“Is Rural India Matching the Pace of Overall Development of the Country”

1. “Is Rural India Matching the Pace of Overall Development of the Country”

2. Content Layout • Facts about Rural India • Impressive facts of Rural India • Transition of rural economy • Sectoral Analysis • Govt. Schemes • Initiatives • Dark side of Rural India • Loopholes • Conclusion

3. Fact Sheet of Rural India • World’s 7th largest country in area • Around 70% population lives in 638,588 villages. • Expenditure on rural development 2003-2004= Rs. 6470 cr--------------- 2002-03= Rs. 11218 cr • Expenditure on urban area 2003-04= Rs. 7477 cr------------------ 2002-03= Rs. 8079 cr

4. Impressive Facts About Rural India • 42,000 rural haats that exceed total no. of retail chain stores in US (35,000) • In 2001-02, LIC sold 55% of its policies in Rural India • Of the 6lakh village, 5.22 lakh had a village Public Telephone in March,04 • 41 mn KCC in rural India exceed 40 m credit + debit card in urban India

5. Contd… • Electricity consumption by agri-sector =29.2% of total(99-00) from 17.6 (80-81) • Electrical goods ownership = 2.48/rural fam. =3.39/urban fam • Indian Marketing Demographic Report’98 shows consuming class HH with ann. Income Rs.45,001-215,000) in Rural India equals the no. in Urban Areas. • Migration to urban areas declined to 56.5% from 62.2% between 1990 to 2000

6. Contd… • NCAER projection for 2006-07 says the number of poor HH will shrink to 28mn from 61mn in 1997-98 • In 2001, over 30% of rural households had at least one bank account. • Main source of livelihood of over 33% of rural households is not from agriculture. • Today the private firms which are operating their cell phone networks are earning more from the rural areas than the urban areas and the metro cities, and this the reason for the boom in the telephone industry which we are seeing now a days.

7. Transition of Rural Economy 1. Food grain crops 2.On-land activities 3.Farm activities • Non-food grain crops, • cash crops • 2. Off-land allied activities • like livestock and fisheries • 3. Non-farm activities, • Including manufacturing • And services

8. Rural Economic Structure Rural economy Farm sector Non-farm sector Rural industries Rural services agriculture Retailing &trading Agro processing Animal husbandry Community & social services manufacturing horticulture Mining &quarrying Transport & storage forestry Communication fishing Construction

9. Sectorial employment of rural people Rural population=742b Proportion employed = 312m(100%) Non-agri 27% Agri 73% Wage-earner 33% Formal 15% Informal 12% Self-employed 40%

10. Per worker value added by sector annually %share of non-agri enterprises by major activities

11. Rural Income per census 2001 Rural incomes Rs. 7006 b Non-agri 47% Agriculture 53% Self-employed 43% Informal 16% Wage earner 10% Formal 31%

12. Contd… Per capita (per ann) Income rural=Rs. 9481 Agri 6855 Non-agri 16,464 Formal 19514 Informal 12,596 Self-emp 10,150 Wage-earner 2860

13. Contd…

15. Sectoral Analysis 1. Rural telephone connectivity • Tele-density increased from 0.03 lines per hundred in 1951 to 5 lines in March 2003 • 66, 822 villages without connectivity 2. Road Connectivity • The proportion of unconnected habitants declined to 39 per cent at all-India level in 2001 • Road infrastructure is still poor for smaller villages with population less than a thousand.

16. Contd… 3. Credit and Microfinance • Funds for rural development programmes has been hiked to Rs. 76, 774 crores for the tenth plan • Microfinance spread in Western and Southern India through over 2000 NGOs like MYRADA, BASIX etc. • Private banks only directed 10.8 percent of total credit (18%) to agriculture

17. Contd… 4. Agriculture • Employ 67% of rural household • Contribution to GDP- 55% in 1947 - 22% in 2005

18. The Green Revolution A continued expansion of the farming areas Increase in area under cultivation Double-cropping existing farmland The second crop season was made possible by irrigation facilities like tube wells, drip irrigation,water tank irrigation and construction of several dam projects like “Sardar sarovar” dam project on the Narmada River were instrumental increasing the crop yields.

19. Contd… Using genetically improved seeds The Indian council for agriculture research (ICAR) which was established in the year 1929 was instrumental in producing the new high yielding varieties of seeds. The ICAR developed new strains of high yield value seeds of mainly wheat and rice. The most noteworthy HYV seed was the K68 variety of wheat which was discovered by Dr. M.P. Singh Statistical gain from green revolution The Green Revolution resulted in a record grain output of 131 million tons in 1978-79.

21. Total food grain production (mt) and commercial crops in 2003-04. http://en.wikipedia.org/wiki/Economy_of_India

22. Growth rate of Agriculture sector and the GDP Economic survey 2002-03) Economic survey 2002-03)

23. Contd… 5. Electrification • Over 100000 villages do not have electricity connection • No electricity for 60-65% of rural population. Still kerosene lamps are used for lighting and is the only means for lighting in Bihar and Assam in about 90-95% rural households. • The supply range is from 6-24 hrs of a day and mostly in single phase 6. Rural housing • The gap is about 15 million houses.

