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The NCERT Class 11 Indian Economic Development Chapter 5: Rural Development discusses the importance of rural progress for India’s overall growth, given that more than two-thirds of the population depends on agriculture, and one-fourth of rural India lives in abject poverty. It covers key areas like credit and marketing systems, agricultural diversification into allied activities such as livestock, fisheries, and horticulture, and sustainable practices like organic farming. The chapter highlights challenges such as inadequate infrastructure, farmer distress, and the need for diversification to alleviate poverty. These solutions provide clear, concise, and CBSE-aligned answers for effective exam preparation. You can also download the free PDF for revision.
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NCERT Solutions Class 11 Indian Economic Development Chapter 5: Rural Development
This section provides detailed and student-friendly answers for the Class 11 Indian Economic Development Chapter 5 exercise questions. Each answer is explained clearly to strengthen understanding and exam preparation.
Exercise
(Answer in Brief)
- What do you mean by rural development? Bring out the key issues in rural development.
Rural development is a comprehensive term focusing on actions for the development of areas lagging in the overall village economy. It aims to enhance productivity in farm and non-farm activities, provide opportunities for diversification, and improve access to healthcare, sanitation, and education. Key issues in rural development include:
- Human resource development: Promoting literacy (especially female literacy), education, and skill development, alongside health improvements through sanitation and public health measures.
- Land reforms: Addressing land ownership issues to ensure equitable access.
- Development of productive resources: Enhancing local resources to boost productivity.
- Infrastructure development: Providing electricity, irrigation, credit, marketing, transport (village and feeder roads), agricultural research, extension, and information dissemination.
- Poverty alleviation: Implementing special measures to improve the living conditions of the weaker sections by emphasising access to productive employment opportunities.
- Discuss the importance of credit in rural development.
Credit is vital for rural development as it facilitates the infusion of capital needed to enhance productivity in agriculture and non-agriculture sectors. Due to the long gestation period between crop sowing and income realisation, farmers require credit for initial investments in seeds, fertilisers, implements, and family expenses like marriages, deaths, and religious ceremonies. Post-independence, exploitative moneylenders were replaced by institutional credit systems after 1969, with the establishment of the National Bank for Agriculture and Rural Development (NABARD) in 1982 to coordinate rural financing. The Green Revolution diversified rural credit towards production-oriented lending. Institutions like commercial banks, regional rural banks (RRBs), cooperatives, and Self-Help Groups (SHGs) provide affordable credit, boosting farm and non-farm output, income, and employment, and contributing to food security by ensuring buffer stocks of grains.
- Explain the role of micro-credit in meeting credit requirements of the poor.
Micro-credit addresses the credit needs of the poor by filling gaps in the formal credit system, which often excludes poor rural households due to collateral requirements. Self-Help Groups (SHGs) promote thrift by pooling small contributions from members, providing credit to needy members repayable in small instalments at reasonable interest rates. By May 2019, nearly 6 crore women were part of 54 lakh SHGs, with provisions of Rs 10-15,000 per SHG and Rs 2.5 lakhs as Community Investment Support Fund (CISF) for self-employment and income generation. These micro-credit programs empower women, though borrowings are often used for consumption purposes. Schemes like Jan-Dhan Yojana further support financial inclusion by promoting thrift and efficient resource allocation, with over 50 crore bank accounts opened, mobilising Rs 2,00,000 crores in funds.
- Explain the steps taken by the government in developing rural markets.
The government has implemented four key measures to develop rural markets:
- Regulation of markets: Ensures orderly and transparent marketing conditions, benefiting farmers and consumers, though about 27,000 rural periodic markets still need development as regulated marketplaces.
- Physical infrastructure: Includes roads, railways, warehouses, godowns, cold storages, and processing units, but current facilities are inadequate to meet growing demand and require improvement.
- Cooperative marketing: Facilitates fair prices for farmers’ products, with milk cooperatives in Gujarat as a success story, though challenges like inadequate farmer coverage and inefficient financial management persist.
- Policy instruments: Includes (i) Minimum Support Prices (MSP) to protect farmers’ income, (ii) maintenance of buffer stocks of wheat and rice by the Food Corporation of India, and (iii) distribution of food grains and sugar through the Public Distribution System (PDS) to provide subsidised food to the poor.
- Why is agricultural diversification essential for sustainable livelihoods?
Agricultural diversification, involving changes in cropping patterns and shifts to allied activities (livestock, poultry, fisheries) and non-agriculture sectors, is essential for sustainable livelihoods because it reduces the risk of depending solely on farming, which is overcrowded and volatile. It provides productive, sustainable livelihood options, especially during the Rabi season when irrigation is inadequate, limiting employment opportunities. Diversification into dynamic sectors like agro-processing, food processing, leather, and tourism, and traditional industries like pottery and handlooms, offers supplementary income, helping rural people overcome poverty and other challenges. This shift ensures higher income levels and stability, addressing the distress caused by low agricultural productivity and lack of alternative employment.
