statement 2 is true and Statement 1 is false.

Ans. Option (a)

viii. Micro-credit programmes play a vital role in ensuring the overall development of the rural economy as they____________. (Choose the correct alternative to fill up the blank)

• provide financial support
• lead to women's empowerment
• enhance the reach of the formal credit system

a. (1) and (2)

b) (2) and (3)

c) (1) and (3)

d) (1), (2), and (3)

ix. Read the following statements -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch.

Reason(R): Due to lack of proper storage facilities a lot of farm produce is wasted.

x. Identify the incorrect statement from the following: (Choose the correct alternative)

a. Diversification in the agriculture sector provides sustainable livelihood rural population.

b. Diversification includes - a change in cropping pattern, a shift of workforce from agriculture to other allied activities, and the non-agriculture sector.

c. Objective of investment in new agricultural avenues (non-farm activities) increases financial risks for the rural population.

d. Diversification reduces the proportion of the unemployed population in rural areas to considerable limits.

xi. Kavitha, a farmer in rural India, is a recipient of a government scheme named __________. This scheme helps her set up a bank account and provides insurance, overdraft, and other social security benefits.

a. Sansad Adarsh Gram Yojana

b. Jan-Dhan Yojana

c. Kudumbashree

xii. What aims can be achieved through establishing alternate marketing channels?

a. Increase price risk

b. Reduce the markets for farm products

c. Assured procurement of agricultural products at pre-decided prices

d. Decrease the profits of farmers

xiii. Which of the following sectors have the potential of growth but lack infrastructural support in rural areas?

a. Leather industry

c. Pottery, crafts, and handlooms

d. Steel industry

xiv. Which one of the following states the best reason for India following a mixed crop-livestock farming system?

a. Gives meager income

b. Provides nutrition to the family without disturbing other food-producing activities

c. Does not contribute to food security

d. Agriculture is monsoon dependent

xv. Study the following picture and answer the given question:

Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of activities may be envisaged under _____ as diversification activities.

a. Animal husbandry

b. Fisheries

c. Horticulture

xvi. What is the direct benefit of India taking up organic farming?

a. It is very popular amongst farmers

b. Costlier inputs will fetch a high price for output

c. It is labor intensive

d. There is ample awareness among people about organic products

xvii. Why are farmers reluctant to adopt organic farming?

a. Inputs are costly

b. Short shelf-life of products

c. Lack of proper marketing strategies

Q. No. 2) Access to adequate and timely credit at affordable rates is critical for the rural poor to alleviate high-cost debt and invest in livelihood opportunities. Despite the Government of India's best efforts, financial inclusion of the rural poor has been beset with multiple challenges. Lack of adequate banking infrastructure and human resources in rural areas, unplanned expansion leading to unviable bank branches, and low levels of financial literacy amongst the rural populace have been some of the key challenges. The most vulnerable communities, who often had no formal credit history or ability to provide collateral, have often been the worst affected. The inability to access loans from banks meant that the poorest had to resort to moneylenders for loans at unreasonably high rates of interest which invariably led them into a toxic debt trap. In this context, the SHG-Bank Linkage programme, formalized by the National Bank for Agriculture and Rural Development (NABARD) in 1995, synthesizes 'formal financial systems' (in terms of a formal institution providing credit) with the 'informal sector' (comprising of rural poor with no formal credit history), has emerged as a preferred vehicle for providing financial services to the hitherto unbanked poor. Community-Based Repayment Mechanisms (CBRMs) have been institutionalized at branches involved in financing SHGs to monitor and ensure the timely repayment of loans by SHGs. The number of SHGs with outstanding bank loans stands at nearly 5 million today, implying that the program has brought formal banking services to over 50 million women. Source (edited): Kumar, Shantanu; Pinto, Alreena Renita; Arora, Amit; Roy, Sourav. 2020. SHG-Bank Linkage: A Success Story. South Asia Agriculture and Rural Growth Discussion Note Series; No. 3. World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/34725

i. Why is it important to ensure access to cheap formal sector credit for the rural poor?

a. to create a culture of savings and investment

b. to increase the earnings of the regional rural banks

c. to protect them from predatory lending and debt traps

d. to promote collectivization and organization among them

ii. Which of the following is a crucial area of improvement for rural banking?

a. risk protection for small businesses

b. profitability of non-farm activities

c. a culture of deposit mobilization

d. sustainable development

iii. There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

Assertion (A): Micro-credit can help empower women and make them financially independent.

