Rural Sector in India

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Rural sector in India

Presented by:

DimpleDhireshEeshita


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Rural sector in India

A vast majority of people in the world live in rural areas. Even for rich countries, rural area played a crucial role in

early stages of development

In Asian context, development primarily means rural

development India is primarily a rural country, 70% of pop. In villages

Indian culture developed and flourished primarily in ruralcommunities


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In rural areas, for several years people lived a life below

the poverty line


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Main reasons for

poverty in rural IndiaRapid population growth

Lack of alternate employment

opportunities other thanagriculture

Illiteracy

GIRLS55% primary level,75% middle level,

85% secondarylevel are out of

school

BOYS20% primary level, 57%middle level, 71%

secondary level are outof school


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Government aims to eliminating

poverty in rural India Full utilization of available physical andhuman resources in rural areas, withfunctional linkage

Development of agriculture and alliedactivities

Development of rural industries

Effective participation of rural poor

Income generating schemes withMinimum Needs Programme(education,rural health, water supply, nutrition etc.)

Increasing capacity of rural sector


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Rural Development: Definition A World Bank publication defines RD as improving

the living standards of the masses of the low-incomepopulation residing in rural areas making the processof rural development self-sustaining.

Includes activities like

Agriculture

forestry fishery

rural crafts and industries and

the building of social and economic infrastructure


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Panchayat Training

Rural Governance

Environment

Employment

orientedprogramme Community

Participation

RuralDevelopmentProgramme

Watershed Mgnt.

WomenEmpowerment

Awareness onSolar Energy

Self Help Groups.

Adult Literacy

Health Education Camps

Education

Youth Programme

Agriculture

Vocational Training

Stitching & Computer

Classes

Research Trainingand Documentation

COMPONENTS OF RURALDEVELOPMENT PROGRAMME


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Agriculture

At present, Agriculture Sector, providesthe livelihood to 65 to 70% of the totalpopulation.

This sector provides employment to 52%of countrys workforce and is the singlelargest private sector occupation.


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Cont..

Agricultural production has largely been

stagnating for the past decade. Costs of inputs like fertilizers and power have

gone up more than the produce.

Per capita foodgrain availability has shrunk towhat it was three decades ago.

More than 67 % of cultivated area is held inholdings less than 4 hectares in size, compared

to just 35 % in 1953. Primary reason for this- decline in public

investment in agriculture.


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AGRICULTURE

72% of farmers have 1 hectare or less. Contribution to GDP has drastically dropped from

over 53% in 1950 to 21 % in 2008.

For the country to achieve 9-10 % growth,agriculture has to grow at least by 4 %.

While it grew by 2.5 % in the first quarter of 2009-10 and by less than 1.5% in the second.

Adverse impact of the deficient monsoon. It is likely to be negative in the 3rd quarter of this

fiscal. source: ministry of Finance website


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Progress of special programmes for raising agriculturalproduction-

National food security mission.Rashtriya krishi Vikas YojanaThe National Agricultural Insurance Scheme (NAIS)Krishi Sramik Samajik Suraksha YojanaWeather- Based crop Insurance Scheme(WBCIS)

source: Economic Survey,2008-09

DEVELOPMENT OFAGRICULTURE Sector


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Cont

In 2009, Department of Agriculture andCooperation, as custodian of the end-users i.e. thefarming community, has sponsored a project

entitled: Development and Application ofExtended Range Forecasting System for ClimateRisk Management in Agriculture (ERFS).

In the first phase (two-three years), it is envisagedto develop a seasonal forecast system for metsubdivisions/ agro-climatic zones. In the secondphase, monthly forecast is targeted at these levels.


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Steps taken by govt. ForAgriculture and Allied Activities Several measures were taken during the year to increase

the flow of credit to agriculture and allied activities. The Union Budget for 2009-10 set a target of Rs.3,25,000

crore for agricultural credit for the year.

Agricultural Debt Waiver and Debt Relief Scheme,

2008


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BUDGET 2010-2011 Agricultural growth

Govt will follow a 4 pronged strategy covering:

A) Agriculture production:

Rs 400 cr provided to extend the green revolution to eastern region

of the country comprising Bihar, Chattisgarh, Jharkhand, EasternUP ,West Bengal and Orissa.

Rs 200 cr provided for sustaining the gains already made in greenrevolution areas through conservative farming which involvesconcurrent attention to soil health , water conservation and

preservation of biodiversity. Rs 300 crore provided to organise 60000 pulses and oil seed villages

in rain fed areas during 2010-11.


