Professional Documents
Culture Documents
The project report entitled here is purely study project and does
not include any predictions or forecast regarding the future trends in
the rural sector.
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Economy:
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The above data given in the table noted that in 1989 low income
countries comprise nearly 57 percent of the world population (2,948
million), but account for only 5 percent of total world GNP. The middle
income countries, which are less developed than the highly
developed than the low income countries comprise about 21 percent
of world population but account for 11 percent of world GNP. Taking
these two groups which are popularly described as developing
economies or ‘underdeveloped economies’, it may be stated that they
comprise over three-fourths of the world population but account for
about one-sixth of the world GNP. Most countries of Asia, Africa,
Latin America and some countries of Europe are included in them.
India with its population of 832 million in 1989 and with its
per capita income of $340 is among poorest of the economies of the
world. It had a share of 15.9 per cent in world population, but a little
more than 1 percent of world GNP.
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Definition:
“A country which has good potential prospects for using more
capital or more labour or more available natural resources, or all of
these, to support its present population on a higher level of living or if
its per capita income level is already fairly high, to support a large
population on a not lower level of living.” As per this definitions the
problem of development is mainly the problem of development is
mainly the problem of poverty and prosperity. The basic criterion then
becomes whether the country has good potential prospects of raising
per capita income, or of maintaining an existing high level of per
capita income for an increased population.”
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compared to this, the birth rate has declined from about 49 per
thousand during 1911-20 to 29.9 per thousand in 1990. The
fast rate of growth of population necessitates a higher rate of
economic growth in order to maintain the same standard of
living of the population. To maintain a rapidly growing
population, the requirements of food, clothing, shelter,
medicine, schooling, etc. all rise. Thus, a rising population
imposes greater economic burdens and, consequently, society
has to make a much greater effort to initiate the process of
growth.
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Structure Of India
period:-
The Indian economy in the pre-British period consisted of isolated
and self-sustaining villages on the one hand, and towns, which were
the seats of administration, pilgrimage, commerce and handicrafts, on
the other. Means transport & communication were highly
underdeveloped and so the size of the market was very small..
a. The structure and organization of villages: The village
community was based on a simple division of labour. The
farmers cultivated the soil and tended cattle. Similarly, there
existed classes people called weavers, goldsmiths, carpenters,
potters, oil pressers, washer men, cobblers, barber-surgeons,
etc. All these occupations were hereditary and passed by
tradition from father to son. Most of the food produced in the
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village India: (i) the agriculturists, (ii) the village artisans and
menials, and (iii) the village officials. The agriculturists could be
further divided into the land-owning and the tenants. Labour
and capital needed was either supplied by the producers
themselves out of their supplied by the producers themselves
out of their savings or by the village moneylender. These credit
agencies supplied finance at exorbitant rates of interest but
since the moneylender and the landlord were the only sources
of credit, the peasants and even the artisans were forced to
depend on them. The village artisans and menials were the
servants of the village. Most of the villages had their
panchayats or bodies of village elders to settle local disputes.
The panchayats were the court of justice.
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India:
The popular belief that India had never been an industrial country,
is incorrect. It was true that agriculture was the dominant occupation
of its people but the products of Indian industries enjoyed a worldwide
reputation. The muslim of Dacca, the calicos of Bengal, the sarees
of Banaras and other cotton fabrics were known to the foreigners.
The chief industry spread over the whole country was textile
handicrafts. The textile handicrafts includes chintzes of Lucknow,
dhotis and dopattas of Ahmedabad, silk, bordered cloth of Nagpur
and Murshidabad. In addition to cotton fabrics, the shawls of
Kashmir, Amritsar and Ludhiana were very famous. India was also
quite well-known for her artistic industries like marble-work, stone-
carving, jewellery, brass, copper and bell-metal wares, wood-carving,
etc. The cast-iron pillar near Delhi is a testament to the high level of
metallurgy that existed in India. In this way Indian industries, “Not only
supplied all local wants but also enabled India to export its finished
products to foreign countries”.
Economy:
Before the beginning of Industrial Revolution in England, the East
India Company concentrated on the export of Indian manufactured
goods, textiles, spices, etc., to Europe where these articles were in
great demand. But the Industrial Revolution reversed the face of
Indian’s foreign trade. Tremendous expansion of productive capacity
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Indians not only from Indian culture but also diverted in its
favour their form and pattern of demand for goods.
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7. Fallow lands 26 9
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Context :-
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Models
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Indian Economy
When you consider a rural market then the measure part of the rural
buiness directly or indirectly connected with agriculture. In this
condition,whenever you study about rural market you have to
consider the impact of agriculture towards Indian Economy.
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Occupation Percentage of
Households
Cultivators 72
Agricultural labourers 15
Other non-cultivators 11
Artisans 2
All house holds 100
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Economy:
Foodgrains Production
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Agricultural Exports
The share of exports of agriculture and allied products in
the total exports had declined marginally, from 18.9 per cent during
1997-98 to 17.8 per cent during 1998-99. During the same period, the
value of exports of agriculture and allied products amounted to US$
5,994 million, showing a decline of 9.6 per cent from a level of US$
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Agricultural Imports
Agricultural markets:
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Economy
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Indian rural credit structure is regarded all over the world as quite
unique and innovative. It required a careful feasibility study to
understand rural structure. Evolved over a period of last eight
decades, it can perhaps claim the honour of being a very important
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and planting; pay up old debts to build and repair houses, to purchase
food stuffs and other personal necessaries; pay land revenue to the
Government; meet expenses connected with marriage and other
social events in the family, but jewellery and conduct law suits. The
credit need of agriculturists can, therefore, be broadly divided into
directly productive & indirectly unproductive expenses. Unfortunately
fact is that underdeveloped and old countries are in need of both the
types of credit.
