Discuss the importance of credit in rural development.

Solution

Credit in rural development is important in the following ways:

1. To realise higher productivity in agriculture adequate credit is required by agriculturist.

2. The timely availability of credit helps in enhancing the confidence of the farmer as there is time gap between crop sowing and realisation of income after production.

3. Credit from government agencies helps in relieving the farmers from the burden of local moneylenders and traders. That provides strong base for an efficient growth of agriculture sector.

4. More than two-thirds of India's population depends on agriculture. It is only the credit and marketing facilities that can help them to meet not only their personal expenditures (marriages, ceremonies, other rituals etc.) but also productive expenditures.

5. Credit enables the farmers to have faith in themselves as Indian agriculture, even after fifty nine years of independence, is still dependent on the vagaries of monsoons.

Some More Questions From Rural Development Chapter

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Rural Development

Discuss the importance of credit in rural development.

Some More Questions From Rural Development Chapter

Which is the major source of livelihood in the rural sector?

Define rural development.

How rural development can be done?

Comment on the proportion of agricuture in the GDP of India.

Give the reasons of declining share of agriculture in GDP (Gross Domestic Product) of India.

What do you mean by agricultural marketing?

Mention some obstacles that hinder the mechanism of agricutlural marketing.

Why the cooperative marketing could not gain momentum in India.

Explain the areas of focus while diversifying the activities to agriculture.

Define agro-processing industries.

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