Rural Sustainability

Thakur College of Science and Commerce – TCSC, MUMBAI
S.Y.Bcom (Entrepreneurship) Batch year 2021-24
B.COM - ENTREPRENEURSHIP
Semester III
RURAL SUSTAINABILITY (Unit 1)
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This document is For Internal Use Only—Not For External Distribution
Contents
UNIT 1: INTRODUCTION TO RURAL LANDSCAPE: UNDERSTANDINGSOCIETY AND
CULTURE ................................................................................................ 8
CHAPTER 1: INTRODUCTION TO RURAL SOCIETY ........................................ 8
1.2 : DEMOGRAPHIC STRUCTURE OF RURAL INDIA: ................................ 11
1.3 CONCEPT OF DEMOGRAPHIC DIVIDEND: ......................................... 13
1.4 WHAT IS RURAL SOCIETY? ............................................................ 15
1.2 UNDERSTANDING RURALITY: ........................................................ 18
1.3 FEUDAL STRUCTURE, HUMAN DEVELOPMENT INFRASTRUCTURE,
SHARED LABOUR, SPECIFIC RURAL MARKET AND TRANSACTION PROCESSES
(EXCHANGE OF GOODS), SOCIAL COHESION AND HARMONY ...................... 19
1.7 SOCIAL STRATIFICATION: ............................................................. 25
CHAPTER 2: CULTURE .......................................................................... 35
2.2 ELEMENTS OF CULTURE: .............................................................. 42
2.3 CULTURE AND CONSUMPTION: ...................................................... 46
2.4 CULTURE AND BUSINESS: ............................................................. 49
MODULE NO. 2 ........................................................................................... 56
Chapter 1: Rural Sustainability: Theories and Concepts ................................................. 56
1. Understanding sustainability: Definition and its dimensions ...................................... 56
1.2 Dimensions of Rural Sustainability ............................................................ 56
1.2. Evolving theories of sustainability: Theories of social sustainability,corporate sustainability,
and environment sustainability ......................................................................... 58
1.2.1.1 Meaning.................................................................................... 58
1.2.1.2 Dimensions/Principles of Social sustainability .......................................... 58
1.2.2 Corporate sustainability ...................................................................... 59
1.2.2.1 Meaning.................................................................................... 59
1.2.2.2 Importance ................................................................................. 59
1.2.2.3 Prominent examples ....................................................................... 59
1.2.3. Environmental sustainability ................................................................ 60
1.2.3.1 Meaning.................................................................................... 60
1.2.3.2 Issues and problems ....................................................................... 60
1.2.3.3 Examples .................................................................................. 61
1.3 Sustainable Development Theory: Emergence, progress and role ofUnited Nations in
promoting the theory .................................................................................... 62
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1.3.2 Emergence and Progress........................................................................ 62

1.3.3 Role and History of United Nations in the area of SustainableDevelopment ....... 64
1.3.4 United Nations Agenda for Sustainable Development ........................................ 65
1.4 Social responsibility: Social capital, shared-value creation, business ........................ 67
1.4.1 Social Capital ................................................................................... 67
1.4.1.1 Meaning.................................................................................... 67
1.4.1.2 Elements of Social Capital ................................................................ 67
1.4.1.3 Types of Social Capital ................................................................... 67
1.4.2 Shared Value Creation .......................................................................... 68
1.4.2.1 Meaning and Definition ................................................................... 68
1.4.2.2 Basic features and characteristics ......................................................... 68
1.4.2.3 Prominent Examples ...................................................................... 69
1.4.3 Business society relations, Fair use of resources and localdevelopment ..................... 70
1.4.3.1 Need to study and analyse the relationship between Business andSociety ...... 70
1.4.3.2 Forces that shape relationship between business and society ........................... 71
1.5. Stakeholder theory: Actors, cooperation, boundary conditions,roles and common interests .. 73
1.5.1 Meaning of Stakeholder Theory ............................................................... 73
1.5.2 Actors............................................................................................ 73
1.5.3 Co operation and Common interests ........................................................... 74
1.5.4 Boundary Conditions ........................................................................... 75
1.5.5. Role of Stakeholders ......................................................................... 76
1.6 Green business: Green enterprises, green initiates and environmentalsafe guards, green
marketing, green consumerism, and circular economy. ................................................ 77
1.6.1.1 Meaning.................................................................................... 77
1.6.2 Green initiatives................................................................................. 77
1.6.2.2 Green Skill Development Programme (GSDP) .......................................... 77
1.6.2.3 Namami Gange Programme .............................................................. 78
1.6.2.4 Nagar Van Scheme ........................................................................ 78
1.6.3 Environmental safeguards ...................................................................... 79
1.6.3.1 Safeguard policies ......................................................................... 80
1.6.4 Green Marketing ................................................................................ 83
1.6.4.1 Meaning.................................................................................... 83
1.6.4.2 Benefits of Green marketing .............................................................. 83
1.6.4.3 Prominent ExamplesMaruti Suzuki ...................................................... 83
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Bharat Petroleum ..................................................................................... 83

Hindustan Petroleum ................................................................................. 83
Proctor and Gamble .................................................................................. 84
1.6.5 Green Consumerism ............................................................................ 84
1.6.5.1 Introduction ................................................................................ 84
1.6.5.2 Importance of Green ConsumerismReduced waste in packaging ...................... 84
Increased energy efficiency .......................................................................... 84
Decreased release of emissions and other pollutants during productionand transportation processes
......................................................................................................... 84
Consumption of more healthy foods ................................................................. 84
1.6.5.3 Few Examples of Green Consumerism................................................... 85
1.6.6 Circular Economy............................................................................... 85
1.6.6.1 Introduction and Meaning................................................................. 85
CHAPTER 2: ACTION FRAMEWORK ................................................................. 87
2.1 Sustainable Development Goals: Transition from Millennium Development Goals to
Sustainable Development Goals, challenges, achievements, and future prospects. ................. 87
Millennium Development Goals ..................................................................... 87
Sustainable Development Goals ..................................................................... 87
2.1.2 Challenges....................................................................................... 89
Data Deprivation ..................................................................................... 89
Prioritization and Governance ....................................................................... 89
Accountability ........................................................................................ 90
Involvement of all sectors of society ................................................................ 90
Financial Requirements to achieve the goals ........................................................ 90
Systemic Barriers ..................................................................................... 90
2.1.3 Achievements ................................................................................... 91
2.1.4 Conclusion ...................................................................................... 93
2.2 Green Business: Operational frameworks for green value chain,green manufacturing, and
green technology ........................................................................................ 94
2.2.2 Operational Framework for Green Manufacturing ............................................ 94
Meaning ............................................................................................... 94
4R principles of Green Manufacturing .............................................................. 95
Five core technologies of Green Manufacturing: (Operational framework forGreenTechnology) 95
2.3 DFID’s Livelihood Sustainability Framework: Vulnerability context,livelihood assets,
structures and processes, and outcomes ................................................................ 97
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2.3.2 DFID Framework ............................................................................... 98

2.3.3 Elements of DFID Framework ................................................................. 98
Vulnerability context ................................................................................. 98
Livelihood assets ..................................................................................... 99
Policies, institutions and processes .................................................................. 99
Livelihood Strategies ................................................................................. 99
Livelihood Outcomes ................................................................................ 99
2.4 Global Reporting Initiative (GRI): Sustainability reporting, sustainability standards, use, and
impact 100
2.4.1 Global Reporting Initiative ................................................................ 100
2.4.2 Sustainability Reporting ...................................................................... 100
2.4.3 Use and Impact................................................................................ 103
1.1 Traditional system of Livelihood: JajmaniMeaning .................................... 105
1.1.1 Important features of Jajmani system are as follows ................................... 105
1.2 Agriculture: Subsistence v. CommercializationMeaning .............................. 108
1.2.1 Types of Farming .......................................................................... 108
1.3 Policy measures: From National Rural Livelihood Mission to Doublingthe Farmers
Income .............................................................................................. 114
1.3.2 Doubling of Farmers Income: ............................................................ 118
1.4 Nature and Scope of Regional Planning : Need for intervention onRegion Specific
Problems ........................................................................................... 119
1.4.2 Nature or characteristics of Regional Planning ......................................... 120
1.4.3 Scope of Regional Planning : ............................................................. 121
1.4.4. Need for Intervention on Region specific problems ................................. 121
1.5 Problems of Unemployment and Underemployment in Rural Areas ................. 123
1.5.1 Major Types of unemployment: .......................................................... 123
1.5.2 CAUSES OF UNEMPLOYMENT IN RURAL INDIA ............................... 124
1.5.3 Causes of Underemployment ............................................................. 127
1.5.4 General Effects: ........................................................................... 127
1.6 Micro Finance, SHG’s and Women Empowerment, Issues of Gender Equity in Rural Areas
– Practical and Strategic needs of the women. ...................................................... 129
Meaning : ........................................................................................... 129
1.6.1 Brief History of Micro Finance .......................................................... 129
1.6.2 The salient features of microfinance include: ..................................... 129
1.6.4 Self Help Groups and women empowerment ........................................... 131
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1.6 Role of Micro Savings and Micro Insurance ............................................ 135

1.7.2 Micro Insurance ........................................................................ 136
TEST YOUR UNDERSTANDING ............................................................. 138
2.1 Entrepreneur potential of Agriculture and other rural resources.Introduction ........ 139
2.1.1 Feasible potential and opportunities of entrepreneurship inagriculture and other
rural resources are: ................................................................................ 139
2.1.2 Overall Scope and potential of Agri-Entrepreneurship in India ..................... 140
2.2 Age of Start-ups: Agri Tech; Agri Fin Tech; Alternative sources ofenergy; Agri
Bio, Agri Advisory ................................................................................ 142
2.2.1 Agri-Tech Startups ..................................................................... 142
2.2.2 Agri Fin Tech Start-ups in India ....................................................... 144
2.2.3 Alternative sources of Energy ......................................................... 145
2.2.4 Agri Bio: ................................................................................ 149
2.2.5 Agri Advisory ........................................................................... 150
2.3 Non-Farm businesses: Rural Tourism, Skill Development etc. ........................ 150
2.3.1 Rural Tourism- A Means to Empower India: ........................................ 150
2.3.2 Benefits and Positive Impact : ......................................................... 151
2.3.3 Examples of Rural Tourism in India: ................................................. 152
2.3.4 Skills Development..................................................................... 154
2.4 Rural Industrial Sectors: Small scale, Handloom, Agro based industries, Rural
artisans, Handicrafts- Khadi and village Industries Commission ............................ 156
2.4.2 Handloom Industry ..................................................................... 157
2.4.3 Agro based industries .................................................................. 159
2.4.4 Rural Artisans .......................................................................... 161
2.4.5 Khadi and Village Industries Commission ........................................... 163
2.5 Organizations for Promotion of Rural Industries ....................................... 164
2.5.2 National Institute of Micro, Small and Medium Enterprises(NIMSME) ......... 165
2.5.3 Small Industries Development Organization (SIDO) ................................ 168
2.5.4 Small Industries Services Institute .................................................... 170
2.5.5 Regional Rural Banks (RRBs) ......................................................... 171
2.5.6 Small Industries Development Bank of India: ....................................... 174
2.5.7 State Finance Corporations ............................................................ 176
TEST YOUR UNDERSTANDING............................................................... 177
UNIT 4: PATHWAYS FOR RURAL SUSTAINABILITY ...................................... 178
CHAPTER 1: APPROACHES FOR RURAL DEVELOPMENT............................. 179
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Test your understanding: .......................................................................... 184

CHAPTER 2: SOCIAL ENTERPRISES: ....................................................... 185
Test your Understanding .......................................................................... 195
CHAPTER 3: COMMUNITY COLLECTIVES AND RURAL SUSTAINABILITY ...... 196
CHAPTER 4: ROLE OF STATE AND MARKET FOR RURAL SUSTAINABILITY ... 204
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UNIT 1: INTRODUCTION TO RURAL LANDSCAPE: UNDERSTANDING

SOCIETY AND CULTURE
CHAPTER 1: INTRODUCTION TO RURAL

SOCIETY
1.1. WHAT IS RURAL?

Term ‘rural’ area is defined based on population density in most of the countries.
Definitions for few selected countries are tabulated below for comparison:
Country Definition
orarea
Canada rural is the population outside settlements with fewer than 1,000
inhabitants and a population density below 400 people per square
kilometre
France Rural is population living outside settlements that have 2,000
inhabitants ormore in dwellings separated by at most 200 metres.
Japan Areas with (1) Less than 50,000 inhabitants ; (2) Less than 60 per cent
ofthe houses located in the main built-up areas; (3) Less than 60 per
cent ofthe population (including their dependents) engaged in
manufacturing,
trade or other urban type of business.
United The U.S. Census Bureau defines rural as “an area that is not urban”.
States
of So, what do they consider to be urban? An area which contains more
Americ than 50,000 people. Slightly less populated areas, those with greater
a than 2,500but less than 50,000, are determined to be “urban clusters.”
Any area of land that is not put into one of these categories would be
considered rural.
For India;
As per National Sample Survey organisation, ‘Rural’ area means which is not an
‘Urban’ Area. ‘Urban’ area is defined as follows:
(a)All statutory towns, i.e., all places with a municipal corporation, municipal
board,cantonment board or notified town area etc.
(b) All other places which satisfy the following criteria:
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(i) A minimum population of 5,000;

(ii)75% of the male working population engaged in non-agricultural and
alliedactivity; and
(iii) A density of population of at least 400 per sq. km. (or 1,000 per sq. mile).
From above, it is clear that in most of the countries, ‘Rural’ area is defined based on
total population and population density. In few of the countries, occupation is also
taken as one of the factor for defining ‘rural’ area. Definition given by India is
probably the merger of definitions of various countries i.e.
• Criteria of total population and population density is in line with almost

all thecountries;
• Criterial of population’s engagement in agriculture related activities is mainly
adoptedfrom Japan.
Based on the definitions given above, ratio of Rural population to total population of the
countries is tabulated below:
Country % of
Rural
Population
Canada 18
China 39
France 19
India 65
Japan 8
USA 17
Thus, from above table, it may be seen that most of the developed countries have
rural population below 20% of the Total population. However, in India rural population
accounts for 65% of the total population.
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Rural population trend post-Independence:
Census % of
Year Rural
Population
1951 82.7
1961 82.0
1971 80.1
1981 76.7
1991 74.3
2001 72.2
2011 68.72
2022 (Non- 65
census)
From above table, proportion of Rural population in total population of the country
has declined steadily from 1951 till date. The question arises why is it so? It is
because the rate of growth of urban population is higher than that of rural
population. In contrast to an average growth rate of about 21.34% in 2001 the urban
population has registered a growth rate of 31.13 percent. However all this growth is
not a result of only the natural increase of population. Infact, much of the growth of
urban population is due to high rate of migration of people from rural to urban area.
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1.2 : DEMOGRAPHIC STRUCTURE OF RURAL INDIA:
Demography is the scientific and statistical study of population and in particular the
size of various types of population, their development and structure. Though, it is
not the practice among demographers to study the Rural and Urban Demography
separately. It is useful to consider the demographic characteristics of rural population
separately, as it will help in providing a better understanding of the issues in rural
development. This is important in a country like India, which is predominantly rural
in character and will continue to remain so for several decades to come.
Sex ratio:
SEX RATIO is defined as ”number of females per 1000 males in the population”.
Thus, a sex ratio of 1000 implies complete parity between the two sexes. Ratios
above 1000 indicate excess of females over males; those below 1000 indicate a
deficit of females. It is an important social indicator used to measure the extent of
the prevailing equity between males and females in a society at a given point in
time. It is an outcome mainly of the interplay of sex differentials in mortality, sex-
selective migration, sex ratio at birth and at times the sex differential in population
enumeration. Sex ratio for rural and urban areas for India is tabulated below as per
different census data.
Census Overall Sex Rural Urban

Year Ratio in
India
1951 946 965 860
1961 941 963 845
1971 930 949 858
1981 934 951 878
1991 927 948 935
2001 933 935 903
2011 943 949 929
From above table, it can be seen that sex ratio in rural area is better than urban area
indicating more women per 1000 men in rural areas compared to urban area. This
may be due to multiple reasons, work related migration of men from rural to urban
cities, being one of them. Since independence, we can see that sex ratio in rural
areas also kept on decreasing, 2011 being only exception. This declining sex ratio
may be traced to declining child sex ratio. For e.g. in 1991, child sex ratio in rural
area was 948 which has worsened to 934 in 2001. Preference of male child is a
dominant reason for this which is more prevalent in rural India.
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Age composition:
The age composition is another basic characteristics of a population. It not only
influences the rate of growth but also enables us to determine the proportion of
labour force in the total population as well as the dependency ratio. Basically the
age composition of a population is determined by three factors, i.e. fertility,
mortality and migration. These factors are interdependent and any change in one of
these may influence the other two. Age composition of Rural population is given
below as per 2011 census.
Age group
% of Total Population
0 to 19 43%
20 to 59 48%
60 and
9%
above
Above table shows that 43% of the total rural population is below 20 years old which
indicates that government should focus on building solid education infrastructure.
48% of total population is between 20 to 59 which indicates that massive working age
populationand thus need for creation of employment opportunities.
Literacy Rate:
According to Indian census, literacy is defined as the ability of people to read and
write a simple message in any language with some understanding. It is not
mandatory that to be treated as a literate, a person should have received any formal
education or acquired any minimum educational standard. Literacy is an important
driving force behind economic and social development and it is a powerful
influence that tends to reduce the birth rate, thereby reducing the pressure of
population. Literacy rates in Urban and rural area as per2011 census is given below:
Census Urban Rural Gap

Year Literacy literacy rate (Urban
Rate
– Rural)
1951 34.59 12.10 22.49
1961 54.40 22.50 31.90
1971 60.22 27.89 32.33
1981 67.23 36.01 31.22
1991 73.08 44.69 28.39
2001 79.92 58.74 21.18
2011 84.11 67.77 16.34
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1.3 CONCEPT OF DEMOGRAPHIC DIVIDEND:
It is the potential for economic gains when the share of the working-age population
(15 years – 64 years) is higher than the non-working age group. Demographic
dividend occurs when the proportion of working people in the total population is high
because this indicates that more people have the potential to be productive and
contribute to growth of the economy. Due to the dividend between young and old,
many argue that there is great potential for economic gains, which has been termed
the “demographic gift”. In order for economic growth to occur the younger
population must have access to quality education, adequate nutrition and health
including access to sexual and reproductive health.
Demographic dividend takes place when a country undergoes a demographic
transition from a rural agrarian economy with high fertility rates to an urban
industrialized economywith low fertility and mortality rates.
Demographic Dividend – Causes
Change in population structure occur due to
• Falling birth rate
• Lower fertility rate
• Increased longevity
Falling birth rate and lower fertility rate will contribute to a reduction in
expenditure; increased longevity will lead to an increase in the size of the working-
age population.
Advantages Associated with Demographic Dividend
Better economic growth brought about by increased economic activities due to
higher working age population and lower dependent population. It will be channelised
in following ways:
• Increased Labour Force that enhances the productivity of the economy.
• Increased fiscal space created by the demographic dividend to divert
resourcesfrom spending on children to investing in physical and human
infrastructure.
• Rise in women’s workforce that naturally accompanies a decline in fertility,
andwhich can be a new source of growth.
• Increase in savings rate, as the working age also happens to be the prime
periodfor saving.
• A massive shift towards a middle-class society, that is, the rise of
aspirationalclass.
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Demographic dividend has historically contributed up to 15 % of the overall growth

in advanced economies.
• Japan was among the first major economies to experience rapid growth
because ofchanging population structure.
• The country’s demographic-dividend phase lasted from 1964 to 2004.
Rapid industrialisation and urbanisation because of higher number of
employment seeking population that would force higher economic activities.
Rise in workforce: With more than 65% of working age population, India will rise
as an economic superpower, supplying more than half of Asia’s potential workforce
over the coming decades.
Effective policy making: Fine-tuning the planning and implementation of schemes
and programmes by factoring in population dynamics is likely to yield greater socio-
economicimpact and larger benefits for people.
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1.4 WHAT IS RURAL SOCIETY?

The Bureau of the Census of the United States defines a rural community on the
basis of the size and the density of population at a particular place. In India, on the
other hand, the term ‘rural’ is defined in terms of revenue: the village means the
‘revenue village’. It might be one large village or a cluster of small villages.
According to the Census Commission of India, a village is an entity identified by its
name and a definite boundary.
Rural society always intrinsically associated with the village since old days to the
extent of early Stone Age. It generally assumed that all the early communities were
basically rural in their character. The concept of ‘rural society’ and ‘rural community’
are often been used interchangeably by referring individual, social groups,
institutions, associations, communities, agriculture and nature environment etc. So
in simple way the rural society can be defined as, a community that lives in certain
specified geographical area and who largely depend on natural environment and
have common interests and common way of life. The rural society can be
understood with simplest analogy of living ‘organism’. Organism has several
components, which are intrinsically builds together and works as a whole for
function of the organism. As per as definition of the rural society, sociologist
A.W. Green’s definition considers as lucid and expresses in the following lines: “A
rural community is a cluster of people living within a narrow territorial radius who
share a common way of life” (Green, A. W. 1956).
From sociological point of view, the term ‘rural society’ implies the following: ·
• In comparison with the urban society, it is a small society, meaning thereby that
it has a small population and extends over a shorter physical area. Various
institutions (such as police stations, hospitals, schools, post-offices, clubs, etc.)
may or may notbe there, and if existent, they are not available in plenty.
• Density of the rural population is also low, and it may be clustered according to
the criteria of social status. In other words, people occupying the same status
may share the same neighbourhood, and may observe considerable social, and
sometimes physical, distance from others, especially those lower in hierarchy.
• A sizable number of rural people are engaged in agriculture, which is the

mainstay of their lives. In addition, a rural society has several other groups,
engaged in various other occupations of arts and crafts, usually known as
artisans and craftsmen, who regularly supply their services to agriculturalists in
exchange for grains and cereals.
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• Rural society has some full-time and a large number of part-time specialists.
Craftsmen and artisans also indulge in agricultural pursuits, especially during
the monsoon and the agricultural produce of such specialists and small
agriculturalists ismainly for domestic consumption.
• Rural society is regarded as the repository of traditional mores and folkways. It

preserves the traditional culture, and many of its values and virtues are carried
forward to urban areas, of which they become a part after their refinement.
When scholars say that ‘India lives in villages’, they mean not only that villages
constitute the abode of three-quarters of Indians, but also that the fundamental
values of Indian society and civilization are preserved in villages, wherefrom
they are transmitted to towns and cities. One cannot have an idea about the spirit
of India unless her villagesare understood.
Rural Institutions:
Social institutions have been created by man from social relationships in society to
meet such basic needs as stability, law and order and clearly defined roles of
authority and decision making. Every organisation is dependent upon certain
recognised and established set of rules, traditions and usages. These usages and rules
may be given the name of institutions. These are the forms of procedure which are
recognised and accepted by society and govern the relations between individuals
and groups.
Five major institutions in rural sociology are political, educational, economic,
family and religion.
• Political: Government as political institution, administers the regulatory
functions of Law and order, and maintains security in society. Form of
government and its method of working depends on the accepted patterns of
behaviour in a society. Development work is now-a-days a major responsibility
of the government. For effective implementation of programmes, government
may decentralise its functioning by creating local self-government like
panchayats at different level.
Education: Education is the process of socialisation, which begins informally at

home and then formally in educational institutions. Education as an institution
helps develop knowledge, skill, attitude and understanding of the people and
strive to make them competent members of the society. Education widens the
mental horizon of the peopleand make them receptive to new ideas.
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• Economic: Economy provides basic physical sustenance of the society by

meeting the needs for food, shelter, clothing, and other necessary supply and
services. Economic institutions include agriculture, industry, marketing, credit
and banking system, cooperatives etc.
• Family: It is the most basic social institution in a society, and is a system of

organized relationship involving workable and dependable ways of meeting basic
social needs.
• Religion: It is belief in supernatural. Religion constitutes a set of beliefs

regarding the ultimate power in the universe, the ideal and proper pattern of
behaviour, and ceremonial ways to expressing these beliefs. Religion also provides a
foundation for the mores of the society. Taboos in various cultures have religious
sanction. Religion provides a means by which individuals can face crises and ups
and downs in life with strength and fortitude.
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1.5 UNDERSTANDING RURALITY:

Unlike the concept of rural which defines based on the demographic scientific
arbitrary Census criteria, the concept of rurality denotes life style of rural inhabitants
which is mostly in contrast to urban life style. The term rurality refers to the area
having characteristic of being rural in demographic and geographical space, and it
associated with the set of values, a culture specific to the rural environment in
contrast to urbanity. It is presumed that the urbanity to refer to sophisticated positive
cultural traits (civility, politeness, courtesy, etc.) in contrast rurality refers rusticity
of their socio-cultural life style, belief system, values, norms etc. For sociologists
rurality or rural society is a small society, with limited density of population and
dwelling area extends over a shorter physical area, in clustered village vicinities, it
marked by traditional customs and folkways with defining social status and
occupational pursuit especially agrarian and allied activities. The concept of rural and
rurality are two side of the same coin. Yet, this does not provide precise meaning
and understanding of rural and rurality.
Farmers in rural India can be divided into three categories, viz. big landlords, small
farmers and landless farmers.
Big Landlords: A very small number of farmers are big landlords. They own a
major portion of farmland in a village. The produce enough to take care of their
family needs. The sell surplus produces in the market. Many big farmers also carry
out related businesses; like flour mill, shops for fertilizers and seeds. They also rent
out their farm equipments; like tractors and threshers to other farmers. Big farmers
do not need to workon their farms rather they hire labourers for various works.
Small Farmers: A significant number of farmers come under this category. Their
land holdings produce just enough to meet their family needs. Most of the small
farmers work on their fields. Some of them may hire labourers. Some of them may
also work on others’farms to sustain their income.
Landless Farmers: The number of landless farmers is very high in most of the
villages. Such farmers usually work on others’ farms. They get poorly paid. All the
family members of such farmers are engaged in manual work. Their earning is
meager and is never enoughto sustain the family.
Farming in India generates employment on a seasonal basis. Workers are busy only
during certain months of the year. Work is available during ploughing, sowing,
weeding and harvesting times only. For the remaining months, the farm workers are
without job.
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1.6 FEUDAL STRUCTURE, HUMAN DEVELOPMENT INFRASTRUCTURE,

SHARED LABOUR, SPECIFIC RURAL MARKET AND TRANSACTION
PROCESSES (EXCHANGE OF GOODS), SOCIAL COHESION AND
HARMONY
1.6.1 Feudal Structure:

Feudalism, also known as the feudal system, was the combination of the legal,
economic, military, and cultural customs that flourished in medieval Europe
between the 9th and 15th centuries. Broadly defined, it was a way of structuring
society around relationships that were derived from the holding of land in exchange
for service or labour.
A feudal society has three distinct social classes: a king, a noble class (which could
include nobles, priests, and princes) and a peasant class. Historically, the king
owned all the available land, and he portioned out that land to his nobles for their
use. The nobles, in turn, rented out their land to peasants. The peasants paid the
nobles in produce and military service; the nobles, in turn, paid the king. Everyone
was, at least nominally, in thrall to the king, and the peasants' labor paid for
everything.
The likely origin of feudalism in India was during the post-Mauryan period in the
empiresof the Gupta’s and the Kushanas.
Indian feudalism is commonly associated with the following terms:
• Taluqdar
• Zamindar
• Jagirdar
• Sardar
• Deshmukh
• Chaudary
• Ghatwals
All the above would be major sources of revenue for the ruling dynasties in the
Indian subcontinent and would continue to function even during the British rule, only
being ended following the independence of India.
Structural makeup of Indian feudalism
The term ‘Samantha’ (neighbour) had its origins during the Gupta era, when it
came to refer to the feudatory rulers of the time. Weak enforcement of power over
the conquered regions led to the resumption of independence and some high
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administrative positions became hereditary.

There is much speculation among historians on how much the feudatory system in
India can be described as feudalism due to the lack of an economic relationship
between king, vassal and serf. However, there are enough to describe it as feudalism.
The chief element of feudalism present in both the Indian subcontinent and Europe
was the decentralizationof power.
Feudal lords in India were obligated to pay a small fraction of revenue, a small
fraction ofrevenue and provide troops for the overlord.
In time the feudal lords began to abuse their own authority leading to fragmentation
in local authority and general breakup of unity among the populace. Such
conditions would be fertile grounds for future invasions such as the Arab and
Turkish Invasions of India
Features of Indian Feudalism
• Vassalage: Vassalage expressed the relation of personal dependence and
loyalty between the lord and his vassals.
• Hierarchy of feudal lords: Different titles signified the position and powers
within the rank of feudal lords.
• Hereditary administrative positions: Weak enforcement of power led to the
resumption of independence and some high administrative positions became
hereditary.
• Decentralisation of Power: Samantas were granted lands instead of salary and
proceeded to seize ownership of the area while continuing to refer to
themselves as vassals of their rulers.
• Oppressive tax system: Imposition of proper and improper taxes, fixed and
unfixedtaxes along with rent exploited the labour class.
• Prosperity was not shared equally: It was believed that some people were
meant for cultivation of land and some for enjoying the fruits of production and
hence, prosperity was not shared equally.
• Fragmentation of social formation: Castes were split up into thousands of
other castes and subcastes.
• Manorial system: Under the manorial system, the landlord granted lands to
persons who would render different services including labour on the lands of the
lords in exchange for land.
1.6.2 Human Development Infrastructure:
Infrastructure can broadly be defined as long-term physical assets that operate in
markets with high barriers to entry and enable the provision of goods and services.
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Social services include, education, sports, art and culture; medical and public health,
family welfare, water supply and sanitation, housing; urban development; welfare of
Schedule Castes (SCs), Schedule Tribes (STs) and Other Backward Castes (OBCs),
labour and labour welfare; social security and welfare, nutrition, relief on account
of natural calamities etc. Expenditure on ‘Education’ pertains to expenditure on
‘Education, Sports, Arts and Culture’.
Education in India: As per Educational Statistics at a Glance (ESAG), 2018, the
thrust on providing primary education has yielded results across social categories
and gender in Gross Enrolment Rate (GER). Over the years, remarkable progress
has been made in respect of female participation up-to secondary level and GER for
girls has exceeded that of boys. But girls’ enrolment rate is lower than that of boys at
the higher education level. At this level, the gap is visible across the social
categories too. The Pupil Teacher Ratio (PTR) at national level for primary schools
is 23, 17 for upper primary, 27 for secondary and 37 for senior secondary schools.
Gender Parity Index (GPI) based on GER: GPI based on GER indicates increasing
trend of female participation at all levels. At the higher education level the GPI is
low. Although, enrolment of girls is higher than that of boys in government schools,
the pattern gets reversed in private schools. The gender gap in enrolment in private
schools has consistently increased across age groups.
Status of Health: Public health expenditure (centre, states and local bodies), as a
percentage of Total Health Expenditure (THE) increased from 22.5 per cent in 2004-
05 to
30.6 per cent in 2015-16. The National Health Mission (NHM), with its two sub-
missions National Urban Health Mission (NUHM) and National Rural Health
Mission (NRHM) envisages achievement of universal access to equitable, affordable
and quality healthcare services that are accountable and responsive to peoples’
needs. Under this Mission, support is provided to States/UTs to provide accessible,
affordable, accountable and effective healthcare up to District Hospital level. Major
programme components under NRHM are Reproductive-Maternal- Neonatal-Child
and Adolescent Health and Communicable and Non- Communicable diseases.
Skill Development: The schooling system improves the educational level of the
population. It is skill training that equip the youth to enter the labour market and
improves their employability. According to NSSO Report 2011-12, only 2.3 per
cent of the total workforce in India had formal sector skill training. Keeping in view
the predominance of young population, the government had formulated the
National Policy on Skill Development & Entrepreneurship, 2015 under which the
Skill India Mission by 2022 was formulated.
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1.6.1 Specific Rural market and Transaction process:

The rural marketing structure is not uniform in all parts of the country. The type of
structure prevalent in a particular State or Region depends on various factors like the
state of development of agriculture, condition of transport and communication
facilities,purchasing power of population, etc.
However, rural markets of India can be broadly categorised into three
types.They are:
Type # 1. Periodic Markets:

Periodic markets are the important characteristic feature of the rural marketing in
India. In spite of urbanisation and development of retail stores, periodic markets are
also playing an important role in rural economy as well as in social life of the rural
masses. The periodic marketing function is performed by two institutions, viz., fairs,
and weekly markets.
A fair denotes a gathering of people who assemble at regular intervals in certain
fixed places—generally around shrines or other religious institutions. Although, by far
the largest number of fairs have a religious background, there are some which owe
then origin to purely economic considerations.
A general concept regarding Inn is that they are simply an occasion for the
recreation of rural folk. These fairs provide an opportunity for rural people for
yearly and half-yearly, sometimes be-biennial or once in 12 years like that of
Kumbha-Mela, Godavari Pushkarmas, etc.
Type # 2. Mobile Traders:
There is another important agency known as mobile traders to fulfill the limited
needs like vegetables, fruits, clothes, utensils, cosmetics, spices, toiletries etc. of
rural consumers. The practice of mobile trading is not a new one, but even in ancient
India this phenomenon was common.
The mobile traders are those merchants who move from one place to another, from
one house to another in order to sell those commodities which are often required by
rural masses. As it is rightly observed by Stine, important reason for the existence
of mobile trader is that when the maximum range is smaller than the threshold
requirement of thefirm, the firm either ceases to function or else it becomes mobile.
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Type # 3: Permanent Retail Shops:

Permanent retail shops are developed as the population of villages increased, their
incomes improved, the demand for goods and that too on daily basis increased. The
traditional fairs, weekly markets or peddlers were not able to meet the situation and
thisled to the emergence and growth of permanent shops.
Permanent shops were set up as a result of the demand of the rural inhabitants
primarily of the same village. The number of shops, their various forms largely
depends upon the size of the population of the village, their incomes, purchasing
power, their preferences, etc.
In rural areas, only traditional methods of distribution, i.e., wholesaler and retailers
are working as usual. The modern methods of distribution, such as chain stores, super
markets and franchise shops are not existing in rural areas because of small size of
villages and lower income of rural folk.
1.6.2 Social Cohesion and Harmony:
Harmonious society, whether in socialist or capitalist regime, cherishes certain
main features like democracy, rule of law, equity, justice, sincerity, amity, and vitality.
It means in practice, legal equality, equality of opportunity, equal access to
healthcare and education, and freedom of choice. It implies absence of deprivations
and discriminations, uniform law and uniform application of law, and acceptance of
diversities in personal faithand ways of life within legal boundaries.
In such a society, the fruits of development and progress would reach all without
exception. The very grievance, whether founded on facts or fears, that development
intensifies the gaps between the rich and the poor is antithetical to harmony.
Economic reforms must close the gaps and not aggravate them if we want harmony
and peace to make One India. The economic aspect of harmony, in fact, is a
prerequisite for fosteringsocial harmony.
A balanced approach to development must form the key feature of any development
process. There are a number of areas that need to be balanced. The major concerns to
be addressed specially are differences based on rural-urban areas, gender
differences, economic – environmental interests.
Poverty alleviation programmes and affirmative action become relevant in this
context. For lasting social harmony, these programmes must be so organized as to
enable the clientele to stand on their legs without making the clutches permanently
attached to them.
Development focusing solely on increasing the GDP is not likely to foster harmony.
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Rather, it should include equity and environmental aspects so as to benefit all in

contemporary society and safeguard the interests of future generations.
Social and cultural life are indeed central to the problem of building harmonious
society to the extent that some understand harmony solely as absence of religious and
caste conflicts commonly called communal conflict.
Harmony, however, has much wider connotation emphasizing order and stability in
all walks of life. India is thinking of social harmony in the context of economic
developmentas well as growing social disparities and rise of extremist groups.
Religious tolerance and inter-caste amity may be the starting point, but not an end
and are not enough to promote solidarity. What is needed is mutual understanding
and good- will and not just tolerance to cherish the diversified culture flourishing in
the country. For promoting unity, uniformity is not required. In fact, diversities
contribute to the greatness of this country and its people. A common misconception is
to equate moral life as religiousfaith which introduces race for conversions.
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1.7 SOCIAL STRATIFICATION:

The world is a diverse place. Human society is an assortment, a heterogeneous
mixture. No culture, region, or people remain static between one part of society and
another. This diversity is also marked by hierarchical arrangements, which define
how some people are more high-ranking than others. In Sociology, social
stratification is defined as “the allocation of individuals and groups according to
various social hierarchies of differing power, status, or prestige” (Andersen, 2011).
In other words, human society is divided into rankings based on socio-economic
factors such as ethnicity, race, gender, wealth and income, occupation, the derived
levels of social status and social power, and education.
There are multiple layers of social stratification in Rural India prominent being caste,
class, tribes etc.
1.7.1 Caste, Tribes and class:
Caste system:
In theory, the caste system is interlinked with the ‘Varna’ model which divides the
Hindu society into four orders, viz., Brahmana, (traditionally, priest and scholar),
Kshatriya (ruler and soldier), Vaishya (merchants) and Shudra (peasants, labourers
and servants). The first three castes are ‘twice-born’ or ‘dvija’ since the men from
these castes are entitled to do the sacred thread at the Vedic rite of upanayana, which
the Shudras were not allowed to perform. The untouchable castes are outside the
varna scheme. The term ‘varna’ literally means colour and it was originally used to
refer to the distinction between Arya and Dasa, in ancient India.
The caste system is an all-India phenomenon of which the varna model provides an
all- India macro-structural scheme. Generally speaking, the higher castes are also
the better off castes, and the lower castes are generally, the lower classes. However, this
association between caste and class is not always true. A caste can be ritually high
but ranked lower in the local caste hierarchy because this hierarchy is determined by
secular factors like economic, political, educational status. Thus, one of the most
striking features of caste system, as an actual reality, has been the vagueness in the
hierarchy, especially in the middle rungs.
Caste system in India is only analyzed on the basis of structural and cultural
aspects. Endogamy, caste hierarchy, and caste occupations are some of the
structural properties of caste system, whereas values refer to the cultural aspect.
Though the caste system is found both in rural and urban areas, it has some specific
features to perform in rural society.
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Some of these features are as follows:
a. Rules of Endogamy and Exogamy:

There exist a number of rules with regard to marital relations. One cannot marry a
person, who belongs to the same gotra. A man also cannot marry a girl, who is
related by blood. In certain tribal communities, there also exists the practice of
village exogamy, as tribals consider that marrying within their own village is a loss
of status.
b. Interdependence of Occupations:
Division of labour on the basis of caste is an essential feature of caste system in
rural societies. The economy of the village was earlier based on the jajmani system.
In this system, the occupational castes render services to their jajmans on an
exchange basis, either in cash or in kind.
Generally, most of their payments are made in kind. Thus, the village economy is
interdependent on caste occupations. Though jajmani system in the present days is
losing its significance, there are still some villages in which occupational services
are rendered on payment of cash.
c. Importance of Caste in Various Stages of Life:
The life of an individual passes from various phases, such as birth ceremonies,
marriage and death. Each of these phases is associated with a set of rituals. All such
rituals are officiated by a Brahmin.
d. Caste Associations:
Though the power of caste is losing its prominence, caste associations are becoming
much stronger, especially in political matters. The caste war, which is found in
Bihar today, is due to the power gained by these caste associations. The caste
associations make most of the political decisions in rural society.
e. Dominant Caste:
The caste that has greater numerical strength than the other castes, which holds the
majority of the land and makes important decisions pertaining to the village, is the
‘dominant caste’. This concept explains clearly that a single caste exercises authority
overthe whole village. M. N. Srinivas gave this concept of ‘dominant caste’.
f. Village Economy and Caste:
In rural society, caste determines the economic life of people. Though the village
economy is diversified, the traditional village occupations determine the status and
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wealth of rural people. The habitation pattern is also determined by the clusters of
the caste.
g. Social and Occupational Mobility:

In any rural society, the social and occupational mobility is being analyzed on the
basis of caste. Economic mobility of a person or a family is determined by the caste,
to which he/she belongs to. Though there are some castes that have given up their
traditional occupations, other castes follow their caste occupations rigidly.
h. Hierarchical Relations are based on Caste:
Caste is a system of hierarchical relations, where the Brahmins occupy the highest
position and Sudras as lowest. In between these castes are the Rajputs, artisans and
such other caste groups. All the interactions among the members of the village are
based on the status of caste.
Social classes:
Social class has been defined as a kind of social group, which is neither legally
defined nor religiously sanctioned. It is generally defined as a stratum of people
occupying similar social positions. Wealth, income, education, occupation are some
of the basic determinants of class. It is relatively open, i.e. anyone who satisfies the
basic criteria can become its member. There are several classes in a society.
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In rural areas, classes consist principally of a) landlords, b) peasant proprietors, c)

tenants d)agricultural labourers and e) artisans.
• Landlords: The land reform measures after Independence in the 1950s failed
Caste and Class to create a socially homogeneous class of cultivators. All the
same, the top strata of the agrarian hierarchy, the Zamindars, lost their right to
extract taxes from the peasants. They were left with truncated landholding. Their
economic, political and social supremacy was also broken. A small proportion of
them continue to live as rentiers. The rest have taken to active participation in
the management and improvement of their farm.
• Peasants proprietors: They may be broadly divided into three categories,

i)Rich peasants: They are proprietors with considerable holdings. They perform
no fieldwork but supervise cultivation and take personal interest in land
management and improvement. ii) Middle peasants: They are landowners of
medium size holdings. They are generally self-sufficient. They cultivate land with
family labour. iii) Poor peasants: They are landowners with holdings that are not
sufficient to maintain a family. They are forced to rent in other’s land or
supplement income by working as labourers. They constitute a large segment of
the agricultural population.
• Tenants: On the eve of Independence, there were various categories of tenants.

