1. RURAL
DEVELOPMENT
PRESENDTED BY-SRI NATH
SHUKLA,AJAY YADAV
SEC -A (3rd SEM MBA)
G.L.BAJAJ INSITITUTE GR.NOIDA

2. RURAL
DEVELOPMENT

3. CONTENTS
 Introduction
 Evolution of rural development
 Characteristics of rural development
 Growth for rural development in India
 Challenges in rural development
 Strategies to capture rural market
 Some noteworthy success stories

4. INTRODUCTION
Rural development is a strategy
designed to improve the economic
and social life of rural poor.
It is a process, which aims at
improving the well being and self
realization of people living outside the urbanized areas
through collective process.
Rural Development is all about bringing change among
rural community from the traditional way of living to
progressive way of living. It is also expressed as a
movement for progress.

5. The United Nations defines
Rural Development as:
“Rural Development is a process of change, by
which the efforts of the people themselves are
united, those of government authorities to
improve their economic, social and cultural
conditions of communities in to the life of the
nation and to enable them to contribute fully to
national programme.”

6. EVOLUTION
PHASE ORIGIN FUNCTION MAJOR
PRODUCT
SOURCE
MARKET
DESTINATION
MARKET
Phase I Before
mid1960(From
independence
to Green
revolution)
Agricultural
marketing
Agricultural
produce
Rural Urban
Phase II Mid sixties
(Green
revolution to
Pre-liberalization
period)
Marketing of
agricultural
inputs
Agricultural
inputs
Urban Rural
Phase III Mid
nineties(Post-liberalization
period in 20th
century)
Rural
marketing
Consumables
and durables
for
consumption
and production
Urban and
rural
Rural
Phase IV 21st century Development
al marketing
All products
and services
Urban and
rural
Urban and rural

7.  It is a two-way marketing process wherein:
• Urban to rural - Major part of rural development. Includes
transactions of urban marketers who sell their goods and
services in rural areas pesticides, fertilizers, FMCG products,
tractors, bicycles, consumer durables, etc.
• Rural to urban - Basically falls under agricultural
marketing. A rural producer seeks to sell his produce in urban
market like seeds, fruits and vegetables, forest produce, spices,
milk and related products, etc.

8. • Rural to rural - Includes the activities that take place
between two villages in close proximity to each other like
agricultural tools, handicrafts, dress materials, bullock carts,
etc.
 It is more developmental than transactional as its nature is
more socio-cultural and economic as compared to the latter's
commercial nature.
 The word ‘rural’ is so much associated with agriculture and
farmers that rural marketing is often confused with agricultural
marketing but it should not be so as the latter is only a part of
rural marketing.

9. Characteristics of Rural Market
 Large population
A/c to 2001 census, rural population constitutes about 73% of
the Indian population.
Year Rural Population
In 1901 89 per cent
In 1951 83 percent
In 1971 80 percent
In 1981 76 per cent
In 1991 74 per cent
In 2001 73 per cent

10.  Occupation Pattern
1. Agriculture and related activities are the major source of
income for majority of the rural population.
2. More than 60% of rural income is from agriculture sector.
3. In the event of crop failure, the income of the rural masses is
directly affected.
 Large, diverse and scattered market
1. Though large, the rural market is geographically scattered.
There may be less number of shops available to market
products.
2. Diverse and heterogeneous market in terms of religious,
linguistic, social and cultural factors.
3. About 700 million Indians live in 6,38,365 villages across
India.

11.  Socio-economic position
1. Majority of rural population have low purchasing power and
per capita income.
2. More than 60% population has income less than 25000 rupees.
3. About 14% population has income greater than 50000 rupees.
4. Low disposable income.
 Low literacy level
It is estimated that rural India has a literacy level of 36% as
compared to 62% in the urban areas.
 Low standard of living
Low income, low purchasing power, overall social and
economic backwardness lead to low standard of living. In
general a rural consumer spends less on non-food items.