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B) Reduction in wastage of produce Government to address the issue of opening up retail trade . It will

help in bringing down the considerable difference between farm gate,wholesale and retail prices.

Deficit in storage capacity met through an ongoing scheme for privatesector participation-FCI to hire godowns from private parties for aguaranteed period of 7 yrs.

C) Credit support to farmersBanks have been consistently meeting the targets set for agriculture credit

flow. For the year 2010-2011 the target has been set at Rs 375000 crore.

In view of recent drought in some states and floods in some other parts ofthe country the period for repayment of the loan amount by farmersextended by 6 months from dec 31,2009 to june 30,2010 under the Debt

Waiver and Debt Relief Scheme for Farmers.Incentive of additional 1% interest subvention to farmers who repay short

term crop loan as per schedule increases to 2% for 2010-2011.


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d) Impetus to food processing sector

In addition to 10 mega food park projects already being set up the govt hasdecided to set up 5 more such parks.

External commercial borrowings to be available for cold storage or coldroom facility including farm level pre cooling for preservation orstorage of allied, agricultural produce marine products and meat.

SOCIAL WELFARE

Mahila kisan sashaktikaran pariyojana to meet the specific needs

of women farmers to be launched with a provision of Rs 100 crore as asub component of National Rural Livelihood Mission.

Saakshar bharat to further improve literacy rate launched with atarget of 7 crore non literate adults which includes 6 crore women.Launched in sept 2009.


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Other allocations The budget 2010-11provides a total ofRs. 66100 crore Rupees

for Rural Development.

Allocation for Mahatma Gandhi National Rural Employment

Guarantee Scheme has been stepped up to Rs. 40,100 crore from39,100 crore in 2010-11.

Unit cost under Indira Awas Yojna has been increased to Rs.45000 in plain areas and Rs. 48500 in the hilly areas.

Allocation for Indira Awas Yojna has been increased from Rs.

8800 crore in Budget 2009-10 to Rs. 10,000 crore in 2010-11. Allocation to Backward Region Grant Fund has been enhanced

by 26% from 5800 crore in 2009-10 to 7300 crore in 2010-11.

Additional central assistance of Rs. 1200 Crore has been providedfor drought mitigation in the Bundelkhand region.


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SCHEMES

Addressing the challenge of unemployment in the rural areas of the country is central tothe development of rural sector for ameliorating the economic condition of the people.

National Rural Employment Guarantee Act (NREGA) and Sampoorna GrameenRozgar Yojana (SGRY) for wage employment.

Swarnajayanti Gram SwarozgarYojana (SGSY).(self-employment)

Besides generating employment these wage employment schemes also ensure creation of

durable assets in rural areas. Initiatives are also taken by the Ministry to build andupgrade the basic rural infrastructure through various schemes.

Pradhan Mantri Gram Sadak Yojana (PMGSY) construction and repairing of ruralroads are taken up to ensure rural connectivity leading to an increase in ruralemployment opportunities, better access to regulated and fair market, better access tohealth, education and other public services so as to accelerate the pace of economicgrowth in rural areas.

Similarly basic amenities for housing, drinking water and toilets, etc. are provided underIndira Awaas Yojana (IAY), Accelerated Rural Water Supply Programme (ARWSP)and Total Sanitation Campaign (TSC) to enhance the welfare and well-being of thevulnerable sections of rural population. Area Development is encouraged throughWatershed Programmes to check the diminishing productivity of waste land and loss ofnatural resources.


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NREGA National Rural Employment Guarantee Act (NREGA) is the flagship

programme of the Government that directly touches lives of the poorand promotes inclusive growth. The Act aims at enhancing livelihoodsecurity of households in rural areas of the country by providing atleast 100 days of guaranteed wage employment in a financial year toevery household whose adult members volunteer to do unskilledmanual work.

The primary objective of the Act is augmenting wage employment. Itsauxiliary objective is strengthening natural resource management

through works that address causes of chronic poverty like drought,deforestation and soil erosion and so encourage sustainabledevelopment.


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Over the last two years, implementation trends vindicate the basicobjective of the Act.

Increasing Employment Opportunities: In 2008-2009, 253 crorehouseholds have been provided employment and 85.29 crore person days

have been generated. Enhancing Wage Earning and Impact on Minimum Wage

Strengthening Natural Resource Base of Rural India: In 2008-2009,16.88 lakh works have been undertaken, of which 49% are related to

water conservation.

