RURAL DEVELOPMENT

Introduction
70% of Indias population is rural
59% are small and marginal farmers and landless laborers
who depend on agriculture.
Topic
Economic Environment of Business
Meaning and essential components of rural
development including the importance of both and
Strategies for rural development.
Learning Outcome
To find out the critical areas for rural development
Meaning of Development
Development a process of both qualitative and
quantitative change in existing systems; aiming
towards immediate improvement or improvement
in near future in terms of standard of living.

What is the difference between Development and

Growth?
The Sad Face of Rural India
Greater Dependence on Agriculture

Large Scale Underemployment or Unemployment

Poor Incomes and Indebtedness

Capital Deficiency

Low Level of Technology and Poor Extension Facilities

Low Level of Productivity

Lack of Infrastructure

Lack of Basic Amenities of Life

Averse to Population Limitation

Social and Cultural Factors

Contd
1950s to mid 1970s little achievement
Economy slower compare to East and South- East
Asian counterparts
Land Reform Act 1956 could not help poor and
helpless esp. in North India
Increase in poverty in late sixties and early seventies
Govt compelled to import food grain
Strategies for Rural Development
Small Farmers Development Agency
Drought-Prone Area Programme
Village Development Programme
Training of Rural Youth for Self-Employment
National Rural Development Programme
Development of Women and Children
Jawahar Rozgar Yojana
Employment Insurance Scheme
Rural Group Life Insurance Scheme
Pradhan Mantri Gramodaya Yojana
Pradhan Mantri Gram Sadak Yojana
Implementation Facets of CDPs
Headed by a block development officer
BDO assisted by eight Extension Officers

One each for agriculture, animal husbandry, Panchayat, co-

operation rural industries, rural engineering, social education,
women and child welfare

VLV BDO Dist. Collector Commissioner

Planning Commission
Panchayti Raj Institutions
1957 Balwant Rai Mehta Commitee appointed to
suggest measures to remove obstacles from CDP
Three tier system of local Govt.
Gram Panchayat (Village level),
Panchayat Samiti (Block level),
Zilla Parishad (District level)

The three-tier system aimed to link Govt. and elected

representative.
To decenterlise decision making
To shift decision making closer to people and
encourage their participation
To place Bureaucracy under peoples control
 PRIs only partially able to meet these expectations
Elite capture of PRIs
Welfare of weaker sections ignored

Mid 60s
Focus shifted to agriculture production
Technological orientation to agriculture
Central Govt. brings special Program's bypassing PRIs
Key Programmes
'National Rural Employment Guarantee Act'2005
(NREGA)
Act guarantees 100 days of employment in a financial year
to every household
a social safety net for the vulnerable groups and an
opportunity to combine growth with equity
Structured towards harnessing the rural work-force, not as
recipients of doles, but as productive partners in our
economic process
assets created result in sustained employment for the area
for future growth employment and self-sufficiency
Operationalised from 2nd February, 2006 in 200 selected
districts, extended to 130 more districts in 2007-08.
The remaining districts (around 275) of the country under
the ambit of NREGA from 1st of April, 2008
Sampoorna Grameen Rozgar Yojana (SGRY)
launched on 25th September 2001
objectives of providing additional wage employment
ensuring food security while creating durable
community, social & economic infrastructure and
assets in the rural areas
SGRY along with National Food for Work Programme
(NFFWP) have been subsumed in the NREGA districts
Swarnjayanti Gram Swarozgar Yojana
(SGSY):
Self employment programme for the rural poor.
The assisted families (Swarozgaris) may be individuals or
groups (Self-Help Groups).
Emphasis is on the group approach
To bring the assisted poor families above the poverty line
by providing them income generating assets through a mix
of bank credits and government subsidy
Organization of poor into Self-Help Groups and taking care
of training, credit, technology infrastructure and
marketing
Implemented by the District Rural Development Agencies
(DRDAs) with the active participation of PRIs the Banks,
the line Departments, and NGOs
Pradhan Mantri Gram Sadak Yojana
(PMGSY)
Launched December, 2000
100% centrally sponsored scheme to provide
connectivity to unconnected habitations
Road connectivity to all habitations with a
population of thousand (500 in case of hilly or
tribal areas) with all weather roads by 2009
Will lead to rural employment opportunities,
better access to regulated and fair market, better
access to health, education and other public
services
Bridge the rural-urban divide and pave the path of
economic growth.
Indira Awas Yojana (IAY)
Since 1985-86 to help build or upgrade homes to
householdsbelow the poverty line
Ceiling on construction assistance under the IAY
currently is Rs. 25,000/- per unit for the plain areas
and Rs.27,500/- for the hilly terrains/difficult areas
To impart transparency to the selection process of
beneficiaries, a 'permanent waitlist' is being
prepared under IAY.
60 lakh houses are to be constructed in a period of
4 year from 2005-06
Against this overall target, 15.52 lakh were built in
2005-06 and 14.98 lakh homes in 2006-07
National Social Assistance Programme
(NSAP)
To provide public assistance to its citizens in case of
unemployment, old age, sickness and disablement within
the limit of the economic capacity of the State
Launched for fulfillment of this obligation in 1995-96.
National Old Age Pension Scheme (NOAPS)
-Rs.200 per month from1st April 2006,
National Family Benefit Scheme (NFBS)
National Maternity Benefit Scheme (NMBS).
(IGNOAPS) launched on 19.11.2007
citizens above the age of 65 years and living below the poverty line
Annapurna Scheme for providing free good grains to the
elderly
Accelerated Rural Water Supply Programme
ARWSP

Central government supplements States efforts for

providing safe drinking water and sanitation by
providing financial and technical assistance under
two centrally sponsored programmes
'Accelerated Rural Water Supply' (ARWSP)
'Central Rural Sanitation Programme' (CRSP).
By 2009, 55,067 uncovered, 3.31 lakh slipped back and
2.17 lakh quality affected habitations are to be addressed
approximately 6 lakhs habitations where water supply is
a problem to be covered
'Total Sanitation Campaign' (TSC)
'Central Rural Sanitation Programme (CRSP)
launched in 1986 aims at improving the quality of
life of the rural poor and to provide privacy and
dignity to women in rural areas.
In 1999, 'Total Sanitation Campaign' (TSC) under
restructured CRSP was launched to promote
sanitation in rural areas.
Follows participatory demand-responsive
approach, educating the rural households about
the benefits of proper sanitation and hygiene
Critical Analysis
80% poor live in villages
Agriculture share in GDP declining but sustains 52%
of population
Unemployment