Broadly they could be classified as tenants, subtenants, sharecroppers, etc. In
zamindari areas, of course, there were many subcategories between the
zamindars and the actual cultivators who were in general sharecroppers.
Tenants on the whole enjoyed occupancy right. They could not be evicted. Sub-
tenants in general enjoyed some security of tenure but were liable to eviction.
Sharecroppers on the other hand did not have any security of tenure and were at
the mercy of the affluent section of tenants and subtenants were transformed
into peasant proprietors with tenancy reform programme. Sharecroppers on the
other hand, gained little from these programmes. With the second phase of land
reform viz. ceiling on land holding, there was reduction in the extent of tenancy.
Sharecropping however, continue even thereafter. Indeed, sharecroppers
constitute the most important, if not the only, segment of tenant class in rural
India today. Organisationally and politically, they are weak though they form a
very important component of peasant organisation in India.
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Agricultural Labourers: The agricultural labourers were and still are broadly of
three types. Some owned or held a small plot of land in addition to drawing their
livelihood from sale of their labour. Others were landless and lived exclusively
on hiring out of their labour. In return for their labour, the agricultural labourers
were paid wages, which were very low. Their condition of living was far from
satisfactory. Wages were generally paid in kind i.e. food grains like paddy,
wheat and pulses. Sometimes cash was paid in lieu of wages in kind. A certain
standard measure was employed to give these wages. In fact, payment in kind
continued alongside money payments. Legislation towards abolition of bonded
labour and minimum wage structure on the one hand, and employment
generating programmes on the other, reflect concern by the government for this
section. Such measures are, however, far from effective. The agricultural
labourers hence constitute the weakest section of the rural society.
• Artisans: Some of these are like the carpenter (Badhai), the ironsmith (Lohar),
the potter (Kumhar) and so on. Not all villages had families of these artisans but
under the Jajmani system, sometimes a family of these occupational castes
served more than one village. Rural artisans and craftsmen were hard hit under
the British rule as they could not compete with machine-made and cheap
industrial goods.
Tribes:
Derived from the Latin term tribus, the term tribe means an inhabited place. It
denotes a group of persons forming a community and claiming descent from a
common ancestor. The term ‘tribe’ (Munshi, 2013) was used by the colonial
government in India to categorize a large number of groups different from the term
caste. The term tribe subsumes communities very different from one another in
terms of demographic size, linguistic and cultural traits, ecological conditions and
material conditions of living. The tribes are essentially ‘primitive’, and ‘backward’
in character. After independence, the term, ‘Scheduled Tribe’ (ST) came to be used
to denote tribes who are scheduled as such under the Constitution of India. The tribal
communities are distinguished from other communities by relative isolation, cultural
distinctiveness and low level of production and subsistence. They are the native
inhabitants. There are several terms used for them like ‘adivasi’ (first settler),
‘vanvasi’ (inhabitants of forests), ‘vanyajati’ (primitive people), ‘Janjati’ (folk
people), and ‘anusuchit jati’ (ST). The number of individual ethnic groups notified
as Scheduled Tribes is 705.
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• Definite common topography: Tribal people live within a definite topography

and it is a common place for all the members of a particular tribe occupying
that region. In the absence of a common but definite living place, the tribals
will lose other characteristics of a tribal life, like common language, way of
living and community sentiment, etc.
• Sense of unity: Sense of unity is an invariable necessity for a true tribal life.
The very existence of a tribe depends upon the tribal’s sense of unity during the
time of peace and war.
• Endogamous group: Tribal people generally do not marry outside their tribe
and marriage within the tribe is highly appreciated and much applauded. But the
pressing effects of changes following the forces of mobility have also changed
the attitude of tribals and now, inter-tribal marriages are becoming more and
more common.
• Common dialect: Members of a tribal community exchange their views in a

commondialect. This element further strengthens their sense of unity.
• Ties of blood –relationship: Blood -relationship is the greatest bond and most
powerful force inculcating the sense of unity among the tribals.
• Protection awareness: Tribal people always need protection from intrusion

and infiltration and for this a single political authority is established and all the
powers are vested in this authority. The safety of the tribal is left to the skill and
mental power of the person enjoying political authority. The tribal chief is aided
by a tribal committee in the events of contingencies. Tribe is divided into a
number of small groups and eachgroup is headed by its own leader.
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• Distinct political organisation: Every tribe has its own distinct political
organisation which looks after the interests of tribal people. The whole political
authority lies in the hands of a tribal chief. In some tribes, tribal committees
exist to help the tribal chief in discharging his functions in the interests of the
tribe.
• Common culture: Common culture of a tribe derives from the sense of unity,
which depends on sharing a common language, common religion, common
political organisation. Common culture produces a life of homogeneity among
the tribals.
• Importance of kinship: Kinship forms the basis of tribal social organisation.

Most tribes are divided into exogamous clans and lineages.
• Egalitarian values: The tribal social organisation is based on the principle of

equality. Thus there are no institutionalised inequalities such as in the caste
system or sex based inequalities. Thus men and women enjoyed equal status
and freedom.
• Simple form of religion: Tribes believe in certain myths and a rudimentary

type of religion. Further, they believe in totems – which is at symbolic object
signifying objects having mystic relationship with members of the tribe.
1.7.2 Social Norms and Social Order:

A social norm is a shared belief on what others in a group actually do (i.e. what is
typical behaviour); what others in a group think they ought to do (i.e. what is
appropriate behaviour). These social norms, often unspoken, shape the expectations
within a group of people, which act as a reference for all. An example of a social
norm that is widely prevalent, yet never openly discussed, is the fact that a good
woman should respect her husband’s authority. This norm is what both men and
women base themselves on and when this expectation is not met, there is high
acceptance of violence from both men andwomen.
But the question that arises here is why are social norms important, why are they
important to function and maintain balance in life. And here are some of the
reasons we cracked:
• The norms of society are a crucial part in determining what is right and wrong.
Without these rules, we cannot live together as one unit with our individuality
intact; man would only be able to survive by himself which isn’t possible for
P a g e | 31
him since he needs other people around him for company too.
• A society is a cohesive unit that exists to fulfill certain needs. This means the
people in it have some shared responsibilities for each other and themselves, but
also maintain individuality within these norms through self-control over their
actions whilerespecting others.
• The social order is maintained by norms. That’s why it’s said that human
society has a normative nature, because we must all follow these rules and live
together in harmony or else face the consequences.
• The norms provide the fabric of society and how we interact with one another.
They allow for a cohesive, collective life to thrive in our communities because
it is easier when you know what’s expected out of everyone else around you.
• When we conform to the norms of our society, it is because these customs were
created by people that had self-control. They put in place a set of standards for
you and me – individuals who follow them are more disciplined than those
violating them.
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1.7.3 Inequality and exclusion:

The concept of ‘social exclusion,’ which entered our vocabulary only recently,
covers a wide variety of social discriminations, deprivations, and denials of equal
social opportunities to different groups or sections of society. Broadly speaking, it
refers to the exclusion of groups of people from access to such things as are considered
normal or taken for granted by others in society. It covers far more than the
exclusions rooted in India's historical divisions on lines of caste, religion, and gender;
it includes discrimination against minorities, Dalits, tribals, widows, sex-workers,
migrants, nomadic tribes, etc. Exclusion is also the fate of the communities
displaced by pro-business development projects, the slum-dwellers, the poor, the
shelterless or homeless, the child labourers, the street children (a recent estimate put
the number of street children in India at 15 million – 15 per cent of the global
count). Both the state and society are implicated in different forms of social
exclusion.
Inequality between social groups refers to political and social, as well as economic,
inequalities between people belonging to particular socially defined groups. The
definitions of the groups can be more or less fluid over time, but the more fixed they
are defined, and the more historically they are rooted, the more challenging it is to
address inequalities. Caste is perhaps the most well known example of this type of
inequality that is prevalent in India. A caste system is a type of social structure that
divides people on the basis of inherited social status. The roots of the Indian caste
system can be found in Hindu scriptures where society could be broken down into a
number of different groups, known as Varnas. The system also has a space for
outsiders and foreigners who do not conform to the system. Within a caste system,
each member generally knows his or her place, and one’s social status is usually
apparently to others as well. Though the roots of the caste system are ancient, it is
certainly not static but has changed over the years as a result of various social and
religious reforms. These include the birth of new sects in Hinduism, as well as new
religions.
India today is in the paradoxical situation that evidence of the resilience of caste
system continues to be present, at the same time as there is evidence that its role as
an explanatory factor in understanding inequality is diminishing. Deshpande and
Palshikar identify three areas where the changing role of caste can be identified: the
changing pattern of interaction between caste and politics; the change identity and
the rise of caste associations and the issue of casteoccupation linkages (2008). With
respect to the latter, traditionally mobility was extremely rare; one could transform
from a labourer to a scholar except in very rare circumstances. Today the situation is
P a g e | 33
more nuanced. In the study mentioned above, the authors found that in urban areas,
space for upwards mobility exists and there is a general though modest trend towards
upwards mobility. For example, the study found that Dalits record considerable
upwards mobility in terms of their occupations. However, a large section of Dalits still
work in the “lowest” occupations (being at the very bottom of the occupational
hierarchy, even a small shift results in upwards mobility) and only few are in the
upper occupations.
A significant group outside of the caste system are Adivasis, India’s “tribal” people.
Adivasis are concentrated in the central and north-eastern parts of the country,
generally living in remote or hilly areas outside of the reach of public services, and
lacking in basic infrastructure. For this reason, and also due to years of neglect and
exploitation at the hands of the government and other citizens, the human
development indicators (HDI) of India’s Adivasi population are much lower than
the HDI of the rest of the population in terms of all parameters (literacy, infant
mortality, etc). For example, health care is a major problem in the isolated areas
where Adivasis live. Lack of food security, sanitation, safe drinking water, poor
nutrition and high income poverty levels aggravate Adivasis’ poor health.
Furthermore, health institutions and health professionals are few and far between.
The problem of malnutrition is multi dimensional and intergenerational in nature.
The following table gives health indicators for Scheduled Tribes, Scheduled Castes
and others(per thousand persons).
TEST YOUR UNDERSTANDING

1. Does the concept of ‘rural’ is same across the globe? Explain (Hint-
Comparing‘Rural’ definition of various countries)
2. How have the rural population dynamics have changed since
independence?(Hint- trends in Rural population)
3. Do you thing that majority share of young age population of India
is anadvantage for future? Discuss (Hint- Demographic Dividend)
4. Describe the typical features of a ‘Rural Society’.
5. Discuss caste and class as a layer of social stratification in Rural India.
P a g e | 34
CHAPTER 2: CULTURE
2.1 UNDERSTANDING CULTURE:
2.1.1 Cultural Identity:

Culture refers to the collective characteristics and knowledge of a particular group
of people, such as traditions, language, religion, food, music, norms, customs, and
values. Culture can be represented in two ways:
• Material culture refers to physical objects or artifacts that symbolise or
originate from a culture. For example books, clothes, or decorative items.
• Non-material culture refers to the beliefs, values and knowledge that shape
behaviour and thought. For example, religious beliefs, historical practices, or
scientific knowledge.
Culture is learned through socialisation, which is the process of learning and
adapting to social norms, something we all do from a young age. There are two types
of socialisation.
• Primary socialisation takes place in the family. We are taught to carry out and
avoid certain behaviours by copying our parents. Conditioning reinforces our
ideas of what is right and wrong through reward and punishment.
• Secondary socialisation takes place in the wider world through various
institutions that shape our behaviour. Examples include school, religion, the
media, and the workplace.
Examining cultural identity
Culture plays a large part in people's behaviour, thoughts, and feelings, as culture
often defines what is 'acceptable'. Sociologists are therefore interested in how
culture affects our behaviour, both collectively and individually. To understand
what a culture deems 'acceptable', we can look at its 'norms' and 'values'.
What are norms?
Norms are practices that are seen as the standard or normal ways of behaving. They
are 'unwritten rules' or expectations that dictate appropriate behaviour. Norms can
bereflected in big life decisions or in everyday (and often unconscious) behaviour.
If it is a cultural norm to marry at a young age, it is likely that your behaviour
(getting married at 21, for example) will reflect this. Similarly, if it is a cultural
norm to take your shoes off before entering the house, you are likely to follow this
norm every day withoutgiving it too much thought.
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What are values?

Values are beliefs and attitudes towards something, e.g., a behaviour or social issue.
In culture, values are often the standards of social behaviour as they determine what
is rightor wrong. Values can be reflected in our norms.
Behind the norm of marrying at a young age may be a value that discourages dating
or sexual activity before marriage. Taking off your shoes before entering the house may
show the value of respecting your home and its surroundings.
What is cultural identity?
Cultural identities are the distinct identities of people or groups in cultural or

subcultural categories and social groups. Categories that make up cultural identities
include sexuality, gender, religion, ethnicity, social class, or region. We are often
born into our cultural identities. Therefore, participation is not always voluntary.
Cultural identity is self-identification, a sense of belonging to a group that reaffirms
itself. It is the extent to which one is a representative of a given culture behaviorally,
communicatively, psychologically and sociologically. It consists of values,
meanings, customs and beliefs used to relate to the world. It reflects the common
historical experiences and shared cultural codes which give us as one entity a
stable, unchanging, continuing frame of reference and meaning. People’s judgments
about whether they or others belong to a cultural group can be influenced by
physical appearance, ancestral origin or personal behavior (dressing, speech,
holidays, and celebrations). A historical event, political conditions, who is present,
situation/site of interaction and public discourse, also affects cultural identity.
Cultural identity is dynamic and constantly evolving. It covers the entire life span
of a human being and changes every moment based on social context. Cultural
identity is the constantly shifting understanding of one’s identity in relation to
others.
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2.1.2 : Multiplicity of culture:

Indian culture is one of the most ancient cultures present in the world. The country is
quite diverse and is home to several communities, each of whom has their own
culture and traditions. It is this combination of various splendid cultures that make
India one of a kind. The Indian cultural diversity is what makes India unique and
beautiful.
India is a land of diversity each state in the country is home to several communities
who live in harmony with each other while preserving and upholding their own
distinct culture and traditions. From Delhi, the capital of India, to Tamil Nadu, the
southernmost state of India, the land, is blessed with amazing scenic beauty. The
country is also home to several historical monuments which add to the varied
heritage of India.
Indian culture, often labelled as a combination of several cultures, has been
influenced by a history that is several millennia old, beginning with the Indus
Valley Civilization andother early cultural areas. Many elements of Indian
culture, such as Indian religions, mathematics, philosophy, cuisine, languages,
dance, music and movies have had a profound impact across the Indosphere,
Greater India and the world. Specifically Southeast Asian and Himalayan
influence on early India, had lasting impacts on the formation of Hinduism and
Indian mythology. Hinduism itself formed from various distinct folk religions, which
merged during the Vedic period and following periods. Especially Austroasiatic
groups, such as early Munda and Mon Khmer, but also Tibetic and other Tibeto-
Burmese groups, left noteworthy influence on local Indian peoples and culture.
Several scholars, such as Professor Przyluski, among others, concluded that there is a
significant cultural, linguistic, and political Mon-Khmer (Austroasiatic) influence
on early India, which can also be observed by Austroasiatic loanwords within
Indo-Aryan languages and rice cultivation, which was introduced by
East/Southeast Asian rice- agriculturalists using a route from Southeast Asia
through Northeast India into the Indian subcontinent. The British Raj further
influenced Indian culture, such as through the widespread introduction of the
English language, and a local dialect developed.
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2.1.3 : Cultural Change:

Sociologists use cultural change to denote the manner and extent of change in
society. As the society experiences cultural change, new behavioral patterns, social
traits, norms, and values emerge and create new social structures. Innovation,
invention, and contact withother societies can trigger cultural change.
Culture change is a term used in public policy making that emphasizes the
influence of cultural capital on individual and community behavior. It has been
sometimes called repositioning of culture, which means the reconstruction of the
cultural concept of a society. It places stress on the social and cultural capital
determinants of decision making and the manner in which these interact with other
factors like the availability of information or the financial incentives facing
individuals to drive behavior.
These cultural capital influences include the role of parenting, families and close
associates; organizations such as schools and workplaces; communities and
neighborhoods; and wider social influences such as the media. It is argued that this
cultural capital manifests into specific values, attitudes or social norms which in turn
guide the behavioral intentions that individuals adopt in regard to particular decisions
or courses of action. These behavioral intentions interact with other factors driving
behavior such as financial incentives, regulation and legislation, or levels of
information, to drive actual behavior and ultimately feed back into underlying
cultural capital.
In general, cultural stereotypes present great resistance to change and to their own
redefinition. Culture, often appears fixed to the observer at any one point in time
because cultural mutations occur incrementally. Cultural change is a long-term
process. Policymakers need to make a great effort to improve some basics aspects
of a society’s cultural traits.
Raimon Panikkar identified 29 ways in which cultural change can be brought about,
including growth, development, evolution, involution, renovation, reconception,
reform, innovation, revivalism, revolution, mutation, progress, diffusion,
osmosis, borrowing, eclecticism, syncretism, modernization, indigenization, and
transformation.
Major cultural changes in India:
SANSKRITISATION: The term Sanskritisation was introduced into Indian

Sociology by Prof. M.N. Srinivas. The term refers to a process whereby people of
lower castes collectively try to adopt upper caste practices and beliefs, as a
preliminary step to acquire higher status. Thus, this indicates a process of cultural
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mobility that took place in the traditional social system of India. Sanskritisation
denotes the process of upward mobility. In this process, a caste is trying to increase
its position in the caste hierarchy not at once, but over a period of time. It would take
sometimes, a period of one or two generations.
Mobility that is involved in the process of Sanskritisation results only in “positional
changes” for particular castes or sections of castes, and need not necessarily lead to
a “structural change”. It means, while individual castes move up or down, the
structure as such remains the same. Sanskritisation is not necessarily confined to the
castes within the Hindu community, it is found in tribal communities also. The Bhils
of Western India, the Gonds and Oraons of Middle India and the Pahadiyas of
Himalayan region have come under the influence of Sanskritisation. These tribal
communities are now claiming themselves tobe Hindus.
WESTERNISATION: The process of Westernization of caste-system in India

began with the frantic efforts of missionaries to convert as many Indians as possible
into Christianity and coming of East India Company in India first to trade and later on
to increase its political power in India. East India Company successfully established
‘British Imperial Rule’ in India by 1958. British rule produced radical and lasting
changes in the Indian society and culture. The British brought with them new
technology, institutions, knowledge, beliefs, and values. These have become the
main source of social mobility for individuals as well as groups. It is in this context,
M.N. Srinivas, introduced the term “Westernisation” mainly to explain the changes
that have taken place in the Indian society and culture due to Western contact
through the British rule.
In comparison with Sanskritisation, Westernisation is a simplier concept. It
explains the impact of Western contact (particularly of British rule) on the Indian
society and culture.
M.N. Srinivas used the term “Westernisation” to describe the changes that a non-western
country had undergone as a result of prolonged contact with the western one.
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MODERNISATION: Modernisation involves the replacement of sacred

revelation(sacred reality) with the help of enlightenment in secular guidelines of
human societies. There are many divisions such as social, psychological state,
culture, economy, etc. of modernisation. At some points, modernisation is
essentially based on the terms “a rationalist or positivist spirit”.
Modernisation is also known as the process of social change in a society under
development compared to developed societies. Modernisation is an idea in the
circle of sociologies that alludes to the process in which society experiences
industrialisation, urbanisation, and other social changes that change people’s lives.
Modernisation is a facet of culture change that refers to a model of an evolutionary
transition from a ‘pre-modern’ or ‘traditional’ to a ‘modern’ society. Modernisation
aims at the political transformation of a social, economically developed society.
Modernisation includes secularisation, which refers to a society free from religious
orthodoxy.
2.1.4 Challenge of Diversity:

Challenges for maintaining harmony for India amidst cultural diversity is
Regionalism: Regionalism tends to highlight interests of a particular region/regions
over national interests. It can also adversely impact national integration. Law and
order situation is hampered due to regional demands and ensuing
Divisive politics: Sometimes, ascriptive identities such as caste, religion etc. are
evoked by politicians in order to garner This type of divisive politics can result in
violence, feelingof mistrust and suspicion among minorities.
Development imbalance: Uneven pattern of socio-economic development,
inadequate economic policies and consequent economic disparities can lead to
backwardness of a region. Consequently, this can result in violence, kickstart waves
of migration and even accelerate demands of separatism.. For instance, due to
economic backwardness of the North East region, several instances of separatist
demands and secessionist tendencies have sprung up in the
Ethnic differentiation and nativism: Ethnic differentiation has often led to
clashes between different ethnic groups especially due to factors such as job
competition, limited resources, threat to identity E.g. frequent clashes between
Bodos and Bengali speaking
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Muslims in Assam. This has been accentuated by son of the soil doctrine, which ties
people to their place of birth and confers some benefits, rights, roles and
responsibilities on them,which may not apply to others.
Geographical isolation: Geographical isolation too can lead to identity issues and
separatist The North-East is geographically isolated from the rest of the country as
it is connected with the rest of the country by a narrow corridor i.e the Siliguri
corridor (Chicken’s neck). The region has inadequate infrastructure, is more
backward economically as compared to the rest of the country. As a result, ithas
witnessed severalinstances of separatism and cross-border terrorism, among others.
Inter-religious conflicts: Inter-religious conflicts not only hamper relations between
two communities by spreading fear and mistrust but also hinder the secular fabric of
the country.
Inter-state conflicts: This can lead emergence of feelings related to regionalism. It
can also affect trade and communications between conflicting states. For instance,
Cauvery River dispute between Karnataka and Tamil
Influence of external factors: Sometimes external factors such as foreign
organizations terrorist groups, extremist groups can incite violence and sow feelings
of separatism. g. Inter-Services Intelligence (ISI) has been accused of supporting
and training mujahideen to fight in Jammu and Kashmir and sow separatist
tendencies among resident groups.
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2.2 ELEMENTS OF CULTURE:
2.1 Language and symbols:

Language is one of the most important parts of any culture. It is the way by which
people communicate with one another, build relationships, and create a sense of
community. Communication is a core component of any society, and language is an
important aspect of that. As language began to develop, different cultural
communities put together collective understandings through sounds. Over time,
these sounds and their implied meanings became commonplace and language was
formed. Intercultural communication is a symbolic process whereby social reality is
constructed, maintained, repaired and transformed. As people with different cultural
backgrounds interact, one of the most difficult barriers they face is that of language.
There is a popular aphorism that depicts India’s linguistic diversity rather well:
Kos-kos par badle paani, chaar kos par baani (The language spoken in India
changes every few kilometres, just like the taste of the water). The Census of 2001
provided only a partial demonstration of this multiplicity when it said that our
country has 30 languages that are spoken by more than a million people each. These
30 languages by themselves only provide a linguistic window through which we can
view the 122 languages that are spoken by at least 10,000 people each. Then we
have the 1,599 languages, most of them dialects, restricted to specific regions,
many of them on the verge of extinction. More than a decade after the 2001 Census,
the People’s Linguistic Survey of India, headed by eminent academic G.N. Devy,
found that our country is home to 780 languages and 66 different scripts.
To the human mind, symbols are cultural representations of reality. Every culture
has its own set of symbols associated with different experiences and perceptions.
Thus, as a representation, a symbol's meaning is neither instinctive nor automatic.
The culture's members must interpret and over time reinterpret the symbol.
Symbols occur in different forms: verbal or nonverbal, written or unwritten. They
can be anything that conveys a meaning, such as words on the page, drawings,
pictures, and gestures. Symbols are the basis of culture. A symbol is an object,
word, or action that stands for something else with no natural relationship that is
culturally defined. Everything one does throughout their life is based and organized
through cultural symbolism. Symbolism is when something represents abstract ideas
or concepts. Some good examples of symbols/symbolism would be objects, figures,
sounds, and colors.
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An integral part of India’s culture is the wide

variety of graphic designs and symbols which are
used prolifically in everyday life. During the
Vedic era (2500 BC) when the four great books
of knowledge called the Vedas were composed, a
number of these intricate figures sprang from the
imagination of the philosophers as visual
representations of the universe and the divine
energy which rules it. Some figures were used as
a focus of meditation. Others were used
in rituals and sacraments. Some lent an artistic flavor to festivals and everyday life.
Among all the graphic designs an d symbols thus inherited by India, seven are
deeply etched in the Indian psyche and are used in almost every Hindu home at one
time or another.
The foremost among these is the sacred Om. It is believed to be the visual depiction
of the cosmic sound from which the universe originated. It is the syllable from
which all matter and space originate. In its monosyllabic sound, it contains the
Brahman or the entire universe and its energy. So fundamental is Om to Indian
culture that it is the first shape that every child draws as he/she begins his/her
education. It is also the first chant of the priest as he invokes the gods in any prayer.
This motif can be seen on doorways, temples, account books, religious texts,
cradles of newborn babies and on ceremonial clothes in a variety of colours and
many embellishments. Om is also depicted as the true form of Ganesha, the deity of
auspiciousness and good fortune as well as wisdom, knowledge and learning.
2.2.2 : Individual and Community Behaviour:

Culture influences our behaviors in diverse ways. It is because the culture is the
people’s way of life. Culture includes the social ethics, principles, or morals seen in
society. A method of living that encompasses people’s beliefs, values, customs,
language, and traditions is what we know to be culture.
The act of kissing, for example, differs throughout different cultures. For Western
societies, kissing in public is acceptable. For the Chinese, kissing is only done in
private. Showing affection in public for Americans can mean kissing the other person
on the lips. The French kiss each other on both cheeks, while in New Zealand’s
Maoris, they rub their noses together
Another example of behavior creating culture and vice versa is the culture of
competition. Children in most societies learn to compete with other children at an
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early age. They compete in intelligence in school; they compete in physical

appearance when they enter beauty pageants or when mothers praise them by
belittling other children. Children go on to grow up with the behavior to compete and
be better than the next person. The culture of competition grows and prevails as a
result.
Society accepts this because our culture, our society, our media and our laws allow
these behaviors to surface. Acceptance of behavior then creates a culture that tests
time. Onlywhen people accept the opposite of the established that culture may shift.
Transmission of culture is also a key to understanding human behavior. Many
aspects of human behavior are influenced by social learning, as described earlier and in
the examples above. Once the majority accepts a particular behavior, it can influence
and leave a markin one’s culture and in the society’s culture.
Conclusively, culture affects people whether they want it to or not. It affects their
behaviors in any setting, whether it is in their daily life, in an organization, or in
other social settings.
2.2.3 Culture and Technology:

The culture of a society is reflected in values, norms and practices. Culture observes
itself through individuals to reflect their perception, practices, values and in transfer
of technology. Technology has a crucial impact on fundamental aspects of all our
cultures including language, art, mobility, education and religion. Culture of a
community acts as a standard for perceiving, judging and evaluating the technology. As
technology affects all the components of culture, it determines the direction of
cultural development. To occupy the larger cultural dimension, technology should
be in harmony with social and cultural conditions of community else there exists a
friction between technological development and preservation of cultural values. A
rational balance allows people to exercise freedom of expression in technical world
which is beyond one’s ethnicity, age, or level of education. People use it for fulfilling
their fantasies but a cultural downfall may occur due to lack of restrictions,
regulation and/or consequences.
Technological Impact on Tradition:

There exists always a tough competition between technology and tradition in a
community. Technology has constrained the world into a global village by
globalization. Imagination of today’s life without electricity, transportation,
communication, etc. takes us back in time. The advancement in the field of medical
science, engineering, economy, etc. is as a resultof technology.
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Industrialization, Urbanization, Modernization, Development of the means of

transport and communication is all possible as a result of positive impact of
technology. It also helps in networking of the culture, tradition and coherence of the
society. The 21st century has been so much forward due to the progress of
technology.
As seen in TED talks, Sherry Turkle says “As we expect more from technology; we
start to expect less from each other.” She points out that we’re not building
relationship with each other, but building relationship with technology as if it’s a
real thing. Connecting electronically can also lead to isolation which is as a result of
constant sensory stimulus of texts, tweets, facebook, emails and more rather than
thinking and listening to each other. Dominance of western culture on recessive
culture can be vital example of negative impact of technology. Violation of social
values and loss in coherence of tradition is a result of technology.
Tradition style thrives if they have their recognized value. Technology helps to
modify method of production or industrialization rather than killing the tradition. Thus,
technology allows preservation of tradition if beneficiary part is taken into account.
Technological Impact on Social Values:

The technology has given a wide range of topics to be discussed. People get to
know extensive knowledge about any subject and more information has been shared
effectively. Technology assists in transformation of economy and evolution of new
social classes too.
Technology plays a crucial role to strengthen interpersonal connection. It has
contributed in the sector of health, transportation, electricity, etc. to all the
demographic factors of society eg: Modern farming replaced primitive farming
allowing increased crops, less timeinvestment, etc.
Whereas people invest more time in technology and less time in social
environment. Technology has been blamed for turndown of traditional media such as
TV and newspaper, etc. The complete use of technology has been limited in the
periphery of educated people only. The more technology grows up, the more human
regresses. Invention of robots and machines has made human lazy and dependant.
Bombs, nuclear weapons and missiles exist due to use of technology.
Implementation of technology influences the values of society by changing
expectations and realities. Over emphasizing technology has created lack of trust
among people. Technology can also be blamed for unemployment, cultural lag,
changes in social institutions.
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2.3 CULTURE AND CONSUMPTION:
2.3.1 Food and Non Food consumption driven by Culture:

Food (Sanskrit— bhojana,“that which is to be enjoyed,” Hindi— khana, Tamil—
shapad) presents a way to understand everyday Indian culture as well as the
complexities of identity and interaction with other parts of the world that are both
veiled and visible. In India today,with a growing economy due to liberalization and
more consumption than ever in middle class life, food as something to be enjoyed
and as part of Indian culture is a popular topic. From a 1960s food economy verging
on famine, India is now a society where food appears plentiful, and the aesthetic
possibilities are staggering.
Food as identify of caste, class, kinship, religion in India:
India has several thousand castes and tribes, sixteen official languages and several
hundred dialects, six major world religions, and many ethnic and linguistic groups.
Food in India is an identity marker of caste, class, family, kinship, tribe affiliation,
lineage, religiosity, ethnicity, and increasingly, of secular group identification. How
one eats, what one eats, with whom, when, and why, is key to understanding the
Indian social landscape as well as the relationships, emotions, statuses, and
transactions of people within it.
The aesthetic ways of knowing food—of being a gourmand and deriving pleasure
from it— as well as ascetic responses to it—are lauded in ancient scriptural
texts such as the Kamasutra and the Dharmaśāstras. But historically in India, food
consumption has also paradoxically been governed by understandings that lean
toward asceticism and self-control as well. Traditional Ayurvedic (Hindu) and
Unani (Muslim) medical systems have a tripartite categorization of the body on its
reaction to foods. In Ayurveda, the body is classified as kapha (cold and phlegmy),
vaata (mobile and flatulent), or pitta (hot and liverish), and food consumption is thus
linked not only to overall feelings of well being and balance but to personality
disorders and traits as well. Eating prescribed foods (sattvic foods that cool the
senses versus rajasic foods that inflame the passions) and
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doing yoga and breathing exercises to balance the body, spirit, and mind are seen as
verybasic self-care and self-fashioning.
This appreciation and negation of gastronomic pleasure is made more complex by
caste- and religion-based purity as well as pollution taboos. With some exceptions, since
the early twelfth century, upper-caste Hindus, Jains, and some regional groups are
largely vegetarian and espouse ahimsa (nonviolence). Often upper castes will not
eat onions, garlic, or processed food, believing them to violate principles of purity.
Some lower-caste Hindus are meat eaters, but beef is forbidden as the cow is deemed
sacred, and this puritybarrier encompasses the entire caste and religious system.
There is a sharp distinction between cooked and uncooked foods, with cooked or
processed food capable of being contaminated with pollution easier than uncooked
food. For upper- caste Hindus, raw rice is deemed pure even if served by a lower-
caste person, but cooked rice can carry pollution when coming in contact with
anything polluting, including low- caste servers. Religion also plays a part in
dietetic rules; Muslims in India may eat beef, mutton, and poultry but not pork or
shellfish; Christians may eat all meats and poultry; and Parsis eat more poultry and
lamb than other meats. However, as many scholars have noted, because of the
dominance of Hinduism in India and the striving of many lower- caste people for
social mobility through imitation of higher-caste propensities, vegetarianism has
evolved as the default diet in the subcontinent. Most meals would be considered
complete without meat protein.
Non-Food consumption and Culture:
India consumers are culture oriented in the sense that they conform to cultural
expectations of society. Core values of culture are reflected in indian buying
behaviour also:
BIG SAVERS: India is known as a country of savers, though spending is on the
rise. Disposable income is increasing. By 2030, 80% of households will be middle-
income, compared to 50% today. This growing middle class is expected to drive
consumer spending
– buying more and buying better.
Access to credit also plays a key role. Household debt stands at 15.7% of GDP –
low for an emerging market. However, the level of debt doubled in 2017. This is a
rapid change in consumer behavior that’s at least partly generational.
Indian millennials still value traditional priorities, like income and home ownership.
But they have other goals, too. This shows in their spending priorities. For example,
62% go on holiday 2-5 times a year – even if this means borrowing. The top goal for
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millennials is to make a positive impact on society (57%). Value for money is an

important factor in determining consumer behavior in India. Indian shoppers are
well-informed and want toget a good deal – even for luxury products.
FAMILY-ORIENTED: The Indian family is changing. Traditional, multi-

generational households are in decline. In fact, only 37.1% of Indians now live with
extended family. Nuclear families are the new norm, while single-person
households remain rare (4.1%).
Marriage is still central to most people’s lives. It’s not unusual for people to spend
20% of their lifetime’s earnings on their wedding. And spending is rising at over
20% per year, fueled by the increased financial power of the nuclear family. This
means weddings are a major focus for the apparel, beauty, events, and luxury
sectors.
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2.3.2 : Impact of Global Cultural Change:

Globalisation has changed different aspects of the Indian society in the last two
decades, including the food habit of the Indian people. Indians, currently in their late
30s, used to ask their parents to buy ‘jhal-muri’ or ‘mumphali’ for them during their
childhood. Times have changed and multinational fast food chains become quite
familiar with the younger generation. Now-a-days, the young people prefer burgers,
hot dogs, fried chickens, momos etc. They like to hang out in decorative and air-
conditioned environment with variety of foods on their plates, with the growing
number of food restaurant chains offering different recipes at comparatively ‘cheaper’
rates.
Gone are the days when the society considers consuming liquor as an offence.
During the process of globalisation, the Indian society has experienced a dramatic
change in the lifestyle of people. According to experts, beer has replaced coffee as the
fashion statement among the elite and upper classes. Fast corporate life, fuelled by
rising income, has also encouraged the urban people to try out different types of
mixes and signature spirits, instead of classical cocktails and normal alcoholic
drinks.
In the past, Indians preferred to consume different types of juice especially in
summer. As a result, small local players, like juice shops, dominated the non-
alcoholic beverage segment. With the globalisation of the society, the Indian
consumers are exposed to a number of beverages, such as mocktails, while dining
with their friends and families, andbeer has secured its place on the dining table.
2.4 CULTURE AND BUSINESS:

2.4.1 Globalisation and Culture:
Globalization has a wide role to play worldwide. It has left back its footprints at
every sphere of life. Not only in India, but the interchange of world views and ideas
has resulted in a major transformation of the lifestyle and living standard of people
globally. Indian culture is no bar to this transformation process. Our deep rooted
traditions and customs have loosened up their hold with the emergence of
globalization. India has a rich cultural background and pride of its culture is famous
throughout the world. Globalization has not only inculcated the westernization in
India, but conversely the Indian culture has also spread its impact globally. Culture
and traditions of any geographic region hold a special significance with respect to its
uniqueness and that is the differentiating factor for a population within a geographic
boundary from the other. This uniqueness has been disturbed to the varying degrees
in lieu of globalization. Such an impact is very much pronounced when they hit a
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developing country like India.