12.  Inadequate infrastructure facilities
• Infrastructure facilities like roads, warehouses, and
communication system are inadequate in rural areas.
• About 20% of the six lakh villages are without telephone
facility even today.
• About 50% of the markets are not connected by road. Most of
the roads are kachha and become unusable during rainy
season.
 Traditional outlook
• Villages develop slowly and have a traditional outlook.
• They accept changes gradually.
 Distance
• Villages nearer to towns have elements of the urban life.
Interior villages are more traditional.

13.  Diverse socio-economic background
Due to dispersion of geographical areas and uneven land
fertility, rural people have diverse socio-economic
background.
 Conservative lifestyle
Lifestyle bounded by tradition, culture, religion and
community.
 Media reach
• The media reach in rural household is low.
• Statistics indicates that the reach of Print media is 10%,
followed by TV 31%, Radio 32% and Cinema 36%.
 Medical facilities
Medical facilities are inadequate and the villagers have to
travel long distances for getting medical treatment.

14. Identification of Rural Producer Organization
• Principal actors of Rural areas
• Characteristics of RPOs
• Identification of needs and to strengthen
the capacities of RPOs

15. Principal Actors of Rural Areas
 Private economic agents including rural
producers, firms and other economic
organizations
 Formal / informal community based
organizations :cultural and religious
groups, ad hoc political and social welfare
oriented groups
 NGOs;
 Local government

16. Features of RPOs
• RPOs belong to the private sector.
• Emerged in different ways.
• It has multiple functions-Economic, Social,
Representation, Information sharing, Co-ordination
• Produce and manage different types of
goods.
• They are multipurpose-agriculture,
processing, marketing & health,education.
• It operates at micro and macro level.

17. Other Features of RPOs
• They encompass diverse social and
economic categories of rural populations-agri
business, small scale farms.
• They are organized in different ways and
are recognized to varying degrees-broad
range of activities
• They evolve over time –At broader range-public
goods. At Narrow range-health
care, transport, access to land.

18. Features of Rural Development
• RD is basically a mandate of government.
• RD has wide coverage.
• RD requires holistic approach.
• RD involves partnership.
• RD is anchored on the culture of the
people.
• RD is working together and sharing
resources.

19. Importance of RD
1. To develop rural area as whole in terms of
culture, society, economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of
rural area in terms of their psychology, skill,
knowledge, attitude and other abilities.
5. To solve the problems faced by the rural mass
for their development.

20. Importance
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in
terms of drinking water, education, transport,
electricity and communication.
8. To develop rural institutions like Panchayat,
cooperatives, post, banking and credit.
9. To develop rural industries through the
development of handicrafts, small scaled
industries, village industries, rural crafts, cottage
industries and other related economic operations
in the rural sector.
10. To develop agriculture, animal husbandry and
other agricultural related areas.

21. Objectives of RD
• Rural development is first and foremost directed
toward the development of man and society.
• Rural development is a continuing process.
• Rural development is a kind of planned change.
• Rural development considers existing
resources—natural, physical, human, financial,
technical and institutional.
• Rural development is think “local but act
global”.
• Rural development must be anchored on
sustainable development giving due respect to
the protection of God’s gift .

22. Objectives Of Rural Development
• To develop farm, home, public service and
village community.
• To bring improvement in producing of
crops and animals living condition.
• To improve health and education condition
etc. improvement of the rural people.
• To improve village condition with their own
efforts.
• To improve village communication

23. RD Programs in Democratic society
• RD programs are based on existing resources
and responsive to human and community
problems and needs..
• RD programs are desired, initiated, planned and
implemented by the people themselves with
assistance and guidance from government
officials.
• RD programs are funded by government funds
with counterpart funds from the people or the
community.
• RD programs are anchored on the development
plan of the province, district, city or town.

24. RD Programs
• RD programs are comprehensive involving all
aspects of human lives.
• RD programs are directed for the welfare of the
majority who are in need of government support
and services.
• RD programs utilize local leadership and
organized groups in program planning and
implementation.
• RD programs are implemented in cooperation,
complementation, or in partnership with the
private sector.