24. Contd… Rural housing pattern

25. Contd… 7. Cooperatives • The cooperative act was setup in India in Co-operative Credit Societies Act 1904 • Total no. of cooperatives = 4,13,738 • Agricultural cooperatives = 6,777(1990) • Credit cooperatives = 768 (primary)

26. Education Government’s emphasis on the primary level education

27. Government Schemes • Rural Connectivity Programme: aims at 100 percent connectivity of rural areas through construction of all weather roads. • Jawahar Gram Samridhi Yojana: aims at improving the rural infrastructure • Indira Awas Yojna: ‘Housing for all’. Facilities for construction of house; credit cum subsidy for up gradation of Kachha houses.

28. Contd… • Swarna Jayanthi Gram Swarozgar Yojna: self employment through micro-enterprise • Employment Assurance Scheme: Is the wage employment • National Social Assistance Programme: ensuring minimum national standard of assistance (pension, maternity benefit)

30. Initiatives 1. Fund allocation in 10th plan=76,774cr 2. Bharat Nirman Yojana six selected areas of rural infrastructure Vilg having population Over 1000 wil have all Weather road 6 million houses in the next four years. 55,000 vilg without safe Water & 3lacs with low Supply will be covered Electrification in over 1lacs not electrified villages 66,822 villages to be Connected with telephone add 10 million hectares to irrigation capacity

31. Contd… • HPCL’s “community kitchen” to provide alternative fuel for cooking at affordable rate. Operational= 600+Rasoi Ghar Target=80,000 • HLL ‘Project Shakti’ • Private firms like ITC taking initiatives to launch facilities like E-choupal (through VSAT’s) in several states so that the farmers can sell their produce at the right time to gain maximum profits.

32. President’s 3 layer Model • Layer1:PRIs • Layer2:Inter-inter village cluster • Layer3:District level projects Basic amenities, health, primary education, SHGs microcredit Roads, electricity, telephone, PHC, education network, counseling centre Sustainable employment, entrepreneurship, economic and market linkage

33. Darker Side of Rural India • 2/3rd of country’s population lives in village with a bare minimum of facilities. • Earn 1/3rd of national income • 30% of our population most of whom lives in rural areas, earn less than Rs. 50/day • Out of 473 mn employed people 67%work in the agri-sector • 12.9% of population owns 65% of the cultivated area (130 mh)

35. HDI

36. Contd… • Around 90% of rural areas use about 180 million tons of biomass for cooking through extremely inefficient (10-15%) and smoky stoves • Cooking and lighting energy constitute 75% of total energy used in rural areas and which is not met

37. Contd… • Around 60-65% of rural population in over 100000 villages do not have electricity in 1999-2000, 106 million (tot pop) Unemployed= 10%, unemployment rate= 7.32%, rural areas= 7.21% urban areas=7.65% Monthly consumption of goods:Rs. 211(rural) Rs. 454(urban) Poor in rural= 75% (27.1% of tot rural pop)

38. Loopholes in Success 1. Structural/Economical • Inefficient bureaucracy • Improper implementation • Lack of fund: in 2003-2004 expenditure on rural development decreased to Rs. 6470cr from Rs. 11218cr in 02-03

39. Contd… 2. Social • Illiteracy • Unskilled labor • Gender Discrimination • Castism • Culture

40. Conclusion There has been positive impact of initiatives taken, transition and rural reform on rural economy, but still a lots need to be done. The pace of growth has been set. It needs to be accelerated, if growth in the rural sector has to be matched with that of country.

41. Reference • 1. Theodore, R. (2005, January). Rural development. Yojana. Vol 49 • 2. Paul, P. (2005, March). Tools for Development. Yojana. Vol 51 • 3. Alagh, K. Y. (2004). State of Indian farmer-Rural Infrastructure. (Page 74-220). • Academic Foundation. • 4. Kashyap, P. (2006). Rural Mareketing. Biztantra. New Delhi • 5. Candrasekhar, C. P. Frontline. ‘Can connectivity help the poor?’ June 2003 < • "http://www.hinduonnet.com/fline/fl2012/stories/20030620004911700.htm"> • 6. ‘ITC’s rural development philosophy at work’< • "http://www.itcportal.com/ruraldevp_philosophy/echoupal.htm"> • 7. Ganguly, S. Indiaonestop < • "http://www.indiaonestop.com/Greenrevolution.htm"> • 8. India Shining needs Sustainable Rural Development • Anil K. Rajvanshi, education.vsnl.com/nimbkar/ruraldev.html • 9. Kalam sets rural development agenda , • "http://www.newkerala.com/news.php?action=fullnews" • 10. Changing Contours of Rural India <fecolumnists.expressindia.com/ full_column> • 11. India 2005. (2005). Research reference and training division. New Delhi (Page 197-200). • 12. Nair, P. India Together ‘A poor and unhealthy nation’ 25 SEP 2005 http://www.indiatogether.org/2005/sep/hlt-undphdi.htm

42. THANK YOU ABHISHEK SINGH GAHARWAR (04) NUPUR PALLAVI (50)