Financial Inclusion of the poor: The Central government has beenencouraging the state governments to make wage payment through bankand post office accounts of wage seekers. Thus far, 2.9 crore NREGA bankand post office accounts have been opened to disburse wages. The Ministryis also encouraging the NREGA workers to obtain insurance under Jan ShriBima Yojana.


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The following Graphic Shows the Increased Outlays for NREGA for last 4 years:


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Rural Sector is one of the pillars to the overalleconomic development of India through its

agricultural and non agricultural sub sectors.

This sector has suffered adversely because of

mis- directed policies of the govt. , excessivenumber of small uneconomic land holdings,excessive dependence on monsoons massiveunemployment and illiteracy has rendered this

sector as uncompetitive.


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For the year 2010-11, Rs.66,100 crore for Rural

Development has been proposed by the Indian Govt.


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The National Food for Work Programme was launched in

November 2004 in 150 most backward districts of the

country, identified by the Planning Commission in

consultation with the Ministry of Rural Development and the

State governments.

The objective of the programme was to provideadditional resources apart from the resources available

under the Sampoorna Grameen Rozgar Yojana (SGRY)to 150 most backward districts of the country. Thescheme was 100 per cent Centrally sponsored.


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The programme has since been subsumed in National Rural

Employment Guarantee Act which has come in force in 200

identified districts of the country including 150

NATIONAL FOOD FOR WORK PROGRAMME(NFFWP) districts. The Act provides 100 days of work

guarantee to every rural household whose members

volunteer to do unskilled manual work.


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Launched on 25 December 2000 as a fully funded Centrally

Sponsored Scheme. The primary objective of the PMGSY is

to provide connectivity to all the eligible unconnected

habitations of more than 500 persons in the rural areas (250

persons in the hilly and desert areas) by good quality all-weather roads.

Under Bharat Nirman, goal has been set to provide

connectivity to all the habitations with population of more

than 1000 in the plain areas and habitations with a populationof 500 or more in hilly and tribal areas.


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Rural Housing is also a one of the six component of Bharat

Nirman. Under Bharat Nirman, 60 lakh houses are to be

constructed under the Scheme of Indira Awaas Yojana in four

years w.e.f 2005-06 to 2008-09. 50.38 lakh houses have beenconstructed during first three years of the Bharat Nirman

Programme period with an expenditure of Rs. 13365.52 crore.


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Bharat Nirman has made a substantialcontribution to the upgradation of ruralinfrastructure through its various programmes.

For the year 2010-11, Govt of India will allocatean amount of Rs.48,000 crore for theseprogrammes.


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The Swarnjayanti Gram Swarozgar Yojana (SGSY) was

launched as an integrated programme for self-employment of

the rural poor with effect from 1 April 1999. The objective of

the scheme is to bring the assisted poor families above the

poverty line by organising them into Self Help Groups(SHGs) through the process of social mobilisation, their

training and capacity building and provision of income

generating assets through a mix of bank credit and

government subsidy.


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The focus of the programme is on establishing a large

number of microenterprises in rural areas based on the ability

of the poor and potential of each area, both land-based and

otherwise, for sustainable income generation.


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Article 41 of the Constitution of India directs the State to provide public

assistance to its citizens in case of unemployment, old age, sickness and

disablement.In accordance with the Directive Principles of State Policy,

the Government of India introduced in 1995 the National Social

Assistance Programme (NSAP) to lay foundation to a National Policy for

Social Assistance for the poor. The NSAP aims at ensuring minimumnational standard for social assistance in addition to the benefits that state

are currently providing or might provide in future. At present NSAP

comprises Indira Gandhi National Old Age Pension Scheme (IGNOAPS),

National Family Benefit Scheme (NFBS) and Annapurna.


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Under IGNOAPS which was launched on 19th November,

2007, Rs. 200 per month per beneficiary is provided by way

of central assistance to all persons who are 65 years of higher

and belonging to a family living below the poverty line.

Earlier under National Old Age Pension Scheme (NOAPS),the pension was restricted to destitutes only. The number of

beneficiaries under IGNOAPS is estimated to reach 160 lakh

persons as compared to 87 lakh under NOAPS.


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A Centrally-sponsored scheme, District Rural Development

Agency (DRDA) administration was launched on 1 April

1999 with the objective of strengthening the DRDAs and

making them more professional in their functioning. The

funding pattern of the DRDA administration is in the ratio of75:25 between the Centre and the States.During 2007-2008

the revised estimate for DRDA administration was Rs. 250

crore and the whole amount was also released. In 2008-09 a

budget provision of Rs. 250 crore had been made for thescheme.

Documents

Rural Sector in India