Reason (R): Micro-credit involves small loans provided at reasonable interest rates that can help people start their own ventures.

a. A is true but R is false.

b. A is false but R is true.

c. A and R are true and R explains A.

d. A and R are true and R does not explain A.

iv. This programme would be successful if it can support a large number of people. What would the number of beneficiaries depend on?

a. community support among them

b. their level of average income

c. their level of financial literacy

d. a culture of saving money

v. What could be the main reason for the institutionalization of Community-Based Repayment Mechanisms (CBRMs)?

a. Rural people should play an active role in the bank's day-to-day functions.

b. If the repayment rate is low, banks would be reluctant to sanction fresh loans.

c. High number of default loans is a burden on the government budget.

d. Rural people deliberately refuse to pay back loans to banks.

vi. Which of the following is likely to be the MAIN objective of this programme?

a. providing livelihood to women

b. financial literacy for rural people

c. building community-bank partnerships

d. enabling credit access for the rural poor

Q. No. 3) Read, the following hypothetical Case Study, carefully and answer the questions on the basis of the same.

For ages, farmers in India have taken recourse to debt. In earlier times, the same was from informal sources. Since independence with the efforts of the government, the formal sector has actively come into picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors like crop failure caused by irregular rainfall, reduction in the groundwater table, locust/other pest attacks, etc. These reasons push them into the clutches of private money lenders, who charge exorbitant rates of interest which add to their miseries.

Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short, to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists. Some economists argue that such schemes are extremely beneficial to the poor and marginalized farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.

i. Uncertainty of income for farmers in India is majorly caused by …………….. (irregular rainfall/unavailability of loans).

ii. Some economists argue that debt waiver schemes are extremely beneficial to the poor and marginalized farmers, as these schemes reduce the burden of ……………….(indebtedness/personal expenditures)

iii. The rural banking structure in India consists of a set of multi-agency institutions. ……………………… (Regional Rural Banks / Small Industries Development Bank of India) is expected to dispense credit at cheaper rates for agricultural purposes to farmers.

iv.……………………. (Regional Rural Banks/ Land Development Banks) is the most prominent body responsible for providing loans for long-term land development.

Ans. i. irregular rainfall

ii. Indebtedness

iii. Regional Rural Banks

iv. Land Development Banks.

Q. No. 4) “Rural Economic development is essential for Indian Economic development”. Do you agree with the given statement? Support your answer with valid reasons.

• Mahatma Gandhi had always maintained that the real growth of India lies in the growth of villages. The
• importance of rural development in India lies in the fact that 2/3rd of the population still (directly or indirectly) depends on agriculture.
• Around 1/3rd of the rural population still lives in abject poverty.

Q. No. 5) What do you mean by rural development? Bring out the key issues in rural development.

Ans. Rural development is quite a comprehensive term but it essentially means a plan of action for the development of rural areas which are lagging behind in socio-economic development.

Some of the prime areas for the development of rural India may be quoted as follows:

• Development of Human Capital – Rural human capital must be developed by taking sincere steps in the direction of education and health.
• Land reforms
• Development of the productive resources of each locality
• Infrastructure development – is the key to any development process. Basic infrastructure requirements like electricity, irrigation, credit availability, transport facilities, construction of village roads and feeder roads to nearby highways, etc. are the area that still needs the attention of the government so as to gain commanding heights.
• Alleviation of poverty - poverty in rural India is an area that should be taken up as a mission for improvement in the living conditions of particularly those living at the bottom of the pyramid. This problem may be tackled by emphasizing greater access to productive employment opportunities.

Q. No. 6) Two-thirds of the Indian population is dependent on agriculture, yet its contribution to GDP is low. Why?

Ans. After the reforms in 1991, the contribution of agriculture to GDP was low because of:

• A decline in public investment since 1991.
• Inadequate infrastructure
• Lack of alternate employment opportunities in the secondary or tertiary sector
• Increasing casualization of employment.

