RURAL DEVELOPMENT IN INDIA

Dr Shikha Tripathi

INDIA- THE HARD FACTS…..

India -

the home of more than ONE BILLION people

has the largest number of POOR in the world

has the largest number of illiterates in the world …

of the 1 billion illiterates in the world (a sixth of the total world population), about 300 million are in India – larger than the population of the US, and twice the population of Brazil or Russia

has among the world’s worst child malnutrition

rates. ….

About 72% of the total population live in RURAL AREAS

About 28.5% of the rural population lives BELOW POVERTY LINE

Of the rural poor, the share of AGRICULTURAL LABOUR HOUSEHOLDS has increased from 41% in 1993-94 to 47% in 1999-00

Among the social groups, scheduled castes, scheduled tribes and BACKWARD CASTES accounted for 81% of the rural poor in 1999-00.

In 2004-05 28% poor constituted rural population, among the scheduled castes, it was 36.8%

• Poverty level is not uniform across India.

• The poverty level is below 10% in states

like Delhi, Goa, and Punjab etc whereas it

is below 50% in Bihar (43) and Orissa (47).

• It is between 30-40% in Northeastern

states of Assam, Tripura, and Mehgalaya

and in Southern states of TamilNadu and

Uttar Pradesh.

• The incidence of income poverty among females tended to be marginally higher in both rural and urban areas.

• The percentage of female persons living in poor households was 28% in rural and 26% in urban areas in 1993–94, and 29 and 23 respectively in 2004–05.

RURAL DEVELOPMENT

Rural Development is concerned with

– economic growth and social justice

– improvement in the living standard of the rural people

by providing adequate and quality social services and minimum basic needs.

RURAL DEVELOPMENT(contd...)

Hence rural development mainly

focuses on

–poverty alleviation,

–better livelihood opportunities,

–provision of basic amenities and

infrastructure facilities

through innovative programmes of

wage and self-employment.

Role of Agriculture in Rural development

• Although its share in Gross Domestic Product (GDP) has declined from over half at Independence to less than one-fifth currently, agriculture remains the predominant sector in terms of employment and livelihood with more than half of India’s workforce engaged in it as the principal occupation.

• Most of the rural poor depend on rain-fed agriculture and fragile forests for their livelihoods.

Agricultural intensification in the 1970s

to 1980s saw an increased demand for

rural labour that raised rural wages

and, together with declining food

prices, reduced rural poverty.

RECENT TRENDS AND CONCERNS

Recent trends that have raised concern regarding food security, farmers’ income, and poverty are:

– Slowdown in growth.

Growth of agricultural GDP decelerated to around 2% during 2004–05. This deceleration, although most marked in rain fed areas, occurred in almost all States and covered almost all major sub-sectors, including those such as horticulture, livestock, and fisheries where growth was expected to be high

RECENT TRENDS AND CONCERNS (contd..)

–Widening economic disparities

between irrigated and rain-fed areas.

–Uneven and slow development of

technology.

– Inefficient use of available technology and inputs.

–Degradation of natural resource base.

–Rapid and widespread decline in groundwater table, with particularly adverse impact on small and marginal farmers

• Aggravation in social distress as a cumulative impact of the above, reflected in an upsurge in farmers’ suicides.

ISSUES AND CHALLENGES

1 Weak Framework for Sustainable Water Management and Irrigation

- Inequitable allocation of water

- Deteriorating irrigation infrastructure

2 Inadequate Access to Land and Finance:

- Stringent land regulations discourage rural investments

- Computerization of land records has brought to light institutional weaknesses

- Rural poor have little access to credit

3. Weak Natural Resources Management:

- A purely conservation approach to forests is

ineffective

- Weak resource rights for forest communities

4. Weak delivery of basic services in rural areas

- Low bureaucratic accountability and inefficient use

of public funds

Rural Development : Role of Government

In order to provide the rural people with better

prospects for economic development, increased

participation of people in the rural development

programmes, decentralization of planning, better

enforcement of land reforms and greater access to

credit are envisaged

Ministry of Rural Development

• The Department of Rural Development is implementing a number of programmes in rural areas through the state Governments for poverty reduction, employment generation, rural infrastructure habitant development, provision of basic minimum services etc.

•

• The important programmes presently being

implemented by the Department are :

• Pradhan Mantri Gram Sadak Yojana (PMGSY):

This is a scheme launched and fully sponsored by the Central Government of India. The main objective of the scheme is to connect all the habitations with more than 500 individuals residing there, in the rural areas by the means of weatherproof paved roads.

