Gandhian model

• Prepared by: Acharya S.N.Agarwal (1944)

• Revised in: 1948
 Objective
• To raise basic standard of living (social &
cultural)
• To improve economic conditions
• To improve agriculture scientifically &
• Rapid growth of cottage & village
industries
 Gandhian model

Agriculture Cottage &

Village industries

Scientific
Rapid Growth
development
 Scientific development
• Reform of Agriculture
• Self sufficient in food
• Regional self sufficiency
• Land reforms were undertaken
• Better input (seed & fertilizer) in agriculture
• Consolidation of land holdings (joint farming)
• Organization of co-operative farms
• Abolishing – money lending (private)
• Credit facility by Govt. to farmers (Taccavi Loan)
 Cottage &
Village industries

Rapid Growth

• Expansion of cottage industry

• Spinning & weaving of khadi (in every village)
• Cotton ------ thread ----------- cloth
• Every family to contribute apart from agriculture
• Every village should be self-sufficient in clothes
• Ghani oil, Gur making (allied activities),
• Craftsmen : Woden work, Pottery work, Iron works & ,
other activities done by hands of men/women.
Dairy products: milk, ghee For urban areas
Vegetables produced in villages
Oil seeds
Food grains

Get other items from urban

area for village areas
 Labour force in village industry
• 1909-10: 40% of labour force
• 1945-46: 10 % of labour force
• 2005-06: 2.7% of labour force
• 2008-09: 2.5% of labour force.
• Rural labour force have migrated to
nearby urban areas therefore, there is
continous reduction of labour force from
village area (No industrial set up in village)
 Machinery & Gandhian views
• Gandhiji welcome machinery to reduce the
burden of villagers but not to replace the
human labour.
Positive aspect of Gandhian model
• It is employment oriented
• Agriculture production & employment
exists in Gandhian Model
 Agriculture includes
• Agriculture
• Animal husbandry
• Compost Fertilizer production & marketing
• Sanitation & Gobar gas
• Rural work: irrigation projects, soil
conservation, land reclamation &
aforestation, etc
• Cottage & rural industries
• Gandhian model of growth is in favour of
small scale & cottage industries & it is
against large scale industries producing
consumer goods.
 LPG Model
• Introduced in 1991
• By PM: Dr.Manmohan Singh
• Economic policy changed in terms of
LIBERALISATION
PRIVATISATION
GLOBALISATION
 Major changes were planned in
following areas
• Areas reserved for public sector were
opened to private sector
• To set-up industry in private sector
– No need for licensing
• Direct foreign investment up to 51%equity
possible in high priority areas. (but need
Govt. approval)
• Greater autonomy to PSU for
improvement : to be professional
• MGT. & board of PSU to work as
professional expert & earn more profit.
• Line to exports were opened to more
countries.
• Import of foreign capital & technology:
import duty reduced & several barriers
were removed.
• More foreign investment was possible
resulting support to growth to indian
economy
 Weakness of LPG model
• It concentrate on corporate sector which
accounts for only 10% GDP
• LPG model by-passes agriculture & agro-
based industries
• No infra structure for agro-based exports
• Adverse effect on SME of consumer
goods as MNCs have entered in consumer
goods.
• There is large trade gap due to more
imports
• Only urban people have been taking
advantage of LPG.
• Still, poverty & employment problem of
rural is a matter of question
 PURA Model
• Providing Urban Amenities in Rural Area
• Innovator : Dr. A.P.J. Abdul Kalam
• (former Hon’ble President of India)
• Objective: To eradicate poverty from
India. PURA will work as lever of
Economic Upliftment of the villages.
• People below poverty line are about 260
million and present GDP rate is 8.1%. It
has to be increased to 10% and to be
sustained for several years. Then it is
possible for India to get the status of a
DEVELOPED NATION.
• ROAD MAP INVOLVES INTEGRATED
ACTION ON THE FOLLOWING FIVE
AREAS:--
• 1. AGRICULTURE AND FOOD
PROCESSING :-
Food Production target : 400 MT by
2020
2. RELIABLE AND QUALITY ELECTRIC
POWER for all parts of the country.
3. Education and Health Care for all.
4. Expansion of Communication & Technology
to rural areas to promote education and create
national wealth.
• 5. DEVELOPMENT OF STRATEGIC SECTORS:
Growth in Nuclear Technology, Space
Technology and Defence Technology.
• (a) Networking of Rivers (connectivity)
• (b) High quality power Generation.
• (c) Second Green Revolution
• (d) Information & Commu. Tech. transforming
into knowledge products and Tourism
Development.
• PURA Model involves FOUR
connectivities :-
1. Physical Connectivity.
2. Electronic Connectivity.
3. Knowledge Connectivity.
4. Economic Connectivity.
to enhance the prosperity of cluster of