Q. No. 7) Discuss briefly the importance of micro-credit programmes in rural development.

Ans. Self-help groups (SHGs) have emerged to fill the gap in the formal credit system in India as its delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development. It came up as the microfinance program. The focus of SHGs is on those rural people, small and marginal farmers, and agricultural and non-agricultural laborers who do not have sustainable access to a formal banking system.

• Provide financial support

Q. No. 8) Kudumbashree' is a woman-oriented community-based poverty reduction programme being implemented in Kerala. In 1995, a thrift and credit society was started as a small savings bank for poor women with the objective to encouraging savings. The thrift and credit society mobilized ₹1 crore as thrift savings. These societies have been acclaimed as the largest informal banks in Asia in terms of participation and savings mobilized. Source: www.kudumbashree.com, NCERT

Based on this passage,

a) Discuss the role of Self-Help Groups (SHGs) in meeting the credit requirements of the poor.

b) List some of the drawbacks of such micro-credit programmes.

• Poor women or women who do not have any collateral, were excluded from formal institutions of credit.
• With Self-Help Groups, women are able to avail credit, with reasonable repayment plans.
• Further, SHGs also receive funds as Community Investment Support Funds, to create self-employment
• SHGs not only make credit accessible to poor women but also provide them with opportunities to generate their own income and make decisions.
• SHGs foster a sense of community since the credit is disbursed from a pool of money contributed by all. This also holds them accountable to the group.
• SHGs allow rural women to be financially empowered.
• Borrowings from such programmes are done for consumption purposes.
• Lack of financial literacy: Many borrowers who take out microcredit loans do not have a good understanding of financial literacy, such as how to manage their finances and how to make sound financial decisions. This can make it difficult for them to repay their loans and can increase their risk of over-indebtedness.
• Lack of regulation: The microfinance sector in India is not as well-regulated as the banking sector. This can make it difficult for borrowers to get the protection they need if they have problems with their loans.

Q. No. 9) Critically evaluate the role of the rural banking system in the process of rural development in India.

Ans. Rapid expansion of the banking system had a positive effect on rural farm and non-farm output, income, and employment. In spite of this, the following problems have been faced in rural banking such as-

• The volume of rural credit in the country is still insufficient in comparison to its demand and institutional sources have failed to cover the entire rural farmers of the country.
• With the possible exception of commercial banks, other formal institutions have failed to develop a culture of deposit mobilization — lending to worthwhile borrowers and effective loan recovery.
• Agriculture loan default rates have been chronically high.

Q. No. 10) “Jan-Dhan-Yojna helps in the rural development.” Do you agree with this statement? Explain.

Ans. All adults are encouraged to open bank accounts as a part of a scheme known as Jan-Dhan Yojana. Those bank account holders can get Rs. 1-2 lakh accidental insurance coverage and overdraft facilities for Rs. 10,000 and get their wages if they get any government-related jobs and works under MNREGA; old age pension and other social security payments of the government are transferred to bank accounts.

This has led to more than 40 crore people opening bank accounts; indirectly it has promoted thrift habit and efficient allocation of financial resources particularly in rural areas.

Q. No. 11) Define agricultural marketing.

Ans. Agriculture marketing is a process that involves the assembling, storage, processing, transportation, packaging grading, and distribution of different agricultural commodities across the country.

Q. No. 12) State and elaborate whether the following statements are true or false, with valid arguments:

i. Agricultural marketing is a process that ensures the transportation of various agricultural commodities only.

ii. Jan-Dhan Yojana has been a crucial step for financial resource mobilization in the Indian economy.

Ans. i. False. Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading, and distribution of different agricultural commodities across the country.

ii. True. Jan-Dhan Yojana has promoted thrift habits and efficient allocation of financial resources, particularly in rural areas. The formal banking system has mobilized a substantial amount under this yojana.

Q. No. 13) What is the need for diversification in rural areas?

• Reduces the risk of depending on farming for livelihood.
• To provide productive sustainable livelihood options to rural people.
• To provide supplementary employment during rabi season.
• To remove surplus labor from the agricultural sector to non-farm sectors.

