Tamilnadu Samacheer Kalvi 11th Economics Notes Chapter 10 Rural Economy Notes

→ ‘Rural Development is a strategy designed to improve the economic and social life of a specific group of people – rural poor’.

→ Rural development is very urgent in the context of the overall growth and development of Indian economy.

→ Rural areas are facing number of problems relating to, 1. People, 2. Agriculture, 3. Infrastructure, 4. Economy, 5. Society and Culture, 6. Leadership and 7. Administration.

→ Poverty alleviation schemes and programmes have been implemented, modified, consolidated, expanded and improved over time.

→ Rural unemployment in India are categorised into three classes:
(i) Open Unemployment (ii) Concealed Unemployment or Under employment and (iii) Seasonal Unemployment.

→ The rural industries can be broadly classified into (i) cottage industries, (ii) village industries, (iii) small industries, (iv) tiny industries and (v) agro-based industries.

→ Rural indebtedness refers to the situation of the rural people unable to repay the loan accumulated over a period.

→ The RRBs confine their lending’s only to the weaker sections and their lending rates are at par with the prevailing rate of cooperative societies.

→ Self Help Groups are informal voluntary association of poor people, from the similar socio-economic background.

→ Health is an important component for ensuring better quality of life.

→ Indian rural people are suffering with various epidemics such as small pox, cholera, malaria, typhoid, dengue, chicken guniya, etc.

→ The rural marketing is still defective as farmers lack bargaining power, long chain of middlemen, lack of organisation, insufficient storage facilities, poor transport facilities, absence of grading, inadequate information and poor marketing arrangements.

→ Rural Electrification refers to providing electrical power to rural areas. The main aims of rural electrification are to provide electricity to agricultural operations and to enhance agricultural productivity, to increase cropped area, to promote rural industries and to lighting the villages.

→ Village Industries: Village industries are traditional in nature and depend on local raw-material. They cater to the needs of local population. Examples of village industries are gur and khandsari, cane and bamboo basket, shoe making, pottery and leather tanning.

→ Small Scale Industries (SSIs): Most small scale industries are located near urban centres. They produce goods for local as well as foreign markets. Examples of such small scale industries are manufacture of sports goods, soaps, electric fans, foot wear, sewing machines and handloom weaving.

→ Agro-based Industries: These industries are based on the processing of agricultural produce. Agro-based industries may be organised on a cottage-scale, small-scale and large-scale. Examples are textile, sugar, paper, vegetable oil, tea and coffee industries.

→ Micro Units Development and Refinance Agency Bank (MUDRA Bank): It is a public sector financial institution which provides loans at low rates to microfinance institutions and non-banking financial institutions which then provide credit to Micro, Small and Medium Enterprises (MSMEs). It was launched on 8th April 2015.

→ National Rural Health Mission: The National Rural Health Mission (NRHM) was launched on 12th April 2005, to provide accessible, affordable and quality health care to the rural population,especially the vulnerable groups.

→ Rural Economics: Application of Economic Principles in rural areas

→ Population Density: Number of persons living per sq.km or per sq. mile.

→ Unemployment: Situation of people with willingness and ability to work but not getting employed.

→ Open Unemployment: Unemployed persons are identified as they remain without work.

→ Seasonal Unemployment: Employment occurs only in a particular season and workers remain unemployed in the remaining period of a year. Situation where people employed in excess over and above the requirements.

→ Under employment: Condition where the basic needs of the people like food, clothing and shelter are not being met.

→ Poverty Dualism: Co-existence of two extremely different features.

Samacheer Kalvi 11th Economics Notes