- Critically evaluate the role of the rural banking system in the process of rural development in India.
The rural banking system has significantly contributed to rural development by expanding credit access, especially post-Green Revolution, boosting farm and non-farm output, income, and employment, and ensuring food security through buffer stocks. Institutions like commercial banks, regional rural banks (RRBs), cooperatives, and land development banks, coordinated by NABARD since 1982, provide affordable credit. Self-Help Groups (SHGs) and Jan-Dhan Yojana have further enhanced financial inclusion, with over 50 crore accounts mobilising Rs 2,00,000 crores. However, challenges persist: non-commercial institutions lack a culture of deposit mobilisation, lending to worthy borrowers, and effective loan recovery, leading to high agricultural loan default rates. Post-reform, the expansion of rural banking has slowed, and borrowings are often used for consumption rather than productive purposes, limiting their impact on sustainable rural development.
- What do you mean by agricultural marketing?
Agricultural marketing is the process involving the assembling, storage, processing, transportation, packaging, grading, and distribution of agricultural commodities across the country. It ensures that food grains, vegetables, and fruits reach consumers through various market channels, addressing the needs of both producers and consumers.
- Mention some obstacles that hinder the mechanism of agricultural marketing.
Obstacles hindering agricultural marketing include:
- Faulty weighing and account manipulation: Historically, farmers faced exploitation by traders, forcing sales at low prices.
- Lack of market information: Farmers often lack knowledge of prevailing market prices, leading to distress sales.
- Inadequate storage facilities: Over 10% of farm produce is wasted due to insufficient storage, preventing farmers from holding produce for better prices.
- Inadequate infrastructure: Insufficient roads, railways, warehouses, godowns, cold storages, and processing units limit market access.
- Dominance of private trade: Moneylenders, rural elites, and big merchants control markets, undermining government efforts.
- Weak cooperative systems: Inadequate farmer coverage, poor links between marketing and processing cooperatives, and inefficient financial management reduce effectiveness.
Also Read: CBSE Class 10 Economics Chapter 1 NCERT Solutions
- What are the alternative channels available for agricultural marketing? Give some examples.
Alternative marketing channels enable farmers to directly sell produce to consumers, increasing incomes and reducing price risks. Examples include:
- Apni Mandi: Operates in Punjab, Haryana, and Rajasthan, allowing direct sales to consumers.
- Hadaspar Mandi: A direct market in Pune.
- Rythu Bazars: Vegetable and fruit markets in Andhra Pradesh and Telangana.
- Uzhavar Sandies: Farmers’ markets in Tamil Nadu.
Additionally, national and multinational fast food chains form contracts with farmers, providing seeds and inputs and ensuring procurement at pre-decided prices, enhancing market access and stability.
- Distinguish between ‘Green Revolution’ and ‘Golden Revolution’.
Here is the comparative difference between the Green Revolution and the Golden Revolution.
- Green Revolution: Refers to the significant increase in agricultural productivity during the 1960s and 1970s due to the adoption of high-yielding variety (HYV) seeds, fertilisers, and irrigation. It diversified rural credit towards production-oriented lending, boosted food grain production, and ensured food security through buffer stocks.
- Golden Revolution: Refers to the growth in horticulture production (fruits, vegetables, flowers, spices, etc.) during the late 20th and early 21st centuries. It contributes nearly one-third of agricultural output and 6% of GDP, with India leading in fruits like mangoes and being the second-largest producer of fruits and vegetables, improving livelihoods for many farmers.
- Do you think various measures taken by the government to improve agricultural marketing are sufficient? Discuss.
Government measures like market regulation, infrastructure development, cooperative marketing, and policy instruments (MSP, buffer stocks, PDS) have improved agricultural marketing by ensuring transparency, fair prices, and subsidised food distribution. However, these measures are not sufficient due to:
- Inadequate infrastructure: Limited roads, warehouses, and cold storage cause over 10% wastage of farm produce.
- Underdeveloped markets: About 27,000 rural periodic markets remain unregulated.
- Weak cooperatives: Inadequate farmer coverage and inefficient management limit their impact.
- Private trade dominance: Moneylenders and elites control markets, undermining government efforts.
- Limited reach of alternative channels: Direct marketing channels like Apni Mandi are not widespread. The 2020 agricultural marketing laws, while aiming to reform, face opposition, indicating gaps in implementation and farmer acceptance. More investment and broader coverage are needed.