Q. No. 14) Mention some obstacles that hinder the mechanism of agricultural marketing.

• Farmers, while selling their produce to traders, suffer from faulty weighing and manipulation of accounts.
• Farmers who do not have the required information on prices prevailing in markets are often forced to sell at low prices.
• They also do not have proper storage facilities to keep their produce for selling later at a better price.

Q. No. 15) Explain the steps taken by the government in developing rural markets.

Ans. The steps taken by the government in developing rural markets are:

• Regulation of markets to create orderly and transparent marketing conditions.
• provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storage, and processing units.
• Cooperative marketing, in realizing fair prices for farmers’ products, is the third aspect of government initiative.
• assurance of minimum support prices (MSP) for agricultural products
• maintenance of buffer stocks of wheat and rice by the Food Corporation of India and
• distribution of food grains and sugar through PDS.

Q. No. 16) What are the alternative channels available for agricultural marketing? Give some examples.

• Hadaspar Mandi
• Rythu Bazars
• Uzhavar Sandies.
• Further, several national and multinational fast food chains are increasingly entering into contracts/alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc.) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices.

Q. No. 17) With fishing as an important allied activity, highlight the problems faced by this sector.

• Low per capita earnings
• Underemployment and rampant poverty among fishermen
• High illiteracy and indebtedness
• Absence of mobility to other sectors.

Q. No. 18) Identify the benefits of organic farming.

• Organic agriculture offers a means to substitute costlier agricultural inputs (such as HYV seeds, chemical fertilizers, pesticides, etc.) with locally produced organic inputs that are cheaper and thereby generate good returns on investment.
• Organic agriculture also generates income through exports as the demand for organically grown crops is on the rise.
• Organically grown food has more nutritional value than chemical farming thus providing us with healthy foods.
• Since organic farming requires more labor input than conventional farming, it generates employment opportunities.
• Finally, the produce is pesticide-free and produced in an environmentally sustainable way.

Q. No. 19) Enlist any two problems faced by farmers in the initial years of organic farming.

Despite being an eco-friendly method of farming, organic farming is not very popular in India. Why?

• Needs to be popularized.
• Inadequate marketing
• Less output as compared to traditional farming
• Shorter shelf life of products
• Limited choice of produce.

Hope you liked these Important Questions and Answers on Class 12 Economics Indian Economic Development Chapter 5 Rural Development. Please share this with your friends and do comment if you have any doubts/suggestions to share.

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CBSE 12th Standard Economics Rural Development Key Points

By QB365 on 27 Apr, 2021

QB365 Offers Short notes, brief explanation, chapter summary, quick revision notes, mind maps, and formulas For Class 12th Economics subject . Regularly revise these exam notes as these will help you to cover all important topics in 12th Economics. These notes will enable you to relieve any pressure and get better marks.

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Rural Development Class 12 Notes PDF (Handwritten & Short Notes)

The primary benefit of Rural Development Notes is that it helps a student to cover the topics which you might have missed in regular lectures. Thus, Rural Development is a very important chapter of Class 12 which no student can afford to miss. These Notes help a student to study all the important topics and concepts which can help them to score well in the exams. 

To help students score well in exams and to make them understand the concepts thoroughly we, selfstudys have Rural Development Notes PDF format which can be downloaded easily and is available free of cost. 

About Indian Economics Rural Development Notes PDF

These Notes are available free of cost for all the students and easy to download. They have access to it 24*7. 

The highly qualified subject matter experts at Selfstudys have developed these Notes which are very informative and can help you study all the topics of Indian Economics Rural Development. 

The Rural Development Class 12 Notes are a great way to study all the concepts and also test your knowledge which can help students to cover all the important highlighted key points of the chapter. 

Topic Wise Rural Development Notes 

Our highly qualified subject matter experts have developed these Notes topic wise to make it easier for students to find them and to learn them. 

These Indian Economics Rural Development Notes are the best study material that improves memory and increases concentration. 

These Notes are considered a great tool to develop a deep understanding of all the concepts. 

How to Download Rural Development Notes PDF format?

Below are the steps to download these notes in PDF: 

• Open the website of Selfstudys: Selfstudys is an educational website designed for KG- Class 12 students to help them find great study materials and other details. The website offers free study resources. To download, Rural Development Notes PDF, you have to open Selfstudys.com in your browser.  