25. RD Methods & Approaches
• RD utilizes tested, appropriate and variety of
methods and approaches.
• RD methods and approaches are culture bound.
• Education and training play important roles in
the transformative process of development.
• RD is interdisciplinary—utilizing various fields of
specialization such social, technical, economic,
environmental, engineering, political,
organizational and others.
• RD needs integration of efforts of various
players. In our society, each agency of group is
mandated only to work on specific area with
some limitations.

26. Core Values of RD
• Sustainable
• Purposive
• Collaborative
• Innovative
• Challenging
• Excellence
• People-centered
• Effective
• Efficient
• Environmental Protection

27. Scope of Rural Development
• Agriculture, Fisheries, Forestry and Natural
Resources Management
• Micro, Small and Medium Scale Industries
• Irrigation Development
• Domestic Water Resource Development
• Power and Energy Utilization
• Educational Programs and Services
• Health Programs and Services
• Credit and Financing Institutions
• Nutrition Programs and Services
• Human Rights
• Religious and Spiritual Development

28. Identification of needs and
Strengthening the RPOs
• From the viewpoint Internal structure on
different levels in order to facilitate
mechanisms of internal consultation and
representation.
• Their level of information so that they can
express a well thought-out point of view on
the questions that concern them and
about which the government and
international agencies solicit them

29. Some more ways of strengthening the
RPOs
• Their management capacities so that they are
capable of managing resources including public
assistance they may receive.
• The capacity to negotiate through the
constitution of a real base of proposals making it
possible to create new contractual relations.

30. Structure Dynamics
The rural Infrastructure
1.Transport & Communication
2. Road Connectivity-Kerala has the highest road length
per hundred square km.It has created a rural-urban
continuum.
3. Post Offices-Under ministry of communications &
Information.
4. Network- India with its 1,55,279 post offices( 31stmar
02).
5. PO’S are categorized as head, sub and branch post
offices.
6. Head PO are graded into 5 categories head, sub and
branch post offices.

31. Infrastructure
1. Radio- All India Radio has 208 radio stations. All
stations broadcast farm and home program
directed at rural audience.
2. Television-DD-1 operates through a network of
1,402 terrestrial transmitters of varying powers
reaching 87% of the population.
3. Press and Print Media- The total no. of
newspapers and periodicals published in India
was 49,415 appearing in 101 languages and
dialects.
4. Electrification
5. Telecom Services-People who are unable to
afford a telephone facility have access to
village public telephone.

32. Social Infrastructure
1. Rural Health services- The primary health care
infrastructure in rural India has been developed as
a three-tier system.
Sub-centres :It is the contact between primary health
care system and community.
Primary Health: It is the first contact point between the village
community & medical officer. A PH is manned by medical
officer & other paramedical staff & they are involved in
preventive, curative.
Community health: It is established & maintained by the state
gov. As per census 2001, total no. of hospitals &
dispensaries in rural area is 3,40,000.
Public Distribution System: It is the distibution of essential
commodities to a large no. of people through a network of
FPS referred as ration shops.

33. Agri Infrastructure
• Mandis
• Agriculture Cooperatives-A network at the
local,state and national levels assists in
agricultural marketing. Major products handled are
food grains,jute,sugar,milk.
Marketing Infrastructure
• Haats and Melas
• Shops-As per 2001 census,out of 1.33 crore
shops in India,55 lakhs are in rural areas .The
type of outlets in villages are grocery, paan ,flour
mills, cycle repair shops.

34. Commercial Infrastructure
• Regional Rural Banks: It was developed with the aim
to provide credit to small & marginal farmers.
• As of 31st mar 2003 ,there are 14,777 RRBs in the
country.
• Cooperative Banks: It is three-tier cooperative credit
structure in the rural cooperative banking ,with the SCB
at the apex level, DCCB at district level and PACS at the
grassroots (village level).