- Explain the role of non-farm employment in promoting rural diversification.
Non-farm employment promotes rural diversification by reducing dependence on agriculture, which is overcrowded and risky. It provides supplementary income, especially during the Rabi season when irrigation limitations reduce agricultural employment. Dynamic non-farm sectors like agro-processing, food processing, leather, and tourism offer healthy growth opportunities, while traditional industries like pottery, crafts, and handlooms, though less productive, have potential with infrastructure support. Non-farm employment, increasingly sought by both men and women, enhances income stability, reduces poverty, and supports sustainable livelihoods by leveraging local skills and resources.
- Bring out the importance of animal husbandry, fisheries, and horticulture as a source of diversification.
Below, we have discussed the importance of animal husbandry, fisheries and horticulture as a source of diversification:
- Animal Husbandry: Provides stable income, food security, transport, fuel, and nutrition through mixed crop-livestock farming. It supports over 70 million small and marginal farmers, including landless labourers, with significant women’s participation. Milk production increased twelvefold from 1951-2021 due to Operation Flood, with cooperatives ensuring fair prices, as seen in Gujarat’s success.
- Fisheries: Contributes 0.9% to GDP, with 65% from inland sources and 35% from marine sources. States like West Bengal and Andhra Pradesh lead production. Women constitute 60% of export marketing and 40% of internal marketing, though the sector faces challenges like underemployment and indebtedness.
- Horticulture: Contributes one-third of agricultural output and 6% of GDP, with India leading in fruits like mangoes and second in overall fruit and vegetable production. It improves livelihoods, especially for unprivileged classes, with women engaged in flower harvesting, nursery maintenance, and food processing, offering remunerative employment options.
- ‘Information technology plays a very significant role in achieving sustainable development and food security’ — comment.
Information technology (IT) significantly contributes to sustainable development and food security by enabling governments to predict food insecurity and vulnerability using software tools, allowing timely interventions to prevent emergencies. IT disseminates information on emerging technologies, prices, weather, and soil conditions, enhancing agricultural productivity and market access. While not a catalyst for change itself, IT releases the creative potential and knowledge within society, fostering innovation. It also generates employment in rural areas through experiments in IT applications for rural development, supporting sustainable livelihoods and food security.
- What is organic farming, and how does it promote sustainable development?
Organic farming is a system of agriculture that restores, maintains, and enhances ecological balance by using eco-friendly technologies and avoiding chemical fertilisers and pesticides. It promotes sustainable development by:
- Substituting costly chemical inputs with cheaper, locally produced organic inputs improves returns on investment.
- Meeting the rising global demand for organic food, generating export income.
- Producing nutritious, pesticide-free food, enhancing health and food safety.
- Requiring more labour, creating employment opportunities, particularly in India.
- Protecting the environment by reducing soil depletion, water contamination, and harm to livestock and ecosystems.
- Identify the benefits and limitations of organic farming.
Here are the benefits of organic farming:
- Substitutes costly chemical inputs with cheaper organic ones, improving investment returns.
- Generates income through exports due to the rising global demand for organic products.
- Produces healthier, pesticide-free food with higher nutritional value.
- Creates more employment due to higher labour requirements.
- Promotes environmental sustainability by maintaining ecological balance.
Limitations of organic farming: - Lower yields in initial years compared to modern farming, challenging for small farmers.
- Organic produce may have more blemishes and a shorter shelf life.
- Limited options for off-season crop production.
- Inadequate infrastructure and marketing challenges hinder adoption.
- Requires farmer awareness and willingness to adapt to new technology.
- Enlist some problems faced by farmers during the initial years of organic farming.
Problems faced by farmers during the initial years of organic farming include:
- Lower yields compared to modern agricultural methods are impacting income.
- More blemishes on produce, affecting market appeal.
- Shorter shelf life of organic products, leading to potential wastage.
- Limited options for producing off-season crops restrict flexibility.
- Lack of adequate infrastructure and marketing support for organic produce.
- Need for awareness and training to adapt to organic farming techniques.
- “Jan-Dhan-Yojna helps in the rural development.” Do you agree with this statement? Explain.
Yes, Jan-Dhan Yojana helps in rural development by promoting financial inclusion and efficient resource allocation. It encourages adults to open bank accounts without minimum balance requirements, providing Rs 1-2 lakh accidental insurance coverage and Rs 10,000 overdraft facilities. Wages from government jobs, MNREGA, old-age pensions, and other social security payments are transferred directly to these accounts. By May 2019, over 50 crore accounts were opened, mobilising Rs 2,00,000 crores, fostering thrift habits, and enabling access to credit for productive purposes. This enhances rural income, supports self-employment, and reduces dependence on exploitative moneylenders, contributing to rural development.
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