villages in the rural areas.
1. PHYSICAL CONNECTIVITY:
• A group of 15-20 Villages linked by
road.
• Also have a RING ROAD to connect each
other.
• Besides roads, provision of
ELECTRICITY and TRANSPORT facilities
have also been included.
 2. DIGITAL OR ELECTRONIC
CONNECTIVITY:
• It aim to link villages with MODERN
TELECOMMUNICATION and
• INFORMATION TECHNOLOGY
SERVICES, e.g.
• Public Call Offices,
• Cybre Cafes, Computer service etc.
3.KNOWLEDGE CONNECTIVITY:
• Knowledge connectivity means:
• A School within a distance of 5 to 7 Kms.
of circular ring road.
• Higher Education Centre.
• Hospital and Primary Health centre in
villages.
4. ECONOMY CONNECTIVITY:
a) To establish within this group of villages(15-
20 villages) good MARKETING FACILITIES
so that all the Commodities and Services of
daily use can be procured and
b) Rural people can sell their produce in these
markets.
CLASSIFICATION OF PURA IN 3
CATEGORIES:
• Category I --Type-A clusters.(Big Area)
• Category II --Type-B clusters.(Medium)
• Category III --Type-C clusters.(Small A.)
TYPE-A Clusters:
- Closer to an urban area;
- having minimal road connectivity;
- limited infrastructure; limited support of
School, Primary Health Centre (PHC).
• Type –B cluster:-
– It is situated close to urban area but has
sparsely spread infrastructure and
– no connectivity.
Type –C cluster:
--Located far interior (Remote areas),
--with no infrastructure,
--no connectivity and
--no basic amenities.
 IMPLEMENTATION OF- PURA
MODEL BY NATION:
• Govt. Action on the PURA Model:
• 1. Govt. planned to develop 4,000 Rural
clusters location of Backward Regions.
• 2. Budget allocated : Rs. 3 Crores for
each cluster (i.e. 3 x 4000 = Rs.12000 Cr.)
• 3. To be implemented through CDP :
Irrigation facilities were enlarged & Green
Revolution was possible through CDPs.
• 4. There is a migration of population from
Rural to Urban areas, which has created
difference between Urban/ Rural which
continues.
• 5. In 1951 Urban Population was : 17.3%
In 2001 Population have increased to:
27.8% and it will be reaching the level of :
32.0% by 2011.
 OBJECTIVE OF PURA:
• To propel Economic Development without
population Transfers.
• Take Infrastructure to villages where
Human beings live (said by late Prof.
A.M.Khusro).
• PURA concept also invite Private Sector
for Investment for creating Social &
Economic infrastructure in Rural Area.
• For this purpose Rs.3 Crore is not
sufficient to develop One Cluster (15 to 25
villages). Development areas are as
under:
• 1. Roads and Ring Road
• 2. Electricity 3. Transport Facilities
• 4. Telecomm. & Inf. Tech. Services
• 5. Knowledge Connectivity :Higher Edu.
• 6. Hospital & Health Centre.
• 7. Marketing Facilities : Where rural
people can sell their products and can
procure all the commodities & services of
daily use.
• SUGGESTED APPROACH TO GOVT. BY
EXPERTS IS AS UNDER:
• (a) Select 600 Blocks in Back ward areas.
• b) Invest Rs. 25 Crores per Block :
• (25 x 600 =15,000 Crore) This amount
should be given to Block Development
Committee to develop the Clusters.
• The amount will be given in THREE
Phases:
• Ist Phase: Under Xth Plan : 25%
• 2nd Phase: Under XIth Plan : 35%
• 3rd Phase: Under XIIth Plan :40%
• Out of the total amount, 20% amount
should be contributed by the State Govt.,
so that 80% can be released by the
Central Govt. to State Govt.
• There are 3 categories of PURA clusters:
• (i) Urban (Type “A” Cluster)
• (ii) Semi urban (Type “B” Cluster)
• (iii) Village (Type “C” Cluster)
• Govt. should start work of infrastructure at
bottom level (out of ongoing programmes)
i.e. Type “C” Cluster be taken first by State
Govt. with ROADS, ELECTRICITY &
WATER.
• These 3 essential infrastructure should be
made available by State Govt. funds. Then
for remaining developmental work i.e.
Hospital, Education, Telecommunication,
• Transportation and Inf. Technology,
Private Sector investments can be invited.
Private Investor needs basic infrastructure
in village (to reach) with some support &
some incentives for the purpose.
• XIth Plan Provision in Budget: Rs.248 Cr.
for implementing the PURA Scheme in
compact rural areas in Public Pvt.
Partnership (PPP) mode.
• This amount is very inadequate to provide
urban amenities in PURA Clusters to
bridge the Rural Urban divide.
• OPPORTUNITIES AVAILABLE:
• 1. Second Green Revolution : in
backward Rural areas in the less
prosperous States (by use of Modern
Technology in Agriculture)..
• Food Production of 400 Million Tonnes (as
against present production level of 288
Million Tonnes.
• (ii) Rural people should get opportunity of
Employment in Rural or nearby area to
stop migration from Rural area.
• (iii) Creating Employment opportunities
should be shared by PPP.
• *****
 States/Places where PURA
Scheme is being implemented: