CBSE Class 11 Economics Indian Economic Development Revision Notes Chapter 6

Class 11 Indian Economic Development Chapter 6 Notes 

CBSE Class 11 Indian Economic Development Revision Notes Chapter 6 – Rural Development 

Rural Development in India Class 11 is one of the most important chapters in Indian Economic Development. Thus, studying the chapter is necessary as it will help you score good marks in exams. Class 11 Indian Economic Development Chapter 6 Notes summarise the important concepts for a quick revision of the chapter. The chapter-wise notes provided by Extramarks are written by subject matter experts, making them reliable and precise. 

Class 11 Rural Development Notes: Details of Rural Development 

Rural development is the process of developing the areas that are lagging in terms of the apparent growth of the village economy. The Indian Economic Development Class 11 Chapter 6 Notes will help students learn all the important points in the chapter and prepare for the exams.

What Are the Objectives of Rural Development?

The broad concept of “rural development” focuses on adopting initiatives to develop rural areas lagging in the overall expansion of the village economy. The following are the goals of rural development:

• increasing the agricultural sector’s productivity
• development of new income sources for rural areas
• promoting health and educational programmes in rural areas

What Are the Vital Issues of Rural Development?

The vital issues of rural development discussed in Chapter 6 of Indian Economic Development Class 11 are as follows: 

1. a) There are fewer crop production risks and crop diversification. However, the commercialisation of farming remains to be a vital issue. 
2. b) To make crop cultivation environment-friendly, organic farming is highly promoted. 
3. c) Advancement of human resources in areas such as health, that includes public health and sanitation.
4. d) In search of alternative ways of sustainable living without crop cultivation, production activity is also diversified. 
5. e) Developing the ideal market for the farmer to guarantee proper pricing of the goods they generate.

What is Rural Credit, and What are the Sources of Rural Credit?

Rural credit is the credit possessed by farming communities. The farmers need such credit for many purposes like digging wells and tube wells, buying agricultural equipment and machines, buying seeds, pesticides, fertilisers, and so on. 

Sources of Rural Credit 

There are two sources of rural credit: 

• Non-institutional sources (example: money-lenders, relatives, traders, etc)
• Institutional sources (example: land development banks, NABARD, RRBs, commercial banks, etc)

Non-institutional Sources: They are the traditional sources of agricultural credit in India and include taking credit from money lenders, traders, relatives, commission agents and landlords.

Institutional Sources: They include cooperative credit, commercial banks, the government, land development banks, National Bank for Agriculture and Rural Development (NBNR), regional rural banks, self-help groups etc.

What Is the Agricultural Marketing System?

Agricultural Marketing System refers to the process that includes transportation, grading, packaging, gathering, storage, processing and allocation of various agricultural goods over the country. Refer to Indian Economic Development Chapter 6 Class 11 Notes for further explanation.

Methods to Progress in Agricultural Marketing

Agricultural marketing is progressed by the following methods:

• Regulated Markets: Regulated markets operate in orderly and transparent marketing conditions. These markets safeguard the farmers from the misdeeds of sellers and brokers.
• Cooperative Marketing: It refers to marketing organisations created by farmers to sell their products jointly to benefit from collective bargaining for a higher price. However, cooperatives have not been able to operate effectively in recent years due to ineffective management, insufficient coverage of farmer members, etc.
• Infrastructural Facilities: The Government of India provides various infrastructural facilities like roads, railways, warehousing and processing units for developing the rural sector of India.
• Standardisation and Grading: Grading and quality control helps farmers fetch good prices for their quality agricultural output. Also, it simplifies farmers’ tasks and enhances their efficiency by proper segregation and bifurcation of the production of different grades and standards. 