• Swarnajayanti Gram Swarozgar Yojana (SGSY):

This was implemented as a total package with all the characteristics of self employment such as proper training, development of infrastructure, planning of activities, financial aid, credit from banks, organizing self help

groups.

• Sampoorna Gramin Rozgar Yojana (SGRY):

This scheme aims at increasing the food protection

by the means of wage employment in the calamities affected rural areas after the appraisal of the state government & the appraisal is accepted by the Ministry of Agriculture

Indira Awaas Yojana (Rural Housing):

This scheme puts emphasis on providing housing

benefits all over the rural areas in the country.

• DRDA Administration

In order to strengthen the DRDAs and to make them more professional and effective, a new centrally sponsored scheme, namely, DRDA Administration has been introduced from 1st April, 1999 based on the recommendations of an inter-ministerial committee known as the Shankar Committee. Under this, a separate provision has been made to meet the administrative expenses of the DRDAs who are expected to effectively manage and implement the schemes

• Role of PRIs In order that the programme implementation reflects

the needs and aspirations of the local people the Panchayati Raj Institutions are considered as an important tool for the implementation of the programmes.

• Sustained efforts are being made to strengthen local governance, institutionalizing people’s participation and empowering women through PRIs.

• The State governments are being pursued for delegation of adequate administrative and financial powers to PRIs and a significant change has been noticed in this regard

• National Rural Employment Guarantee Act-2005 (NREGA)

Workfare programmes typically provide

unskilled workers with short-term employment on public works. They provide income transfers to poor households during periods when they suffer on account of absence of opportunities of employment.

The Employment Guarantee Act is a step towards the right to work, as an aspect of the fundamental right to live with dignity

• SOCIAL PROTECTION—NATIONAL SOCIAL ASSISTANCE PROGRAMME (NSAP) AND ASSOCIATED PROGRAMMES

launched on 15 August 1995, the basic aim

of this programme was to provide social assistance benefit to the rural poor in case of old age, death of primary breadwinner, and for poor women during maternity.

It provides an opportunity for linking the social assistance package to schemes for poverty alleviation and provision of basic

needs.

• Providing Urban Amenities In Rural Areas (PURA)

Mooted by the former President Dr.

Abdul Kalam in January, 2003 as a way of empowering and accelerating rural development, its based on the argument that the provision of urban amenities in rural areas would have a highly beneficial impact on rural

development.

• BHARAT NIRMAN

Infrastructure has played a very important

role in poverty removal. The government launched a time-bound plan under Bharat Nirman in 2005 for implementation during the four-year period, 2005–09.

• Its six components included under the programme are irrigation, drinking water, electrification, roads, housing, and rural telephones.

Rural India - Myths & realities

Myth While it is an accepted fact that the heart of

India lives in its villages, we tend to conclude that the purse strings are nowhere near them.

Reality Rural general stores stocking branded

goods. Substantial improvement in purchasing power, increasing brand consciousness, changing consumption patterns and rapid spread of communication networks in rural areas has presented a growing potential for the corporate sector According to a National Council of Applied Economic Research (NCAER) study, the consuming class households in rural areas equals the number in urban

• Myth

Interest rates to the poor need to be subsidized.

• Reality

Microfinance experiences have shown that poor are ready to pay high interest if the financial services are provided at the doorstep in a hassle free manner .

• Myth

The poor are unable to save.

• Reality

The high rate of savings reported by many microfinance organizations demonstrates that the poor can value savings as much as credit.

• Myth

Rural market is a homogeneous mass.

• Reality

It's a heterogeneous population. Various Tiers are present depending on the incomes like Big Landlords; Traders, small farmers; Marginal farmers: Labors, artisans. State wise variations in rural demographics are present viz. Literacy (Kerala 90%, Bihar 44%) and Population below poverty line (Orissa 48%, Punjab 6%).

• Myth

In the aftermath of urban-rural convergence, rural market will be mainly an extension of urban markets and will eventually embrace the product and brand lifestyles of the latter, supported by higher disposable incomes, aggressive retail promotion and advertising.

• Reality

Rural markets have unique demands on how the product is designed and how the brand is positioned and promoted. Greater the strategic attention to these unique demands, assure greater the chances of the product's success in the rural market.

THANKS