• Click on the NCERT Books and Solutions: To download the Rural Development Notes PDF format, you have to click on this option. 
• Choose the NCERT Notes Menu: After clicking on NCERT Notes menu, a new page will appear and you can choose the class 12 and Indian Economics for which you have to download the notes.

How Rural Development Notes Can Help You Score Well In The Examination? 

Students require a lot of practice to score well in the examinations. One time revision is not enough, that is why selfstudys have developed these notes in PDF format. Let’s have a look at the benefits of these Notes:

• Improves Memory: One of the best benefits of studying Rural Development Notes is that it improves memory of the students. Students can remember information for a long time. 
• Increased Concentration: By studying from these Notes, the concentration of a student can improve which can in turn help them to score well in exams. 
• Organised Study Resource: These Notes are organised topic wise which can help the students to study effectively.

Other Benefits: 

• Revising through Rural Development Notes helps students to recall all the concepts which they have previously studied. 
• These Notes help to boost the confidence of the student as they will go through a topic repeatedly which will make them confident about the topic. 
• These Notes covers each and every topic which helps to reduce the stress and anxiety levels which most students have regarding their exam preparation. 

In conclusion, we can say it confidently that the Rural Development Notes can be a complete game changer for all the students to score well in exams as they can remember topics for a longer time. 

How To Prepare for Exams From Indian Economics Rural Development Notes? 

Exam Preparation should be done in a systematic manner if a student wants to achieve good marks in their exams. Let’s discuss the methods in which a student should do exam preparation from these Notes:

• Start early: All the students should start revising from Rural Development Notes early as when a student starts early, they will have a lot of time to understand the chapter. Starting early also prevents students from being stressed and anxious at the last moment. When revising from these Notes, make sure to go through all the concepts and topics once again that are given in the notes. 
• Make your own learning space: It is advisable for all the students to create a learning environment that helps them to study well and also increase their capability. Rural Development is a subject which requires an immense focus. However, the learning technique is different for each student. Some students can do effective learning in a closed room without any disturbance. On the other hand, others find it helpful when they learn while listening to music.
• Timelines: Students can make timelines to remember important dates. 
• Mind Maps: Students can develop mind maps to remember the summary of the topics and concepts . 
• Cue Cards: Students can also make cue cards and write keywords of topics on them so that they can recollect what they have studied earlier. 
• Practise previous year question papers: Practising previous year question papers can help a student to get the idea of the exam pattern, weightage of topics, exam duration etc. 

The Right Time To Use Rural Development Notes 

Students can use these Notes anytime. There is no right or wrong time. However, below we will discuss the most important times in which a student should revise whatever they have studied in Rural Development: 

• During Board Exam Preparation: The Rural Development Notes can be of great advantage during board exam preparation as it saves the time of the student and helps students to effectively revise all the topics and concepts. 
• During preparation of Entrance Exams: Our subject matter experts have designed these notes in a way so that a student can benefit from these notes even after completion of class 12. Students can use these Notes during the preparation of entrance exams for college and other institutions. 
• Every Weekend after completing the topic Rural Development: It is advisable for all the students to use these on every weekend to make sure that they don't forget any information and to deepen their understanding of the concepts. 

Why Rural Development Notes of Selfstudys is Best? 

The Rural Development is a very important chapter which students can't afford to miss at any cost. Also, in class 12 there are a lot of chapters and topics which can be sometimes difficult for student to do exam preparation: 

• A short notes of Rural Development: A student does not always need big textbooks to do exam preparation. The students can use selfstudys short Rural Development Notes to study and to ensure effective learning. These notes are written in an organised manner which can be easy for all the students to learn. 
• Easy to understand language: It can be very hard for the student to memorise a tricky or lengthy definition so in order to help you revise for your exam preparation, selfstudys can help you with Rural Development Notes which are written in easy language. 
• Practise questions of Rural Development: Selfstudys also has a lot of practice questions of Rural Development to test the knowledge of the students. This can be a great way to identify the strengths and weaknesses of the student and to give them an idea of the area where they are lacking and need more practice. 