Policy Instruments:

• Minimum Support Price (MSP): It is the price set by the government of India to protect the interest of farmers in terms of the prices of their agricultural outputs like cotton, wheat, rice, sugarcane, pulses, and others. To help farmers recover their losses, the government buys grain directly from them at a price more than the market price.
• Buffer Stock: The Food Corporation of India holds stock of crops such as wheat and rice to balance the price differences due to the market forces of demand and supply and emergencies.
• Public Distribution System (PDS): It is used to distribute food grains and sugar. These tools are designed to ensure good revenue to farmers while delivering food grains to the poor at a reduced price. 

What Are the Loopholes of Agricultural Markets in India?

The agricultural markets in India contain several gaps. Some of them that contribute to the marketing system’s disorganisation include the following: 

• Insufficient Storage Facilities: Lack of storage facilities for food grain and other crops damage the produce.
• Distress Sale: Most Indian farmers are indigent and unable to wait for a higher price. They ultimately sell their goods at the going rate as a result. In other words, they offer traders or village money lenders a low price for their output when they are in financial trouble.
• Lack of Transportation: Due to inefficient transportation systems, farmers cannot reach the market to sell their produce at a fair price. As a result, place utility does not take place.
• Middlemen: Long chains of middlemen or intermediaries between the farmers and the consumers reduce the profit made by the farmers, with a major chunk being taken by the middleman himself.
• Other Issues: Other defects make the Indian marketing system disorganised. Such issues include lack of institutional finance, lack of guidance for farmers and so on. 

What Is the Diversification of Agricultural Activity?

The chapter Rural Development also defines the diversification of agricultural activity. Diversification of agricultural activity generally includes: 

1. Diversification of Crop Production: Diversification of crop production entails switching from a single cropping system to various cropping systems. It also involves shifting cropping patterns from food grains to cash crops. The main aim of such diversification is to promote the shift from subsistence farming to commercial farming.
2. Diversification of Productive Activities: Because the agricultural sector is already overburdened, most of the expanding labour force looks for employment in non-agricultural businesses and related sectors like poultry, cattle, fisheries, etc. This offers them a stable source of income in addition to an alternative source. The following are included:

• Animal husbandry: It is the practice of raising livestock, breeding animals, caring for cattle, etc. to make money.
• Fisheries: Aquatic ecosystems support and nurture the fishing communities. Consequently, water sources are essential to their way of life. Due to improved financial support and the implementation of new technologies in fisheries and aquaculture, India’s fisheries have advanced tremendously in recent years.
• Horticulture: It is the area of agriculture that deals with the cultivation of plants for ornamental, culinary, and medicinal uses.
• Other Alternatives: IT has been crucial in helping farmers find alternatives to farming and other agricultural pursuits that will support them in maintaining a sustainable way of life.

What is Organic Farming?

The procedure of producing food naturally is known as organic farming. Making synthetic chemical fertilisers and genetically modified organisms is avoided in organic farming. Any adverse impact on the environment due to organic farming is completely nil. 

Merits:

• It contributes to generating income through export as the demand for organically grown crops is rising.
• Since organically cultivated food contains more nutrients than food produced through chemical farming, it provides more nutritious food. 
• Organic farming has the potential to create more jobs in India as it requires more labourers to grow organic crops than chemically generated crops.
• Since organic food is produced in an environmentally sustainable way and is pesticide-free, organic farming positively contributes to society.
• Organic farming offers good returns on investment as it replaces more expensive agricultural inputs like chemical fertilisers, HYV seeds, and herbicides with locally generated organic inputs that are less expensive.

Demerits:

• Lack of awareness: Most farmers in India are unaware and uneducated. Therefore they aren’t very aware of organic farming. However, increasing farmer awareness and willingness to adopt new methods can improve this situation.
• Lack of infrastructure: There is a lack of sufficient marketing facilities or infrastructure to support the growth of organic crops. Organic farming needs to be supported by an adequate agricultural policy.
• Production costs: The high production cost for growing organic crops and the lack of sufficient subsidies in this sector are yet another hindrance to developing this sector.