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Money lenders:
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It is the cheapest and the best source of rural credit. The rate of
interest is low. Since 1951, the co-operative credit movement has
started helping the farmers in a big manner. During 1989-90 there
were about 88,000 primary agricultural credit societies. The
stranglehold of the moneylenders on the peasants is not met by the
co-operatives. Besides, the small farmers find it difficult to meet all
their credit requirements from the co-operatives.
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1989-90. major drawback of this bank is they lend against the security
of land, and big landlords have taken advantage of them and, by and
large, small peasants have not benefited from them.
Problems of LDBs:-
Overdues Problems:-
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3. Commercial Banks[9.3]:
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The credit needs of the agricultural sector in the next few years
are estimated to rise to Rs.50,000 to Rs.60,000 crores. To meet
the needs is an enormous task, and responsibility will have to be
borne by co-operatives and commercial banks. As resources
available to commercial banks in the agricultural sector will
naturally be limited, it is important that every commercial bank
attempts to make optimum use of its limited resources in this
sector. In the field of financing of agriculture, the problem is not
merely quantitative but also of coverage vis-à-vis the organization
and the personnel available to the nationalized banks. The
majority of the rural population consists of small farmers.
Further, there are 5,50,000 villages spread throughout the
country. To reach all of them with only about 47,000 banking
offices is, no doubt, a stupendous task. Even with the completion
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rural people. Over 90 percent of the loans of RPBs are given to the
weaker sections in rural areas. The regional banks, though basically
scheduled commercial banks, differ from the latter in certain respects:
Concessions to RRBs:
Progress of RRBs:
There are now 196 regional rural banks in 23 States with 14,500
branches. As at the end of September 1990 the regional rural
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Objectives of RRBs:
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b. The wage and salary scales of RRBs have been rising and, in
fact, with the recent award of a tribunal, their scales would
approximate those of commercial banks; with the increase in
salary scales, an important rationale for the setting up of RRBs
has ceased to exist.
c. The sponsoring banks are also running their own rural
branches in the very area of operations of the RRBs; this has
given rise to certain anamolies and to avoidable expenditure
on controls and administration.
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9.5.a N A B A R D: an Overview-
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banks
10.1 NABARD:-
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(i) Term Loan to SSI units (through CBs & Scheduled PCBs)
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Borrowers
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i) Tractors:
(b) Though the minimum land holding required for financing tractors is
8 acre perennially irrigated land, necessary discretion has been given
to banks to evolve their own area specific norms, if need be, and
report such norms evolved by them to the concerned RO of
NABARD.
(a) Though the minimum land holding required for financing power
tillers is 6 acres of perennially irrigated land, necessary discretion has
been given to banks to evolve their own area specific norms, if need
be, and report such norms evolved by them to the concerned RO of
NABARD.
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Eligibility (i) Small and marginal farmers i.e.. those who would own
maximum of 5 acres of non- irrigated land or 2.5 acres of irrigated
land including purchase of land under the scheme and (ii) Share
croppers / Tenant farmers are eligible.
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Crop Loan
The Bank verifies the following aspects before granting the loan:
1) Service Area Approach.
2) Stocks at the borrowers' residence/godown.
3) Stock statement for valuation.
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The SBI offers the Kisan Credit Card for farmers under short-term
credit introduced as per RBI/NABARD guidelines, providing a running
account facility tofarmers to meet their production credit need and
contingency needs.
Eligibility-All agricultural clients having good track record for the last
two years are eligible for the Kisan Credit Card. Minimum credit limit:
Rs.3000/- New borrowers requiring crop loans can also avail this
product.
Credit limit is based on operational land holding, cropping pattern and
scale of finance. Withdrawals can be made using easy and
convenient withdrawal slips. The Kisan Credit Card is valid for 3
years, subject to annual review.
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Conclusion
Agriculture and its associated activities are found constituting
the economic base and the main source of livelihood and
employment for the people in the state. However, unprecedented
growth of population on one hand and decreasing rate of available
agriculture land along with degradation of supporting natural
resources as required for sustaining crop productivity on the other
have been seriously forcing the problems of sustaining livelihood for
farming communities. It is becoming difficult to do the farming activity
without external or internal sources. In this context the significance of
extending non-farm sector becomes only alternative but it also
required finance assistance for its development.
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Recommendations
been low in the eastern regional states like Bihar, Orissa and
West Bengal & in the North Eastern States. So Agricultural and
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Bibliography
K.P.M. Sundharam.
2. State Bank of India
journals
3. Agricultural Financing S.N.Ghosal
In India
4. Economic Survey, Monthly Review of the Indian
1998-99.
Economy, CMIE, March-April
1999
5. Rural Marketing Romeo S. Mascarenhas
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Webliography
www.nabard.org
www.rbi.gov
www.sbi.co.in
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