Features of The Rural Development Notes 

These Notes are the most important study material which a student should study to score well in examinations. The important features of these notes are: 

• Detailed Explanations: Each and every topic is explained in detail which can help a student to do through learning. 
• Available in the PDF Form: The Rural Development Notes are also available in the PDF Format which can easily downloaded in Mobile, Laptop, Tablet etc. and can be carried anywhere. 
• Each and Every Topic is covered: It can also be ensured that a student will not miss any topic while doing exam preparation from these Notes as each and every course topic is covered in these notes. 
• Developed as per the latest CBSE Curriculum: These Notes are developed as per the latest CBSE Curriculum to create a strong base for the student. 
• Time Management: The Rural Development Notes help in time management for the students as they can complete their entire syllabus in less time and will have extra time for other study materials. 
• Quick Revision: These Notes can help in doing the quick revision of the students and tell them the area where they are lacking and need more practice. 

How Do the Rural Development Notes are prepared? 

The Notes are prepared as per the latest curriculum of CBSE. All the topics are covered in simpler and easy to learn languages to help students score well in the exams. Scoring good marks in class 12 is very important as it helps students to select their desired field. 

Advantages of Rural Development Notes 

Below are the advantages of these Notes: 

• Forces students to pay attention: Throughout the preparation, these Notes force students to pay attention. Which can improve their skills and understanding of concepts. 
• Keeps an academic record of the student: The Rural Development Notes PDF keeps an academic record of the student which can be helpful for them. 
• Helps to revise all the topics: These Notes PDF helps to revise all the topics in the syllabus. Through the last minute revision, students can remember each and every concept. 
• Improves Creativity Level: The Rural Development Notes improves the creativity level of the students as all the topics are developed in the creative manner that forces the student to increase their creative thinking. 
• Acts as a study tool: It can act as a study tool for all the students who are doing exam preparation. These notes can help a student to score well in their examinations. 

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12th Class Economics Rural Development Question Bank

Done case based que - rural development total questions - 8.

A) normal done clear

B) higher done clear

C) subsidized done clear

D) None of these done clear

A) one tax one nation done clear

B) one nation one ration card done clear

C) demonetization done clear

D) None of the above done clear

A) privileged done clear

B) deprived done clear

C) spoiled done clear

A) PAN done clear

B) Aadhar done clear

C) Voter card done clear

D) None of these             done clear

A) 1965 done clear

B) 1966 done clear

C) 1967 done clear

D) 1968 done clear

A) cooperative marketing done clear

B) regulated marketing done clear

C) Both [a] and [b] done clear

A) Gujarat done clear

B) Andhra Pradesh done clear

C) Uttar Pradesh done clear

D) Bihar done clear

A) centralisation done clear

B) diversification done clear

D) None of the above                               done clear

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4_Case_Based_Que-Rural_Development_12th_PW_QF -

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• Rural Development Class 12...

Rural Development Class 12 Notes Economics

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Rural Development Class 12 Notes Economics in PDF are available for free download in myCBSEguide mobile app. The best app for CBSE students now provides Rural Development class 12 Notes Economics latest chapter wise notes for quick preparation of CBSE exams and school based annual examinations. Class 12 Economics notes on Rural Development class 12 Notes Economics are also available for download in CBSE Guide website.

Download CBSE class 12th revision notes for Rural Development class 12 Notes Economics in PDF format for free. Download revision notes for Rural Development class 12 Notes Economics and score high in exams. These are the Rural Development class 12 Notes Economics prepared by team of expert teachers. The revision notes help you revise the whole chapter in minutes. Revising notes in exam days is on of the best tips recommended by teachers during exam days.

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Revision Notes of Class 12 Rural Development

Rural development is a comprehensive term which essentially focuses on action for the development of area which is lagging behind in overall development of village economy.

Objectives of rural development: 1. Increasing productivity of agricultural sector. 2. Generating alternative means of livelihood in rural sector. 3. Promoting education and health facilities in the rural areas.

Key issues in rural development.

(i) A robust system of rural credit. (ii) A system of marketing that ensures remunerative price to the farmer for his produce. (iii) Diversification of crops that reduce risks of production and induces commercialisation of farming. (iv) Diversification of production activity with a view to find alternative means of sustainable living other than crop-cultivation. (v) Promotion of organic farming with a view to make crop cultivation environmental friendly as well as a sustainable process over a long period of time. (vi) Honest system of land reforms. (vii) Development of human resource like health, addressing both sanitation and public health. (viii) Development of human resource including literacy, education and skill development. (ix) Development of Infrastructure like electricity, irrigation, transport facility, etc.

Rural credit means credit for the farming communities. Farmers require credit for various purposes like purchasing agricultural tools and machines, digging wells and tube wells, purchasing seeds, fertilizers, pesticides, etc. The gestation period between sowing and harvesting is high. so, farmers have to borrow to fulfill their needs during this period.

Sources of rural credit in India.

1. Non-institutional sources are money lenders, traders and commission agents, landlord, relatives and friends.

2. Institutional sources are as follow: (i) Co-operative credit societies. (ii) Commercial Banks (iii) Regional Rural Banks (iv) NABARD (National Bank for Agriculture and Rural Development.) (established in 1982) (v) Self Help Groups (SHGs)

The above institutional structure of rural banking which is called multi-agency system which has initiated by govt. in 1969.

Agricultural marketing means all those activities which includes-gathering the produce after harvesting, processing the produce, grading the produce according to its quality, packaging the produce according to preferences of buyers, storing the produce for future sale and selling the produce when price is lucrative.

In other words, Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer.

Defects of agricultural marketing

(i) Inadequate warehouses (ii) Multiplicity of middlemen (iii) Malpractice in unregulated markets. (iv) Lack of Adequate finance (v) Inadequate means of transport and communication.

Measures adopted by the government to improve marketing system.

(i) Regulation of markets. (ii) Co-operative agricultural marketing societies. (iii) Provision of warehousing facilities. (iv) Subsidised transport. (v) Dissemination of marketing information. (vi) Buffer stocks and minimum support price (MSP) (vii) Public Distribution System (PDS) (viii) Alternative marketing channels (ix) Improvement of physical Infrastructure

Diversification in agriculture activities-It has the two aspects.

1. Diversification of crop production refers to a system of multiple cropping rather than mono cropping. It may also mean a shift from subsistence farming to commercial farming. It has the three advantages: (i) It lowers the risk of farmer on account of failure of monsoon. (ii) It enhances the scope for commercialisation of farming. (iii) Minimise the market risk arising due to price fluctuation.

2. Diversification of productive activities imply a shift from crop farming to non-farming areas of employment. Non-farm areas of employment include. (i) Animal husbandry. (ii) Fisheries. (iii) Horticulture. (iv) Cottage and household industry. (v) Information technology-every village a knowledge Centre

It has following advantages: 1. Reduce the risk from agriculture sector. 2. Provide ecological balance. 3. Provide sustainable livelihood option to people living in village.

Organic farming is a system of farming that maintains, enhances and restores the ecological balance. It helps in sustainable development of the agricultural sector, In organic forming, farmers use organic manure, bio fertilizers and organic pesticides.

Advantages of organic farming:

(i) Inexpensive process. (ii) Generates income. (iii) Healthier and tastier food. (iv) Solves unemployment problem. (v) Environment friendly.

Limitation of Organic farming:

(i) Yields from organic farming is less than modern agricultural farming in initial years. (ii) Organic produce have shorter shelf life than sprayed produce. (iii) Choice in production of off-season crops is quite limited in organic farming.

Organic farming involves labour-intensive process of production of labour so India has comparative advantage in organic farming.

Operation Flood It is a system of milk co-operatives, launched in 1966. This system emphasised the pooling of milk by farmers through co-operatives societies. This increased the quantum of sale as well the market value of product. The production in milk increased four-fold. This system if commonly called operation flood.

Labour force : It refers to actual member of people available for work.

Non-farm sector : It refers to jobs in govt. manufacturing, services, construction, mining, retail, etc.

Labour intensive Process : It refers to the process or industry that requires a large amount of labour to produce its goods.

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2 thoughts on “Rural Development Class 12 Notes Economics”

thank you for DBMS MCQS

these notes are very useful , thanks to that person who prepared them . keep this good work going, these are very useful for the students preparing for the exams . thanks again

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