When we analyse this rich culture with the globalization point of view, we can find
many punch holes of westernization and mixing of other traits and cultures into our
beautifully woven blanket. Let us closely analyse the impacts of globalization on
Indian culture:
Family Structure: Let us start with the key attraction of Indian joint family
culture. The joint families have become a strange surprise to the Indians especially
to those residing in the metropolitan cities in the small flat culture with the nuclear
families blooming up like mushrooms in the rain. We have lost the patience to get
adjusted into the joint family, imbibing the values of the elders and getting the young
ones brought up under the shadow of their grandparents. Children have started
treating grandparents like guests or visitors, and such an upbringing is one of the
main reasons of increasing old age homes, as those children consider their own
parents as burden in their state of adulthood.
Marriage Values: Similarly, marriages have also lost their values. It is very much
evident from the increasing number of divorce cases and the extra-marital affairs
reported every now and then. Marriage used to be considered as bonding of the souls
which will be linked even after the death; but today marriage is like a professional
bond or a so-called commitment to share life without compromising their self-
interests. The ego factor into the Indian youth is again a product of globalization.
Adultery: Both the genders were kept at a distance, with lot many restrictions and
limitations to the approach for ages in our culture. With the emergence of
globalization and western culture, youth have start mixing up well with each other.
The friendly approach and the socializing feature is worth appreciable. But the total
breakout of restrictions have adulterated the Indian mindset, playing up with the
physical relationship. This has given birth to new relationships in India like live-in
relationships. Also the increased cases of rape and sexual abuse cases are a result of
the perverted mind which again the imported values very much alien to our mother
culture.
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Social Values: We have the incorporated values of treating the guests as God,
warm- hearted welcoming, greeting elders with due respect and a celebrating every
small festival with great colour of enjoyment and togetherness. Such a wide
gathering with full hue and light can hardly be seen today. People have highly
restricted themselves in social interaction. The interaction in present generation is
highly diplomatic considering the financial status and wealth. We have lost our
social values and cheerful blessing of togetherness. The present generation are more
happy celebrating Valentine’s Day ratherthan Holi and Diwali.
Employment and the Agricultural Sector: India was predominantly an
agricultural based country. With the advanced globalization and cropping up of
MNCs, the farming has lost its prime value in India. Agricultural science has the
least focus amongst the youngsters who consider farming as a shameful profession
and look down upon the same. Employment through MNCs have lucrative deals
attracting the bulk of manpower who are working for the other countries as their
customer care representatives. We are losing our health and our status and slowly
getting to the age of economic slavery due to these MNCs. This is what the
globalization has provided Indians through their emergence.
2.4.2 Changing Face of Business:

Indian entrepreneurship, innovation, and business firms have gone through a
plethora of changes, particularly in the last three decades. The most significant
change is the result of national government policies that had the effect of moving
away from postcolonial Nehruvian socialism and creating a climate for more
economic freedom for entrepreneurs and private businesses. The 1990s was the
watershed decade for these revolutionary changes. Indian business suddenly took off
with a new outburst of energy and enthusiasm in the 1990s that was unprecedented in
the post-Independence era.
In the 1990s, India made a transition from an inward-looking democratic socialist
economy that often discouraged international trade/investment and allowed private
business but overregulated it to a set of market reforms that brought in foreign
investments, connected India to the global market, and created opportunities for
Indian companies to venture abroad. A large range of actors, both in formal
(regulated by government policies) and informal sectors (unstructured markets, not
monitored by government regulations) juggled to secure their own niches in new
waves of policy changes, globalization trends, and competition from foreign
investments.
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India’s upward development curve jumpstarted the service sector, encouraged

entrepreneurship and innovation, created global business leaders, and
institutionalized the jugaad phenomenon, a unique Indian characteristic that motivated
Indians to struggle and prosper. Jugaad, a Hindi word, is usually identified with
disruptive and innovative strategies at different levels in Indian business that is very
organic in nature. It is a way of dealing with everyday problems for Indians and
attempting to find solutions independently of any organizational support or
intervention. In an overpopulated, competitive market, it has enabled Indians not
only to survive, but also innovate. It is sometimes referred to as “frugal
engineering.” New government policies that made use of cultural propensities and
economic incentives have dramatically altered India’s business climate since the
democratic socialist model was altered. As a consequence, in the World Bank report
from 2018, The Ease of Doing Business, India jumped ahead by 23 spots to the
77th overall position from 100th place in 2017.
The start-up journey in India had been inspired by Indian technology firms in
Silicon Valley, along with the growth of the internet, the dotcom boom, and the
availability of funds through venture capitalists. Without physically investing in a
space (as in a manufacturing unit) to set up an enterprise or using the social capital
of traditional business networks, these businessmen have created their enterprises
by linking sources to the needs of consumers. These companies have revolutionized
the concept of traditional Indian enterprise and business acumen, similar to that of
America but with unique Indiancharacteristics.
One of the important features of the contemporary Indian economy is the public–
private partnership (PPP). The industrialists, who had been shunned in the post-1947
era, were now encouraged to work along with the government in the post-Reform
period. In 2013, PM Manmohan Singh talked about his belief that government and
business should be partners in writing the history of development. This reiterated
the government’s commitment to partnering with the private sector for India’s
economic growth. Post-2014, there have been steps taken by the Modi government to
promote digitalization, start-ups, and the manufacturing sector in several initiatives
with the private sector. For example, government collaboration with Tata
Consultancy Services to create a digital platform for Indian passport services has
benefited over 150 million Indians. Similarly, the Adani Group was chosen to operate
several Indian airports. The PPP plays an important part in several infrastructure
projects and the health care sector, too.
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2.4.3 Unification of culture and its impact on Business:

Cultural globalisation refers to the rapid movement of ideas, attitudes, meanings,
valuesand cultural products across national borders.
It refers specifically to idea that there is now a global and common mono-culture –
transmitted and reinforced by the internet, popular entertainment transnational
marketing of particular brands and international tourism – that transcends local
cultural traditions and lifestyles, and that shapes the perceptions, aspirations, tastes
and everyday activitiesof people wherever they may live in the world’
A central contention is that all cultures will become similar, that is homogeneous.
Others argue that there is an increasing tendency towards glocalisation of culture.
Glocalisation refers to the mixing of the global with the local. It is not entirely
spontaneous. Nor is it entirely delinked from the commercial interests of globalization.
It is a strategy often adopted by foreign firms while dealing with local traditions in
order to enhance their marketability. In India, we find that all the foreign television
channels like Star, MTV, Channel V and Cartoon Network use Indian languages.
Even McDonald sells only vegetarian and chicken products in India and not its beef
products, which are popular abroad. McDonald’s goes vegetarian during the
Navaratri festival. In the field of music, one can see the growth of popularity of
‘Bhangra pop’, ‘Indi pop’, fusion music and even remixes. There is another
phenomenon associated known as Grobalisation which has been coined by
Ritzer(2004). It refers to what he calls “growth imperatives pushing organisations
and nations to expand globally and to impose themselves on the local geographies
there”. For Ritzer, Globalization is the sum total of ‘glocalization’ and
‘grobalization’.
Converging Global Consumption Patterns:

Today you can go to pretty much any major city in the world and share in a similar
‘consumption experience’. Also, more and more people in Asia and South-America
are coming to enjoy high-consumption lifestyles like in the West – car ownership
and tourism are both on the increase globally for example. Central to this is the growth
of similar styles of shopping malls, and leisure parks which provide a homogeneous
cultural experience indifferent regions across the world.
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The Global Village/ Global Consciousness

Individuals and families are now more directly plugged into news from the outside
world
– some of the most gripping events of the past decade have unfolded in real time in
front of a global audience. This means that more and more people have a more
‘global outlook’ and increasingly identify with a global audience – for example,
television reporting of natural disasters in developing countries result in people in
wealthier countries donating money to charities such as Oxfam to assist with relief
efforts. Concept of ‘Cosmopolitanism’ describe this process of an emerging global
identity.
Global Risks/ Global Risk Consciousness
A fundamental feature of globalisation is the development of a global risk
consciousness, which emerges due to shared global problems which threaten
people in multiple countries – examples include the threat of terrorism, international
nuclear war, the threat of global pandemics, the rise of organised crime funded
primarily through international drug trafficking, and the threat of planetary melt-
down due to global warming.
On the downside, the constant media focus on such global problems has led to a
widespread culture of fear and increasing anxiety across the globe, which has
arguably contributed to things such as Paranoid Parenting and Brexit, but on the
plus side, new global international movements and agencies have emerged through
which people cometogether across borders to tackle such problems.

1. Do culture plays any role in giving distinct identity to an individual? Discuss
2. What is cultural change? Discuss major types of cultural change in India.
3. Do the multiplicity of culture pose any challenge for India?
4. Culture has various elements which manifest itself in Individual’s day to
day tolife. Discuss in the context of language and symbols.
5. Discuss how the food consumption manifest cultural diversity in India.
6. Do globalization has any impact on Indian culture? Discuss.
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Semester III
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MODULE NO. 2
RURAL SUSTAINABILITY: THEORIES, CONCEPTS, AND ACTION
FRAMEWORKS
Chapter 1: Rural Sustainability: Theories and Concepts
1. Understanding sustainability: Definition and its dimensions
1.1 Meaning
 Sustainable development is development that meets the needs of the present, without
compromising the ability of future generations to meet their own needs.
 Sustainability is often thought of as a long-term goal (i.e. a more sustainable world),

while sustainable development refers to the many processes and pathways to achieve it
(e.g. sustainable agriculture and forestry, sustainable production and consumption,
good government, research and technology transfer, education and training, etc.
 The notion of ‘sustainability’ emerged in The Ecologist’s A Blueprint for Survival,

in 1972. The quest to make modern civilization ‘sustainable’ inspired the UN’s
Stockholm Conference in 1972 and the ‘global trusteeship’ of subsequent
international environmental treaties.
 But the focus of sustainable development and rural sustainability is far broader than
just the environment. It's also about ensuring a strong, healthy and just society. This
means meeting the diverse needs of all people in existing and future communities,
promoting personal wellbeing, social cohesion and inclusion, and creating equal
opportunity.
 E.g. Rural areas must cope with social, demographic, economic, governance, and
environmental challenges. As an example, extensive cattle ranches and emerging oil
palm cultivation threaten biodiversity conservation and food security across tropical
rural regions while increasing social inequalities and conflicts. On the other hand,
agricultural land abandonment (associated with traditional farming, low productivity,
poor infrastructure, aging population, massive migration, land ownership change,
political instability) has created several socioeconomic and ecological
dysfunctionalities in India as well as other agrarian dominant societies.
1.2 Dimensions of Rural Sustainability
In 2000, the Earth Charter broadened the definition of sustainability to include the
idea of a global society “founded on respect for nature, universal human rights,
economic justice, and a culture of peace.” The 2005 World Summit on Social
Development identified sustainable development goals, such as economic
development, social development and environmental protection. Consequently, the
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three pillars or dimensions of Sustainability came up as:
 Environmental Sustainability
 Social Sustainability
 Economic Sustainability
 Environmental Sustainability
Ecological integrity is maintained, all of earth’s environmental systems are kept in
balance while natural resources within them are consumed by humans at a rate where
they are able to replenish themselves.
E.g.
 Use of Renewable energy, such as solar, wind, hydroelectric, and biomass etc
 Recycling of metals, such as iron and steel, and minerals
 Crop rotation (Sustainability in agriculture)
 Cover crops
 Selective logging
 Social Sustainability
A socially sustainable society is one in which all members have equal rights, all share
equitably in societal benefits, and all participate equally in the decision- making
process. Universal human rights and basic necessities are attainable by all people,
who have access to enough resources in order to keep their families and communities
healthy and secure.
E.g. Examples of social sustainability issues include resolving racisms and

discrimination issues in schools, workplaces, social communities and create a diverse
community. Equal opportunities for basic health is also a social sustainability issue.
Human health and well-being is an important factor in social sustainability. Important
measures of human health include life expectancy and infant mortality
 Economic Sustainability
Economic sustainability takes into account the social and ecological consequences of
economic activity. It incorporates new paradigms like circular economy, cradle to
grave etc. Additionally, economic sustainability also means that human communities
across the globe are able to maintain their independence and have access to the
resources that they require, financial and other, to meet their needs.
E.g. organic farming, green and socio-economic enterprises
 More recently, using a systematic domain model that responds to the debates over the
last decade, the Circles of Sustainability approach distinguished four domains of
economic, ecological, political and cultural sustainability. This approach outlined in
the Agenda21 specifies culture as the fourth domain of sustainable development. The
model is now being used by organizations such as the United Nations Cities
Programme and Metropolis.
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1.2. Evolving theories of sustainability: Theories of social sustainability,corporate

sustainability, and environment sustainability
1.2.1 Social sustainability
1.2.1.1 Meaning
A process for creating sustainable, successful places that promote wellbeing, by
understanding what people need from the places they live and work. Social sustainability
combines design of the physical realm with design of the social world – infrastructure to
support social and cultural life, social amenities, systems for citizen engagement and space
for people and places to evolve.
1.2.1.2 Dimensions/Principles of Social sustainability
 Quality of life
Quality of life is a big topic and covers many aspects of things that affect our living
qualities.
For example, affordable housing, physical & mental medical support, education
training opportunities, employment opportunities, access to support, and of course
safety and security.
 Equality
Equality is the act to reduce disadvantages to certain groups, or helping certain groups
to remove barriers to have more control of their lives. It also includes identifying the
causes and reasons of disadvantages and find ways to reduce them. For example:
Access to poorer sections of society to education and health infrastructure. Non
discrimination on the basis of gender and caste etc.
 Diversity
Diversity includes finding needs from different diverse groups of different diversity
types and assess their needs, and educating everyone to have diverse viewpoints to
leverage benefits of diversity.
For Example: Understanding and respecting ethos and culture of different religions,
castes, creed and respecting and promoting unity in diversity concept.
 Social Cohesion
Social Cohesion means increasing participation by individual in a target group, as
well as helping target groups to access public and civic institutions. One important
factor is to build links between different target groups in a broader way by
encouraging target groups to contribute to society as well.
Examples of social sustainability issues include resolving racisms and discrimination
issues in schools, workplaces, social communities and create a diverse community.
Equal opportunities for basic health is also a social sustainability issue. Human health
and well-being is an important factor in social sustainability. Important measures of
human health include life expectancy and infant mortality
 Democracy & Governance

Governance is to make sure budget and resources are adequate to sustain sustainability
programs and the ability to measure it.
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1.2.2 Corporate sustainability
1.2.2.1 Meaning
Corporate sustainability can be defined as the numerous ways in which organizations
commit to making the environment and society healthier and fairer. Sustainability generally
refers to caring for the needs of the future without ignoring the needs of the present.
Corporate sustainability understands this and offers an alternative to models of traditional
growth and profit optimization. At the heart of corporate sustainability is the recognition
that societal goals, particularly those concerned with sustainable development—
environmental protection, social justice, equity—are non-negotiable.
1.2.2.2 Importance
 The primary importance of corporate sustainability lies in constructing a roadmap for
a cleaner, greener and rejuvenated planet, especially when it comes to climate change
and global warming
 The importance of corporate sustainability lies in making industries and other
organizations more aware of the sustainable development standards they should aim
for
 In an age of heightened awareness about environmental and social issues, corporate
sustainability is a great tool to reach more customers and convince them that
organizations have their priorities in the right place
 Corporate sustainability matters because it allows organizations to adapt, rethink and
grow, staying in touch with the needs and demands of an evolving planet andsociety.
1.2.2.3 Prominent examples
 Microsoft has diverted over 60,000 metric tons of waste from landfills in recent years,
besides funding 20 water replenishment projects in 2020.
 Another of the most consequential examples of corporate sustainability is Apple’s
pledge to operate on 100% green energy facilities that rely on wind and solar power
instead of fossil fuels.
 Lego’s environmental goals are reducing packaging and sourcing 100% renewable
energy.
 Kering SA is best known for the fashion brands it owns — including Gucci, Saint
Laurent, and Alexander McQueen.While the fashion industry is plagued by
environmental and human rights issues, Kering has distinguished itself by sourcing
more than 40% of its products from certified sustainable sources — and is always
looking for ways to increase that number.
 Neste Corporation has invested heavily in the development of products like renewable
biofuels. Today, 25% of the company’s revenue comes from refining biofuels
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1.2.3. Environmental sustainability
1.2.3.1 Meaning
 According to the U.N Environment Programme, environmental sustainability involves
making life choices that ensure an equal, if not better, way of life for future
generations.Environmental sustainability aims to improve the quality of human life
without putting unnecessary strain on the earth's supporting ecosystems. It’s about
creating an equilibrium between consumerist human culture and the living world. We
can do this by living in a way that doesn’t waste or unnecessarily deplete natural
resources.
 In simple terms, environmental sustainability is the practice of interacting with the

planet responsibly. We do it to avoid depleting natural resources and compromising the
future generation’s ability to meet their daily needs.
1.2.3.2 Issues and problems
 Climate change
Largely considered the most urgent and impactful contemporary environmental crises
by scientists and other experts, climate change is the most high- profile challenge
facing the world today. For years, public figures such as Al Gore and Greta Thunberg
have sounded the alarm regarding growing carbon dioxide concentrations in the
atmosphere, which pundits fear could lead to a lingering increase in global
temperatures for centuries to come.
 Use of Natural Resources

One of the top environmental problems facing the world is the challenge of natural
resource use. Virtually all economic activity ties into natural resource use, and many
environmental activists decry not only the rapid exploitation of various inputs, but
also the growing gulf between the wealthy and the less advantaged.
For instance, the use of water by one community can threaten the existence of another
and even permanently alter nature itself.
 Waste production
Waste Management is a key point that numerous environmental issues articles
highlight. Dramatic pictures of refuse-choked waterways and giant floating patches of
oceanic waste have highlighted the dangers of improperly disposed plastic. Similarly,
electronic waste represents both an environmental danger and a missed opportunity
given the inherent value of computers, peripherals, cellular phones, and other
electronics that get tossed rather than recycled.
 Water Pollution
Earth has been called the Blue Planet due to the proliferation of water on its surface, but
far less of that liquid is potable than the casual observer might think. According to the
World Wildlife Federation, “Only 3% of the world’s water is fresh water, and two-
thirds of that is tucked away in frozen glaciers or otherwise unavailable for our use. As a
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result, some 1.1 billion people worldwide lack access to water, and a total of 2.7 billion
find water scarce for at least one month of the year.”
 Deforestation
Data from NASA shows that forests cover nearly a third of the world’s landmass, and
they play an incredibly important role in the wider environment.
For example, forests:
Remove carbon dioxide from the air,
Prevent erosion
Protect against floods
Encourage biodiversity
Provide timber and other related resources (e.g., mushrooms, maple syrup, usablebarks,
berries)
 Ocean acidification
Few laymen are aware that the ocean absorbs almost a third of the carbon dioxide
released into the world. Even fewer know that increased carbon emissions can also
impact water quality, altering the pH of the ocean itself. The National Oceanic and
Atmospheric Administration has noted that the past 200 years has seen
“approximately a 30 percent increase in [ocean] acidity,” which directly impacts so-
called “shell building” creatures. Studies have linked reef bleaching, reef death,
mollusk death, and ecosystem disturbance to this increasing acidification.
1.2.3.3 Examples
In Agriculture
 Renewable energy, such as solar, wind, hydroelectric, and biomass.
 Recycling of metals, such as iron and steel, and minerals.
 Crop rotation.
 Cover crops.
 Selective logging
At Homes
 Change all of your light bulbs to LED. ...
 Plug large electronics into a smart power strip. ...
 Get an energy audit. ...
 Check all weatherproofing on windows. ...
 Switch to reusable water bottles. ...
 Install a low-flow showerhead or a shower timer. ...
 Install a toilet buddy. ...
 Compost your food and yard waste
In business
 Using sustainable materials in the manufacturing process.
 Optimizing supply chains to reduce greenhouse gas emissions.
 Relying on renewable energy sources to power facilities.
 Sponsoring education funds for youth in the local community.
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1.3 Sustainable Development Theory: Emergence, progress and role ofUnited

Nations in promoting the theory
1.3.1 Meaning and Definition
 The original, and best-known, definition of SD comes from the Brundtland Report:
Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. It contains
within it two key concepts:
The concept of 'needs', in particular the essential needs of the world's poor, to which
overriding priority should be given; and
The idea of limitations imposed by the state of technology and social organization on
the environment's ability to meet present and future needs.
 Variations of the Brundtland definition are commonly used in national SD strategies.
The EU Sustainable Development Strategy (2006) says:
Sustainable development means that the needs of the present generation should be met
without compromising the ability of future generations to meet their own needs. […]
It is about safeguarding the earth's capacity to support life in all its diversity and is
based on the principles of democracy, gender equality, solidarity, the rule of law and
respect for fundamental rights, including freedom and equal opportunities for all. It
aims at the continuous improvement of the quality of life and wellbeing on Earth for
present and future generations. To that end it promotes a dynamic economy with full
employment and a high level of education, health protection, social and territorial
cohesion and environmental protection in a peaceful and secure world, respecting
cultural diversity.
 The UK Sustainable Development Strategy (2005) says:
The goal of sustainable development is to enable all people throughout the world to
satisfy their basic needs and enjoy a better quality of life, without compromising the
quality of life of future generations.
1.3.2 Emergence and Progress
 The concept of sustainable development formed the basis of the United Nations
Conference on Environment and Development held in Rio de Janeiro in 1992. The
summit marked the first international attempt to draw up action plans and strategies
for moving towards a more sustainable pattern of development. It was attended by
over 100 Heads of State and representatives from 178 national governments.
 The Summit was also attended by representatives from a range of other organisations
representing civil society. Sustainable development was the solution to the problems
of environmental degradation discussed by the Brundtland Commission in the 1987
report Our Common Future.
 The remit of the Brundtland Report was to investigate the numerous concerns that had
been raised in previous decades, namely, that human activity was having severe and
negative impacts on the planet, and that patterns of growth and development would be
unsustainable if they continued unchecked. Key works that highlighted this thinking
included Rachel Carson's Silent Spring (1962), Garret Hardin's Tragedy of the
Commons (1968), the Blueprint for Survival by the Ecologist magazine (1972) and the
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Club of Rome's Limits to Growth report (1972).

The concept of sustainable development received its first major international
recognition in 1972 at the UN Conference on the Human Environment held in
Stockholm. The term was not referred to explicitly, but nevertheless the international
community agreed to the notion - now fundamental to sustainable development -
that both development and the environment, hitherto addressed as separate issues,
could be managed in a mutually beneficial way.
 The term was popularised 15 years later in Our Common Future, the report of the
World Commission on Environment and Development, which included what is
deemed the 'classic' definition of sustainable development: "development which meets
the needs of the present without compromising the ability of future generations to
meet their own needs".
 It was not until the Rio Summit, however, that major world leaders recognised
sustainable development as the major challenge it remains today.
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1.3.3 Role and History of United Nations in the area of Sustainable

Development
 In June 1992, at the Earth Summit in Rio de Janeiro, Brazil, more than 178 countries
adopted Agenda 21, a comprehensive plan of action to build a global partnership for
sustainable development to improve human lives and protect the environment.
 Member States unanimously adopted the Millennium Declaration at the Millennium
Summit in September 2000 at UN Headquarters in New York. The Summit led to the
elaboration of eight Millennium Development Goals (MDGs) to reduce extreme
poverty by 2015.
 The Johannesburg Declaration on Sustainable Development and the Plan of
Implementation, adopted at the World Summit on Sustainable Development in South
Africa in 2002, reaffirmed the global community's commitments to poverty
eradication and the environment, and built on Agenda 21 and the Millennium
Declaration by including more emphasis on multilateral partnerships.
 At the United Nations Conference on Sustainable Development (Rio+20) in Rio de
Janeiro, Brazil, in June 2012, Member States adopted the outcome document "The
Future We Want" in which they decided, inter alia, to launch a process to develop a
set of SDGs to build upon the MDGs and to establish the UN High-level Political
Forum on Sustainable Development. The Rio +20 outcome also contained other
measures for implementing sustainable development, including mandates for future
programmes of work in development financing, small island developing states and
more.
 In 2013, the General Assembly set up a 30-member Open Working Group to develop
a proposal on the SDGs.
 In January 2015, the General Assembly began the negotiation process on the post- 2015
development agenda. The process culminated in the subsequent adoption of the 2030
Agenda for Sustainable Development, with 17 SDGs at its core, at the UN Sustainable
Development Summit in September 2015.
 2015 was a landmark year for multilateralism and international policy shaping, with the
adoption of several major agreements:
o Sendai Framework for Disaster Risk Reduction (March 2015)
o Addis Ababa Action Agenda on Financing for Development (July 2015)
o Transforming our world: the 2030 Agenda for Sustainable Development with its
17 SDGs was adopted at the UN Sustainable Development Summit in New
York in September 2015.
o Paris Agreement on Climate Change (December 2015)
 Now, the annual High-level Political Forum on Sustainable Development serves as the
central UN platform for the follow-up and review of the SDGs.
 Today, the Division for Sustainable Development Goals (DSDG) in the United
Nations Department of Economic and Social Affairs (UNDESA) provides substantive
support and capacity-building for the SDGs and their related thematic issues,
including water, energy, climate, oceans, urbanization, transport, science and
technology, the Global Sustainable Development Report (GSDR), partnerships and
Small Island Developing States.
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 DSDG plays a key role in the evaluation of UN systemwide implementation of the

2030 Agenda and on advocacy and outreach activities relating to the SDGs. In order
to make the 2030 Agenda a reality, broad ownership of the SDGs must translate into a
strong commitment by all stakeholders to implement the global goals. DSDG aims to
help facilitate this engagement.
1.3.4 United Nations Agenda for Sustainable Development

The 2030 Agenda for Sustainable Development adopted by all United Nations Member
States in 2015, provides a shared blueprint for peace and prosperity for people and the
planet, now and into the future. At its heart are the 17 Sustainable Development Goals
(SDGs), which are an urgent call for action by all countries - developed and developing
- in a global partnership. They recognize that ending poverty and other deprivations must
go hand-in-hand with strategies that improve health and education, reduce inequality, and
spur economic growth – all while tackling climate change and working to preserve our
oceans and forests.
17 Goals for People, for Planet

The Sustainable Development Goals are a universal call to action to end poverty, protect the
planet and improve the lives and prospects of everyone, everywhere. The 17 Goals were
adopted by all UN Member States in 2015, as part of the 2030 Agenda for Sustainable
Development which set out a 15-year plan to achieve the Goals.
Today, progress is being made in many places, but, overall, action to meet the Goals is not
yet advancing at the speed or scale required. 2020 needs to usher in a decade of ambitious
action to deliver the Goals by 2030.
Goal 1. End poverty in all its forms everywhere
Goal 2. End hunger, achieve food security and improved nutrition and promote
sustainable agriculture
Goal 3. Ensure healthy lives and promote well-being for all at all ages
Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all
Goal 5. Achieve gender equality and empower all women and girls
Goal 6. Ensure availability and sustainable management of water and sanitation forall
Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 8. Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all
Goal 9. Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
Goal 10. Reduce inequality within and among countries
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Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 12. Ensure sustainable consumption and production patterns
Goal 13. Take urgent action to combat climate change and its impacts*
Goal 14. Conserve and sustainably use the oceans, seas and marine resources for
sustainable development
Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably
manage forests, combat desertification, and halt and reverse land
degradation and halt biodiversity loss
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive
institutions at all levels
Goal 17. Strengthen the means of implementation and revitalize the global partnership
for sustainable development
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1.4 Social responsibility: Social capital, shared-value creation, business

– society relations, fair use of resources, and local development
1.4.1 Social Capital
1.4.1.1 Meaning
 Social capital basically comprises the value of social relationships and networks that
complement the economic capital for economic growth of an organization.
 Social Capital is a concept that aims at emphasizing the importance of social contacts
between groups and within groups. It primarily means that social networks have a value
associated and that they are not always detrimental in nature as previously thought of.
 The concept of social capital also stresses that social networks lead to increased
productivity in individuals, teams and organizations. This increased productivity can be
both financial and otherwise. This means that social contacts can lead to increase in
confidence, fulfillment by fostering positive relationships. The essence being that just
like any other capital form (human, physical, financial) social capital is also important
and beneficial to the sustenance of society.
1.4.1.2 Elements of Social Capital
For social capital to be practically feasible it can be broken down into 5 elements both at
practical and operational level. They are
 Groups and Networks
 Trust and Solidarity
 Collective action and Cooperation
 Social Cohesion and Inclusion
 Information and Communication
1.4.1.3 Types of Social Capital
 Bonding social capital
Bonding is the social capital generated during interactions between people who are
within the same groups and social circles. (Homogenous groups)
For Example: Attending a family picnic, or going to cricket match with your friends
etc. In such instances, you already know all of the people in the group and have some
social relationships already established. The goal of these situations is to deepen
bonds rather than expand them.
 Bridging social capital

Bridging is the social capital generated during interactions between different groups of
people that helps to create new contacts. (Heterogeneous groups) For
Example: interactions between students from different countries during exchange
programs or making new friends and interacting with them on social media, meeting.
 Linking Social Capital
Linking is the social capital generated during interactions between an individual or a
community on the one hand and the government or elected officials on the other.
 For Example: Members of a local community lobbying with the government for better
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civic amenities is an example of linking social capital.In other words, creating social
relationships with leaders or government officials to leverage their power andinfluence.
1.4.2 Shared Value Creation
1.4.2.1 Meaning and Definition
 Creating shared value is the practice of creating economic value in a way that also
creates value for society by addressing its needs and challenges.
 There are 3 ways to create shared value: by reconceiving products and markets, by
redefining productivity in the value chain, and by enabling local cluster development.
 Porter and Kramer (2011) define the shared value as the set of operational policies and
practices that improve the competitive capacity of a company while contributing to
improve the economic and social conditions of the local communities where it operate.
1.4.2.2 Basic features and characteristics
 Shared value is the intersection between the economic value and the social value of a
company. The creation of social value contributes to creating economic value and vice
versa, therefore, there is a connection between both types of values that makes the
company increase its final value.
 Companies must consider their portfolio of products and services based on the needs
of their customers and the problems of society.
 The offer of ecological and natural agricultural products, fair trade or coverage of
disability services. The above are examples of markets with great potential for
companies seeking to create value for society and for themselves.
 Programs to remove plastic or paper in their offices or at their points of sale have had
a double positive effect. For the company because it reduces costs and for society
because it improves the protection of the the environment.
 A program to improve the working conditions of workers has an obvious social
impact by improving people's quality of life. On the other hand, it has a positive
influence on the company because it reduces the level of absenteeism from work and
increases the motivation of the worker.
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1.4.2.3 Prominent Examples

 Cell phone
Example, microcredits or low-cost cell phones. Shared value is created because the
company wins new customers and increases its profitability. On the other hand, the
benefited people raise their quality of life
 Nestlé Shared Value

Nestlé seeks to be present in the lives of millions of people. From the farmers you
work with to the individuals and families who enjoy your products. On the other hand,
in the communities in which we live and work to the the environment on which we
depend.
 Individuals and families: Help 50 million children live healthier lives.
 Our Communities: Help 30 million households in communities connected to our

business activities.
 Planet: fight to reach the environmental impact zero in our operations.
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1.4.3 Business society relations, Fair use of resources and local

development
1.4.3.1 Need to study and analyse the relationship between Business andSociety
 Business today is arguably the most dominant institution in the world. The term
business refers here to any organization that is engaged in making a product or
providing a service for a profit.Society, in its broadest sense, refers to human beings
and to the social structures they collectively create. In a more specific sense, the term is
used to refer to segments of humankind, such as members of a particular community,
nation, or interest group. As a set of organizations created by humans, business is
clearly a part of society. At the same time, it is also a distinct entity, separated from
the rest of society by clear boundaries.
 In the eyes of business owners during the 19thcentury and the first half of the 20th
, their role was to produce goods and services and make as much money as possible for
themselves and shareholders. The public's duty was to buy the goods and services. It
was not until the 1960s that the traditional roles changed and "stakeholders," i.e.,
anyone who has a vested interest in any action a company takes, began to play an
important role in the relationship between business and society. Today, that relationship
continues to evolve toward a symbiotic partnership between business, government, and
the broader society.
 Most business leaders now take it for granted that companies have obligations to
communities and private-sector interests beyond simply providing jobs and delivering
goods or services. Laws regarding environmental and social issues, for the most part,
are placing heightened demands on corporations to honor widely held social values,
such as enforcing fairness in the workplace and controlling the degradation of natural
resources. Moreover, at the dawn of the 21st century many in society expect businesses
not only to comply with such regulations, but also to exceed the letter of the law,
uphold high standards of ethics in all dealings, and invest a portion of their profits in
socially constructive ventures or philanthropy— behaviours that some have termed
"corporate citizenship.
 Identifying the role and responsibilities of business in society has been the quest and
concern of many scholars for decades. In recent years the relationship between business
and society had witnessed a massive transformation from the traditional classical view
of business as profit maximizing economic agents to a more ethical outlook that
analyzes the greater impact of business on society. A number of factors havecontributedin
shaping the new relation between business and society. Globalization imposed
tremendous pressure on businesses worldwide to enhance their global image. Rising
power of consumers forced businesses to become more conscious of the destructive
effect of their actions, adding to that the growing trend of ethical consumerism which
imposes both an opportunity and a threat tobusinesses worldwide.
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1.4.3.2 Forces that shape relationship between business and society
The external environment of business is dynamic and ever changing. Businesses and their
stakeholders do not interact in a vacuum. On the contrary, most companies operate in a
swirl of social, ethical, global, political, ecological, and technological change that
produces both opportunities and threats.These six dynamic forces powerfully shape the
business and society relationship.
 Changing societal expectations. Everywhere around the world, society’s expectations

of business are changing. People increasingly expect business to be more responsible,
believing companies should pay close attention to social issues and act as good
citizens in society. New public issues constantly arise that require action. Increasingly,
business is faced with the daunting task of balancing its social, legal, and economic
obligations, seeking to meet its commitments to multiple stakeholders. Modern
businesses are increasingly exploring opportunities to act as social entrepreneurs often
by focusing on those at the bottom of the pyramid.
For Example: Adopting environment friendly approach to do business. Implementing

pollution friendly measures.
 Growing emphasis on ethical reasoning and actions. The public also expects business
to be ethical and wants corporate managers to apply ethical principles or values—in
other words, guidelines about what is right and wrong, fair and unfair, and morally
correct—when they make business decisions. Fair employment practices, concern for
consumer safety, contribution to the welfare of the community, and human rights
protection around the world have become more prominent and important. Business has
created ethics programs to help ensure that employees are aware of these issues and act
in accordance with ethical standards.
 Globalization. We live in an increasingly integrated world economy, characterized by

the unceasing movement of goods, services, and capital across national borders. Large
transnational corporations do business in scores of countries. Products and services
people buy every day in the United States or Germany may have come from
Indonesia, Haiti, or Mexico. Today, economic forces truly play out on a global stage. A
financial crisis on Wall Street can quickly impact economies around the world.
Societal issues—such as the race to find a cure for HIV/AIDS, the movement for
women’s equality, or the demands of citizens everywhere for full access to the
Internet—also cut across national boundaries. Environmental issues, such as ozone
depletion and species extinction, affect all communities. Globalization challenges
business to integrate their financial, social, and environmental performance
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 Evolving government regulations and business response. The role of government has
changed dramatically in many nations in recent decades. Governments around the
world have enacted a myriad of new policies that have profoundly constrained how
business is allowed to operate. Government regulation of business periodically becomes
tighter, then looser, much as a pendulum swings back and forth. Because of the
dynamic nature of this force, business has developed various strategies to influence
elected officials and government regulators at federal, state, and local levels. Business
managers understand the opportunities that may arise from active participation in the
political process.
 Dynamic natural environment. All interactions between business and society occur
within a finite natural ecosystem. Humans share a single planet, and many of our
resources—oil, coal, and gas, for example—are non-renewable. Once used, they are
gone forever. Other resources, like clean water, timber, and fish, are renewable, but
only if humans use them sustainably, not taking more than can be naturally
replenished. Climate change now threatens all nations. The relentless demands of
human society, in many arenas, have already exceeded the carrying capacity of the
Earth’s ecosystem. The state of the Earth’s resources and changing attitudes about the
natural environment powerfully impact the business–society relationship (Hence fair
use of resources is of paramount importance)
 Explosion of new technology and innovation. Technology is one of the most dramatic
and powerful forces affecting business and society. New technological innovations
harness the human imagination to create new machines, processes, and software that
address the needs, problems, and concerns of modern society. In recent years, the pace
of technological change has increased enormously. From genetically modified foods to
social networking via the Internet, from nanotechnology to wireless communications,
change keeps coming. The extent and pace of technological innovation pose massive
challenges for business, and sometimes government, as they seek to manage
various privacy, security, and intellectual property issues embedded in this dynamic
force.
 Social capital is of paramount importance because it helps build networks and trusting
relations among local stakeholders in the public and private spheres, and supporting
the enhancement of governance of natural resources in rural areas.
 Against this background the following elements or themes present in successful

local development programmes, which can be considered as good-practice criteria,
have been identified on the grounds of their relevance to social capital: Participation
in planning, decision making and implementation;
Groups, groupings and networks;
Learning, training and the acquiring of knowledge.
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1.5. Stakeholder theory: Actors, cooperation, boundary conditions,roles and common

interests
1.5.1 Meaning of Stakeholder Theory

 Under stakeholder theory, anyone that is affected by the organization or its workings
in any way is considered a stakeholder.
For example, Shareholders, employees, customers, suppliers, local communities,
environmental groups, governmental groups, and more.
 Stakeholder theory holds that organizations and corporations should strive to do right
by all these stakeholders and that in doing so, the organization will achieve true
lasting success.
1.5.2 Actors
 Shareholders or investors
They are one of the major stakeholders in the organization. They invest their money in
the business in the form of Capital. They can be Equity shareholders or preference
shareholders. Based on their investment and profitability of the company they expect
return in the form of Dividends. Therefore, their primary want or desire is to see that
company or business makes profits and continues to grow by leaps and bounds.
 Employees/Management
Employees are major stakeholders in any company. They expect to be compensated
fairly and work in safe conditions. If the company doesn’t meet these basic expectations
and treats its employees like cogs in a wheel rather than valued team members, it can
harm the business in the long run. There will be constant employee turnover, and the
firm will earn a negative reputation among the workforce, ultimately weakening the
company and its potential to earn higher revenues.
 Manufacturers/suppliers
Under stakeholder theory, manufacturers, suppliers, and other vendors that the auto
company works with are considered stakeholders. The auto company should treat
these vendors fairly in business dealings and consider their employees and other
stakeholders. For instance, if a supplier has a reputation for mistreating its employees
and underpaying, then stakeholder theory would hold that you should find a different
supplier that is more aligned with your business ethics.
 Customers
If anyone impacted by a business or its workings is a stakeholder, then the car
company’s customers are some of its biggest stakeholders. According to stakeholder
theory, a top priority for the company should be producing a vehicle
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that safely transports its customers from point A to point B as reliably, comfortably,and
efficiently as possible.
 Customers’ neighbours and community members Since automobiles produce emissions
that can impact the environment, stakeholdertheory says that anyone who lives in
proximity to one of these vehicles may beaffected and should be viewed as a
stakeholder. With these stakeholders in mind,the company may adopt more fuel-
efficient technology and cut down harmfulcarbon emissions.
 Governmental bodies Carmakers must also consider any city, county, or state-
mandated requirements, such as emission standards or safety features. The
governmental agencies that enforce these standards are another set of stakeholders for
the auto company.
1.5.3 Co operation and Common interests

A co-operative relationship is one where stakeholders work together and agree on
common goals. It is a ‘win-win’ relationship where all benefit.
For Example:
 Employer and employee: The employer seeks hard-working, skilled and reliable
employees. Employees want good pay and conditions, job security and promotional
opportunities. The relationship is co-operative when workers receive fair wages in
return for productive work.
 Investor and manager of a business: The investor is interested in profit. The manager
is interested in the successful running of the business. The relationship is co-operative,
as long as the manager generates enough profit to provide the investors with the
expected returns on their investments.
 Producer and consumer: The relationship between producers and consumers is co-
operative when producers provide the products and services demanded by consumers
and when consumers believe these products are reasonably priced andof top quality.
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1.5.4 Boundary Conditions
 Stakeholder boundaries are the art of leading at the very complex interstate
interchange of your organization and your external partners, which may include, but
are not limited to affiliates, customers, sponsors, networks, value chains, community,
shareholders, advisory groups and governments.
 After the group of stakeholders (GOS) has been formed, it should start working
towards reaching a consensus on the objectives for potential management scenarios.
Therefore, the set of stakeholder objectives should be identified and elaborated on this
stage. Generic and site-specific boundary conditions play a crucial role in this
decision-making process.
The following boundary conditions should be considered:
 Legislative framework
For Example: Evaluation of all the laws rules regulations and framework beyond
which the company or business cannot operate. Basic legislative framework.
An NGO who wants to get registered as a company has to follow provisions ofSection
8 of Companies Act, 2013 along with other relevant rules.
Similarly, any manufacturing company has to take relevant permissions under Airand
Water Act depending upon possible emission of air and water pollutants.
 Sustainability (the social factors and the public interest, environmental factors,
balance of financial resources and costs).
For Example: Whether Company should take debt and expand its operations or
whether company should use environment friendly products and costs associated with
it, whether it should make products considered harmful for health like Liquor,
cigarettes etc.
The legislative framework therefore is primarily addressed as a basic boundary condition and
sustainability factors are consequently derived taking into account the legislative constraints.
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1.5.5. Role of Stakeholders
 Direct the Management: The stakeholders can be a part of the board of directors and
therefore help in taking actions. They can take over certain departments like service,
human resources or research and development and manage them for ensuring success.
 They Bring in Money: Stakeholders are the large investors of the company and they can
anytime bring in or take out money from the company. Their decision shall depend
upon the company’s financial performance. Therefore, they can pressurize the
management for financial reports and change tactics if necessary. Some stakeholders
can even increase or decrease the investment to change the share price in the market
and thus make the conditions favourable for them.
 Help in Decision Making: Major stakeholders are part of the board of directors.
Therefore, they also take decisions along with other board members. They have the
power to disrupt the decisions as well. They and bring in more ideas a threaten the
management to obey them. The stakeholders also have all the powers to appoint
senior-level management. Therefore, they are there in all the major decision-making
areas. They also take decisions regarding liquidations and also acquisitions.
 Corporate Conscience: Large stakeholders are the major stakeholders of the company
and have monitored over all the major activities of the company. They can make the
company abide by human rights and environmental laws. They also monitor the
outsourcing activities and may vote against any business decision if it harms the long-
term goals of the company.
 Other Responsibilities: Apart from the above four major roles they also have some
other roles to play in the company. They can identify new areas for market penetration
and increased sales. They can bring in more marketing ideas. They also attract other
investors like honeybees in the company. They can be a part of a selection board or a
representative for the company. Moreover, they can take all the major social and
environmental decisions.
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1.6 Green business: Green enterprises, green initiates and environmentalsafe guards,
green marketing, green consumerism, and circular economy.
1.6.1 Green Enterprises
1.6.1.1 Meaning
The term "green enterprise" refers to services, products, and jobs from a number of sectors
that focus on sustainability, fewer emissions of greenhouse gases, and slowing climate
change. Other similar and commonly used terms are "green economy," "green business,"
and "sustainable business.
For Example:
A Company by the name of Saindur Enviro Organic Bag is manufacturer of the bags are
made up of biodegradable polymers derived from renewable sources. It is 100%
compostable and eco-friendly. The bags are certified by Central Pollution Control
Board (CPCB, India) and are ISO 17088 compliant.
Saarthi E- Rickshaw launched by Champion Poly plast
Organo’s Naandi offers an integrated alternative-living experience, where the
residents can take part in natural farming and witness the food they eat. They also enjoy
collective activities while maintaining their own private space.
1.6.2 Green initiatives
The government of India has launched a number of schemes to safeguard the
environment and to promote a greener India. Few Examples are given below:
1.6.2.1 National Clean Air Programme
Launched in 2019, the National Clean Air Programme (NCAP) aimed at a long-term,
time-bound, national-level strategy to tackle the air pollution problem across the
country in a comprehensive manner with targets to achieve a 20 percent to 30 percent
reduction in particulate matter concentrations by 2024, keeping 2017 as the base year.
• Under NCAP, 122 non-attainment cities have been identified across the country
based on the air quality data from 2014-2018. Mitigation actions include stringent
enforcement through a three-tier system that includes real-time physical data
collection, data archiving and data analytics infrastructure, and action trigger
system to be created. An extensive plantation drive by identification and use of
specialized plant species having high pollutants absorbing capacity is also planned
in urban areas more specific in reference to pollution hotspots as traffic junctions,
industrial zones, footpaths, and dust prone areas.
1.6.2.2 Green Skill Development Programme (GSDP)
• Launched under the Ministry of Environment, Forest and Climate Change, the
GSDP offers vocational training programmes focusing on soft or ‘green’ skills.
Green skills contribute to preserving or restoring environmental quality for a
sustainable future and include jobs that protect ecosystems and biodiversity, reduce
energy and minimize waste and pollution
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• The programme endeavours to develop green skilled workers having technical

knowledge and commitment to sustainable development, which will help in the
attainment of the Nationally Determined Contributions (NDCs), Sustainable
Development Goals (SDGs), National Biodiversity Targets (NBTs), as well as
WasteManagement Rules (2016).
• The first GSDP course was formulated for skilling Biodiversity Conservationists
(Basic Course) and Para-taxonomists (Advance Course) of 3 months duration each
on a pilot basis in 10 select districts of the country (covering nine bio-geographic
regions)
1.6.2.3 Namami Gange Programme
• Namami Gange Programme’ is a flagship programme launched in June 2014 with a

budget outlay of Rs.20,000 crore to accomplish the twin objectives of effective
abatement of pollution, conservation and rejuvenation of the National River Ganga.
• The programme has eight focus points including Sewage Treatment Infrastructure,
River Surface Cleaning, Afforestation, Industrial Effluent Monitoring, Ganga
Gram,Public Awareness, River Front Development and Bio-Diversity
• Its implementation has been divided into Entry-Level Activities (for immediate
visible impact), Medium-Term Activities (to be implemented within 5 years of
timeframe) and Long-Term Activities (to be implemented within 10 years).
1.6.2.4 Nagar Van Scheme
• Nagar Van Scheme was launched on the occasion of World Environment Day in
2020. It aims to develop 200 Urban Forests across the country in the next five
years.
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1.6.3 Environmental safeguards
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1.6.3.1 Safeguard policies
Name of
Sr. Aim/Target Status
Policy
No.
andYear
It was reviewed twice (National
Water Policy, 2002 and National
To govern the planning Water Policy, 2012) to strengthen
1 National and development of water efficiency to manage challenges
WaterPolicy, resources and their associated with water availability
1987 optimum utilisation and water use efficiency in an
integratedmanner.
To maintain ecological
balance and safeguarding A draft National Forest Policy was
the interestof tribals and released in 2018 and accepted in
National forest-dependent people 2019 to undertake actions for water
2 ForestPolicy, by involving them in conservation, carbon sequestration
1988 timberproduction and and livelihood security under this
other local livelihood policy.
opportunities
Supporting institutional
National To regulate theutilisation development for research,
Conservation of natural resources mobilization, training andcapacity
Strategy and through jointefforts of building onenvironmental
Policy local communities and conservation andsustainable
3 Statement on otherstakeholders by development.Recently, a National
Environment incorporating traditional Conservation Strategy was
and knowledge for launched for one horned Rhinos in
Development, environmental protection India and Nepal, which are under
1992 the vulnerable category ofIUCN.
According to a study by the Centre

Policy To strengthen the for Science and Environment
Statement for environmental compliance (CSE), nine states in India are
4 the andenforcement of procuring 60 percent of their
Abatementof pollutioncontrol norms in electricity from coal power plants
Pollution,1992 Indiathrough CPCB and that are not taking adequate steps to
SPCBs meet the SO2 norms notified in
2015.
Insufficient efforts to increase
National To achieve a stable
access to education, economicand
5 Population population by 2045
other development opportunities to
Policy, through strategically
enhance womenempowerment,
2000 managing the Total
which willpositively affect TFR.
Fertility Rate (TFR)
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To achieve sustainable
National Environmental mis governance is
development, by
6 Environment fuelling the destruction of the
incorporating
Policy, 2006 environment by moulding the
environmental
norms in the favour of
consideration into the
development.
development process
To increase sustainable
7 National Limited work is being done
agricultural productionby
Agroforestry towards promoting agroforestry
combining treefarming
Policy, 2014 practice among farmers.
with agriculture
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1.6.3.2 A Critical Assessment of India’s Environmental Safeguards

1. Developmental activities are continuously on the rise, aiming to lift social and
economic growth, while India has 13 out of 20 riskiest cities of the world that are
facing extreme air and water pollution.
2. The existing loopholes in carrying out appraisal, granting clearances and monitoring
compliance of a proposed project or activity under Environmental Impact Assessment
(EIA) Notification 2006 are further widened through the draft EIA Notification 2020,
as follows:
 Screening and Scoping are completely omitted in draft EIA 2020 for fast-track
clearance of projects.
 More projects are added in Category B2, which will exempt them from public
hearing and EIA study for getting Environmental Clearance.
 Post-facto clearance is allowed in draft EIA 2020 for projects that are operating
without any Environmental Clearance.
 The Central Government can categorise projects as ‘strategic’ and reduce
transparency of such projects as per the draft EIA 2020.
 The draft has reduced the period for submission of public responses from 30 days(in
EIA notification 2006) to 20 days.
3. No real progress towards achieving multilateral environmental agreements (MEAs),
which has been neglected for the sake of ‘ease of doing business’.
4. Overriding the environmental regulatory regime by pushing nature and natural
resources towards privatisation.
5. Ineffective implementation of norms intended to reduce, eliminate, and replace
sources of pollution under the National Clean Air Plan, and the Water and Air Acts
which is then fuelling industrial accidents in India.
6. Non-prioritization of efforts to empower local communities and use their traditional
knowledge for governing and tapping opportunities to mitigate climate change.
7. Endorsing massive intrusions of ill-conceived ‘development’ projects into natural
ecosystems and near wildlife populations by systematically weakening the regulatory
regimes. For instance, the Coastal Regulation Zone (CRZ) notification 2019 was
passed despite huge public opposition, or the bypassing of the Wild Life Protection
Act in clearing ‘development’ projects inside protected areas.
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1.6.4 Green Marketing

1.6.4.1 Meaning
Green marketing is developing and selling environmentally friendly goods or
services.
1.6.4.2 Benefits of Green marketing
stand out in the increasingly competitive environment;
reduce the negative impact of production on the environment;
save energy, reduce the use of natural resources and carbon footprint;
produce recyclable products;
improve your credibility;
enter a new audience segment;
ensure long-term growth;
implement innovations;
obtain a higher revenue.
1.6.4.3 Prominent Examples
Maruti Suzuki
The company has been promoting 3 R since its inception. As a result, the company has
not only been able to recycle 100% of treated waste water but also reduced fresh water
consumption. The company has implemented rain water harvesting to recharge the aquifers.
Also, recyclable packing for bought out components is being actively promoted.
The country’s largest car manufacturer had managed to slash energy consumption per car at
its Gurgaon factory by 26 per cent over the past six years, while its carbon dioxide (CO2)
emissions during car manufacturing processes has come down 39 per cent in the past five
years. The model with gas as fuel was adopted by Maruti Suzuki India Limited as their
Green Marketing practices.
Bharat Petroleum
Bharat Petroleum launched a programme to cut production of greenhouse gases by 10%
across its units worldwide and achieved it much ahead of schedule. Cleaner fuels such as
Greener Diesel (ultra-low sulphur content) and BP Auto gas were developed. Almost all of
its plants are ISO 14001 certified. Currently it is running a programme to contain its net
emissions at current levels for ten years.
Hindustan Petroleum
Hindustan Petroleum owns a massive e-waste recycling plant, where enormous shredders
and granulators reduce four million pounds of computer detritus each month to bite-sized
chunks the first step in reclaiming not just steel and plastic but also toxic chemicals like
mercury and even some precious metals. HP will take back any brand of equipment; its own
machines are 100 percent recyclable.
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Proctor and Gamble

Laundry detergents are also touting energy savings. Proctor & Gamble’s (P&G) newest
market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About 80 to
85 percent of the energy used to wash clothes from heating water.
1.6.5 Green Consumerism
1.6.5.1 Introduction
Green consumer is someone who is environmentally and socially conscious and which
leads him/her to purchase the products that are eco-friendly. Over the last few decades, it is
being observed that people are changing their trends and lifestyle in a more environment
conscious way paying more responsiveness towards green oriented behavior worldwide.
1.6.5.2 Importance of Green Consumerism
Reduced waste in packaging

 Green consumerism advocates for frugal packaging options. It has social attitudes
such as the preference to purchase loose products like vegetables and fruits instead
of pre-packaged products. Also, it encourages reuse of paper and plastic packaging
bags and tins that often cause environmental degradation.
Increased energy efficiency
 Green consumerism attitudes advocate for the efficient use of energy, which
ultimately helps in saving money, reducing utility bills, lowering emissions of
greenhouse gas, and enabling economies to meet the growing energy demands.
Through green consumerism, environmental and economic benefits of utility
systems, as well as the management of risk associated with inefficient production
processes, have also been attained.
Decreased release of emissions and other pollutants during productionand
transportation processes
 Thanks to green consumerism, emissions from the transportation sector and
industries have been considerably reduced. Also, because of green consumerism
advocacies and programs, stringent standards against emission have been put in place
thus lowering emissions from engines and motors and the advancement of clean-
burning fuel options.
Consumption of more healthy foods
 Through green consumerism advocacies, there has been an increasing need for more
eco-friendly food production. As a result, people are gradually developing a culture of
buying more organic and local food, which is arguably healthier as they are not
cultivated or produced using artificial chemical fertilizers, antibiotics, hormones, or
pesticides.
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1.6.5.3 Few Examples of Green Consumerism

Use of Solar products and energy saving lighting options
Checking energy labels while buying electronic electrical appliances
Recycling and using eco-friendly products
Buying organic foods
1.6.6 Circular Economy
1.6.6.1 Introduction and Meaning
Circular economy entails markets that facilitate incentives to reuse items instead of
disposing of them and then extracting new resources. In a Circular economy, all types
of waste, such as scrap metal, clothes, and expired electrical appliances are returned to
the economy or used more wisely.
The motion of circular economy depends on practices, strategies, policies &
technologies to achieve principles relating to recycling, reusing, redesigning,
remanufacturing, recovering water and nutrients to protect natural resources from
unwise treatment. It facilitates the necessary conditions to incentivize economic and
social sectors to opt for strategies that ensure sustainability. But, the increasing
intricacy of sustainability implies that conventional and management/economics may
be unable to confront emerging challenges and comeup with apt solutions.
1.6.6.2 The circular economy is based on three principles, driven by design
Eliminate waste and pollution
Circulate products and materials (at their highest value)
Regenerate nature
The recent focus on circular economy in the Union Budget puts India in the right
direction. So far, the government has been proactive in formulating policy
frameworks for ten focus sectors for circular economy transition.
For Example: The Natural Resource Efficiency Policy, Plastic Waste Management
Rules, Construction and Demolition Waste Management Rules, Metals Recycling
Policy and Extended Producer Responsibility
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1 Whether the concept of ‘Rural sustainability’ is limited to maintaining clean

environment only? Comment. (Hint- Dimensions of Rural sustainability)
2 Do the corporate play any role in sustainable development? Explain with suitable
examples
3 Discuss the international interventions in the filed of sustainable development.
(Hint- UN role)
4 Discuss the various government initiatives in the filed of green practices and assess their
performance.
5 Can business adopt green practices in their marketing campaigns? Explain with
suitable examples
6 How the concept of circular economy is facilitator towards green culture?
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CHAPTER 2: ACTION FRAMEWORK
2.1 Sustainable Development Goals: Transition from Millennium Development Goals

to Sustainable Development Goals, challenges, achievements, and future prospects.
2.1.1 Transition from Millennium Development Goals to Sustainable Development

Goals
Millennium Development Goals
In September 2000, leaders of 189 countries gathered at the United Nations headquarters
and signed the historic Millennium Declaration, in which they committed to achieving a set
of eight measurable goals that range from halving extreme poverty and hunger to promoting
gender equality and reducing child mortality, by the target dateof 2015.
List of MDG’s
Goals No. Goal

Goal No. 1 Eradicate extreme poverty and hunger
Goal No. 2 Achieve universal primary education
Goal No. 3 Promote gender equality and empower women
Goal No. 4 Reduce child mortality
Goal No. 5 Improve maternal health
Goal No. 6 Combating HIV/AIDs, malaria, and other diseases
Goal No. 7 Ensure environmental sustainability
Goal No. 8 Develop a global partnership for development
 The MDGs were revolutionary in providing a common language to reach global

agreement. The 8 goals were realistic and easy to communicate, with a clear
measurement/monitoring mechanism.
 Substantial progress has been made regarding the MDGs. The world has already
realized the first MDG of halving the extreme poverty rate by 2015. However, the
achievements have been uneven. The MDGs are set to expire in 2015 and the
discussion of a post-2015 agenda continues. The focus is now on building a
sustainable world where environmental sustainability, social inclusion, and economic
development are equally valued.
 The MDG Fund contributed directly and indirectly to the achievement of the MDGs. It
adopted an inclusive and comprehensive approach to the MDGs. The approach was
guided by the Millennium Declaration and its emphasis on development as a right,
with targeted attention directed towards traditionally marginalized groups such as
ethnic minorities, indigenous groups, and women.
Sustainable Development Goals
The Global Consultation of Sustainable Development Goals
The Rio+20 conference (the United Nations Conference on Sustainable Development) in
Rio de Janeiro, June 2012, galvanized a process to develop a new set of Sustainable
Development Goals (SDGs) which will carry on the momentum generated by the
MDGs and fit into a global development framework beyond 2015.
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In the interest of creating a new, people-centered, development agenda, a global

consultation was conducted online and offline. Civil society organizations, citizens,
scientists, academics, and the private sector from around the world were all actively
engaged in the process. Activities included thematic and national consultations, and the My
World survey led by the United Nations Development Group. Specialized panels were
also held and provided ground to facilitate intergovernmental discussions. The UN
Secretary General presented a synthesis of the results of these consultation processes.
In July 2014, the UN General Assembly Open Working Group (OWG) proposed a
document containing 17 goals to be put forward for the General Assembly’s approval in
September 2015. This document set the ground for the new SDGs and the global
development agenda spanning from 2015-2030.
List of SDG’s
Goal No. Goal

Goal No.1 End poverty in all its forms everywhere
Goal No. 2 End hunger, achieve food security and improved nutrition, and
promote sustainable agriculture
Goal No. 3 Ensure healthy lives and promote well-being for all at all ages
Goal No. 4 Ensure inclusive and equitable quality education and promote life-
long learning opportunities for all
Goal No.5 Achieve gender equality and empower all women and girls
Goal No.6 Ensure availability and sustainable management of water andsanitation
for all
Goal No. 7 Ensure access to affordable, reliable, sustainable, and modernenergy for
all
Goal No.8 Promote sustained, inclusive and sustainable economic growth, fulland
productive employment, and decent work for all
Goal No.9 Build resilient infrastructure, promote inclusive and sustainable
industrialization, and foster innovation
Goal No. 10 Reduce inequality within and among countries
Goal No. 11 Make cities and human settlements inclusive, safe, resilient and
sustainable
Goal No. 12 Ensure sustainable consumption and production patterns
Goal No. 13 Take urgent action to combat climate change and its impacts
Goal No. 14 Conserve and sustainably use the oceans, seas, and marine
resources for sustainable development
Goal No. 15 Protect, restore and promote sustainable use of terrestrial
ecosystems, sustainably manage forests, combat desertification,halt
and reverse land degradation, and halt biodiversity loss
Goal No. 16 Promote peaceful and inclusive societies for sustainable
development, provide access to justice for all, and build effective,
accountable and inclusive institutions at all levels
Goal No. 17 Strengthen the means of implementation and revitalize the global
partnership for sustainable development
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2.1.2 Challenges
Data Deprivation
 Big data could only be of use if they are collected intelligently and interpreted
meaningfully. If it is not known how many people are impoverished or which groups are
the most vulnerable to economic adversity, it is not possible to act effectively against
poverty. Furthermore, it would not be possible to know how much progress is made
over time and, more importantly, which policies worked. This is not the most obvious
challenge of the Sustainable Development Goals, yet a surprisingly large one.
 The lack of reliable poverty data makes it impossible for countries to design and
implement appropriate policies.
 For exampleNigeria, among other African countries severely deprived of timely data,
represents the dramatic case, since this country was pronounced as the largest
economy of the continent only by calculating its Gross Domestic Product (GDP) with
inadequate information, revealing that decades of policy-making was based on
outdated data.
Prioritization and Governance
 The SDGs contain as many as 17 main issues to be addressed, and which ones should
governments respectively prioritize could be a tough question. While prioritizing
certain SDGs help with other SDGs as well- for example, decreasing poverty could
have a positive impact on the good health and well-being of citizens- certain SDGs
could be conflicted by their nature. The most notable potential trade- off exists between
the second goal, which is ending world hunger, and the 15th goal, which calls for
sustainable management of forest land and other terrestrial resources.
 Goals need to be embraced across ministries and integrated into national planning and
policies to deliver the integrated vision embedded in the SDGs. Some objectives can
serve multiple purposes – investing in education will also help gender equality and
health, for example – but inevitably, tough choices will need to be made: Build roads
or schools? Subsidize renewable energy or fossil fuels? And it won’t always be a
simple either-or question. Does the financial burden of higher energy efficiency
standards and taxes on diesel vehicles fall unfairly on low- income households? It
requires political leadership to ensure the SDGs are relevant and important to all
ministries, not just the ministry of development or environment. Powerful ministries
such as economy, finance or infrastructure mustalso adopt the goals as “theirs.”
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Accountability
 This is perhaps the most significant among the challenges of the SDGs. All UN
member states agreed in August of 2015 to endorse the SDGs, but many may have left
the negotiations unsure of where accountability lies. The issues of accountability also
have a complicated history, with many developing countries feeling the burden of
meeting the given goals, unlike richer countries who are not obliged to support
developing countries by providing needed resources or aid.
 The “follow-up and review” section of the SDGs agenda is vague since the document
itself does not actually contain indicators necessary for measuring progress, nor is
there a systematic mechanism for tracking accountability.
Involvement of all sectors of society
 This agenda is not about development cooperation, but about structural economic
transformation. Organizing a consultative process with a wide range of stakeholders
outside national government is crucial for effective national policy prioritization and
for efficient, coherent delivery based on clear roles and responsibilities. Transparency,
participatory decision making and mobilizing the strength and innovation of local
governments, the private sector and civil society are essential to implement the SDG
agenda.
Financial Requirements to achieve the goals
 Even when made a national priority, implementation of the SDGs will require
significant resources: public and private, national and international, concessional and
non-concessional. Domestic resources will dominate the resource envelope for
implementation in all countries except LDCs, reinforcing the importance of getting
national policies right. Financial institutions such as the World Bank, regional
development banks and new development finance institutions such as the Asian
Infrastructure Investment Bank can play a key role by aligning their portfolios with the
SDGs and in stimulating private finance. But the onus is on national leaders to ensure
an enabling environment and good governance to encourage financial resources to
flow in the proper direction.
Systemic Barriers
 A number of systemic barriers such aslack of political will; weak capacity and
technical know-how; inadequate mechanisms, structures to recognise financial
opportunities etc.
 Inequalities, the climate crisis and the challenge of migration that would make the
implementation of some of the SDGs in Asia difficult. Among the most marginalised
are women and indigenous people, for example women in Bangladesh “earn during
their entire lives less money than a CEO of a company in just four days.”
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2.1.3 Achievements
Key MDG achievements
 More than 1 billion people have been lifted out of extreme poverty (since 1990)
 Child mortality dropped by more than half (since 1990)
 The number of out of school children has dropped by more than half (since 1990)
 HIV/AIDS infections fell by almost 40 percent (since 2000)
 Extreme poverty cut in half, from 36% to 18%
- Inadequate nutrition almost cut in half, from 23,6% to 11,8%
- Infant mortality reduction from 90 to 48 for each 1.000 newborns
- Access to primary school reaches now 90% of kids in the world
- Increase of population with access to drinking water from 76% to 89%
7.5 Future Prospects
 2020 launched the Decade of Action to achieve the Sustainable Development Goals
(SDGs) by 2030, its target date. To reach this milestone, the world will have to speed
up and ramp up responses to great challenges – which now include the coronavirus
pandemic, one of the world’s worst public health and socioeconomic emergencies.
 As the SDGs 2020 Report makes clear, the world is not on track to achieve the goals
by 2030. Even before the COVID-19 outbreak, progress had been spotty. Now, with
the pandemic continuing, progress has stalled, and, in some cases, decades of progress
have been reversed
 In Asia, the latest report by the Economic and Social Commission for Asia and the
Pacific (ESCAP) shows the progress has deteriorated on five key SDGs: SDG 2– Zero
Hunger; SDG 8 – Decent Work and Equitable Economic Growth; SDG 10 – Reduced
Inequality; SDG 11 – Sustainable Cities and Communities and SDG 15 – Life on
Land.
 Latin America also lags in meeting the SDGs. Four years after the approval of the
2030 Agenda, the average of the SDG Index in the region stands at 63.1, indicating
modest advances in the goals set. Progress in the region has also been threatened by
increases in unemployment, inequality, poverty, and hunger – a combination that may
lead to more of the social conflict and unrest already surfacing in countries such as
Colombia, Ecuador, Bolivia and Chile.
 The recent 75th UN General Assembly underscored the need to renew the world’s
commitment to improving the global state of sustainable development. The question
now is how. What will get the 2030 Agenda back on track? What can a world battling
a pandemic do to move forward? How can recovery advance, not undercut, the goal of
sustainable development?
Three ways to get the SDGs back

1. Set priorities
 Should the SDG agenda aim mostly for “low-hanging fruit”, the easiest goals to
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achieve? Or should it instead target the SDGs that are the most difficult.
Underperformance has the potential to render goals irrelevant, and to leave people with
lingering feelings of underachievement that fail to galvanize needed action.
 Smart prioritizing and strategic synergies would allow people to focus on achievable goals
to give a legitimate sense of victory. Targeting could also aim to address key goals that
struggle to be met in current development pathways.
 Sustainability itself, much like universal human rights, is more a value than an
accomplishment – a direction rather than a concrete target. In fact, one could argue that
sustainability and growth are contradictions; there are those who feel that with the
presence of growth, sustainability cannot ever be achieved. Nevertheless, the pursuit
of the goal is important, even though the full achievement might always be on the
horizon.
2. Focus on harnessing the environmental dimension of the SDGs

 A recent study of 30 countries showed that only 20% of them mention biodiversity as a
national priority in their reports of SDG progress. The Global Biodiversity Outlook
concluded that biodiversity is declining, and that none of the Aichi Biodiversity
Targets will be met.
 Other reports confirm that the planet will not be able to meet most of the SDGs
because the loss of species and soil degradation. This loss slows progress on the wider
sustainability agenda – particularly on targets related to ocean health, well- being,
economic equity, clean water and the responsible use of resources. Moreover, this loss
may also undermine efforts to address climate change
 However, during the course of this year, South America has shown the start of joint
solutions and diplomatic actions such as the resolution from the Permanent
Commission of the South Pacific (CPPS), a body that brings together the coastal
countries of South America, to prioritize the development of a work plan on
sustainable fishing, and so, to contribute to achieving (SDG) 14 to conserve and
sustainably use the ocean and its resources.
 These types of actions are mandatory if the world is to secure the environmental
dimension of the 2030 Agenda and thus, support the progress of socio-economic
targets.
3. Understand how the SDGs work as an indivisible system, and look for synergies
 A danger of prioritizing individual SDGs is that the world may lose sight of the
integrated character of the 2030 Agenda. One way of reducing the risk of advancing
some goals at the peril of others is to keep an eye on potential synergies and trade- offs. It
is crucial to mainstream “systems” thinking, and to make use of the methods and tools that
are being developed to help decision-makers understand the impact of their
prioritization choices.
 SEI’s Synergies Approach allows us to systematically review all these potential
interlinkages and to prioritize the SDG targets and goals that can pull others forward,
with as few trade-offs as possible. For example, Mongolia used this approach
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to assess interactions between sustainability targets. draft its Voluntary National

Review on SDG implementation. Its review, submitted to the 2019 UN High-level
Political Forum in New York, has even been officially mandated as a tool for
evaluating the coherence of new and existing development policies.
2.1.4 Conclusion
 Simply lamenting that the world is unlikely to reach the goals in 2030 fails to
acknowledge just how far these goals have taken us. Sustainability has become a bon
mot in every part of society. Today, researchers and activist groups are not the only
ones preaching the sustainability gospel. In many parts of the world, the sustainability
agenda has reached all levels of government and policy planning. It is telling, for
example, that in the most recent Thailand elections, all parties supported some type of
environmental and social equality agenda.
 Even if progress stalls – or reverses – along the path as the world pursues these goals,
new ambitions are now in place. Too many changes have been achieved, and too
much popular support exists to completely reverse progress. So, let us act jointly. Let
us not let the opportunity for real change slip away.
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2.2 Green Business: Operational frameworks for green value chain,green

manufacturing, and green technology
2.2.1 Operational framework for Green value chain
 Green supply chain management (GSCM) refers as an integrating environmental
concern about business activities such as procurement, production, material
management, distribution or marketing, reverse logistics practices to improve the
productivity and profitability of the businesses.
 Green Supply Chain Management (GSCM) is considered as one of the main efforts,
which aim to integrate environmental parameters within the supply chain
management. It helps to reduce carbon emissions and improve environmental
performances of organizations. As a result of that GSCM has been integrated into the
strategic planning of most of the construction organizations.
 As in case of all radical innovations, barriers or challenges are also expected to be
present in the implementation process of GSCM in construction organizations. Hence,
it is essential for organizations to identify any barriers that they may face and
establish approaches for successful implementation of GSCM in their organizations.
 According to the research findings, the main barriers to implementing GSCM can be
categorized into five main categories such as technology, knowledge, finances,
outsourcing and management
2.2.2 Operational Framework for Green Manufacturing

Meaning
 Green Manufacturing, also called environmental awareness manufacturing,
environment-oriented manufacturing and so on. It is a comprehensive consideration of
environmental impact and resource utilization efficiency of modern manufacturing
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model. The aim of Green Manufacturing is to the minimum negative impact on the
environment and maximum resource utilization from product design, manufacturing,
packaging, transportation, use and the product recycle. The ultimate goal of Green
Manufacturing is to coordinate enterprise development andsocial benefit.
 The new framework of Green Manufacturing includes 4R principles and five core
technologies
4R principles of Green Manufacturing
 The core ideas of Green Manufacturing refer to the realization of “4R” Theory, that is,
Reduce, Reuse, Recycle, and Remanufacturing
 Reduce requires to decrease the consumption of resources including energies as well
as the emission of wastes, which may help to cut down the environmental burden,
resulting in doing less harm to people’s health.
 Recycle requires the products to be able to transform into reusable resources instead
of rubbish that cannot be used any longer. There are two ways of recycle, one of which
is recycle at the same level which refers that the waste can be recycled to produce the
same kind of new products, the other is secondary recycle where the wastes are
transferred into raw materials of other products
 Remanufacturing is an approach to recover the dragged products back to the ones close
to new products after a series of processes including dismantle, cleaning, examination,
renewal, repair, and equipment.
Five core technologies of Green Manufacturing: (Operational framework for

GreenTechnology)
 Green Manufacturing is a technique whose framework contains five main aspects:
Green Design Technology, Green Production Technology, Green Packaging
Technology, Green Recycle Technology and Technique of Green remanufacturing
 Green Design- Technique of green design is also known as environmentally- oriented
design, sustainable design, ecological design, etc., which means to produce some
products whose PLC are designed with comprehensive consideration of the effects on
the resources and the environment as well as the function, quality, developing period of
the product, the optimization of relevant design factors in order to reach the standards
of “4R” Theory in Green Manufacturing. Methods of such technique are involved
with green choice of materials, materially-economical design, energy-economical
design, environmentally-friendly design, pleasant- product design, detachable design,
recyclable design and re-manufactural design.
 Green Production- Green Production Technology, also known as technique of green
production, means to manufacture with advanced production techniques or optimal
technologies for traditional manufacturing so as to improve the current situation of
resource consumption along with environmental pollution, to cut down the use of
resources and energies, to reduce the emission and wastes, and to ensure the security
and health of the workers. There are 3 types of techniques and approaches: new green
technology, improvement of traditional green technology, together with optimal
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technology of manufacturing, where new green technology can be classified as

energy- economical technologies, material-economical technologies, technologies
with respectively less solid, liquid and gas residues, epitomes including dry cutting
technology, cold-air cooling cutting technology, and so on. When it come to the green
promotion of traditional technologies, it can be realized by means of saving energies
and/or materials, improving efficiency, cutting down noises and/or emissions.
Optimal technology of Green Manufacturing contains the ideas like optimization of
process route, choices of technical selection, optimization of processparameters, etc.
 Green Packaging- Technique of green packaging refers to suitable packaging that is
reusable, recyclable, degradable or decay with no harm to both human beings and the
environment during the whole PLC, including: (1) Reduction i.e., to minimize
the resources used for packaging while meeting the criteria of protection, convenience
and sales; (2) Reusability or reproducibility, i.e., the packages can be reproduced into
other products or can be destructed to generate the heat; (3) Degradability and
compost ability, i.e., not to become forever rubbish but to improve the quality of soils;
(4) Harmlessness to living beings, i.e., to exclude or control the safe quantity of
poisonous elements, halogen, and heavy metals
 Green Recycle- Techniques of green recycle mainly contains the processes of product
recycle, dismantle, cleaning, examination, reuse, regeneration cycling, etc. If a product
is not recycled after its PLC, there’s no denying that it will lead to a waste of
resources as well as environmental pollution. Therefore, green recycle is a systematic
problem that has to be comprehensively considered from the beginning of the product
design, along with consideration of systematic classification. In the light of such
technique, green recycle techniques can be divided into several groups concerning of
the techniques of the dragged products including recyclability analysis and assessment
technique, green dismantle, green cleaning, green material classification, and reserved
logistics management
 Green Remanufacturing- Techniques of green remanufacturing is a resource reusable
technique that makes the dragged products recover to those whose property is similar
to that of new products after a series of dismantle, cleaning, examination, renewable,
and equipment. Two aspects reveal the environmental friendliness. To begin with,
remanufacturing realizes the reusability of a group of components, indirectly resulting
in the prolong of the PLC and the reduction of the quantity of the wastes, and
therefore, it helps to cut down the environmental burden. Secondly, it takes full
advantage of resources, decreases the demand of raw resources, which benefits the
environment through the processes of the production of raw materials and new
products.
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2.3 DFID’s Livelihood Sustainability Framework: Vulnerability context,livelihood

assets, structures and processes, and outcomes
2.3.1 Introduction
 The concept of ‘Sustainable Livelihoods’ constitute the basis of different ‘Sustainable
Livelihood Approaches’ (SLA) and has been adapted by different development
agencies such as the British Department for International Development (DFID). The
DFID has developed a ‘Sustainable Livelihood Framework’ (SLF) which is one of the
most widely used livelihoods frameworks in development practice. The SLF was
integrated in its program for development cooperation in 1997.
 DFID adapts a version of Chambers Conway’s definition of livelihoods: “A livelihood
comprises the capabilities, assets and activities required for a means of living. A
livelihood is sustainable when it can cope with and recover from stresses and shocks
and maintain or enhance its capabilities and assets both now and in the future, while
not undermining the natural resource base.” (DFID, 2000)
 DFID’s biggest aim is the elimination of poverty in poorer countries. DFID, however,
stresses that there are many ways of applying livelihoods approaches. Although the
application of the livelihoods approach is flexible and adaptable to specific local
settings and to objectives defined in participatory manner, it underlies a couple of core
principles.
People-centered: People rather than the resources they use are the priority concern in the
livelihoods approach, since problems associated to development often root in adverse
institutional structures impossible to be overcome through simple asset creation.
Holistic: A holistic view is aspired in understanding the stakeholders’ livelihoods as a
whole, with all its facets, by a manageable model that helps to identify the most
pressing constraints people have to face.
Dynamic: Just as people’s livelihoods and the institutions that shape their life are
highly dynamic, so is the approach in order to learn from changes and help mitigating
negative impacts, whilst supporting positive effects.
Building on strengths: A central issue of the approach is the recognition of everyone’s
inherent potential for his/her removal of constraints and 35ealization of potentials.
Identifying these strengths rather than the needs and problems is the starting point of
this approach, in order to contribute to the stakeholders’ robustness and ability to
achieve their own objectives.
Macro-micro links: Development activity tends to focus at either the macro or the
micro level, whereas the SLA tries to bridge this gap in stressing the links between the
two levels. As people are often affected from decisions at the macro policy level and
vice-versa, this relation needs to be considered in order to achieve sustainable
development. Sustainability: A livelihood can be classified as sustainable, if it is
resilient in the face of external shocks and stresses, if it is independent from external
support, if it is able to maintain the long-term productivity of natural resources and if
it does not undermine the livelihood options of others. (Kollmair et al., 2002)
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2.3.2 DFID Framework

 The Framework used can be understood as a tool or checklist to understand poverty in
responding to poor people’s views and their own understanding of poverty. The DFID
framework sets out to conceptualise:
how people operate within a vulnerability context that is shaped by different factors
– shifting seasonal constraints (and opportunities), economic shocks and longer-term
trends
how they draw on different types of livelihood assets or capitals in different
combinations which are influenced by:
the vulnerability context, a range of institutions and processes and how they use their
asset base to develop a range of livelihoods strategies to achieve desired livelihood
outcomes (de Stagé et al., 2002)
2.3.3 Elements of DFID Framework
Vulnerability context
 The vulnerability context frames the external environment in which people exist.
Critical trends as well as shocks and seasonality, over which people have limited or no
control, have a great influence on people’s livelihoods and on the wider availability of
assets. Not all of the trends and seasonality must be considered as negative.
 Vulnerability emerges when human beings have to face harmful threat or shock with
inadequate capacity to respond effectively.
 The difference between risk and vulnerability is of crucial relevance for assessing
causes of poverty. Risk is defined as the likelihood of occurrence of (external) shocks
and stresses plus their potential severity, whereas vulnerability is the degree of
exposure to risk (hazard, shock) and uncertainty, and the capacity of households or
individuals to prevent, mitigate or cope with risk,
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Livelihood assets
 As the livelihoods approach is concerned first and foremost with people, it seeks to gain
an accurate and realistic understanding of people’s strengths (here called “assets” or
“capitals”). It is crucial to analyse how people endeavour to convert these strengths
into positive livelihood outcomes. The approach is founded on a belief that people
require a range of assets to achieve positive livelihood outcomes. Therefore the SLF
identifies five types of assets or capitals upon which livelihoods are built, namely
human capital, social capital, natural capital, physical capital andfinancial capital.
Policies, institutions and processes

 The importance of policies, institutions and processes cannot be overemphasized,
because they operate at all levels, from the household to the international arena, and in
all spheres, from the most private to the most public. They effectively determine
access (to various types of capital, to livelihood strategies and to decision-making
bodies and source of influence), terms of exchange between different types of
capitals, and returns to any given livelihood strategy (DFID, 2000).
 Policies, institutions and processes have a direct impact upon weather people are able
to achieve a feeling of inclusion and well-being. Because culture is included in this
area they also count for other ‘unexplained’ differences in the ‘way things are done’ in
different societies. (DFID, 2000)
 Policies, institutions and processes can determine access to assets and influence
decision making processes.
Livelihood Strategies
 Livelihood strategies comprise the range and combination of activities and choices that
people make/undertake in order to achieve their livelihood goals. It should be
understood as a dynamic process inwhich people combine activities to meet their
various needs at different times. Different members of a household might live and
work at different places, temporarily or permanent. (DFID, 2000)
 Livelihood strategies are direct dependent on asset status and policies, institutions and
processes. Hence that poor people compete and that the livelihood strategy of one
household might have an impact (positive or negative) on the livelihood strategy of
another household.
Livelihood Outcomes
 Livelihood outcomes are the achievements or outputs of livelihood strategies, such as
more income, increased well-being, reduce vulnerability, improved food security and a
more sustainable use of natural resources. When thinking about livelihood outcomes,
the aims of a particular group as well as the extent to which these are already being
achieved has to be understood.
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2.4 Global Reporting Initiative (GRI): Sustainability reporting, sustainability

standards, use, and impact
2.4.1 Global Reporting Initiative
 GRI is the independent, international organization that helps businesses and other
organizations take responsibility for their impacts, by providing them with the global
common language to communicate those impacts. It provides the world’s most widely
used standards for sustainability reporting – the GRI Standards, which are available as a
free public good. Since 1997, the GRI Standards have been continuously developed to
represent the world’s best practice for reporting on economic, environmental, and
social impacts. In addition to developing the GRI Standards, GRI also supports their
use and implementation among different types of business actors, civil society, and
policy makers.
 GRI is a non-profit organization, backed by a wide range of partners who support the
organization’s work around the world to advance sustainable development through
greater transparency and accountability
 GRI has a global presence through Regional Hubs in Johannesburg (Africa),
Singapore (ASEAN), São Paulo (Brazil), Hong Kong (Greater China Region), Bogota
(Hispanic America), New York (North America), and New Delhi (South Asia). All
other regions (including Europe) are supported from GRI’s global Secretariat in
Amsterdam (The Netherlands).
2.4.2 Sustainability Reporting
 In sustainability reporting there are different types of actors and initiatives that guide
organizations. Each one has a different nature and a specific role in the corporate
sustainability landscape.
 Organizations can use the GRI Standards in combination with other reporting
frameworks, including the International Integrated Reporting Framework, the CDP
climate change and water questionnaires, and the SASB industry standards.
 GRI continually works together with other reporting frameworks to avoid duplication
of disclosure effort. Sustainability information is defined, standardized, reported,
issued, and used through different links:
Sustainability Standards
 The GRI Standards are issued by the Global Sustainability Standards Board (GSSB), an
independent operating entity of GRI. They are developed according to a formally
defined due process overseen by the Due Process Oversight Committee (DPOC).
 Experts from different stakeholder groups across the world are involved in developing
the GRI Standards using a consensusseeking approach that builds on their diverse
backgrounds and expertise. The GSSB also routinely conducts public comment
periods to gather stakeholder feedback on draft Standards.
 Transparency lies at the heart of the GSSB’s work. All meetings of the GSSB and the
documents discussed at these meetings, including drafts of Standards, are publicly
accessible via the GRI website.
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 The GSSB receives independent funding from GRI, sourced from grants, corporate
programs, and revenues from GRI’s support services. Additionally, launched in
2020, the Global Standards Fund (GSF) provides for the independent, multi-
stakeholder development of the GRI Standards as a free public good available to all
organizations and is an opportunity for foundations, governments, private sector
organizations and individuals to participate in a coalition of likeminded funders who
want to see companies integrate transparency and sustainability at the core of their
operations.
 The GRI Standards offer disclosures on a wide range of sustainability topics. From
anticorruption to water, biodiversity to occupational health and safety, the Standards
cover relevant topics across the economic, environmental and social dimensions.
Organizations select from among these to report on their significant impacts.
 The GRI Standards are structured as a set of interrelated standards. There are three
universal Standards that apply to every organization preparing a sustainability report.
An organization then selects from the set of topic-specific GRI Standards for reporting
on its material topics. The topic-specific GRI Standards are organized into three series:
200 (Economic topics), 300 (Environmental topics), and 400 (Social topics).
 Universal Standards i.e. 100 series- The universal Standards support the organization
in identifying its material topics, and lay out important principles to use when
preparing a report. They also contain disclosures on the organization’s specific
context, such as its size, activities, governance, and stakeholder engagement, all of
which help to better understand its approach towards the different topics it reports on.
 Topic Specific Standards i.e. 200, 300 and 400 series.
200 series EconomicTopics- In the context of the GRI Standards, the economic
dimension of sustainability concerns an organization’s impacts on the economic
conditions of its stakeholders, and on economic systems at local, national, and global
levels. It does not focus on the financial condition of an organization.
300 series EnvironmentalTopics- In the context of the GRI Standards, the
environmental dimension of sustainability concerns an organization’s impacts on
living and non-living natural systems, including land, air, water and ecosystems.
400 series Social Topics- In the context of the GRI Standards, the social dimension of
sustainability concerns an organization’s impacts on the social systems within which
it operates.
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 Sector Standards A comprehensive Sector Program is being implemented to complete

the set of GRI Standards. The purpose of the GRI Sector Program is to develop Sector
Standards that will provide authoritative information on the topics that constitute a
sector’s most significant impacts from a sustainable development perspective,
reflecting stakeholder expectations for a sector’s sustainability reporting and focusing
reporting on the impacts that matter most.Used in conjunction with the existing suite
of GRI Standards, Sector Standards aim to enhance transparency and accountability,
as well as support organizational and stakeholder decision-making, by helping
organizations prepare and report information on their material topics and increase
consistency of reporting within asector.
Priority Group 1 Basic materials and needs
Priority Group 2 Industrial
Priority Group 3 Transport, infrastructure and tourism Priority
Group 4 Other services and light manufacturing
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2.4.3 Use and Impact

 The biggest advantage of the GRI report is that it allows companies and organizations
to get familiar with the risks and opportunities involved in their business.
 The report identifies the effect of their financial performance on their non-financial
performance and vice-versa.
 Businesses can easily formulate a long-term management policy and plan.
 The GRI report helps the organization work efficiently and reduce costs.
 Companies can perform in compliance with the various laws, quality and performance
standards, norms and codes.
 Creating GRI reports allows companies to recognize and stay clear from possible
environmental, social or governance failures.
 It also makes the comparison between internal performance and between
organizations and sectors easy.
 GRI reports help in environmental safety and helps organizations abide by social
and governmental laws.
 It helps in the betterment of a company and improves their brand reputation and
loyalty.
 Allows stakeholders to fully understand the core values of the organization and also
their tangible and intangible assets.
 Helps in the sustainable development of the organization.
 Benchmarking and gap analysis
 Identification and prioritization of various stakeholders
 Stepping stone for other reporting standards.
1 Implementing and achieving Sustainable development goals is full of challenges in

our country. Discuss
2 Discuss some best practices for adopting green practices in manufacturing
process. (Hint- Framework for Green manufacturing)
3 Discuss an international framework which has offlate being proved to be an
important step in sustainable livelihood and eliminating poverty in under-
developed nations. (Hint- DIFD framework)
4 Business organisations should be held responsible for their actions towards overall
society and same should be properly reported. Discuss (Hint- Green Reporting
Initiatives).
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Semester III
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MODULE NO. 3:
RURAL LIVELIHOODS: PAST, PRESENT AND PROSPECTS FOR THE
FUTURE
CHAPTER 1: RURAL LIVELIHOODS: PAST AND PRESENT
1.1 Traditional system of Livelihood: Jajmani

Meaning
Jajmani system is a caste linked or caste based traditional system of livelihood
and distribution which involves interaction between land owning families
belonging to the higher castes (also referred as dominant peasant castes) and goods
or services providing landless families. In the jajmani system, the high caste
landowning families are rendered services and products by the lower castes. The
serving castes are called kamins, whereas the served castes are known as jajmans.
The kamins are generally paid in kind for theirservices
E.g. A Thakur family (Rajput upper caste family) owns a huge piece of land in
Lucknow and carries out wheat cultivation on it. It employs services of Dhobis,
artisans, carpenters, potters, barbers etc. In consideration of the services availed by
the family it pays the kamins proportionate amount of wheat. This is known as
Jajmani system.
1.1.1 Important features of Jajmani system are as follows

 Jajmani Relations are Permanent:
The jajmani rights are permanent. A ‘jajman’ or patron cannot remove his
‘parjan’ (servant) at his will. His difficulty will not be in dismissing him, but
in finding a substitute.
 Jajmani System is Hereditary:

The jajman rights are property rights and hence are inherited according to the
lawof inheritance.
 Barter System:
The exchange of services is not based on money but on barter system. The
serving family gets things in exchange for the services rendered by it; though
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in some cases they may also get money. As a matter of fact, the relationship
between the ‘jajman’ and parjan is not one of the employer and servant. The
jajman looks after all the needs of his ‘parjan’ and helps him whenever it is
required. (Refer to aboveexample )
 Peace and Satisfaction:

According to W.H. Wiser, peace and satisfaction or contentment is a
significant feature of Jajmani system which it provides to the villagers. The
kamins of a jajman feel a sense of security. They are not worried of finding
employment. This system provides relief to the jajmans also. They are assured
of the services of the kamins. Thus, both Jajman and Kamin get a sense of
security and peaceful living in the village. The old age customs and
traditions had made the adjustment between the two and nobody has to
bother.
 Difference in scope of work:

Under jajmani system the range of work of different kamins is not uniform.
There is no specific provision that certain kamin should work for one family or
one village. A kamin may or can effectively cater to the needs of two or three
villages depending upon his nature of work.
For example, a barber can serve in more than one village and more than one
jajman at a given point of time. He may by doing so earn 5 kgs of wheat from
one jajman, 2 kgs of rice from another and so on depending upon the nature
and quantum of work.
 Paternalism:
There are multiple bonds between the jajman and the kamin or we can say
between the patron and client. The patron looks after all those families that
work for him. He advances loans or gifts to them at the time of festivals and
other similar occasions. He safeguards their interests. He saves them from
exploitation at the hands of others. So, another Important feature of jajmani
system is that it is basedon the ideology of paternalism.
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 Integration of Castes:
Jajmani system leads to the integration of castes. Interconnectedness within
different castes is reflected through the joint celebrations of festivals such as
Hoh, Kumar Punima, observation of Raja Sankranti etc. on the part of various
caste groups. Through these celebrations caste integration and solidarity is
maintained and strengthened and social unity is ensured in the village
 Functional:
Jajmani system is functional. It gives security to lower castes that they will
never go hungry, For the upper castes. It ensures a regular and uninterrupted
supply of services. Because of these relations, the village emerges as a unified
body, where the patrons organize rituals and activities that symbolically
affect the unity of thevillage.
For Instance, it is believed that some deities like Bhumia, Kshetrapal etc.
guard theboundaries of the village.
 Related to rituals:
Kamins perform various roles during rituals and ceremonies held at jajmans place.
E.g.
 Brahmin presides over the ceremony of name sankarana
 Sonar provides gold ornaments for the new born
 Dhobi washes dirty clothes
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1.2 Agriculture: Subsistence v. Commercialization

Meaning
The word agriculture is derived from Latin words ‘Ager’ or ‘Agri’ meaning soil
and culturemeaning cultivation.
In simple words the term Agriculture can be defined as science and art of
cultivation of soil, raising crops and rearing livestock. It is also popularly referred
to as farming.
1.2.1 Types of Farming

Depending upon characteristics of physical environment, socio cultural practices,
technological know-how etc. Farming can be broadly classified into the following 2
types-
 Subsistence Farming
(a) Primitive Subsistence Farming
(i) Shifting cultivation
(ii) Nomadic Herding
(b) Intensive Subsistence Farming
 Commercial Farming
(a) Plantations
(b) Mixed Farming
Subsistence Farming
 Meaning
Subsistence means any activity done for maintaining or supporting oneself.
Subsistence farming is a type of farming in which farmer grows crops or
agricultural produce ONLY for himself and his family. Hence main object is on
growing food whichis enough to sustain himself and his immediate family.
E.g. Mr. A, a farmer cultivates rice on a small piece of land held by him in
Maharashtra. He does not have enough capital to use modern equipment or
technology and solely relies on traditional tools like sickle, hoe along with
water buffalo to pull a plough or a harrow through the soil to aerate it. The rice
produced by him is used for self-consumption of him and his family. Hence it
can be said thatMr. A is engaged in the subsistence farming of rice.
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 Basic Features of Subsistence Farming :

 Agricultural activity is restricted to smaller piece of land
 Crops are grown for self-consumption and not for trade or market place selling
 Use of primary or traditional tools and techniques
 Labour intensive and time consuming
 Limited harvest returns proportionate to family requirements
 Types of Subsistence Farming:

1. Primitive Subsistence Farming :
Subsistence Farming carried out only with primitive or traditional tools and
equipment like Plough, hoe, digging sticks etc. is generally referred to as
Primitive Subsistence Farming.
For E.g.: Mr. B uses manure and kitchen refuse or waste as fertilizer instead of
artificial/chemical fertilizers to replenish the soil and for cultivation of crops.
Shifting Cultivation is a type of Primitive Subsistence Farming. A plot of land is

cleared by felling the trees and burning them. The ashes are then mixed with the
soil and crops like maize, yam, potatoes and cassava are grown. After the soil
loses its fertility, the land is abandoned and the cultivator moves to a new plot.
Shifting cultivation is also known as ‘slash and burn’ agriculture.
For E.g. A Tribal group in Kohima initially clears the forest land by fire or by
cutting or felling of trees. (SLASH AND BURN). The vegetation that is slashed is
left to dry and then the biomass is burned resulting in production of ash. Then the
family uses this ash as natural fertilizer to grow maize over the land which is
cleared. Once the soil loses fertility this tribal group engaged in the production or
cultivation of maize relocates to anotherarea and repeats the same process.
Note- This type of farming has led to Deforestation in many parts of North
eastern India
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This type of farming is known by different names in different regions or countries.

Someillustrations are given below:
In India
Jhumming North Eastern States like
Assam,
Mizoram, Meghalaya etc.
Bewar or Dahiya Madhya Pradesh
Podu or Penda Andhra Pradesh
‘Pama Dabi’ or ‘Koman’ or Bringa Odisha
Kumari Western Ghats
Valre’ or ‘Waltre’ Rajasthan
Khil Himalayan Areas
Kuruwa Jharkhand
Outside India
Milpa Mexico
Conuco Venezuela
Roca Brazil
Ray Vietnam
Masole Central Africa
Ladang Indonesia
Nomadic Herding - In this type of farming, herdsmen move from place to place
with their animals for fodder and water, along defined routes. This type of
movement arises in response to climatic constraints and terrain. Sheep, camel, yak
and goats are most commonly reared. They provide milk, meat, wool, hides and
other products to the herders and their families.
For E.g. The Gaddi Community belonging to Dharamshala region of Himachal
Pradesh practice long distance herding and migratory rearing of sheep and goats.
They occupy the lower plains of Himachal Pradesh during winter months because
of heavy snow in the hilly regions and as the winter rescinds they travel upwards
along with their livestock for the purpose of herding and rearing respectively.
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2. Intensive Subsistence Farming:

It is generally prevalent in highly populated areas. the farmer cultivates a small
plot of land using simple tools and more labour. Climate with large number of
days with sunshine and fertile soils permit growing of more than one crop
annually on the same plot. Rice is the main crop. Other crops include wheat,
maize, pulses and oilseeds. Intensive subsistence agriculture is prevalent in the
thickly populated areas of the monsoon regions of south, southeast and east Asia.
For E.g. Crop Rotation - Mr. Farmer along with his family grows legumes in his
plot of land mainly for self-sustenance. However, to make the optimum utilisation
of land Mr. Farmer also cultivates wheat immediately after legumes production
cycle is over.
Note- Crop rotation is be done scientifically and not in a haphazard manner.
Commercial Farming
 Meaning
Commercial Farming as the name suggests is a type of farming in which crops
are grown or animals are reared with an intention to sell the produce in the
market and earn profits and not just merely for the purpose of self-
consumption.
For E.g. Mr. B of Haryana is engaged in wheat cultivation on a massive plot of

land by using modern technology machinery like tractors, irrigation facilities
high quality seeds, pesticides etc. Wheat produced by Mr. B is sold by him in open
market in India as well as exported to other countries. Hence it can be said that
Mr. B is engaged inthe commercial farming of wheat.
 Basic Features –
 Agricultural activity is carried out on a large area of land
 Large Scale production of crops and agricultural produce.
 Farming for profit and not for self-consumption
 Capital Intensive as compared to Subsistence Farming
 Use of High yielding variety of seeds to facilitate higher production volumes
 Extensive use of machinery and skilled labour.
 Cash crops with huge market demand produced in bulk quantities.
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Examples of Commercial Farming in India:
State Crops
Punjab and Haryana Rice Farming
Haryana Wheat Farming
Andhra Pradesh Tobacco Farming
Assam Tea Plantations and Farming
Punjab, Uttar Pradesh Maharashtra Sugarcane
Karnataka Kerala Coffee
 Types of Commercial Farming

Plantations are a type of commercial farming where single crop of tea, coffee,
sugarcane, cashew, rubber, banana or cotton are grown. Large amount of labour
and capital are required. The produce may be processed on the farm itself or in
nearby factories. The development of a transport network is thus essential for
such farming.
Mixed Farming In mixed farming the land is used for growing food and fodder
crops andrearing livestock.
For E.g. A farmer may rear the animals or livestock and at the same time engage
in production of certain crops in his field. He may further use the dung of the
animals or livestock as manure or fertilizer to grow certain crops on his field.
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Difference Between Subsistence and Commercial Farming
Basis for comparison Subsistence Farming Commercial Farming

Meaning Farming carried out Farming carried out
for for
self-consumption purpose of Trade.
Nature Labour Intensive Capital Intensive
Area of activity Small area Large area
Technique Traditional Modern Equipment
Techniques and
machinery
Type of crops Food grains Cash crops and cereals
vegetables
Irrigation No Yes
Country/Region Least Developed Developed Countries
and
Developing Countries
Important Takeaways
1. Policy Recommendations- Economic Survey of India 2019 2020 expressly
recommended a paradigm shift from Subsistence Farming to Commercial
Farming in light of sound food security position achieved by the country
especially in the last two decades.
2. Based on the nature of soil, climate availability of resources socio economic

patterns a particular crop may be cultivated under subsistence farming in one
area but the same crop may be used for commercial farming in another part or
region.
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1.3 Policy measures: From National Rural Livelihood Mission to Doublingthe

Farmers Income
1.3.1 National Rural Livelihood Mission
Introduction:
In spite of rapid growth of Gross Domestic Product (GDP) in India, a large rural
population of the country still lives below poverty line (BPL). Different studies
estimated the rate of rural poverty at different levels. In spite of the numerous
efforts, the rural poverty continues to be a major challenge to the Government at
all levels.
To address the challenge of rural poverty, the Ministry of Rural Development

conceived a mission mode scheme titled as National Rural Livelihood Mission
(NRLM) in the year 2010. NRLM was renamed as DAY-NRLM (Deendayal
Antyodaya Yojana – National Rural Livelihood Mission) with effect from March
29, 2016. It is a centrally sponsored scheme and the Central and State
Governments jointly fund the projects.
The Department of Rural Development in the Ministry of Rural Development,
Government of India (GoI) has the overall responsibility of policy formulation,
monitoring and evaluation of the programme and for release of funds.
The implementation responsibility of the Mission is vested with State Rural

Livelihood Missions (Special Purpose Vehicles). At the district level, a District
Mission Management Unit (DMMU) is responsible for planning and
implementation, but under the overall control of the district administration. At the
block level, a Block Mission Management Unit implements the Mission activities.
The Mission is implemented in a phased but intensive manner, taking up certain
number of blocks in each year. The Mission is expected to saturate mobilization
of all rural poor households by 2023-24.
Main Objective of the Scheme:

The objective of the Mission is to promote sustainable livelihoods for the poor
such that they come out of poverty. The institutions of the poor are intended to
facilitate
(i) access to formal credit;

(ii) support for diversification and strengthening of livelihoods; and
(iii) access to entitlements and public services.
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Important features of the Scheme:

 One-member (preferably a woman) from each rural poor household would
be brought under the Self-Help Group (SHG) network. Women SHG groups
would have bank-linkage arrangements.
 SHGs would be federated at village level and higher levels to provide space,
voiceand resources and to reduce dependence on external agencies.
 The Mission consists four components, viz., (i) social mobilization,
community institution and capacity building; (ii) financial inclusion; (iii)
livelihood promotion;and (iv) convergence.
 The Mission consists four components, viz., (i) social mobilization,
community institution and capacity building; (ii) financial inclusion; (iii)
livelihood promotion;and (iv) convergence.
 Training and capacity building of the poor, particularly in relation to
managing theinstitutions, livelihoods, credit absorption and credit-worthiness
 The Mission also supports development of skills for rural youth and their
placement, training and self-employment through rural self-employment
institutes (RSETIs), innovations, infrastructure creation and market support.
 Provision of Revolving Fund as a support to SHGs to strengthen their
institutional and financial management capacity and build a good credit
history
 Provision of Community Investment Support Fund (CIF) in the intensive
blocks to the SHGs through the Federations to advance loans and/or
undertake common/collective socio-economic activities.
 Introduction of financial inclusion model, loaning from banks, association
and coordination with banking/financial institutions and coverage from loss
of life, health etc
 Provision of Interest Subvention on loans availed by SHGs to cover the
differencebetween the lending rate of the banks and 7%.
 Provision of Interest Subvention on loans availed by SHGs to cover the
differencebetween the lending rate of the banks and 7%.
 Highly decentralised planning; and States will have liberty in developing
their ownaction plan for poverty reduction.
 Highly decentralised planning; and States will have liberty in developing
their ownaction plan for poverty reduction.
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Note on Key: VOs – Village Organisations; CLFs – Cluster-Level Forum

Source: World Bank, ‘”Institution Building and Capacity Building in NRLM”
Social Impact of NRLM:
 The NRLM has enabled rural families to negotiate for greater access to
essential services such as education and healthcare. It has had an impact on
food security, improved school enrolment, access to land for women to grow
food, and on gender issues with women’s groups taking on issues like
dowry, child marriage, and discrimination against girls.
E.g. A 2015 sociological analysis by the World Bank of the State Rural
Livelihood Mission in Bihar has demonstrated how the NRLM has led to
higher levels of empowerment and mobility among women.
 It found that the programme has provided economically and socially

disadvantaged women access to a network of people and new systems of
knowledge, which then enabled them and allowed them to challenge deep-
seated, traditional structures of power in their families and communities that
were biased against women.
Economic impact of NRLM:

 Increasing Income
E.g. In 2020, researchers from the International Initiative for Impact
Evaluation (3ie) examined the impact of NRLM in nine of India’s poorest
states. They found that an additional 2.5 years of membership in SHGs
increases total household income by 19 percent, and gains in savings of 28
percent. At the same time, while 48 percent of SHG loans were used for
consumption purposes, only 19 percent were used for productive purposes
like supplementing their livelihood. Only 65 groups across the nine states
that were studied, had initiated some formof entrepreneurial activities.
 Improving decision making amongst women-

Certain studies have found that the NRLM has had positive effects on giving
women more voice in household decision-making, albeit marginal so far.
E.g. A March 2021 report by 3ie has found that the loan amounts offered by
most SHGs may be too small to have an impact on how women are accorded
decision- making powers in their families.
 The report specifically looked at the state of Rajasthan, where each SHG
receives an average of INR 100,000 in community investment funds (CIF).
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Bihar, meanwhile, channels a much lower INR 30,000 in CIF per SHG.
Therefore, according to the findings of the report, any improvement in
women’s household decision-making is related to access to more significant
amounts of funds and loans. The study recommends centralised intervention
from the NRLM in the poorer states whose SRLM funds may not be able to
match the level of funding available in those that are better-off.
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1.3.2 Doubling of Farmers Income:

As per NITI Aayog Report (NITI Policy Paper No.1/2017) doubling of farmers
income till 2022-23 over the base year of 2015-16, requires annual growth of
10.41 percent in farmers’ income. Therefore, strong policy measures need to be
implemented so as to harness all possible sources of growth in farmers’ income
within as well as outside agricultural sector.
Major sources of growth within agricultural sector are

 Improvement in productivity (For E.g. enhanced access to irrigation and
modern techniques will lead to overall increase in productivity and scale of
produce.)
 Increase in cropping intensity ( For E.g. Utilisation of land to produce crops

in between kharif and rabi season or facilitating growth of second crop on
same pieceof land with the help of irrigation and technology)
 Diversification in high value crops (For E.g. cash crops like cereals, pulses,
oilseedsetc)
 Saving in cost of production

Major sources of growth outside agriculture includes:
 Shifting cultivators from farm to non-farm occupations
 Enabling farmers to receive optimum price in the market for their produce.
Policy and strategy to achieve the goals
 Development initiatives
E.g. Introduction of Pradhan Mantri Krishi Sinchai Yojana, Introduction and
implementation of Soil health card scheme, Pradhan mantri fasal bima yojana
(insurance for crop protection) and initiative to increase public investments in
agricultural sector.
 Technology and Innovation

E.g. Introduction of Genome editing as an alternative to transgenic technology.
It involves engineering of desired plant traits by modifying endogenous genes
rather than transfer of genes from one species to another. Also use of
agronomic technologies like precision farming, use of modern equipment like
laser land levellerprecision seeder etc.
 Policies and Institutions

Bringing new laws and building new institutions to ensure farmers across the
lengthand breadth of India get MSP for their price.
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1.4 Nature and Scope of Regional Planning : Need for intervention on

Region Specific Problems
Meaning:
Region
A region is an area having the homogeneous characteristics in selected criteria. As
far as the methods of delimiting a region are concerned they can be grouped in to
three categories;
a.Homogeneity – stresses homogeneity with reference to someone or

combination of physical, economic, social or other characteristics,
b. Nodality or Polarization - usual around some central urban place; and

c.Programming or Policy oriented – concerned with administrative coherence or
identity between the area being studies and available political institutions for
effectuating policydecisions.
Regional Planning :
Regional Planning is a specific type of planning, based on a regional system, for
inducing public action aimed at societal well-being. Regional planning deals with
the efficient placement of land-use activities, infrastructure, and settlement
growth across a larger area of land than an individual city or town. Regional
planning is related to urban planning as it relates land use practices on a broader
scale.
E.g. Regional planning may involve extensive areas that include one or more
regions or more limited areas such as drainage basins or metropolitan areas. e.g. :
Southern Regions (Tamil Nadu, Andhra Pradesh, Karnataka, Kerala) European
Economic Market, Colombo Plan, SAARC Damodar Valley, TVA, Vaigai Periyar
Command Area Madurai Metropolitan Planning Area.
1.4.1 Basically, the purpose of Regional Planning is to correct the distortions

in the planning process. General objectives of Regional Planning are as
follows:
1. The clash between economic goals (formulated in terms of outputs only) and
the social development objectives and needs.
2. The concentration of industry and infrastructure in a few areas thus creating
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enclaves of modernization in the midst of growing economic stagnation.
3. Undue emphasis on heavy industry to the neglect of agriculture

4. Promoting a pattern of education unsuited to the needs of general masses
5. Problems of inadequate employment opportunities.
6. Problems of adequately exploiting resources in a particular area.
7. Overcoming limitations on agriculture through the use of most advanced
technology.
8. The problem of improving access to and the distribution of the higher order
type ofsocial facilities.
9. The problem of insecurity in some newly acquired territorial addition to the state.
10. The problem of groups experiencing social economic or political
disadvantages insome area of the ‘nation state’.
11. The problem of experiencing physical discomfort through overcrowding and

congestion.
1.4.2 Nature or characteristics of Regional Planning

 The people of the region should have social and cultural cohesiveness
 The region should be a separate unit for data collection and analysis
 The region should have an economic existence which can be assessed
fromstatistical records
 It should be small enough to ensure local people’s participation in its development

 It should be under one administrative agency
 It should not be too small its geographical size should be big enough to
exploitresources and avoid duplication
 It should have fairly homogeneous economic structure

 It should have one or more growth points
 There should be common appreciation of local problems and common
aspirationsand approaches to their solution
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1.4.3 Scope of Regional Planning :

 Town Planning
 Rural Planning
 Environmental Planning
 Human Resource Development and Management
 Physical Resource Planning
 Economic Development Planning
 Community Planning
1.4.4. Need for Intervention on Region specific problems

 Integrating a much wider areas for overall growth of region is the purpose
served by regional planning; Planning for integration of rural area and the
overall balanced development of the region. Fulfilling the needs of a backward
region and providing higher order services for relatively developed areas.
Strategies are formulated carefully to keep the goods and resources
available to all the places as per their requirements.
 Regional planning also helps in reducing the conflicts and competition for
resources between cities in a region. Developing small towns or satellite
towns helps in relieving the stress from higher order town thus increasing
efficiency.
 Regional plans considers the economic, spatial and environmental goals and
tries to address national level issues. Integrated development and critical
analysis of functional linkages is one of the key to achieve the desired
growth.
 Unlike city planning where land use plans are prepared regional planning
lays emphasis on policy for the region. Policies are them elaborated and
objectives are formed which differ from area to area within the region.
 Regional plans are a must when cities start to influence development even
in far places which might end up in under-utilization and wastage free
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sources withoutproper planning.
 Polices have a larger and longer impact on the overall growth of region and
might conflict with the land use plan or plan prepared for specificity;
Generally, a new body is formed which takes up the work of coordinating
between all the individual departments working in the region especially with
the development authorities and local bodies.
 Allocation of funds for different activities and different areas can also be
taken up by the regional planning board/authority. Government intervention
such as implementing a new scheme or policy for a region can also boost
the growth perspectives and aide the policy prepared by regional board.
 Reduced disparities help directly and indirectly by reducing forced

migration, reducing trip lengths, providing better and more job
opportunities in nearby areas, having the required services instead of letting
them emerging randomly. A special economic zone (SEZ) are also
established to support the growth of a region and attract investments.
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1.5 Problems of Unemployment and Underemployment in Rural Areas

Problem of unemployment in Rural Areas-
1.5.1 Major Types of unemployment:
 Disguised Unemployment
When man power employed to do a particular act is more than what is
actuallyrequired it results in Disguised unemployment.
E.g. Let us say only 2 people are required for the ploughing and sowing
activity. However, all 5 members of the family are engaged in the aforesaid
activities. In this case remaining 3 people of the family are said to be
disguisedly unemployed as increased number will neither lead to enhanced
productivity nor betterment ofproduct quality.
 Seasonal unemployment
E.g. Mr. of Devgad has mango plantations or trees and grows mangoes.
However, once the season for growing mangoes is over he does not have any
other job or work to sustain himself and his family for the rest of the year.
Technological unemployment:
E.g. Company named ABC is engaged in manufacturing of cars. However
due to automation and machinery it now no longer requires services of 5000
employees as work done by them manually is now replaced with fully
automated operations.
 Cyclical unemployment Unemployment resulting due to cyclical variations of

economic strength and weakness.
E.g. During the early stages of the COVID-19 pandemic, for example, people
were confined to their homes, leading many businesses to shut down. During
this economic downturn, many employees of those businesses weren’t needed
and were left unemployed.
 Frictional unemployment
Unemployment in which people are unemployed for a short period of time.
E.g. Mr. A works for Company X. He leaves his job and is looking for
another job. After 3 months of search he finds a job in Company Z. Therefore,
he is said to havebeen temporarily unemployed for 3 months.
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1.5.2 CAUSES OF UNEMPLOYMENT IN RURAL INDIA

There are various factors responsible for unemployment. The Factors because
of which there is unemployment the rural areas, may be studied under the
following heads:
 Excessive increase in population or population explosion-

It is the leading cause of unemployment in Rural India. In India, particularly in
rural areas, the population is increasing rapidly. It has adversely affected the
unemployment situation largely in two ways. In the first place, the growth of
population directly encouraged the unemployment by making large addition
to labour force. It is because the rate of job expansion could never have been
as highas population growth would have required.
It is true that the increasing labour force requires the creation of new job
opportunities at an increasing rate. But in actual practice employment
expansion has not been sufficient to match the growth of the labour force,
and to reduce the back leg of unemployment. This leads to unemployment
situation secondly; the rapid population growth indirectly affected the
unemployment situation by reducing the resources for capital formation. Any
rise in population, over a large absolute base as in India, implies a large
absolute number.
 Limited land
Land is the gift of nature. It is always constant and cannot expand like
population growth. Since, India population increasing rapidly, therefore, the
land is not sufficient for the growing population. As a result, there is heavy
pressure on the land. In rural areas, most of the people depend directly on land
for their livelihood. Land is very limited in comparison to population. It
creates the unemployment situation for a large number of persons who
depend on agriculture in rural areas.
 Seasonal nature of Agriculture

In Rural Society agriculture is the only means of employment. However,
most of the rural people are engaged directly as well as indirectly in
agricultural operation. But, agriculture in India is basically a seasonal affair.
It provides employment facilities to the rural people only in a particular
season of the year. For example, during the sowing and harvesting period,
people are fully employed and the period between the post-harvest and before
the next sowing they remain unemployed. It has adversely affected their
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standard of living.
 Lack of Subsidiary and other village industries
We have just now seen that for at least 4 to 5 months in a year village people
remain unemployed. Their standard of living can improve only when they
employed this period in a gainful manner. Such a thing can happen when
cottage industries and other industries pertaining to agriculture are set up in
the village. So far, this thing has succeeded on the other hand, the village and
cottage industries have deteriorated and so large number of people still
remains unemployed.
 Fragmentation of land
In India, due to the heavy pressure on land of large population results the
fragmentation of land. It creates a great obstacle in the part of agriculture. As
land is fragmented and agricultural work is being hindered the people who
depend on agriculture remain unemployed. This has an adverse effect on the
employment situation. It also leads to the poverty of villagers.
 Backward method of Agriculture

The method of agriculture in India is very backward. Till now, the rural
farmers followed the old farming methods. As a result, the farmer cannot
feed properly many people by the produce of his farm and he is unable to
provide his children with proper education or to engage them in any
profession. It leads to unemployment problem.
 Lack of adequate means of irrigation

We have just now seen that agriculture in India very much depends on
nature. There are no adequate means of irrigation. Whatever means existing
are hardly sufficient to provide water to all the fields. Because of dearth of
irrigation facilities, the agricultural yield is not at all sufficient to help the
agriculturist to live respectably. It also has an adverse effect on employment
position which in its turnhas an adverse effect on the standard of living.
 Too much Dependence on nature

Agriculture in India depends too much on nature particularly for irrigation. If
there is lack of such at the proper moment, the crop gets a setback. If there is
inclement weather at the time of harvesting, the agriculture again gets a
setback. All these factors create problems of unemployment.
 Defective education
The day-to-day education is very defective and is confirmed within the class
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room only. Its main aim is to acquire certificated only. The present
educational system is not job oriented, it is degree oriented. It is defective on
the ground that is more general then the vocational. Thus, the people who
have getting general education are unable to do any work. They are to be
called as good for nothing in the ground that they cannot have any job here,
they can find the ways of self-employment. It leads to unemployment as well
as underemployment
 Lack to transport and communication

In India particularly in rural areas, there are no adequate facilities of transport
and communication. Owing to this, the village people who are not engaged in
agricultural work are remained unemployed. It is because they are unable to
start any business for their livelihood and they are confined only within the
limited boundary of the village. It is noted that the modern means of
transport and communication are the only way to trade and commerce.
Since there is lack of transport and communication in rural areas, therefore,
it leads to unemployment problem among the villagers.
 Inadequate Employment Planning

The employment planning of the government is not adequate in comparison
to population growth. In India near about two lakh people are added yearly
to our existing population. But the employment opportunities did not
increase according to the proportionate rate of population growth. As a
consequence, a great difference is visible between the job opportunities and
population growth.
There may be some other factors are: Recessions, Inflation, Corruption,
Disabilityto do the job, Nepotism, Demand of high Skilled labours.
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Problem of Under employment
1.5.3 Causes of Underemployment

There are many factors that cause underemployment in an economy. Following
are a few of the most common causes:
 Business cycle
One of the main reasons for underemployment is the business cycle the
economy currently operates in. If the economy is currently in a recession or
economic depression, it is unlikely that organizations will be hiring for many full-
time positions.
 Supply and demand

Underemployment also occurs when the supply of workers is greater than its
demand. A few reasons can be an increase in population growth or a decrease in
the demand for a product.
When certain industries no longer need workers, people with the skills that match
that industry may be forced to accept low-income jobs that don’t fully utilize
their skills. For example, the decline of the coal industry has forced many former
mining employees to look for work in other industries.
 Technological changes
Sometimes technology takes the job of a worker who would have previously
been employed in a position that has since become automated. For example,
vending machines have taken the jobs of some cafeteria workers and cashiers,
and ATMs havereplaced some bank tellers.
1.5.4 General Effects:

Unemployment/Underemployment is a social problem that affects job growth,
business growth, poverty levels, and the emotional and psychological health of
the underemployed.
I. Poverty levels
When a person is forced to take up jobs that do not match their skills, they
typically receive an income that is below their pay grade. With inadequate
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income, families do not consume as many goods and services as before.

The reduction in demand leads to slow business growth, pushing the economy
toward a recession or depression due to low Gross Domestic Product (GDP)
and little to no job growth. Many families who previously enjoyed a
comfortable standard of living begin to struggle financially.
II. Structural unemployment

With underemployment, workers who no longer work in their chosen field
lack the ability to update their skills with on-the-job training. Some people
acquire skills in different industries while others drop out of the workforce
altogether. This phenomenon is commonly known as structural
unemployment.
III. Psychological problems

Underemployment can cause poor mental health. The stress and anxiety are a
result of not being able to make ends meet, which creates a sense of
inadequacy. Relationships with a partner can also suffer as a result of
underemployment. Underemployment can seriously affect an individual’s
mental and emotional health.
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1.6 Micro Finance, SHG’s and Women Empowerment, Issues of Gender Equity
in Rural Areas – Practical and Strategic needs of the women.
Meaning :
Microfinance refers to the financial services provided to low-income individuals
or groups who are typically excluded from traditional banking. Most
microfinance institutions focus on offering credit in the form of small working
capital loans, sometimes called microloans or microcredit.
For E.g. Micro Units Development & Refinance Agency (MUDRA)

In 2015, the Government of India introduced the Micro Units Development &
Refinance Agency (MUDRA), to refinance collateral-free loans of up to ₹10
lakh that is granted by lending entities to non-corporate small borrowers, mainly
for revenue growth in the non-farm sector. Loans that are granted under MUDRA
fall under three categories: Shishu loans (up to ₹ 50,000), Kishor loans (₹ 50,000
to ₹ 5 lakh), and Tarun loans (₹5 lakh to ₹ 10 lakh).
1.6.1 Brief History of Micro Finance

The evolution of microfinance in India can be traced back to the 1800s.
This is when small credit to entrepreneurs and farmers were used to help
people emerge out of poverty. Microfinancing was first used in 1970; at the
time of the development of Grameen Bank of Bangladesh. The bank was
founded in 1976 by Muhammad Yunus, who institutionalized the approach
of microfinance.
1.6.2 The salient features of microfinance include:

1. Loan borrowers are from low-income groups
2. Loans are of a very small amount – microloans
3. Loans are offered for a short duration
4. These are collateral-free loans
5. High frequency of repayment
6. Loans are generally taken for income-generation purpose
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1.6.3 Microfinance institutions in India
In India Micro Finance operates through 2 channels-

1. SHG – Bank Linkage Programme (SBLP)
2. Micro Finance Institutions (MFIs)
In 1974, SEWA (Self-Employed Women’s Association) Bank, a

cooperative bank, was established in Ahmedabad; as one of the first
modern-day microfinance institutions in the country. The National Bank
for Agriculture and Rural Development (NABARD) was established in
1982 to provide & regulate credit and other facilities for the promotion &
development of various economic activities in rural India. The western
and southern states of India have attracted the largest number of
microfinance loans in the country. The SHGs are self-sustaining in nature;
and can function on their own with limited support from NGOs and
institutions like NABARD and SIDBI (Small Industries Development Bank
of India)
Few Examples of Micro Finance Institutions in India are as

follows:
1. Annapurna Microfinance Pvt Ltd

2. Arohan Financial Services PvtLtd
3. Ashirwad Microfinance Pvt Ltd
4. Bandhan Financial Services Pvt Ltd
5. BSS Microfinance Pvt Ltd
Benefits of Micro Finance

 Credit Access to Poor and Financial Inclusion
 Encourages Savings
 Better rates for Loan Repayment
 Opportunity to get Education
 Creation of Jobs
 Encouragement to Self-reliance model
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1.6.4 Self Help Groups and women empowerment

1.4.2Meaning:
Self Help Group is a small voluntary association, which is informal and
homogeneous in its character comprising generally of not more than 15 to 20
members.
Self-help Group is a mechanism through which large group of women with

common objectives are facilitated to come together voluntarily to participate in
various development activities such as saving, credit and income generation
thereby ensuing economic independence.
E.g.
1. Street Shakti
A) This programme was launched during 2000-01 and it is being
implementedthroughout the state of Karnataka.
B) Main aim was to inculcate a sense of savings habit in the members

empoweringthe women economically.
C) Objectives of the Stree Shakti Programme
 To strengthen the process of creating suitable atmosphere which could
achieve thefinancial progress and social status of women
 To form more and more self-help groups throughout the state, to stimulate
the confidence and self-reliance in them and to make them have control and
hold overthe financial resources.
 To increase the income of poor women by engaging them in earning
activities, and to create financial stability among them thereby achieving
eradication of poverty.
 To channelize various departments in one direction, to provide opportunities
to the members of women groups to get the benefit of the development works
of various departments and to take measures for the availability of loans
through financing institutions.
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2. SHEPHERD
A. Self-Help Promotion for Health and Rural Development (SHEPHERD) was
formed and registered under the Society Act in 1995. SHEPHERD is
located in Triuchirapalli (Trichy) in Tamil Nadu. SHEPHERD’s founder
and Secretary- General, Peter Palanisamy, started the organization to
empower poor rural women, particularly Dalits. Though agriculture is the
main source of income for its target market, the availability of employment
is limited.
B. SHEPHERD’s main objectives are: a) to inculcate the habit of savings; b)

to help women to lead sustainable livelihoods; and c) to protect them from
calamities orrisk. In sum, to reduce their vulnerability.
C. SHEPHERD began working in these communities by promoting a

community banking approach, organizing women into self-help groups and
then connecting them to banks. SHEPHERD also links the SHGs together
into a block-level federation (BLF), which provides some oversight of the
SHGs’ performance. The BLFs are then grouped into a third-tier
organization called NananaSurabi, a registered non-profit company that
serves as an apex body for fund distribution.
D. There are two main distinctions between SHEPHERD’s approach and that
of the other two MFIs. First, rather than building itself into a financial
institution, SHEPHERD is more of a facilitator, trying to build the federation
into a sustainable intermediary between the SHGs and the banks and other
funding sources. The second difference, a natural follow-on to the first, is
that SHEPHERD actively uses a participatory methodology to involve its
members in making decisions about the services provided to them or by
them.
Issues of Gender Equity in Rural Areas- Practical and Strategic Needs of
WomenIntroduction
 Rural women work as farmers, wage earners and entrepreneurs. They

represent an important share of the agriculture workforce. Their social and
economic empowerment can have a powerful impact on productivity and
agriculture-led growth
 Gender inequalities in the agricultural sector are significant but difficult to quantify.
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 As women are concentrated in both unpaid care and household work and their
role in subsistence farming is often unremunerated, their contribution to the
rural economy is widely underestimated.
 Women from local, indigenous and tribal communities are often custodians
of traditional knowledge that is key for their communities’ livelihoods,
resilience and culture. Their contributions are unique and vital especially in
the context of natural resources management, agriculture and forestry - sectors
that are critical for bothmitigation of, and adaptation to climate change.
Major challenges faced by women in rural areas

 Rural women are concentrated in low-skilled, low productivity, and low or
unpaid jobs with long working hours, poor working conditions and limited
social protection. They are more likely to work as unpaid contributing family
members which meanstheir work is largely unrecognized or undervalued.
 They are most active in the informal rural economy and are far less likely than
men to participate in rural wage employment (both agricultural and non-
agricultural). When they do work for wages, rural women are more likely to be
employed in part- time, seasonal, and time- and labour-intensive activities.
 Rural women have less access than men to productive resources. The gender
gap exists for many assets and services, including land, improved seeds and
fertilizers, livestock, extension and financial services. Women also have less
opportunities for education and training, potentially limiting them from
adopting new technologies as readily as men.
 Rural women shoulder a disproportionate amount of unpaid care and

household work, which is neither recognized nor remunerated. They
undertake multiple roles including caring for children and the elderly,
cooking, as well as collecting firewood and water, and working on farms or
family enterprises.
 When working as they often do as contributing family members and

subsistence farmers, rural women receive no income for their labour. When
they are in paid employment, the tasks they undertake in agriculture, or on
plantations are often undervalued. Women are paid less than men even for
the same tasks. Many rural women also do not have the same opportunity as
men to obtain work that attractshigher levels of pay.
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 Rural women are at high risk of abuse, sexual harassment and other forms of
gender-based violence. The heightened risks are due to factors such as
gender power imbalances, a lack of oversight, and working alone in relative
isolation or inremote locations.
 Climate change threatens to exacerbate rural women’s vulnerability to

discrimination, exclusion and exploitation. Women in rural areas are highly
dependent on local natural resources for their livelihood. With climate
change, women’s already unequal access to productive assets is further
impacted. Indigenous and tribal women are disproportionately affected.
 Rural women are under-represented in institutions, governance and

leadership, and have less decision-making power.
Steps suggested to bridge the gap on account of gender disparity

Adopt integrated and holistic approaches based on a human rights framework
thatalso focus on the broader conditions necessary for women to prosper
economically.
 Provide equal access to and control over productive resources such as land
and financial services.
 Ensure the economic empowerment of rural women, including access to

minimumwages and targeted guaranteed-income schemes in public works.
 Advocate for changing stereotypes and promote sharing of household work

and care more equitably within the family, including addressing the time
poverty of rural women. Access to publicly funded childcare and paid
maternity and paternityleave should be available.
 Ensure greater voice, organization and representation for rural women,

driven by social dialogue, including through national and regional collective
bargaining. This should include supporting rural workers’ organizations and
cooperatives to defend their rights and interests. Collective action such as
cooperatives provide a platform for involvement in policy debates and
decision-making, as well as enabling economies of scale in production.
 Explore alternatives to agricultural wage labour for women-

entrepreneurship, women’s business, non-agricultural jobs and women’s
access to land to run their own production. Rural women also need access to
business training.
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1.6 Role of Micro Savings and Micro Insurance

1.7.1 Micro Savings
Meaning:
Micro-savings is a branch of micro finance where facility to open and operate
small deposit account is provided to families or individuals with low income as an
opportunity to store funds for potential use. However, micro-savings accounts
operate similar to a standard savings account but are structured around smaller
amounts.
The minimum balance requirements are always excluded, or very minimal, so

consumers can save small amounts of money and may not be charged for the
service.
E.g. ICICI Bank has under its Business correspondent model has launched ‘Apna
Savings’ account specifically to suit needs of low-income groups/people with
features such as frequent deposits, quick access and the facility to handle small
variable amounts.
Through this account, one can conduct the following activities

 Cash deposit & withdrawal
 Money transfer
 Open a Fixed Deposit (FD)/ Recurring Deposit (RD)
 Balance enquiry and mini statement
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1.7.2 Micro Insurance

Meaning:
Micro-insurance policies are a special category of insurance policies created to
promote insurance coverage among economically vulnerable sections of society
including farmers and artisans. These policies are regulated by the Insurance
Regulatory Development Authority of India (IRDA).
For E.g.
1. Pradhan Mantri Fasal Bima Yojana
This Scheme was launched on 18th February 2016 by Prime Minister Shri Narendra
Modi. 21 states implemented the scheme in Kharif 2016 whereas 23 states and 2
UTs have implemented the scheme in Rabi 2016-17. Approximately 3.7 Crores
farmers have been insured in the Kharif 2016 for 3.7 crore ha of land at premium
of Rs 16212 crore for a sum insured of Rs 128568.94 crore as per figures
available on 31.03.2017.PMFBY provides a comprehensive insurance cover
against failure of the crop thus helping in stabilising the income of the farmers.
The Scheme covers all Food & Oilseeds crops and Annual
Commercial/Horticultural Crops for which past yield data is available and for
which requisite number of Crop Cutting Experiments (CCEs) are conducted being
under General Crop Estimation Survey (GCES). The scheme is implemented by
empanelled general insurance companies. Selection of Implementing Agency (IA)
is done by the concerned State Government through bidding. The scheme is
compulsory for lone farmers availing Crop Loan /KCC account for notified crops
and voluntary for other others. The scheme is being administered by Ministry of
Agriculture.
2. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

The Scheme is available to people in the age group 18 to 70 years with a bank
account who give their consent to join / enable auto-debit on or before 31st May for
the coverage period 1st June to 31st May on an annual renewal basis. Aadhar
would be the primary KYC for the bank account. The risk coverage under the
scheme is Rs.2 lakh for accidental death and full disability and Rs. 1 lakh for partial
disability. The premium of Rs. 12 per annum is to be deducted from the account
holder’s bank account through ‘auto-debit’ facility in one instalment. The scheme is
being offered by Public Sector General Insurance Companies or any other General
Insurance Company who are willing to offer the product on similar terms with
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necessary approvals and tie up with banks for this purpose.
Micro- insurance business is done through the following intermediaries in India:
 Non-Government Organisations
 Self-Help Groups
 Micro-Finance Institutions
Micro Insurance in Indian
Context
In India micro insurance schemes were often some variant of a community-based

modelor in-house insurance managed by MFIs.
In the community-based model, a group of people get together and essentially
develop their own insurance scheme in which they pool their own funds and
develop their own rules
E.g. The Swayamkrushi Youth Charitable Organization (YCO) in the Andhra

Pradesh is an example of a community-based model that still operates. It is
primarily a savings andcredit association with added insurance features.
In the in-house or full-service model, an MFI or NGO runs its own insurance
scheme forits clients and any profit or loss is absorbed by the MFI.
E.g. Spandana
Located in Guntur, Andhra Pradesh, SPANDANA was formed in 1992 and
registered under the Society Act in 1995. It only started microfinance in 1998
after a chance encounter between one of the organization’s founders, Padmaja
Reddy, and a rag picker who explained the importance of small loans. The
experience encouraged Padmaja Reddy to leave her job and work full-time
building an organization that could provide credit in Guntur’s slums.
Since then, microfinance has been the major axis around which all other
SPANDANA programmes revolved. Unlike many Indian MFIs, SPANDANA
started its operations in urban areas and then moved to rural areas. SPANDANA
began offering microfinance using the SHG model. As the portfolio grew,
delinquency started setting in. Around the same time, the organization reached the
conclusion that the SHG approach was not sustainable without ongoing grant
funding to cover the group formation costs.
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1. How is the traditional method of livelihood prove to be an exploitation and

backwardness for lower caste people. (Hint- Jajmani system)
2. India is a land of farming. In this context explain the different methods
farming practiced by farmers mainly to sustain the captive demand of their
families. (Hint-Subsistence Farming).
3. Development planning specifically for rural areas has to be done considering
the specific needs for each region. Discuss in detail (Hint- Need for Regional
Planning)
4. Unemployment in Rural India is a vicious cycle which starts and ends with
rurality.Discuss (Hint- Causes of unemployment)
5. Discuss the role of micro finance and micro insurance for rural development.
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CHAPTER 2: FUTURE PROSPECTS
2.1 Entrepreneur potential of Agriculture and other rural resources.

Introduction
Due to globalization of trade and agriculture and policy reforms at national
level the scope and potential in Agri entrepreneurship has significantly
expanded.
Agribusiness has offered a large number of prospects for value addition,

packaging, retailing, and exports of agricultural products with advance
technology andmanagement.
Since policy reforms are introduced by the WTO regime, the scope and
opportunity in the agribusiness has been increased. A huge number of
opportunities have opened in the industries like packaging, supply of raw
material, processed agri- food manufacture, export of agricultural products
and other allied fields.
Rising of micro financing, relaxed government regulations, accessibility to

high technology, guidance and workshops on Agri and related areas have
changing outlook of highly skilled personnel and resultant they are opting
for self- employment in agriculture, mounting the Agri entrepreneurship’s
prospective in India
2.1.1 Feasible potential and opportunities of entrepreneurship in

agriculture and other rural resources are:
 Agro produce processing units – Here no manufacture of any new product
done and simply the processing of the agriculture produce occurs Example-
rice mills, dal mills, decorticating mills etc
 Agro Produce manufacturing units – Here the entirely new products produced
based on the agricultural produce as the main raw material. Example- sugar
factories, bakery, straw board units etc.
 Agro-inputs manufacturing units – Here production of goods done either for

mechanization of agriculture or for increasing manufacturing plants,
Example- fertilizer production units, food processing units, agricultural
implements etc
 Agro service centres –These comprise the workshops and service centre for
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repairing and serving the agricultural implement used in agriculture.

 Miscellaneous areas – Moreover, the following areas may be hopeful to
establish Agri enterprises like setting up of Apiaries ,feed processing units,
seed processing units, mushroom production units, commercial vermin-compose
units, goat rearing farmers club, organic vegetable and fruits retail outlet,
bamboo plantation and jatropha cultivation.
 Bansal (2011) has proposed some entrepreneurial areas in agriculture.

For E.g. Farming- Crop, dairy/poultry/goat, fish, rabbit, vegetables, flowers,
ornamental plants, palmrosa, fodder, sericulture, agro-forestry, beekeeping,
mushroom.
Product Marketing- Wholesale, retail, commission agent, transport, export,
finance, storage, consultancy.
Inputs Marketing- Fertilizer, agricultural chemicals, seeds, machineries,
animal feed, poultry hatchery, vet medicines, landscaping, agriculture credit,
custom service, bio-control units, bio-tech units.
Processing- Milk, fruits, vegetables, paddy, sugarcane, , cashew, coir,

poultry, cattle, tannery, brewery. V. Facilitative- Research and development,
marketing information, quality control, insurance, energy.
2.1.2 Overall Scope and potential of Agri-Entrepreneurship in India

 India is gifted with diverse ago-climate, which assists production of temperate,
sub- tropical and tropical agricultural produce.
 Demand for agricultural inputs like feed and fodder, inorganic fertilizers,
bio- fertilizers have increased.
 Applications of biotechnology in agriculture is boon for production of seed,
bio- control agents, industrial harnessing of microbes for different products.
 Economic growth will be enhanced by harnessing the export. According to

World Trade Organization (WTO), India has immense potential to recuperate
its present position in the World trade of both raw and processed form of
agricultural commodities. At present processing is done at primary level only
and the rising standard of living expands opportunities for secondary and
tertiary processing of agricultural commodities
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 Large coastal line and internal water courses should be utilized for
production of marine and inland fish. The farmers should be encouraged and
educated for organic farming as organic farming has highest potential in India
as the pesticide and inorganic fertilizer application are less in India compared
to industrial nations of the world.
 The livestock wealth provides vast scope for production of meat, milk and
milk products, poultry products etc.
 The forest resources can be utilized for production of forestry by-products.

 Beekeeping and apiary can be taken up on great extent in India.
 By improving technique of production, enhancement in domestic
consumption andexport of mushroom production can be done.
 The farmers should be encouraged and educated for organic farming as

organic farming has highest potential in India as the pesticide and inorganic
fertilizer application are less in India compared to industrial nations of the
world.
 Huge opportunities for production and promotion of bio-pesticides and bio-

controlagents for protection of crops.
 Due to plateauing in the productivity of high yielding varieties; seeds, hybrid

and genetically modified crops have the highest potential in India in the
future.
 Owing to declining groundwater level and labour scarcity for agricultural

operations like weeding, transplanting and harvesting, micro-irrigation
systems and labour- saving farm equipment have potential in coming years.
 Production of vegetables and flowers under greenhouse conditions can be

harnessed for the export.
 Trained human resources in agriculture and allied sciences will acquire on

agricultural extension system due to deteriorating state finance resources and
down-sizing the present government agricultural extension staff as
consulting services.
 Lastly, employment opportunities have increased in marketing, transport,

cold storage and warehousing facilities, credit, insurance and logistic support
services because of enhanced agricultural production.
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2.2 Age of Start-ups: Agri Tech; Agri Fin Tech; Alternative sources of
energy; Agri Bio, Agri Advisory
Introduction to Start ups: Agri Tech/Agri Fin Tech
Agritech/Agri Fin Tech in India has become a booming field with numerous
startups working with digital technologies such as data analytics, machine
learning and satellite imaging, among others, enabling farmers to maximize their
output. But along with this, Indian agriculture faced lots of challenges, including
starving of financial resources and continuous neglect by the government and is
likely to become more difficult over the next few decades as weather patterns,
available water, growing seasons shift further and climate change has contributed
to the suicides of nearly 60,000 Indian farmers over the past three decades. In
contrast to this framework, technology is increasingly being seen as a solution for
boosting agriculture. Therefore, Agri-tech startups are introducing artificial
intelligence, computer vision and aerial imagery analytics to make farming
processes more efficient and lead to better decisions for improving yield and
productivity. The need for the hour is for all players to come together to take
advantage of the potential to turn the agricultural sector from governments to
Agri-start-ups to investors. Agri Fin Tech startups are also developing state of art
value chain financingsolutions.
2.2.1 Agri-Tech Startups

AGRITECH SUB SECTORS
There are over 250 Agri-Tech startups in India across the value chain, leveraging
the use of technology and innovation in business models to impact the large Agri
sector inIndia.
Sub Sector Examples of Start ups

Upstream (Input) Marketplace  Agro Star
model(Matching Agri-input  Big Haat
sellers to farmers)  Ag revolution
 Ninja Cart
 Agro Nxt
 Agri Hub
 Farm Guru
Downstream (Output) ‘Farm  Krishi Star
to-Fork’supply chain model  Cro Farm
(Matching farmers
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to businesses or retail customers for  Sabziwala

fresh produce, processed food)  Bharat Bazar
Farming as a service  farMart
 EMB Agri Services
 RAVGO
IoT/Big Data led innovation  Cropin
 Fly Bird Farm Innovations
Engineering led innovation  Kamal Kissan
 KHEYTI
 Drip Tech
 NanoPix
Miscellaneous (Innovation in agri  Suma Agro
products, dairy farming)  Cattle Mettle
AGRI-TECH FUNDING STARTUPS FOUNDED & FUNDING ROUNDS (Till 2017)

According to AgFunder’s AgTech Investing Report for 2016, over $3.23 Bn was
invested in agricultural sector worldwide of which, 53 Indian agritech startups
raised $313 Mn in venture funding1. Some of the major deals in the sector last year
are highlighted below,
Startup Investment Investor Date

RML Agtech $4 Mn (Series B) Ivycap Ventures Jan17
Paalak.in Undisclosed Seed Angels Feb17
Agrostar $10 Mn (Series Accel, IDG, Mar17
B) Aavishkar
Waycool $2.7 Mn Aspada April17
Ninjacart $5.5 Mn Nandan Nilekani April 17
Utkal Tubers $4.6 Mn CapAleph, April 17
Zephyr Peacock
Crofarm $783 K Factor [E] Aug 17
Series Ventures,
(Pre- A) RajanAnandan,
JitendraGupta,
LetsVenture
EM3 Agri $10 Mn (Series Global Aug 17
services B) Innovation
Fund,Aspada
Cropin Undisclosed Beenext, Ankur Sept 17
(Pre-Series A) Capital, BSP
Funds
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Gold Farm $2 Mn Seed Mahindra & Oct 17

Mahindra,
InfuseVentures
Farmtaza $8 Mn Series A Epsilon Venture Oct 17
Partners, Tara
India Fund
Gobasco Undisclosed Seed Matrix Partners Nov 17
Farmlink $3 Mn Pioneering Nov 17
Venture,
Syngent
a
2.2.1 Agri Fin Tech Start-ups in India

AgroNxt Services Private Limited
AgroNxt provides farmers with scientific knowledge in as easy to
understand/usable manner utilizing smartphone technology combined with m-
commerce. Farmers can seek specific queries related to crop/livestock
problems, have access to various informative content relating to agriculture in
a digitized format and shop agri-inputs online
Borlaug Web Services

Borlaug Web Services™(BWS) is a purpose-built blockchain SaaS platform
that improves efficiency, visibility and compliance across Source-to-Pay (S2P)
processes in value chains.
Dcrop - Digitize your Crop. A Real Time Farm Analytics based on Artificial
Intelligence & Machine learning based farm ERP services provider in F2C,
F2B, B2B&B2G sector. That uses artificial intelligence to identify around
Crop stage and chances to effective with disease's based on crop age,
different species of plants, crop disease’s, weather forecasting with an AI
technology and Open source for Market linkage to B2B market. (Trader
Direct getting advanced stock volume fromProduct owner - Farmer)
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2.2.2 Alternative sources of Energy

Benefits of Alternative Energy Sources
Alternative sources are often cleaner than fossil fuel combustion, and can
improve public health and the local environment by reducing regional air
pollutants.
Some alternative sources such as wind and solar power do not require water
for their operation and therefore do not pollute or strain water resources.
Renewable sources of energy can have important climate change benefits:
Greenhouse gas (GHG) emissions throughout renewable energy’s life cycle,
including manufacturing, installation, operation and maintenance, and
dismantlingand decommissioning are minimal.
Renewable energy contributes to economic diversification and job creation

in manufacturing, installation, maintenance and other dimensions of the
supply chain
Renewable power utilizes inexhaustible natural resources that can lead to

reduced consumption of fossil fuels for countries with abundant domestic
sources of such fuels. This allows additional exports of oil and gas that are
often more valuable onworld markets than in domestic markets.
Examples of Alternative Sources of Energy
Solar Energy
Solar energy is one the most resourceful sources of energy for the future. One of
the reasons for this is that the total energy we receive each year from the sun is
around 35,000 times the total energy used by man. However, about 1/3 of this
energy is either absorbed by the outer atmosphere or reflected back into space (a
process called albedo)* Solar energy is the energy force that sustains life on the
earth for all plants, animals, and people. The earth receives this radiant energy
from the sun in the form of electromagnetic waves, which the sun continually
emits into space. The earth is essentially a huge solar energy collector receiving
large quantities of this energy which manifests itself in various forms, such as
direct sunlight used through photosynthesis by plants, heated air masses causing
wind, and evaporation of the oceans resulting as rain which can form rivers. This
solar energy can be tapped directly as solar energy (thermal and photovoltaic), and
indirectly as wind, biomass, waterpower, wave energy, and ocean temperature
difference.
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Wind Energy
Wind is a plentiful source of clean energy. Wind farms are an increasingly
familiar sight in the India with wind power making an ever-increasing contribution to
the National Grid. To harness electricity from wind energy, turbines are used to
drive generators which then feed electricity into the National Grid. Although
domestic or ‘off-grid’ generation systems are available, not every property is
suitable for a domestic wind turbine.
For E.g. Wind Power Megawatt Location

Plant 1500 Tamil Nadu, Kanyakumari
Muppandal wind farm
Jaisalmer Wind Park 1064 Rajasthan, Jaisalmer
Brahmanvel wind farm 528 Maharashtra, Dhule
Dhalgaon wind farm 278 Maharashtra, Sangli
Vankusawade Wind Park 259 Maharashtra, Satara District.
Vaspet 144 Maharashtra, Vaspet
Tuljapur 126 Maharashtra, Osmanabad
Beluguppa Wind Park 100.8 Beluguppa, Andhra Pradesh
Mamatkheda Wind Park 100.5 Madhya Pradesh, Mamatkheda
Anantapur Wind Park 100 Andhra Pradesh, Nimbagallu
 Hydro Energy
As a renewable energy resource, hydro power is one of the most commercially

developed. By building a dam or barrier, a large reservoir can be used to create a
controlled flow of water that will drive a turbine, generating electricity. This
energy source can often be more reliable than solar or wind power (especially if
it's tidal rather than river) and also allows electricity to be stored for use when
demand reaches a peak. Like wind energy, in certain situations hydro can be more
viable as a commercial energy source (dependant on type and compared to other
sources of energy) but depending very much on the type of property, it can be
used for domestic, ‘off-grid’ generation.
E.g. Companies engaged in the development of hydroelectric power in India include the
National Hydroelectric Power Corporation (NHPC), Northeast Electric Power Company
(NEEPCO), Satluj Jal Vidyut Nigam (SJVNL), Tehri Hydro Development Corporation, and
NTPC-Hydro.
Ocean energy
Ocean energy refers to all forms of renewable energy derived from the sea.
There are three main types of ocean technology: wave, tidal, and ocean
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thermal. Ministry of New and Renewable Energy has declared Ocean

Energy as renewable energy.
Types of Ocean Energy
Wave energy is generated by converting the energy within ocean waves

(swells) into electricity. There are many different wave energy technologies
being developed and trialled to convert wave energy into electricity.
For E.g. The first wave energy, project with a capacity of 150 MW, has been
set up at Vizhinjam near Trivandrum.
Current Energy – It is very similar to the wind above the oceans. Underwater
turbines, large propellers tethered to the seabed, are moved with the marine
currents to generate electricity. According to the Intergovernmental Panel on
Climate Change (IPCC), given the scale of open ocean currents, there is a
promise of significant project scale growth when technologies harness lower-
velocitycurrents.
Tidal Energy- Like conventional hydroelectric dams, power plants are built on
river estuaries and hold back huge amounts of tidal water twice a day which
generateselectricity when released.
A major tidal wave power project costing of Rs.5000 crores, is proposed be set up
inthe Gulf of Kutch in Gujarat.
Geothermal Energy
Geothermal energy is natural heat from the interior of the earth that can be used to
generate electricity as well as to heat up buildings.
Below the earth’s crust, there is a layer of hot and molten rock, called magma.
Heat is continually produced in this layer, mostly from the decay of naturally
radioactive materials such as uranium and potassium. The amount of heat within
10,000 meters (about 33,000 feet) of the earth’s surface contains 50,000 times
more energy than all the oil and natural gas resources in the world.
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Geothermal resource falls into three major categories:

i) Geopressurized zones,
ii) Hot-rock zones and
iii) Hydrothermal convection zones.
Of these three, only the first is currently being exploited on a commercial

basis.The natural examples of geothermal energy are given below.
 Geysers
 Lava Fountain
 Hot Springs
Biomass Energy
This is the conversion of solid fuel made from plant materials into electricity.
Although fundamentally, biomass involves burning organic materials to produce
electricity, and nowadays this is a much cleaner, more energy-efficient process.
By converting agricultural, industrial and domestic waste into solid, liquid and
gas fuel, biomass generates power at a much lower economic and environmental
cost.
E.g. Wood and wood processing wastes, Agricultural crops and waste materials
animalmanure and even human sewage
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2.2.3 Agri Bio:

Agricultural biotechnology is a range of tools, including traditional breeding
techniques, that alter living organisms, or parts of organisms, to make or
modify products; improve plants or animals; or develop microorganisms for
specific agricultural uses. Modern biotechnology today includes the tools of
genetic engineering.
Biotechnology provides farmers with tools that can make production cheaper
and more manageable. For example, some biotechnology crops can be
engineered to tolerate specific herbicides, which make weed control simpler
and more efficient. Other crops have been engineered to be resistant to
specific plant diseases and insect pests, which can make pest control more
reliable and effective, and/or can decrease the use of synthetic pesticides.
These crop production options can help countries keep pace with demands
for food while reducing production costs.
Few Examples of how bio technology is being used in agricultural sector

Genetically Modified Crops
Genetically modified crops are created by inserting genes from different

organisms into the DNA sequence of specific crop varieties. This produces traits
that would not occur naturally, such as resistance to pests or environmental
conditions like drought. The GMO industry has evolved over the years, with
progress being made in developing crops that are tolerant to herbicides, resistant to
disease, and insect-resistant.
Developing of Biofuels
Another great example of biotechnology in agriculture is the development of

biofuels. Biofuels are types of fuel that can be produced using natural inputs like
algae, corn stover, and sugarcane bagasse instead of petroleum products. This
helps to reduce greenhouse gas emissions because they do not emit any carbon
when burned. It also does not take away from the food supply because some
inputs, like algae, can be grown on wastewater or using arable land that isn’t fit to
grow crops.
Improving Plant Growth and Plant Seed quality

Improving plant growth is another example of biotechnology in agriculture. Since
the beginning of agriculture, farmers have been breeding plants to get more
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desirable traits such as larger fruits size, more robust plant growth, or improved
flavor. This is an example of traditional cross-breeding methods where a farmer
selects what she thinks are the best examples from each generation for further
breeding. In short, this method requires generations of experiments to obtain the
desired result.
2.2.4 Agri Advisory

The term agricultural advisory services refers to the entire set of organizations
that support and facilitate people engaged in agricultural production to solve
problems and to obtain information, skills and technologies to improve their
livelihoods
E.g. Krish-e Agricultural consultants help farmers unravel productive
opportunities, across each stage of the crop cycle - from seed treatment to
harvesting. They guide and assist farmers to use equipment, technology and
modern processes on their farm.
2.3 Non-Farm businesses: Rural Tourism, Skill Development etc.
Introduction to Rural Tourism

Rural tourism is in its emerging stage in India. Rural India has much to offer
to the world. Rich in traditions of arts, crafts and culture, parts of rural India
can emerge as important tourist spots. Those in the developed world who
have a craze for knowledge about traditional ways of life, arts and crafts will
be attracted to visit rural India if the concept of rural tourism is marketed
well.
Rural tourism may include heritage tourism, Farm tourism, pilgrim tourism,
adventure tourism, nature tourism or folkways and ancient culture tourism.
2.3.1 Rural Tourism- A Means to Empower India:

The concept of rural tourism has a noble cause, it is another kind of
sustainable tourism that exploits resources in rural regions, causes little or no
harmful impact, and generates increasing benefits to rural areas in terms of
rural productivity, employment, improved distribution of wealth,
conservation of the rural environment and culture, local people's
involvement, and a suitable way of adapting traditional beliefs and values to
modern times.
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Rural Tourism can develop a win-win situation for both the rural and urban
communities. For developing the rural tourism, we need to understand the
rural environment, demography, socio-culture, economic and political
background of that place. How can rural people be involved to enhance their
socio-economic condition? To develop a strategic marketing plan for rural
tourism we have to understand the target customer their needs and wants and
how to match it with our rural infrastructure.
Rural tourism will bring people of different cultures, faiths, languages and life-
styles close to one another and it will provide a broader outlook of life. It will
not only generate employment for the people but it can also develop social,
cultural and educational values and can prevent rural-urban migration. Thus,
rural tourism could attract tourists by providing excellent glimpse of the
village ambience with local cuisine. Similarly, Moderate but clean
accommodations for tourists should be constructed by the villagers in
traditional design and architecture.
Rural Tourism has now becoming an essential part of the tourism industry.
Once the infrastructure reaches the villages and the concept is marketed in
domestic and international markets, nothing can stop penetration of tourism
deep inside the unexplored countryside.
2.3.2 Benefits and Positive Impact :

Creation of employment opportunities especially for the rural youth.
Rise in the Income level.
Generate foreign exchange
Demand for other goods and services will increase.
Improvement in the public services.
Generate revenue for the government.

Modernization of agriculture and other rural activities.
Local small businessman will be benefited.
Stop movement of people to Metros for job opportunities
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Education and health of the rural community will improve.

Increase in standard of living
Cultural understanding through fairs and festival
Exchange of cultural beneficial for both
Foreign tourist will bring cultural change faster.
Market for agro products and handicrafts will develop in rural areas
Farmers and artisans will develop a direct contact with the customers
Help in development of rural areas
2.3.3 Examples of Rural Tourism in India:

One of India Rural Tourism project's success stories is Hodka village that won
PATA Gold Award 2010. Shaam-e-Sarhad (Sunset at the Border) Rural
Resort, owned and operated by the community of Hodka, a Village near
Bhuj (63 kms) which is capital of the Kachchh region of Gujarat .Hodka
village is surrounded by an area of impressive natural beauty, an ideal base
location to discover Kachchh. Kachchh is renowned and visited by guests
from all over the world for its arts and crafts and also visited by bird watchers
for spotting migratory birds in winter. Designed in local style, and
exquisitely decorated with mirror work, textiles and other local crafts, the
Shaam-e-Sarhad Rural Resort which is managed by the rural village
community is the perfect gateway to a unique travel experiences in India.
The resort can Adarsh Journal of Management Research (ISSN 0974-7028) -
Vol. : 9 Issue : 1 March 2016 67 accommodate up to 30 people. The cost of
staying in tents is US$40 a night, while at the bhungas it is around US$60 a
night. The popular attractions are specially organized workshops in
embroidery and leather work, interactions with artisan communities, the visit
in wildlife including flamingos, pelicans, foxes and leopards and visit to
nearby archaeological sites of the Indus Valley Civilization and pashumela, a
cattle fair. All these activities are successfully organized, packaged and sold
by village community.Shaam-e-Sarhad Rural Resort is an excellent example
of how local communities can come together and execute a eco-tourism
concept that increases awareness of local arts and crafts and employment and
is a good example for other upcoming rural tourism projects in India.
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Another case of Anegundi Rural Tourism Project in Karnataka can be taken

as a good example which is closed to the world famous Hampi. The village
on the bank of mighty river Tungabhadra having astonishing natural beauty
,rocks and boulders, greenery of paddy and banana plantation along with
ancient temples and vernacular houses, , true village traditions ,cultures and
festivals .The village was a sleepy village some 10 years ago because of its
location in the world heritage site. The village was not permitted to take up
construction activities particularly rebuilding old houses. The village
community took an initiation for social and economic empowerment through
conservation of natural and architectural heritage and in doing so secure the
future of site through sustainable integration of the people of the land.
Through community mobilization the villagers developed rural tourism by
riverside landscaping, revival of local tradition and cultural activities. They
even developed software activities, awareness programmes on tourism, local
heritage and vernacular architecture culture, traditions and art developments
andmade tourism a strategy for livelihood.
The Successful agro-tourism experience of Malegaon village of Baramati

taluk of Pune is a classic example of agro- tourism in Maharashtra which
transformed a drought prone area where the suicide cases were increasing to
a successful model village for agro-tourism. The agritourism venture has a
positive effect among the community .The main attractions of the area
includes farm tours; tractor and bullock cart rides; grapes, mangoes, and
other horticulture farms and by-product farms; Visit to birds and animal farms,
Jaggery making unit; Emu bird Farm; Sugar factory; Taluka Milk Collection
Centres, a village temple and Museum. The overnight stay arrangement is at
the farm itself. The lives of the farmers changed with an increasingly annual
income of 25 per cent considerably with the agro- tourism destination
venture. They have learned soft skills to handle customer service and to
market their product and became entrepreneurs
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2.3.4 Skills Development
Mahatma Gandhi, the father of the nation said that India’s strength lies in its
villages. Rural areas contribute significantly to the overall growth and
economic development of a country. A statistics states that of the roughly
5.98 billion people who live in the world, close to 3.4 billion people live in
villages/rural areas. However, many issues still plague the villages of India
such as poverty, water scarcity, malnourishment, lack of basic facilities,
illiteracy, unemployment, anti- social elements etc. While many of these
exist from time immemorial, unemployment seems to be the major threat in
today’s scenario with the ever- growing population, and India is expected to
outgrow China as the world’s largest populated country. India sits on a
goldmine of raw talent waiting to be nurtured, developed and added to the
HR pool. Effective utilization of resources and availability of skilled
individuals help in ensuring that developmental activities do not get
compromised. This is where skill development plays a major role.
Skill is required:
To improve employment
Reduce poverty
Provide livelihood opportunities
Enhance productivity
Promote environmentally sustainable development
Skill development as an important pillar for growth is often ignored and put
in the backburner and perennially looked upon as a non-scalable model due to
the high capital required and the low ROI. It is a huge challenge not only for the
government, but also for the private sector and educational institutions to rise
up and specialize in making youth employable and ensuring no mismatch
between demand and supply. They must also focus on an increased usage of
modern technology in the workplace/assembly line. Also, there is a
mismatch between the aspiration of youngsters and the jobs available.
For e.g. the construction sector usually has migrant workers from other states
whoare employed.
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The Central Government on its part is leaving no stone unturned. The annual
budget of 2017-18 allocated for employment generation, skill and livelihood
is pegged at an approximate value of Rs.17, 000 Cr where the Ministry for
Skill Development and Entrepreneurship is allocated Rs.3000 Cr. Some of
the other salient features in the budget relating to skill development are as
follows :
1. PMKK (Pradhan Mantri Kaushal Kendra) which are currently present in over 60
districtsis planned to be opened in 600 more districts.
2. 100 India International Skill Centres which offer training services and foreign
language coaching are expected to be established all over the country.
3. Launch of Skill Acquisition and Knowledge Awareness for Livelihood

Promotion Program (SANKALP) at a cost of 4000 Cr to provide market relevant
training to over 3.5Cr youth.
4. The next phase of Skill Straightening for Industrial Value Enhancement

(STRIVE to be launched) at a cost of Rs. 2200 Cr which focuses on improving
quality and market relevance of vocational training provided in ITIs and
strengthen the apprenticeship programs through industry cluster approach.
5. A special scheme for increasing employment in leather, footwear, textile

sectors is launched. Textile is in fact the 2nd largest employer in the country after
agriculture with a current workforce of 33-35 million which is expected to increase
to over 60-62 millionby 2022.
6. Allocation of Rs.4500cr for Deendayal Antyodaya Yojana for promotion of

skill development in rural areas.
7. The budget allocation for PM’s employment generation program (PMEGP)

hasincreased by 3 times.
8. For imparting new skills to the people in rural areas, mason training to be
provided for over 5 lakh people by 2022 with an immediate target of 20000 by
2017-18.
9. In order to foster the emergence of technology which plays an important role in

new age start-ups, high speed broadband is expected to be provided to over 1.5 lakh
villages.
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 Apart from these, there is Aajeevika which is the skilling and placement
initiative of the Ministry of Rural Development (MoRD) whose aim is to
impart a specific set of knowledge and skills to rural youth without formal
education and make them jobready.
 The Ministry of Rural Development has been allocated Rs.1500 Cr from the
yearly budget for its flagship scheme NRLM (National Rural Livelihood
Mission) which trains unemployed youth below poverty line on various
skills. In all, 73 skill development schemes are implemented in 20 ministries.
2.4 Rural Industrial Sectors: Small scale, Handloom, Agro based industries,
Rural artisans, Handicrafts- Khadi and village Industries Commission
2.4.1 Small scale industries
Introduction
 Small Scale Industries (SSI) are those industries in which the
manufacturing, production and rendering of services are done on a small or
micro scale. These industries make a one-time investment in machinery,
plant, and equipment, but it does not exceed Rs.10 crore and annual turnover
does not exceed Rs.50 crore.
 Earlier industries that manufactured goods and provided services on a small

scale or micro-scale basis were granted Small Scale Industries (SSI)
registration by the Ministry of Small-Scale Industries. However, after the
government passed the MSME Act, 2006, the small and micro scale
industries came under MSME Act, 2006.
 Essentially the small-scale industries are generally comprised of those
industries which manufacture, produce and render services with the help of
small machines and less manpower. These enterprises must fall under the
guidelines, set by theGovernment of India.
 The SSI’s are the lifeline of the economy, especially in developing countries
like India. These industries are generally labour-intensive, and hence they
play an important role in the creation of employment. SSI’s are a crucial
sector of the economy both from a financial and social point of view, as they
help with the percapita income and resource utilization in the economy.
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Characteristics and Examples

 SSI’s generally are under single ownership. So, it can either be a sole
proprietorship or sometimes a partnership.
 Generally, both the management and the control is with the owner/owners.
Hence the owner is actively involved in the day-to-day activities of the
business.
 SSI’s dependence on technology is pretty limited. Hence, they tend to use

labourand manpower for their production activities.
 SSI’s are more adaptable to their changing business environment. So, in

case of amendments or unexpected developments, they are flexible enough to
adapt andcarry on, unlike large industries.
 Small scale industries have a restricted zone of operations. Hence, they can
meettheir local and regional demand.
 They use local and readily available resources which helps the economy fully
utilize natural resources with minimum wastage.
 SSI’s are the best examples for the Make in India initiative. They focus
on the mission to manufacture in India and sell the products worldwide.
This also helps create more demands from all over the world.
Examples of SSI – Bakeries, Paper bags, toys, Spinning and weaving

industry,Cashew processing industry, Agarbatti making, clay product industry
etc.
2.4.2 Handloom Industry

 The Indian handloom industry is one of the oldest and largest cottage
industries in the country. The industry is a hallmark of India’s centuries old
traditions and culture with huge variety of designs, printing techniques,
weaving art andmaterials renowned globally.
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 Along with the artistry of weavers, the handloom industry in India

demonstrates the richness and diversity of Indian culture. With over 4.3
million people directly and indirectly involved in the production, the
handloom industry is the second- largest employment provider for the rural
population in India after agriculture. Indian handloom industry products are
known for their unique designs and finesse. The trend is to mix old designs
with new techniques and create original products.
 The industry has a strong infrastructure with about 2.4 million looms of
varied designs and construction, indicating significant production capacity.
 The Handloom Export Promotion Council (HEPC) is a statutory body

constituted under the Ministry of Textiles, Government of India, to promote
the export of all handlooms’ products such as fabrics, home furnishings,
carpets and floor coverings. HEPC was constituted in 1965 with 96
members and currently has about 1,500 members.
 The operations of the industry are generally household based, wherein

various members of the family come together and contribute to the
production process. These activities are spread across the length and breadth
of the country and involve transfer of skills from one generation to the next.
The sector is largely unorganized, and the workers are mainly from the
economically and socially weaker sections of the society, who weave for
their household needs and also contribute to the production in the textile
sector. The weavers of this industry are keeping alive the traditional craft of
different states. The level of artistry and intricacy achieved in the handloom
fabrics is unparalleled and certain weaves are still beyond the scope of
modern machines. Most of the handloom units are run either as sole
proprietors or on partnership basis. Amongst the many strengths of the sector
include minimal use of capital and power, environment-friendly production
processes and flexibility to innovate and offer products as per market
requirements.
 Examples : Almost every state of India has something unique to offer in

terms of handloom products. Phulkar from Punjab, Chanderi from Madhya
Pradesh, Ikats from Andhra Pradesh, Tie and Die from Rajasthan and
Gujarat, Daccai from West Bengal, Brocade from Banares and Jacquard
from Uttar Pradesh are some of the examples of the intricate work done by
Indian artisans and weavers which are highly appreciable globally.
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2.4.3 Agro based industries

Introduction
 Agro-based industries are industries that use plant and animal-based

agricultural output as their raw material. Also, they add value to agricultural
output by processing and producing marketable and usable products.
Some examples of agro-based industries in India include Textile,

Sugar,Vegetable Oil, Tea, Coffee and Leather goods industries.
Types
 Agro-produce processing units – These units are not involved in
manufacturing and mainly deal with the preservation of perishable products
and utilization of by-products for other uses. Rice and Dal processing mills
are perfect examples of these kinds of units
 Agro-produce manufacturing units – These units engage in the

manufacturing of new products where the finished goods are entirely
different from the raw materials used. Sugar factories, solvent extraction
units and textile mills are some of the examples of these kinds of units.
 Agro-inputs manufacturing units – These units are engaged in the

manufacturing of products, either for the mechanization of agriculture or for
increasing agricultural productivity. Some examples of these units include
agricultural implements, seed, fertilizer and pesticide manufacturing units.
 Agro Service Centres – Agro service centres are workshops and service
centres, which are engaged in the repairing and servicing of pump sets, diesel
engines, tractors and other types of farm equipment.
Examples
 Textile Industry
The textile industry is concerned with the design, production, distribution or
marketing of yarn, fabrics, or readymade clothing. It consists of units
manufacturing cotton textiles, woollen textiles, silk textiles, synthetic fibres and
jute textiles. The industry plays an important role in India’s economy because it is
the biggest employer in the country after agriculture. Also, it provides direct and
indirect employment to around 10.5 crore people.
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The GOI has introduced various policy initiatives and programmes for the
development of the textile industry, some of which include (i) Scheme for integrated
textile parks, (ii) National Handicraft Development Program (NHDP), (iii) North
Eastern Region Textile Promotion Scheme (NERTPS) and (iv) Comprehensive
Handicrafts Cluster Development Scheme (CHCDS
 Sugar Industry
The sugar industry is responsible for the supply of sugar, which is considered as
an integral part of the human diet.
Leading sugar manufacturing companies in India and the world include Eid Parry
(India) Ltd, Shree Renuka Sugars Ltd, Balrampur Chini Mills Ltd, Triveni
Engineering and Industries Ltd and Dhampur Sugar Mills Ltd among others.
The GOI has undertaken several initiatives to improve the financial health of the
sugar industry, some of which include (i) de-regulation of the sugar sector, (ii)
Ethanol Blended Petrol Program (EBP), (iii) Scheme for extending financial
assistance to sugar undertakings (SEFASU-2014), (iv) soft loans to sugar mills
to facilitate clearance of cane price arrears, (v) Minimum indicative Export
Quotas (MIEQ), (vi) production subsidy and (vii) imposition of stock holding
limits on sugar mills.
 Vegetable Oil Industry

The Indian vegetable oil industry accounts for about 5% of the world’s vegetable
oil production. India is the largest consumer of edible oils in the world. The
leading brands of edible oils in India include Fortune by Adani Group, Saffola by
Marico, Sundrop by Agro Tech Foods, Dhara by Mother Dairy and Dalda by
Bunge Limited among others. Vegetable oil processing will remain one of the
largest industrial segments in India because of an exponential increase in
domestic demands and exports. In order to increase the production of edible oil in
the country and to reduce the dependence on imports, the GOI has
proposed/introduced several measures, some of which include (i) tax concessions
for companies engaged in oilseeds farming, (ii) promoting oil palm cultivation under
National Mission on Oilseeds and Oil Palm (NMOOP) and (iii) preparing ‘zero
edible oil import’ plans.
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2.4.4 Rural Artisans
 India is home to >3,000 craft forms with artisans, spread across the country,
working with papier-mâché in Jammu and Kashmir, thangka painting in Ladakh
and Himachal Pradesh, phulkari and Bagh textiles in Punjab, brassware in
Haryana, basket-weaving in Uttaranchal, chikankari and zardozi work in
Uttar Pradesh, blue pottery and block printing in Rajasthan, ajrak and
kite making in Gujarat, gond painting in Madhya Pradesh, terracotta
products and warli art in Maharashtra, crochet and lace work in
Goa, sandalwood carving and banjara embroidery in Karnataka, vallam
boat making in Kerala, thanjuvar kalamkari in Tamil Nadu, telia rumal
and kondapalli toys in Andhra Pradesh, ikat work in Telangana, cane
baskets in Nagaland, sikki grass products in Odisha, dhokra work in
Jharkhand, kantha and patachitra crafts in West Bengal, madhubani
paintings and mulberry silk products in Bihar, choktse tables in Sikkim, eri silk
products in Assam and bamboo products in Chhattisgarh, Arunachal Pradesh,
Manipur, Mizoram, Tripura and Meghalaya.
Government Initiatives
 Ambedkar Hastshilp Vikas Yojana
The Ambedkar Hastshilp Vikas Yojana collaborates with Dastkar Shashktikaran

Yoajan to support artisans with their infrastructure, technology and human
resource development needs. This scheme was launched with the objective of
mobilising artisans into self-help groups and societies with the agenda of
facilitating bulk production and economies in procurement of raw materials. The
programme aims to empower these communities with design and technology
upgrades, trainings and design workshops to impart commercial market
intelligence, introduce new techniques and develop prototypes to suit the
preferences of contemporary markets that are central for the implementation of this
scheme.
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 Mega Cluster Scheme

The objective of this scheme includes employment generation and improvement
in the standard of living of artisans. This programme follows a cluster-based
approach in scaling infrastructure and production chains at handicraft centres,
specifically in remote regions, where the sector is largely unorganised and has not
evolved to adopt modern developments. Under this scheme, clusters are identified
by the Handicrafts Mega Cluster Mission (HMCM) via central and state agencies
for upskilling and development.
 Marketing Support and Services Scheme
This scheme provides interventions for domestic marketing events to artisans in the
form of financial assistance that aids them in organising and participating in trade
fairs and exhibitions across the country and abroad. Financial assistance is also
provided for social and welfare needs of artisans. Craft awareness, demonstration
programmes and buyer- seller meets are another key aspect of this programme to
ensure integrated, inclusive development of the sector. Another component of this
scheme is increasing publicity and promoting brands in print and electronic media
to improve visibility.
 Research and Development Scheme
This initiative was introduced to generate feedback on economic, social, aesthetic

and promotional aspects of crafts and artisans in the sector, with the objective of
supporting implementation of aforementioned schemes. An in-house research and
development team conducts surveys and studies on crafts and their production
challenges, which could range from availability of raw materials and access to
technology, product design flaws, quality control procedures, financial assistance,
legal assistance, international certifications and other operational issues. This
research is conducted periodically, and the findings are evaluated, solutioned and
plugged into the relevant scheme.
These schemes fall under the government's National Handicraft

Development Programme, which is being implemented by the Office of the
Development Commissioner of Handicrafts.
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2.4.5 Khadi and Village Industries Commission
Introduction
Khadi and Village Industries Commission (KVIC) is a statutory body of the
Indian Constitution. It comes under the Ministry of Micro, Small and Medium
Enterprises. It was established by Khadi and Village Industries Act, 1956. It has
been amended twice, in 1965 and 2006. It is one among the important constitutional,
statutory and quasi-judicial bodies of India.
Objectives
The broad objectives of the Khadi Village and Industries Commission
encompassing self-reliance and sustainability are:
1. To boost employment in the country.
2. To promote the promotion and sale of Khadi articles
3. To cater to the self-reliance doctrine of the country by empowering
underprivilegedand rural sections of the society.
Functions
The following are the functions of Khadi Village and Industries Commission:
1. It plans, promotes, organizes, and implements programmes for the
development of Khadi and Village Industries (KVI).
2. It coordinates with multiple agencies that are engaged in rural development for
several initiatives w.r.t khadi and village industries in rural areas.
3. It maintains a reserve of raw materials that can be further promoted in the
supply- chain.
4. It aids in creating common service facilities that help in processing of raw
materials.
5. It aids the marketing of KVI products through artisans and other avenues.
6. It creates linkages with multiple marketing agencies for the promotion and sale
of KVI products.
7. It encourages and promotes research and development in the KVI sector.
8. It brings solutions to the problems associated with the KVI products by
promoting research study and enhancing competitive capacity.
9. It also helps in providing financial assistance to the individuals and institutions
related to the khadi and village industries.
10. It enforces guidelines to comply with the product standards to eliminate the
production of ingenuine products.
11. It is empowered to bring projects, programmes, schemes in relation to khadi
and village industries’ development.
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2.5 Organizations for Promotion of Rural Industries
2.5.1 District Industries Centre

 In pursuance of the Industrial Policy-1977, a programme for setting up
District Industries Centres (DICs) was launched by the Government of India,
to be operational from 1st May 1978. The programme provided for setting up
a DIC in each district of the country, in a phased manned in order to make
the district headquarters a focal point for the development of small-scale and
cottage industries, to shift the emphasis from cities and state capitals to the
district headquarters and to provide under a single root, all services and
support needed by small and village entrepreneurs. Accordingly, the
Government of India issued guidelines to the State Government for setting up
DIC in each district of the state. In the State of Maharashtra, District
Industries Centre have been set up in the 34 districts. At present 34 districts of
Maharashtra DICs have been functioning.
 The main objects of the DIC programme are firstly to make available
various assistance and clearance required under one roof and secondly to
promote rural industries.
 Following are the schemes under District Industries Centre (DIC):

A. Prime Minister’s Employment Generation Program (PMEGP)
The objective of this centrally sponsored scheme of Ministry of Micro, Small &
Medium Enterprises, Government of India being implemented since October,
2008 is to provide gainful employment and self-employment opportunities to
educated unemployed persons through activity of industry, service and business.
B. Seed Money Scheme
The objective of the scheme is to encourage an unemployed person to take up
self- employment ventures through industry, service and business, by providing
soft loans tomeet part of the margin money to avail institutional finance.
C. DIC Loan Scheme
The objective of the scheme is to generate employment opportunities including
self- employment to tiny units located in towns and rural areas having population of
less than 1 lakh and with investment in plant & machinery below ₹ 2 Lakhs. Such
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identified tiny units falling within the purview of the Small-Scale Industries
Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are
covered for financial assistance in the form of margin/seed money under the
Scheme.
D. Entrepreneurship Development Training Program

This scheme was introduced with the objective of training educated unemployed
persons to take up self-employment ventures or skilled wage employment.
Entrepreneurs are given guidance related to industry/service/business activities &
skill upgradation. Entrepreneurs are also guided in respect of choice of activity,
necessities of land, project report, obtaining various no objection certificates,
licences and marketing strategy.
E Entrepreneurship Development Training Program

This scheme was introduced with the objective of training educated unemployed
persons to take up self-employment ventures or skilled wage employment.
Entrepreneurs are given guidance related to industry/service/business activities &
skill upgradation. Entrepreneurs are also guided in respect of choice of activity,
necessities of land, project report, obtaining various no objection certificates,
licences and marketing strategy.
2.5.2National Institute of Micro, Small and Medium Enterprises

(NIMSME)
 In 1960, the Central Industrial Extension Training Institute (CIETI) now
known as NIMSME took birth with Micro Small and Medium Enterprises
(MSMEs) as a Department under the Ministry of Industry and Commerce in
New Delhi. In order to provide greater autonomy in administration and
procedures to play a pivotal role in the promotion of MSMEs, the Institute was
renamed as Small Industry Extension Training Institute (SIET) shifting the
headquarters to Hyderabad in 1962.
 The Institute has earned distinction in entrepreneurship promotion, with
recognition at national and international levels. With the Micro, Small and
Medium Enterprises Development Act of 2006 (MSME-D) the Institute was
renamed as National Institute for Micro, Small and Medium Enterprises (ni-
msme) with re- designed innovative focus of inclusive growth under the
Ministry of MSME.
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 SIET was conferred the status of national institute by the Government of India
with the charter of assisting in the promotion of Small Enterprises mainly by
creating a pro-business environment. In 1984, the UNIDO had recognised SIET
as an institute of meritorious performance under its Centres of Excellence
Scheme subsequently, it was also accorded the national status in the same
year and SIET Institute became nisiet.
 Since then the institute has come a long way, carving a place of distinction for
itself in the domain of entrepreneurship promotion, achieving recognition
both at the national level and in the international arena. To cope with
the pressure of globalisation, the Government of India has enacted the
MSMED Bill in the Parliament, which became effective from 2nd October
2006.
 Accordingly, the Institute, in order to reflect the expanded focus of its

objectives with name was rechristened as ni-msme from 11th April 2007 and
re-designed its structure and organization. It is an organization of the Ministry
of Micro, Small and Medium Enterprises (M/o MSME) (formerly Ministry of
SSI & ARI), Government ofIndia.
 The ni-msme (formerly as SIET) was registered at Hyderabad in Andhra

Pradesh under Public Societies Registration Act with effective from 1st July
1962.
 The affairs of the Society are managed, administered, directed and controlled
through Governing Council constituted by the Government of India as per Rule
22(a & b) of Rules and Regulations of the Society. The Society, as provided
under Rule 3 of Rules and Regulations, was constituted by the Government of
India.
ni-msme has been instrumental in conducting several outstanding research /

consultancy studies that include.
 Development of Pochampad Region (1972).

 Identification of Growth Centres in Vidarbha Region (1973).
 Industrial Potential Studies of Different Regions in the Country (since 1974).
 Impact / Evaluation Studies on Major Government Programmes and Schemes
such as TYRSEM, DWCRA, PMRY, SEEUY, CMEY, ADARANA, IIDs,
SHGs, WDCs, Development Commissioner (Handlooms), Development
Commissioner (Handicrafts), and NBCFDC.
 Policy Research Studies (since 1978).
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 Preparation of Check-list for Diagnosis of Sick Units and Case Studies (from 1981).
 District Development and Regional Planning Studies.
 Techno-economic Feasibility Studies in Textiles and Handicrafts Sector of
ArunachalPradesh (2001).
 Study on Identification of Projects for Specific Resource Base in North-
easternRegion (2003).
 Vision Document for Empowering Women in Mauritius (2003).
 Project Profiles on SMEs for Mauritius (2004).
 Information Requirements of SMEs (2005).
 Hand-holding, Monitoring, Implementation of MSME Clusters (2004-07).
 Hand-holding of SFURTI, Handlooms, Handicrafts Clusters (2006 onwards).
 Evaluation Study of Ongoing Schemes of NBCFDC in the State of Tamilnadu (2008)
 Evaluation of NBCFDC Schemes in the Union Territory of Puducherry,
Goaand Kerala (2009-10)
 Evaluation of the Functioning of Innovative and Experimental Programmes
on Schools run by Bhagavatula Charitable Trust (BCT) under Rajiv Vidhya
Mission, Andhra Pradesh in Visakhapatnam District (2009-10)
 Evaluation Study for Bringing More Effectiveness in Implementation of the
Schemes under AHVY sponsored by the Office of Development
Commissioner (Handicrafts), Ministry of Textiles, Govt. of India, New Delhi
(2009-10)
 Preparation of Training Modules for Ministry of Housing & Urban Poverty
Alleviation, Govt. of India (2009-10)
 Execution of Research Studies Sponsored by the Ministry of Housing &
Urban Poverty Alleviation, Govt. of India (2009-10)
 Resource Centre for Traditional Paintings in Handicrafts (2010-11)
 Cluster Resource-cum-Monitoring Agency for 37 Clusters in A.P. and 24
Clusters inKerala (2010-11)
 Evaluation of the Scheme “Export Promotion (Training Programmes on
Packagingfor Exports)” sponsored by the DC(MSME) (2013-14)
 Capacity Development of Business Membership Organisations (BMO) in
India - Partof the MSME Umbrella Programme of GIZ (2013-14)
 Evaluation of Pochampally Handloom Centre sponsored by
DC(Handlooms)(2013-14)
 Evaluation Study of Re-engineering and Restructuring of DIC,
Department ofMSME, Government of Odisha (2014-15)
 Baseline Survey on skill development for sustainable income generation in
Dantewada district, Chattisgarh, NMDC-CSR (2014-15)
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 100% Physical Verification of PMEGP Units financed in the States of Assam,

Kerala,Lakshadweep and Telangana (2014-16)
 Study on Revitalisation for DICs and RICs in Odisha State (2014-16)
 Project for Development student tracking system through web-based
softwareApplication for APCET (2015-16)
 Student of Employee Satisfaction and Organisation Climate for NMDC (2015-16)
 Preparation of Detailed Project Report of Gadwal Handloom Park (2015-16)
 Conducting Diagnostic Study on Murmura cluster in Gondia district, Nagpur
underKRDP Clusters Programme of KVIC (2015-16)
 Soft Interventions for Harihara Khadi Cluster, Davangere (Karnataka), Kothkur
Ikat Handloom Weaving Cluster, Nalgonda (Telangana), Pedana Kalamkari
Block Printing Cluster, Pedana (Andhra Pradesh), Kondapalli Wood Craft
Cluster, Vijayawada (Andhra Pradesh), Pembarthi Metalware Cluster,
Warangal (Telangana), and Ieeza Gadwal Silk Cluster, Mahboobnagar
(Telangana) (2015-16)
 Evaluation Study of Training Schemes of NBCFDC in Haryana, Himachal
Pradesh, Rajasthan and Uttar Pradesh (2015-16)
2.5.3 Small Industries Development Organization (SIDO)
 Small Industries Development Organization (SIDO) is a subordinate office
of the Department of SSI & Auxiliary and Rural Industry (ARI). It is an apex
body and nodal agency for formulating, coordinating and monitoring the
policies and programmes for promotion and development of small-scale
industries.
 Small Industries Development Organization (SIDO) is a subordinate office
of the Department of SSI & Auxiliary and Rural Industry (ARI). It is an apex
body and nodal agency for formulating, coordinating and monitoring the
policies and programmes for promotion and development of small-scale
industries.
2.5.4 The main functions of the SIDO are classified into:

(i) Co-ordination,
(ii) Industrial development, and
(iii) Extension.
These functions are performed through a national network of institutions and

associated agencies created for specific functions. At present, the SIDO functions
through 27 offices,
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31 Small Industries Service Institutes (SISI), 37 Extension Centres, 3 Product-cum

-Process Development Centres, and 4 Production Centres.
All small-scale industries except those falling within the specialized boards and
agencies like Khadi and Village Industries (KVI), Coir Boards, Central Silk
Board, etc., fall underthe purview of the SIDO.
The main functions performed by the SIDO in each of its three categories of
functions are:
Functions Relating to Co-ordination:

a. To evolve a national policy for the development of small-scale industries,
b. To co-ordinate the policies and programmes of various State Governments,
c. To maintain a proper liaison with the related Central Ministries, Planning Commission,
State Governments, Financial Institutions etc., and
d. To co-ordinate the programmes for the development of industrial estates.
Functions Relating to Industrial Development:

a. To reserve items for production by small-scale industries,
b. To collect data on consumer items imported and then, encourage the
setting ofindustrial units to produce these items by giving coordinated assistance,
c. To render required support for the development of ancillary units, and
d. To encourage small-scale industries to actively participate in Government
Stores Purchase Program by giving them necessary guidance, market advice, and
assistance
Function Relating to Extension:

a. To make provision to technical services for improving technical process,
production planning, selecting appropriate machinery, and preparing factory lay-
out and design,
b. To provide consultancy and training services to strengthen the competitive
ability ofsmall-scale industries.
c. To render marketing assistance to small-scale industries to effectively sell
theirproducts, and
d. To provide assistance in economic investigation and information to small-
scaleindustries.
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2.5.5 Small Industries Services Institute

 The small industries service institutes (SISI’s) are set-up one in each state to
provide consultancy and training to small and prospective entrepreneurs. The
activities of SISIs are co-ordinated by the industrial management training
division of the DC, SSI office (New Delhi). In all there are 28 SISI’s and 30
Branch SISI’s set up in state capitals and other places all over the country.
 SISI has wide spectrum of technological, management and administrative

tasks toperform. Brief functions are stated below:
1. To assist existing and prospective entrepreneurs through technical and
managerial counselling such as help in selecting the appropriate machinery and
equipment, adoption of recognized standards of testing, quality performance etc;
2. Conducting EDPs all over the country;
3. To advise the Central and State governments on policy matters relating to
small industry development;
4. To assist in testing of raw materials and products of SSIs, their inspection and
qualitycontrol;
5. To provide market information to the SISI’s;
6. To recommend SSI’s for financial assistance from financial institutions;
7. To enlist entrepreneurs for partition in Government stores purchase programme;
8. Conduct economic and technical surveys and prepare techno-economic
feasiblereports for selected areas and industries.
9. Identify the potential for ancillary development through sub-contract exchanges;
10. Organize seminars, Workshops and Industries Clinics for the benefit of
entrepreneurs.
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2.5.6 Regional Rural Banks (RRBs)

Introduction
 The Regional Rural Banks (RRBs)were established in 1975 under the
provisions of the Ordinance promulgated on 26th September 1975 and
Regional Rural Banks Act, 1976. Regional rural banks (RRBs), which
have been established in rural India, are intended to play an important role in
rural credit. They have evolved into low-cost, rural-based institutions.
 Regional rural banks, by bringing credit facilities closer to the poorer

sections of the rural population help to free them from the grip of the
moneylenders. In addition, it should be noted that small/marginal farmers,
agricultural labourers, artisans, and other vulnerable groups in rural
areas are the primary recipients of loan assistance from regional rural banks.
Objectives
 They have been created with a view to serve primarily rural areas of India
with basic banking and financial services.
 They fulfil credit needs of relatively unserved sections in rural areas-small

and marginal farmers, agricultural labourers and socio-economically weaker
sections and small entrepreneurs in rural areas for development of
agriculture, trade, commerce, industry and other productive activities.
 RRBs can also set branches set up for urban operations and their area of
operationmay include semi urban or urban areas too.
Ownership
 RRBs are jointly owned by Central Government, concerned State
Government and Sponsor Banks with the issued capital shared in the
proportion of 50%, 15% and35% respectively.
Functions
1. Accept Deposits
 RRBs accept deposits from their members who hold an account in the bank.
 Deposits can be made in current or savings accounts.
 Depositors can also be made in fixed or recurring forms.
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2. Loan Extension
 The RRB Act of 1975 states that the RRB can extend loans and credit
services to the Priority Sector (PS). The loans to this sector are
classified under PSL or Priority Sector Lending. The RBI announced the
coverage of RBBs in PSL from FY 1997.
 The priority sector comprises of small and marginal farmers, craftsmen and
artisans, local traders, medium and small-scale businesses, education,
housing, renewable energy, etc. which needs development and financial
investment.
 75% of the total Bank Credit has to be provided to the Priority Lending
Sector. Out of this total credit, 10% has to be given to the economically
weaker sections.
 Hence, short- term loans on a low rate of interest are extended by these banks
to the priority sector. RRBs cannot, however, extend large or long- term loans
to itscustomers.
3. Wage disbursement
 The Regional Rural Banks in India perform the important function of
distribution of wages under the MGNREGA (Mahatma Gandhi National
Rural Employment Guarantee Act), the Pradhan Mantri Gram Sadak Yojana
(PMGSY).
 The pensions provided under the poverty alleviation schemes and pension
schemes of India are also distributed through these banks.
4. Secondary functions of RRBs

 Similar to commercial banks, the secondary functions of the Regional Rural
Banks in India are providing agency services and general utility services to
their customers.
 Agency services like foreign exchange, bill payments, money wire transfer, etc.
are performed by RRBs.
 Utility services like ATM, UPI, issuance of debit cards, locker facilities, etc.
are also provided by RRBs in India.
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Regulation of the Regional Rural Banks in India
1)Reserve Bank of India: The RBI Act 1934 and the Banking Regulation Act
1949 aretwo principal regulating statutes for commercial banks in India.
2) NABARD: It stands for National Bank for Agricultural and Rural Development
of Indiais the chief body for regulating rural banking sector in India.
Importance of Regional Rural Banks
1. Reduce rural and urban gap by mobilizing financial resources and services
to rural regions.
2. Regional Rural Banks pave the way for inclusion of the marginal population
like small farmers, Below Poverty Line (BPL) farmers and workers, small
entrepreneurs, artisans, women, etc.
3. Regional Rural Banks assist rural businesses by providing them short- term
loans,insurance facilities, etc., and help to improve the role of entrepreneurship in
rural areas.
4. Providing assistance like loans, advances, insurance to agriculturists for
farming inputs, equipment, processing, marketing activities, and cooperative
societies helps in the growth of agriculture and the advancement of farmers.
5. Many public and private sector banks do not deal with farmers and rural
section due to their small financial needs, fewer incomes, etc. In such a case, there
is a need for a separate banking system to protect the interests of these sectors.
6. The RRBs look forward to covering underserved rural areas in terms of
financial services and extending credit assistance.
7. Help in the growth of cooperative societies, agricultural societies, etc.
8. RRBs reduce farmers’ and the weaker sections’ dependence on traditional
sources like moneylenders who exploited them with a high rate of interests on
loans.
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2.5.7 Small Industries Development Bank of India:

Introduction
 The Small Industries Development Bank of India (SIDBI), established
on April 2, 1990, by an Act of the Indian Parliament, serves as the primary
financial institution for the promotion, financing, and development of the
Micro, Small, and Medium Enterprise (MSME) sector, as well as for the
coordinationof functions of institutions engaged in similar activities.
 SIDBI is the country's primary institution for promoting, financing, and
developingindustries in the micro and small-scale sectors.
 It coordinates the activities of other institutions involved in similar activities.
 SIDBI assists MSMEs in obtaining the funds they need to expand, market,
develop,and commercialise their innovative technologies and products
Background
 The Industrial Development Bank of India has served as the apex bank in
the field of financing all industries, including small-scale industries, since its
inception.
 However, as the financing activities of small-scale industries expanded
significantly, the need for a separate apex bank for small-scale industries
became apparent.
 As a result, the Small Industries Development Bank of India (SIDBI) was
established, taking over IDBI's financing activities for small-scale industries.
 The SIDBI (Small Industries Development Bank of India) was established
by a special Act of Parliament in 1988 and went into effect on April 2,
1990.
 The Shares of SIDBI are held by the Government of India and twenty-two
other institutions / public sector banks / insurance companies owned or
controlled by theCentral Government.
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Role of SIDBI
 Indirect lending – It is done through Banks, SFBs, NBFCs, MFIs, and New
Age Fintechs and is based on a multiplier effect/a wider reach in financing
the MSME sector.
 Direct lending – It aims to close existing credit gaps in the MSME sector
through demonstrative and innovative lending products that can be scaled up
by the creditdelivery ecosystem.
 Fund of Funds – It promotes entrepreneurship by providing funding to
emergingstart-ups through the Fund of Funds channel.
 Promotion and Development - encouraging entrepreneurship and assisting
aspiring entrepreneurs in the holistic development of the MSME sector
through credit-plus initiatives.
 Acts as a facilitator through roles such as Nodal Agency for the
Government's MSME-oriented Schemes.
Functions
 Small Industries Development Bank of India refinances loans made by PLIs

to small-scale industrial units and also provides them with resources.
 It offers bill discounts and rediscounts.
 It also aids in the expansion of marketing channels for SSI (Small Scale
Industries) sector products in both domestic and international markets.
 It provides factoring, leasing, and other services to small-scale industrial
concerns.
 It encourages employment-oriented industries, particularly in semi-urban
areas, in order to create job opportunities and prevent people from relocating
to cities.
 It also initiates steps for modernization and technological advancement of
existing units.
 In collaboration with commercial banks, it also enables the timely flow of
creditfor working capital as well as term loans to Small Scale Industries.
 It also works with state-level venture funds to promote them.
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2.5.8 State Finance Corporations

Introduction and Background :
 The State Finance Corporations (SFCs) are an integral part of institutional
finance structure of a country. SFC help in ensuring balanced regional development,
higher investment, more employment generation and broad ownership of various
industries.
 At present in India, there are 18 state finance corporations (out of which 17 SFCs
were established under the SFC Act 1951). Tamil Nadu Industrial Investment
Corporation Ltd. which is established under the Company Act, 1949, is also
working as state finance corporation.
Functions of State Finance Corporations

The various important functions of State Finance Corporations are:
(i) The SFCs provides loans mainly for the acquisition of fixed assets like land,
building,plant, and machinery.
(ii)
The SFCs help financial assistance to industrial units whose paid-up capital and
reserves do not exceed Rs. 3 crores (or such higher limit up to Rs. 30 crores as may
be notified bythe central government).
(iii) The SFCs underwrite new stocks, shares, debentures etc., of industrial units.
(iv)The SFCs grant guarantee loans raised in the capital market by scheduled
banks, industrial concerns, and state co-operative banks to be repayable within 20
years.
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1. Agriculture in India has lot of potential for modern day entrepreneurship. Discuss
(Hint-Scope of Agri-Entrepreneurship)
2. Start up is a new buzzword in modern day economy. Discuss in the
context ofAgriculture. (Hint- Agri-Startups)
3. Tourism apart from a rejuvenating activity can prove to be a great source of
economic development for rural India. Discuss with suitable examples (Hint-
Rural Tourism)
4. Discuss the typical characteristics of various rural industries.
5. Discuss the institutional set ups for promoting industrialisation in Rural India.
(Hint-Organisations for promotion of Rural industries)
6. Discuss various financial institutions set up to support rural development.
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Semester III
RURAL SUATAINABILITY (Unit 4)
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UNIT 4: PATHWAYS FOR RURAL SUSTAINABILITY

SOCIAL ENTERPRISES, COMMUNITY COLLECTIVES, STATE AND
MARKET
CHAPTER 1: APPROACHES FOR RURAL DEVELOPMENT

Sustainable rural development requires a holistic approach where daily basic needs
of the population are met by reliable public utilities keeping in mind, the
technological, socio- economic and environmental balance at the same time. There
is no universally accepted approach to rural development. It is a choice, which is
influenced by time, space and culture. For e.g. approach adopted with a shorter
period in mind would be different from the approach adopted for longer period. For
shorter time frame, goal may be improving the macro conditions such as
availability of safe drinking water, sanitization facility etc. whereas in longer time
frame goal may be multidimensional development of rural areas in terms of
agriculture and allied activities, improvement in overall environmental conditions
and improvement in human development indicators.
As mentioned above, there is no universally accepted approach to rural development.
It is a subjective phenomenon. Still, some of the most prominent approaches are
discussed below:
A. Gandhian Approach: Gandhian approach to rural development is also referred
to as ‘Idealist’ approach. In attaches supreme importance to moral values rather
than material conditions. The concept of ‘Ram Rajya’ is deeply rooted in this
approach. As per Gandhi ji, ‘Ram Rajya’ is ‘sovereignty of the people based on
moral authority’. Gandhi ji did not referred Lord Ram as the king and people as
his subject. Instead, ‘Ram’ was referred to as ‘inner voice’ of the people. In other
words, democracy is the basic tenet of Gandhian approach. Accordingly,
following are the important principles of this approach:
i. Ideal Village: According to Gandhi ji, ‘If village perishes, India will perish
too’. Villages of India are the basic unit of development under this approach.
Villages should constitute a self-governing autonomous republic. Villages
should be self- functioning and central authority should only co-operate the
functioning of villages.
ii. Decentralisation: Gandhi ji firmly believed in complete decentralization of

social and political power. Decision making power should be vested with
Village Panchayat rather than a state or central authority. Panchayat should
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perform executive, legislative and judiciary functions. It should manage

education, health and village sanitization. Its should be responsible for overall
upliftment of marginalized section of the society also. Resources for
managing the affairs of village panchayat shall be raised by panchayat itself.
All the conflicts and disputes shall be resolved within the village. As far as
possible, no dispute would go outside the village court.
iii. Self-sufficiency: self-sufficient polity as explained above should be

supported by self-sufficient economy also. Village should not be dependent
for its basic needs viz. food, clothing, shelter, education and such other
necessities. Villages should produce eough amount of food and cotton to
support its indigenous demand. Surplus land available can be used to grow
cash crops such as coffee which can be exported to import certain items which
can not be produced in village. Village economy should be planned to ensure
full employment for its people. Every village person should be guaranteed
with employment opportunity so that he is able tomeet his basic needs.
iv. Industrialization: Gandi ji had a view that industrialization promotes

concentration of powers in the hands of few people and it leads to
exploitation of marginalized section of society. Further, industrialization leads
to replacement of manpower with machines which leads to unemployment.
Therefore, Gandhi ji had advocated for development of village and cottage
industries. This would ensure employment os villagers and fulfilment of their
basic needs. Gandian approach is not against industries provided it meets the
two aims: village self-sufficiency and full employment. Using of modern
machines and tools which do not lead to replacement of manpower (thus
leading to employment) is not discouraged.
v. Trusteeship: Gandian approach advocate for trusteeship principle in social

and economic affairs. It provides that all the social property should be held in
trust of common people, which should be used for betterment of common
people. Capitalist should take care not only of themselves but also of others.
Certain proportion of their wealth should be used for benefit of others too.
Gandhiji felt that if the principle of trusteeship were established then welfare
of workers would increase and clash between workers and employers would
be avoided.
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Concept examples:
i. Indian polity system also has third tier of government i.e. village panchayat.
Constitution of India has specified certain list of functions which are to be
looked after by panchayat institutions viz. education, health, sanitation etc.
further, in certain specified tribal areas, any development related project has
to be first approved by panchayat.
ii. Companies Act 2013 mandates that specific set of companies should
contribute certain proportion of their net profits towards social activities.
This is an example of trusteeship principle.
iii. Establishment of agro processing industries and introduction of modern tools
in agriculture, support for Khadi and village industries are examples of
promoting self- sufficient village economy.
B. Sectoral Approach: this approach advocates cmpartmentalisation of different

sections for the purpose of development. Thus, development is planned for each
sector say Agriculture, education, health, industries etc. individually. Biggest
drawback of this approach is that it ignores the interdependencies of the sector
while planning for development.
For e.g. during the period of 1960s food security was biggest question for India.
Therefore, prominent importance was given for improving food production.
Focus was majorly on improving food production per acre of land and not on
expansion of overall land acreage. Intensive Agricultural Development
programme (IADP) and Intensive Agriculture Area Programme (IAAP) were
launched. This lead to development of agricultural sector and in turn rural sector.
However, this development cam at the cost of social inequality. People who were
having greater access to modern agricultural techniques got benefitted more thus
creating inequality in society. Such rampant focus on food production also lead to
increased use of chemical fertilisers, which caused land degradation in many parts
of North India.
C. Area Development approach: This approach emphasize on development of

specific groups of backward areas. Areas included in the specific group have
common development needs. Therefore combined plan is prepared, common
resources are allocated and integrated efforts are taken. Examples of area
development programmesin India are:
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i. Hill Area Development Programme (HADP, 1974-75),

ii. Drought Prone Area Programme (DPAP, 1970),
iii. Desert Development Programme (DDP, 1977-78)
iv. Command Area Development Programme (CADP, 1975)
Biggest drawback with is approach is potential allocation of disproportionately
higher amount of resources to specific areas where only small group of
population is targeted and thus ignoring overall size of economy. Further, it does
not ensure that benefit of development in specific area reaches to all the classes of
people and communities thusignoring social equality and justice.
D. Target Group approach: with several group of people lagging behind, rural
development was reconceptualised to target some specific group of people. Thus
plans were made for small and marginal farmers, landless laborers etc. For e.g.
PM KISAN is a scheme of government to transfer cash in bank account of small
and marginal farmers. PM-Awaas Yojana- GRAMIN also provides additional
benefits in case of femalehouseholds.
E. Integrated/Holistic Development approach: As stated earlier, other approaches

did not take into account social equality into consideration and thus development
could not reach to all the sections of society. The Indian economy and social
structure are characterized by widespread poverty, poor health conditions,
illiteracy, exploitation, inequitable distribution of land and other assets and lack
of infrastructure and public utilities (roads, communications etc). Clearly, this
means that the problem requires an approach that will take into account all these
factors in devising a comprehensive strategy to further rural development. The
concept of “integrated rural development” came into vogue with the need for a
multipurpose thrust to rural planning. It stresses that various facets of rural
development, which have an impact on rural life, are interrelated and cannot be
looked at in isolation. Thus, an integrated approach towards rural development is
essential. The various dimensions of rural life---growth of agriculture and allied
activities, rural industrialization, education, health, public works, poverty
alleviation and rural employment Programmes -- all form a part of an integrated
approach to the problems of rural development.
For example:
i. Ministry of Panchayat runs ‘Gram Swaraj Yojana’ which has 7 components

targeting the different sectors/group of people. The campaign is undertaken
under the nameof “Sabka Sath, Sabka Gaon, Sabka Vikas.”
ii. Ministry of Rural development runs ‘Sansad Adarsh Gram Yojana’ that aims
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for holistic development of the identified Gram Panchayats. It intends to

substantially improve the standard of living and quality of life of all sections of
the population.
F. Decentralized planning approach: This approach is one of the subset of

Gandhian approach as discussed above. It advocates for decentralization of
developmental planning at local level or village level. This is because, a single
plan can not be fit for entire country which may have local disconnects. Thus
planning at village level is very fruitful because it considers local needs as well
local resources into account. In India, constitution do provide for establishment
of village panchayats. These panchayats are mandated to prepare their own plans
suiting to local needs and requirements. However, biggest drawback for this
approach is financial dependencies of such panchayat institution on state and
central government. This dependency hampers the development process.
G. Rights approach: This approach combines rural development with Human

rights. It provides that basic human rights of the people should be fulfilled by
development process. This approach provides two specific groups viz. Rights
holders (i.e. citizens) and Developmental agencies who are responsible for
fulfilment of those rights. This framework is based on four pillars – Right to
Information, Right to Education, Right to Work and Right to Food. Following
schemes/programmes of government can be considered in this context:
i. Enactment of Right to Education was made fundamental rights of citizen of

India and RTE act was passed to provide for reservation of specific number of
seats in government as well as private schools for underprivileged children.
ii. The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 is a
demand- based legislation. It guarantees at least one person in a rural family 100
days’ work in a year.
iii. Food security Act was passed to provide free provision of staple foods viz. Rice,
wheatetc. to the people belonging to below poverty line.
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Test your understanding:

1. Explain the Gandhian model of rural development and how this model is
relevant inpresent time?
2. Explain how Integrated development approach is superior to Target group
approach?
3. Explain with examples Rights approach of rural development.
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CHAPTER 2: SOCIAL ENTERPRISES:
Social enterprise refers to business with certain specific social goals while
operating in commercial structure to run the organisation. They wish to attain twin
objectives viz. their specific social goals and at the same time maximizing their profits
(some organisation may be not for profit organisation). It must be noted that concept
of social enterprise is not limited by its legal structure. They can be operated in any
form say private company, cooperatives, not for profits trusts or any other type of
legal entities. Some of the key areas in which social enterprises operate are as
follows:
• Affordable healthcare
• Affordable housing
• Agriculture and allied activities
• Education sector
• Energy sector etc.
2.1 Social Enterprises: Connecting society with market:

Currently, India’s rapidly growing economy has not managed to alleviate the
extreme poverty of nearly half the country’s population that lives below the $1.25
per day poverty line. There are several reasons for this, including non-uniform
infrastructure, low quality public good provision by the government (especially in
health and education), and resource limitations. By employing innovative business
models, Social enterprises are addressing India’s vast development needs, while
maintaining sustainability through viable revenue models.
Over the course of past few decades, social enterprises have played a key role in
integration of hitherto unconnected society with mainframe market. Their role in
this integration can be discussed as follows:
i. Social delivery: Social enterprises may operate in delivery of welfare
services/provisioning of goods to a specific group of people. This group of
people may be marginalised section of society who were excluded from
mainframe developmental process. Participatory nature of social enterprises acts as
an enabling factor to engage with its stakeholders and effectively design its
delivery of services. Some of the examples of social delivery are discussed as
below:
Affordable healthcare is one of the basic needs for people in India. Affordable
and accessible healthcare facilities plays a key role in overall development of
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human capital. Infrastructure set up by state machineries were unable to deliver

upon the said need and thus it necessitated the emergence of third sector i.e.
social enterprise in this area. There are number of social entrepreneurs who are
engaged in healthcaresector:
• Narayan Hrudalaya provides heart surgeries at lower cost. It is one of the
largesthealthcare centers in Asia.
• Glocal Healthcare Systems Private Limited is an ambitious venture to
bring State of Art Healthcare to rural population in India through an
integrated model of Block Level Comprehensive Primary & Secondary Care
Hospitals, Health Insurance, Skill Development and Technology. Glocal
aims to create one of the largest rural healthcare delivery systems in the
world.
ii. Agriculture holds a key to rural sustainability. There are number of social
enterprises engaged in this sector which provides affordable crop loans, there are
number of self help groups which organise farmers for crop marketing. Also
there are number of institutions involved in providing agricultural technology
and scientific advisories.
iii. Social inclusion: Recent forms of social enterprises facilitate social inclusion
through workforce integration of marginalised people (eg. long term
unemployed, disabled, minorities, etc) by combining training and skills
development through temporary and/or permanent employment in a business
with social dimension that trades in themarket.
For example, primary healthcare units set up at rural areas provides

employment opportunities for healthcare professionals. Girls are also trained for
nursing jobs. Few of the healthcare units also facilitates on the job training for
new entrants in the profession. This prevent migration of local people to urban
areas in search of employment opportunities and in turn contribute towards
rural development.
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2.2 Social Enterprise Ecosystem in India:

Ecosystem comprises of key enablers for social enterprises to set up their business,
start, expand and sustain their operations. There are number of enablers, which are
included in this ecosystem. The Indian social enterprise ecosystem is one of the
most developed in the developing world, with a wide and growing range of
domestic and international investors and support Organisations. Further, Indian
ecosystem is reflective of diversity in region, its people, unique local challenges and
opportunities.
Indian social enterprise ecosystem exists at three level
• Urban cities
• Regional level: specific rural or semi-urban areas targeting specific group of people.
• National: spread across geographies
Some of the key actors in this ecosystem are discussed as follows:

i. Policy makers: Indian government recognizes the need of private sector
participation in meeting development goals. Therefore, number of policies are
enacted to support social sector enterprises. Government has been an important
stakeholder of the ecosystem. Several ministries and government departments
have established incubation centers to promote entrepreneurship in their sectors
or areas of work. For instance, the Department of Biotechnology established
BIRAC to support biotechnology and bioinformatics-based enterprises. Some of
the government policies supporting social enterprises in India are:
• Start up India- launched by Ministry of commerce to facilitate Indian start

upsthrough various support services.
• Scheme of support for Entrepreneurial and managerial development of SMEs:
Through incubators: launched by Ministry of MSMEs
ii. Incubators and accelerators: Incubators provides financial support and advisory
to social enterprises at seed stage or pilot stage. It helps social entrepreneurs to
develop and pilot their social impact ideas. There are incubators that provide
support to social entrepreneurs to evolve in tier II and tier III cities of the
country. Examples of
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incubators includes UnLtd, Villigro, Dasra, Avishkaar Funds etc. out of which
Villigro isprimarily active in agriculture, clean energy and education.
India also has a small number of accelerators which provides

• Financial support
• Mentoring
• Training and workshops
• Refining business models and innovations
• Providing research supports
Therefore, accelerators acts as a complete solution for social enterprises for their
operational needs. Examples of accelerator include Centre for Innovation Incubation
and Entrepreneurship at the Indian Institute of Management, Ahmedabad (IIM- A)
and Dasra’s Social Impact Accelerator Programme.
Majority of incubators and accelerators are located in urban areas because of

better infrastructure facilities. There is need for expansion in semi-urban and
rural areas tooto serve regional entrepreneurs and ensure inclusivity.
iii. Corporations: Number of large corporations in India has their unit set up for
social cause which primarily act for development needs of socially excluded
people. Example: Reliance Industries Ltd, biggest private sector company in
India, has its unit ‘Reliance foundation’, which is engaged in social sector. It also
support other social enterprises at various stages of their business operations.
iv. Chambers of commerce and Industry associations: They predominantly work

to influence small and medium enterprises and thereby carry the potential to
support social enterprises. Industry associations are fostering growth in the social
enterprise space by providing accreditation and empanelment facilities, enabling
access to corporate donors, providing networking opportunities with peer
entrepreneurs, conducting seminars and discussions, running grand challenges
and funding awards, and producing knowledge products. Prominent industry
associations include the Federation of Indian Chambers of Commerce (FICCI),
Associated Chambers of Commerce and Industry of India, the Confederation of
Indian Industry (CII), the National Association of Software and Service
Companies, and the Indian Impact Investors Council.
v. Online platforms and media: Online communities and platform supports and
publishes news about social enterprises. YourStory’s Social Story segment is a
media platform that publishes stories and updates from the social enterprise
sector. Since 2008, it has profiled stories of 15000 enterprises in India. Other
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media platform includeBetter India, Think change India etc.
vi. Forums and networks: India has active forums where the social enterprise
community can discuss, network and engage more closely with other stakeholders.
This allows organisations to share updates, opportunities, and challenges across
sectors and locations. The Sankalp Forum is the largest gathering of stakeholders
from the social enterprise sector in Asia. National Entrepreneurship Network
supports student entrepreneurship across colleges and institutions in India. Jagriti
Yatra (‘Awareness Journey’) is an annual train journey that takes hundreds of
young Indians, especially those from small towns and villages, on a 15-day,
8,000-kilometre national odyssey to meet social and business entrepreneurs
around the country.
vii. Co-working spaces: These set ups organize regular events and workshops for
social entrepreneurs to benefit from join experiences. The co-working culture in
India is brimming with opportunities. Spaces such as Bombay Connect,
Springboard Ventures, Jaaga, Numa Bangalore, and Alpha Lab host young
commercial and social start-ups, organise events, and conduct workshops and
programmes that facilitate networks andlearning for entrepreneurs.
viii. Institutions: Traditional academic institutes have incubated and supported

students with labs for R&D, innovation and prototyping. Riding on the big wave
of entrepreneurship, institutes have created incubators across themes and sectors
such as Indian Institute of Technology (IIT) Bombay, Chennai, Indian Institute
of Management (IIM), National institute of Design (NID), Indian School of
business (ISB). Tata Institute for Social Sciences (TISS), Institute of Rural
Management Anand (IRMA) and Azim Premji University are active contributors
to the social enterprise ecosystem offering quality academic courses, research
opportunities and labs. Graduates get hired in the social sector quite well or move
on to build their own social enterprises.
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2.3What worked and what didn’t: examples of successful and ‘not so

successful’enterprises:
Social enterprises have a long history of operation in India. Considering its socially
and economical inequalities, social enterprises are need of the hour. However, in
order to establish and sustain its operations, a social enterprise should focus keenly
on certain important elements in its ecosystem. Further, the overall ecosystem of the
country should also be made conductive for operation of these enterprises. Not all
enterprise that started in India with a social cause had a smooth road in their course.
There are example of social business Organisations that have thrived through all the
challenges faced and still continuing and perusing their social cause with strong
sustainability. There are also social organisations, which have failed to keep going
either on account of some inherent challenges existing in our country or because of
their own internal flaws. This section discusses some examples of successful
enterprises and the factor which helped them to maintain their sustainability.
Section also list certain enterprises, which were failed and major factors that lead to
their decline.
i. Successful Enterprises:
a. EM3 Agri services:
Founded in 2014, EM3 aims to change the way farming is practiced in India. Their
innovative model is inspired by ridesharing firms like Uber, in that EM3 is looking
to “Uberize” farm services that require equipment use. Their unique farming-as-a
service model is also based on a pay-per-use system. Using its network and the
need for its services, EM3 also aims to become an integrated agriculture
marketplace that offers a range of cultivation services across the value chain.
Through their platform, they hope to provide credit and insurance to farmers, and to
create market linkages for farmers in more remote and rural areas with limited access
to farm equipment and market infrastructure. In August 2017, EM3 had raised US$
10 million in a Series B fundraise from the Global Innovation Fund, based in
London. The enterprise also has agreements with state governments such as the
government of Rajasthan to develop more than 1,000 farm service centers across
the state. The firm also trains local workers in managing the equipment they
possess, and provides farm services.
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What worked for this enterprise:

• Unique business model which suits to Indian context:
Farm mechanization is one of the most critical factor to manage Agriculture cost
and overall sustainability of the sector. Former Union Agriculture Minister
Radha Mohan Singh too agrees. He says that farm mechanisation will cut
cultivation cost by 25% and raise productivity by 20% and will be critical in
boosting farmers’ income. It is in this context EM3’s business model holds
relevance. Business idea of EM3 is inspired by Uber Inc. There are companies like
the 16-year-old MachineryLink in the US with a business model similar to that of
EM3. The difference, though, is that farmers in most mature markets have large
land holdings and very different business dynamics. Those dynamics, for
instance, allowed the American company to introduce an online platform called
MachineryLink Sharing last year, which helps farmers rent out their expensive
farm equipment, improve utilisation and make some money. Such a platform
may be irrelevant in India, dominated as it is by small farmers and low
mechanisation. However, that could be why EM3’s pay-per-use service has
tremendous potential. The tractor and farm equipment service market is estimated
by analysts to be worth Rs. 15,000 crore annually. Today that business is largely
unorganised, dominated by solo rich farmers or government-subsidised custom
hiring centres (CHCs) run by individuals who have limited scale and reach.
Understandably, their implements are basic and the service patchy. They don’t
come on time, their quality of work is unsatisfactory and they do not have high-
end equipments also as compared to those provided by EM3.
• Adequate funding support because of its India specific model sustainable

revenue model:
Timing of entry of EM3 in Indian market was perfect. Rising wages and scarce
farm labour are pushing farmers to explore mechanisation. Agricultural labourers
in the rural area migrate to cities, leading to labour shortage. With a litany of
failed policies and schemes, the Centre is taking a fresh stab at how to address the
agriculture crisis. With this background, business model of EM3 came a limelight.
Therefore, investors also supported this company with a series of funding. In
2016, company got Series A funding from ASPADA India. In 2017, it has got
series B fundingworth US $ 10 Billion from Global Innovation funds.
• Funding support helped geographical expansion with strict focus on its core
social vision:
Started its operation from Madhya Pradesh, company has been able to expand in
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Gujarat, UP and Rajasthan in last 8 years. Further, focus is strictly on core social
objective of farm mechanization. Company currently has over 3000 samadhan
ceneters in these 3 states.
b. Narayan Health:
Narayana Health (NH), founded in 2000 and headquartered in Bengaluru, has a
network of specialty hospitals and diagnostic clinical centers in India and globally.
NH offers services in 30 specialties, including cardiology and cardiac surgery,
cancer care etc. As of May 2018, the enterprise operated a network of 24 hospitals,
as well as 7 heart centers and 19 primary care facilities in India, as well as 1 hospital
in the Cayman Islands, with a total of approximately 6,200 operational beds.
According to the enterprise, nearly 12% of all cardiac surgeries across the country
are performed at its hospitals, and almost half of the patients are from economically
weaker groups.
What worked for this enterprise:
• Ground breaking idea:
Dr Shetty is world renowned for performing complex heart surgeries and founder
NH, wanted to make heart surgery affordable. By applying the principles of
assembly line production to cardiac surgery he was able to demonstrate that
world-class cardiac surgery could be performed at lower costs. He achieved this
difficult feat by enhanced productivity (more number of surgeries in a day than
other surgeons) which in turn translated into affordability that brought
profitability to the hospital.
At NH’s Bengaluru facility, a surgeon, on average, performs four surgeries a
day, six days a week, taking the weekly average to 24. This is one of the highest
in the world and brings down the cost significantly, which is then passed on as
benefits to patients.
• High volume and low cost:

India has a large number of patients seeking heart care. Dr Shetty decided that he
would not turn anybody wanting heart care back for want of funds. As a
humanitarian, he wanted to help patients in need, which also allowed him to do
high volumes to sustain the low cost of surgery.
Besides high volume, Dr Shetty was able to put in place a cross subsidised cost
model for surgery where a poor patient’s surgery was paid for by a wealthy
patient and by innovating the low cost insurance scheme.
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• Innovating insurance:
Founder designed world’s cheapest comprehensive health insurance named
Karnataka Yeshasvini healthcare scheme, supported by the Government of
Karnataka for the poor farmers of the state in 2003. Through the scheme, a farmer
could have health insurance for a token sum of Rs 5 per month. Today, the token
amount has increased to Rs 18 and still the farmers insured can avail benefits of a
variety of surgeries, including heartsurgeries.
• Create volume of workers through trainings:
NH has launched a scholarship programme in rural West Bengal, with Asia
Heart Foundation (AHF) for children interested in becoming doctors and medical
professionals. At present they have 305 students taking benefits of the
programme.
ii. Unsuccessful Enterprises:

There could be multiple reasons due to which a social enterprise fails. Some of the
mostcommon reasons are discussed below:
• Funding and revenue crunch to sustain a comparatively large gestation period
• Lacking in professional decision-making. Decisions are at times made based
on gutfeeling of founders and not based on data
• Deviation from social mission and thus no longer relevant
• Lack of innovative or disruptive business model which appeal to masses as
well asinvestors
• Business models which are not relevant to local needs.
One of the case of failure of social enterprise is of SKS finance which explains the
ramification of some of the causes as explained above.
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SKS Microfinance:
It was established in 1998 by Vikram Akula as a non-government organization
(NGO) called Swayam Krishi Sangham. Primary purpose of this unit was to lend
small credit to rural farmers and local artisans. It had started its operations in
Andhra Pradesh and later expanded in other states like Odisha, Karnataka etc. In a
very short period of time, SKS expanded its activity and soon seen as an Ideal
model in which microfinance unit should run like. SKS was once seen as a model
for how microcredit firms could do very well for themselves by making loans as
small as $50 to basket weavers and other poor people The company was registered as
a non-banking finance company (NBFC) in 2005. In August 2010, the company
had a highly successful initial public offering (IPO) where the issue was
oversubscribed by nearly 14 times and it managed to raise a total funds of Rs. 1600
Crs. However, since 2011 company’s operation got a major setback and now SKS
microfinance is barely a name in the market.
What went wrong?
• Mission drift:
Mission drift is deviation of organizational goal from social mission. SKS
microfinance can be considered as an example of failure from Mission drift.
Many analyst in India would like to call SKS Microfinance as a failed social
enterprise because of its mission drift. SKS had started as a non-profit
microfinance organization in late 1990s and later on transformed into a for-profit
commercial organization. In 2010, it has opted for Initial Public Offering (IPO) to
raise capital for fuelling growth. During this phase of expansion, many have argued
that SKS lost its focus on poor and the social mission.
• Regulatory crackdown because of mission drift:
In October 2010, 30 women who were microfinance borrowers in Andhra
Pradesh committed suicide within a period of 45 days. Among these 30 women,
17 were then reported to be borrowers of SKS Microfinance. It was alleged that
these cases of suicide had come up after unfair recovery practices. The Andhra
Pradesh Microfinance (Regulation of Moneylending) Act 2010, placed checks on
the interest rates at which MFIs may lend, prohibited overlapping loans and made
prior local government approval mandatory for disbursal of loans. As fresh
lending became nearly impossible and the incidence of defaults in the state sky-
rocketed, the company plunged into a crisis.
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Test your Understanding

1. Explain how social enterprises plays important role in social delivery and social inclusion.
2. Explain the ecosystem for operation of social enterprises in India with
suitableexamples.
3.What are the important factors required for success of social enterprise in India.
Explainwith suitable examples?
4. Social enterprise may fail on account of several reasons. Explain with examples.
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CHAPTER 3: COMMUNITY COLLECTIVES AND RURAL SUSTAINABILITY
3.1 : Community collectives and Rural sustainability:

Community collectives or Community based organisations (CBOs) is a process by
which acommunity
• Identifies its needs
• Decides the priorities
• Develop a confidence and will amongst themselves to solve the above needs
• Identifies internal and external resources
• Manages their entire operation internally
• In a process develops co-operative and collaborative attitudes and practices
Thus, in a very simple language, it can be said that CBOs are nothing but a
movement of people’s community to work for solving their own problems on their
own.
The main objective of rural development programs has been alleviation of poverty,
improvement in education, health, livelihood of farmers and consequent
enhancement of standard of living of the people. Most of the developmental plans
were prepared by ministries and departments of government in which local
participation was hardly involved. Various machineries of the government who had
little knowledge about local conditions then implemented these plans. Further,
these machineries had very less interest in outcome of the plan. Therefore, most of
the plan failed to create any impact despite massive investment of funds by state.
Later on, it was realized that people's participation is the key element for the
success of rural development programmes. Efforts were made to encourage
participation but such efforts failed to bring about meaningful and sustained
participation of rural people. People participated in various state sponsored rural
development schemes and projects but in a very limited way, i.e., nominally and
formally only. They lacked enthusiasm to participate in a sustained manner in such
rural development programmes. The reason being, that people did not develop a
sense of belongingness to rural development programmes. They had a feeling that
ultimately they will not be the owners of the assets created by various rural
development programmes. Therefore, for all practical purposes, rural development
programmes mainly remained government programmes and they did not become
people's Programmes.
For example, government in past had tried to implement accessible drinking water
project and installed hand pumps at convenient places in every village. But these
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hand pumps were not maintained properly by implementing agencies and people
also did not bother to take care of the assets as it was not owned by them. Result was
that programme did notmet its intended objectives.
Another example is of Agricultural produce marketing companies and mandis.
These bodies are created by government to facilitate the market access for farmers.
However, rampant cases of corruption and malpractices are reported in these
agencies. Result is that farmers do not get fair remuneration for their produce and
thus agrarian crisis continues.
Therefore, need was felt to encourage people to organize themselves in
developmental activities, which span across multiple disciplines:
• Education
• Agriculture produce marketing
• Raising of finance for farming and allied activities
• Collective bargaining for procurement of inputs for farming and other local
industries
CBOs exists as voluntary and informal group that regulates its activities on its own.
There are multiple forms, such as co-operatives, self help groups (SHG) etc. in which
CBOs may exists and they undertake multiple activities. Different state machineries
may impart skills required to run the operations for CBOs. For example, government
has roll out PAN India digitization mission under which access to all government
related services such as Adhaar application, Application for government schemes are
made completely online. In this context CBOs come very useful. District
government offices imparts training to CBO members for such online process and
later on CBOs through their vast membership and network ensure that services are
made accessible to hinterland of the rural areas.
Some of the positive outcomes for CBOs involvement in rural development can be
listed down as below:
• Create opportunity for employment, income generation, and increase the
availability of goods and services, all of which contribute to economic
growth.
• Stimulate performance and competitiveness, as their members are also the
beneficiaries.
• Are strongly rooted in their community, and are thus more likely to
positively influence it.
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• Are based on the values of self-help, self-responsibility, democracy, equality,

equity and solidarity; as well as ethical values of honesty, openness, social
responsibility,and caring for others
• Can transform survival-type activities into legally protected and productive work.
• Balance the need for profitability with the broader economic and social
development needs of their members and the larger community, because
members are both producers and beneficiaries.
• Are often the only provider of services in rural communities, given that other
types of enterprises often find it too costly to invest in these areas or anticipate
low levels of economic return. This is the case for electricity, water
resources, financial services, and consumer supplies. In India, for instance,
the consumer needs of 67 percent of rural households are covered by
cooperatives
• Offer an economic future for youth in rural areas, and thus prevent rural
depopulation
• Are particularly valuable for women as they compensate for their often
limited resources, mobility and “voice.” This also applies for disadvantaged
groups such asindigenous populations and disabled persons.
3.2 Case studies of dairy and agriculture co-operatives:

Cooperatives play a major self-help role in rural areas, particularly where private
businesses hesitate to go and public authorities do not provide basic services. They
are instrumental in providing opportunities for productive employment, as well as
offering health care, education, potable water, improved sanitation, roads, and
market access, while giving a stronger “voice” to rural groups.
Few of the most prominent co-operatives that made a significant Impact in India are
discussed below:
i. AMUL India:
Founded in 1946, AMUL is a brand managed by Gujarat Co-operative Milk

Marketing Federation Ltd.(GCMMF). More than 3.5 million milk producers in
Gujarat own this co- operative today.
AMUL has fueled white revolution in India and contributed a big part towards making
India largest milk producer in the world. Presently, Amul is India’s largest food
product marketing organization with annual turnover of Rs. 38,542 crore (US$ 5.1
billion). It procures nearly 25 million litres of milk per day from 18,600 village milk
cooperatives, 18 member unions covering 33 districts, and 3.64 million milk
producer members.
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• A co-operative movement coupled with professional management:

The dairy movement initiated by farmers of Kaira district in Anand, Gujarat, was
a true rural grass-roots movement, and Dr Verghese Kurien (founder chairman),
with his engineering and dairy technologist background, brought the necessary
professional management to the movement by facilitating a robust supply chain,
creating modern technology and production systems, and establishing a
marketing and organisational ecosystem.
• Connecting milk producers directly to consumers and eliminating middlemen:
AMUL with its 3 tier operational structure has directly connected Milk producers
with end consumers and thus eliminated middlemen from supply chain. This has
benefited to both consumers as well as milk producers. This provided a stable
income for marginal farmers in lean seasons as well because there are no
intermediaries to take the chunk. So even when sales are low, they have a steady
sum in hand.
• Provided a means for social empowerment and inclusion:
More than 80% of the farmers in India are small and marginal farmers that means
they do not have enough land to produce surplus crops which they can sell in
market and create savings for them. Crop production from their land is barely
sufficient to satisfy their captive consumption. Since, milk production do not
require land ownership, even landless farmers have participated in Milk co-
operative and it proved to be a subsidiarysource of income.
Further, it also proved to be an important mechanism of women empowerment.

Since male members of the family may be doing their labour either at farm or
non-farm sources, women at rural areas have participated in dairy co-operative in
big manner. Women at rural areas tends to have sufficient leisure time to get
involved in this allied activity. This has resulted financial independence of
women and also provided an additional source of income for rural houselhold.
ii. Sittilingi Organic Farmers Association (SOFA):

Sittilingi Organic Farmers Association (SOFA) was formed in 2004 with four tribal
farmers which grew to 57 in 2008. SOFA registered as a cooperative society in 2008
with objectives to train tribal farmers in organic farming and to help them market
their crops. At present, the society has about 15,000 people out of which 4,000 are
farmers and 500 of which are into organic farming. Ragi, bajra, little millet, foxtail
and pearl millet are grown here on 1,200 acres of land in and around Sittilingi.
Cotton, turmeric, sugarcane, groundnut, andvegetables are also grown here.
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Remunerative rates offered to members: The produce is purchased by the society

and farmers are paid the market rate, plus ₹2 to ₹3 (US$ 0.02 to US$ 0.03) more
per kg. The rate is determined by a separate committee. In 2018, SOFA
generated around one crore rupees which is a signiicantly higher than one lakh
rupees generated in 2008-09.
• Support for members during COVID lockdown also:

With no access to markets, customers or exports during COVID-19 lockdowns,
the farmers of Sittilingi were looking at a panic sale. However, SOFA stepped in
and helped procure interest free loans Rs. 27 lakh and initiated other fund-raising
activities which helped farmers procure 70-80% above market prices. This initiative
not only helped the farmers through this crisis but also helped them build
warehouses for excess harvest, get additional organic farming related
certifications to help sell globally.
3.3 Community Resource Management:

CBOs seem to be good fit for managing the common property resources such land,
water and forests. This is because (i) the local community has a direct stake in the
outcome of the CPR programmes, though all its members may not have the same
stake; (ii) local community also has direct knowledge of the situation, though all its
members may not be equally informed. Although the CBOs are mostly engaged most
extensively and vigorously in natural resource management programmes, scope is not
limited to them. For instance, under Sarva Shiksha Abhiyan - an ambitious
educational programme - village education committees are formed which have an
important role.
• CBOs and Forest management:

Forest is an important natural resource as it provides products which have great
commercial value. Further, conservation of forest is also important from climate
and environment point of view. There are number of tribal communities in India
which exclusively depend upon forest produce for their livelihood. Thus,
management of forest resources is an important aspect for survival of these
communities.
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The National Forest Policy of 1988 was introduced which aimed for maintaining
environmental stability through maintenance and restoration of forests and also
meeting the basic needs of tribal communities by protecting their rights of
livelihood on forest resources. But this policy did not envisage a direct role for the
people in its day- to-day Development management. It was not possible to meet these
objectives without participation of local communities. Thus, proposal for Join
Forest Management committee (JFC) was passed by the government in 1990.
JFM basically is an agreement between State forest department and village forest
community whereby forest areas are released for JFC. Village forest committee
has to mage designated forest area which was earlier done by state forest
department. Each state lays down detailed guidelines for functioning of village
forest committee. Members of village forest committee include entire village or
group of households.
• CBOs and watershed development:

A watershed is an area which channels the rainfall or snowfall to different rivers,
creeks etc. Thus, watershed areas should be managed efficiently in order ensure
that rivers are having adequate flow and low areas lying at drainage of rivers and
creeks do not face any water crisis. Number of programmes were launched
earlier for watershed management. Later on all these plans were merged together
by Ministry of Rural development under single set of Guidelines for ‘Watershed
management’.
Under the above guidelines,

 each village should form a Watershed committee (WC). All the Members of
village gramsabha (i.e. every adult in village) would constitute members of
WC, thus WC isan way a CBO.
 WC will be guided by Watershed Development Team (WDT), which includes
experts in relevant areas. Thus incorporating the element of professional
management.
 Each WC is assigned with Watershed Development Project (WDP). WDP lays
down types of activities to be undertaken, kind of assets to be created, budget
for entireactivity and its timeframe.
 WC decides the plans the activities, decides the locations at which assets are
to be created and installed. For this entire project, WC members are provided
with expertguidance and complete technical support.
 WC will take complete charge for collective maintenance of assets created out
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of the project i.e. land, water structures and other machineries installed. Thus,
create a sense of joint ownership amongst village members.
The focus of the scheme has been on capacity building of the village community
so that it could manage its resources. Training, therefore, is a very important
element of the scheme. The watershed scheme has turned out to be one of the
most progressive in terms of community participation and application of CBO-
approach.
• CBOs and Participatory Irrigation Management:
Watershed Management was initiated in those areas which are rainfed or which
have very little irrigation facilities. For the areas which receive comparatively
less rainfalls, facility needs to be provided so that farmers receive enough water
supply for their irrigation needs. Therefore, state irrigation department build
water reservoirs, dams canals etc. to ensure adequate irrigation water is supplied
to farmers.
Earlier, state irrigation department managed this entire irrigation system.

However, later on it was realized that this is not possible without engagement of
actual end users of the facilities i.e. farmers. Therefore, National Water policy in
1987 has recommended for Irrigation management transfer. Under this, it was
recommended that irrigation assets should be transferred to farmers associations for
efficient distribution of irrigation water. Started by Andhra pradesh in 1997, these
guidelines were adopted by all the sates subsequently.
The state irrigation department builds dams and constructs reservoirs to store
rainwater for irrigation. At the time of project design, the area to be irrigated with
canal water - called command area - is demarcated. All the farmers whose fields
fall in the command area are entitled to irrigate their fields. The functions, which
the State Irrigation departments had performed earlier, are taken over by the
Water User Associations (WUA) (community based organisations), which
comprise all command area farmers, i.e., those farmers who are entitled to
receive water from a WUA. They are responsible for repairing and maintaining
canals and keeping them clean so that water can flow smoothly. Since canals
continue to be the government property and all canals of the same project are
part of a system, the SID continues to be responsible for major repairs.
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Test your understanding
1. Explain how community based organisations can play an important role in

ruralsustainability.
2.Explain with suitable examples contribution of community based organisation
towardsrural development.
3. Natural resource management is one of the key factor for rural sustainability. In
thiscontext, explain the role of community organisation in forest management.
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CHAPTER 4: ROLE OF STATE AND MARKET

FOR RURAL SUSTAINABILITY
State being entrusted with overall governance responsibility plays a key role in
making Rural India sustainable. As an enabler in development process state has
multiple functionsto performs such as:
• Policy formulation
• Law enforcement
• Statutory permissions and authorisations
• Provisioning of public services especially of necessary items
However, state do not function in isolation. In order to make the state activities
fruitful, especially policy implementation and provisioning of public services, a
vibrant functioning market is pre-requisite. For example, government may decide to
give subsidy on purchase of fertilisers to farmers. A well-functioning market making
these fertilisers accessible for farmers is a pre-requisite for subsidy programme to
provide desired results.
In this chapter, we will try understand the role of state and market in overall rural
development process.
4.1 ‘Rural’ focus of state: politics and policies:

The policy and programs of rural development aim at alleviating rural poverty,
generating employment and removing hunger and malnourishment accompanied by
the enrichment of the quality of human life as reflected by significantly improved
human development index. Brief journey of Indian government policies towards
rural development is listed asbelow:
• Launch of community development programme in early 1950s which aimed at
overall development of selected district blocks in multiple aspects. It involved
government resource spending and village local participation in overall
development process
• Successive five year plans adopted by India government have created essential
institutional and physical infrastructure to bring about socio-economic change in
ruralareas.
• Later on realizing that the benefits of various development programs were being
taken by those better endowed with land resources, programs specifically
designed for the development of the small and marginal farmers as well as
landless and agricultural labourers were taken up in the early 1970s. A special
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program for the development of drought prone areas was introduced in the mid-
1970s and a program of developmentof desert areas in the late 1970s.
• Since independence, Government has allocated significant resources to alleviate
rural poverty. Realizing that piecemeal efforts in the sphere of rural development
have not achieved the targeted objectives, the concept of Integrated Rural
Development Program [IRDP] was also proposed and implemented.
Some notable government schemes in relation to rural development are discussed below:
i. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
• The scheme was introduced as a social measure that guarantees “the right to work”.
• MGNREGA provides for 100 days of employment guarantee to any rural
household adultwho is willing to do unskilled manual work in a financial year.
• The Act addresses the working people and their fundamental right to live life
with dignity. If a person does not get a job within 15 days, he is eligible for
getting unemployment allowance.
• It is the Gram Sabha and the Gram Panchayat which approves the shelf of works
underMGNREGA and fixes their priority.
• During nationwide lockdown, MGNREGA proved to be an important source of
rural employment and played an important role for basic survival of the
beneficiaries. For the financial year 2021-22, 2.95 crore persons have been
offered work, thus, completing
5.98 lakh assets and generating 34.56 crore person-days.
ii. Pradhan Mantri Awas Yojana (Grameen):

• Launched on the pretext of ‘Housing for all’
• Construction of 2.95 crore houses with all basic amenities by the year 2024.
• Each beneficiary is given 100% grant of Rs.1.20 lakh (in plain areas) and Rs. 1.30
lakh (in Hilly States/North Eastern States/Difficult areas/ UT of J&K and
Ladakh/IAP/LWE districts). Beneficiaries can also avail loan upto Rs. 7000 from
financial institutions.
• The beneficiaries are provided Support of unskilled labour wages for 90/95 person
days under MGNREGS and assistance of Rs. 12,000 for construction of toilets
through Swachh Bharat Mission- Gramin, or any other dedicated source of
funding.
iii. Deendayal Antyodaya Yojana: National Rural Livelihood Mission:

• NRLM focuses on stabilizing and promoting existing livelihood portfolio of the
poor in farm and non-farm sectors; building skills for the job market outside; and
nurturing self-employed and entrepreneurs (for micro-enterprises).
• Funds are earmarked Aajeevika Skill Development Programme (ASDP). ASDP
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facilitates building the skills of the rural youth and placement in relatively high
wage employmentin the growing sectors of economy.
• NRLM is encouraging public sector banks to set up Rural Self Employment
Training Institutes (RSETIs) in all districts of the country.
• Mahila Kisan Sashaktikaran Pariyojana (MKSP) promotes scaling-up successful,
smallscale projects that enhance women’s participation and productivity in
agriculture and allied activities. MKSP also aims to ensure household food and
nutrition security ofthe poor and the poorest of poor.
• Provides funding support for placement linked skilling projects
• Providing incentives for job retention, career progression and foreign placements.
• Guaranteed Placement for at least 70% trained candidates
iv. Pradhanmantri gram sadak Yojana:

• Consolidation of the existing Rural Road Network by upgradation of existing
Through Routes and Major Rural Links that connect habitations to Gramin
Agricultural Markets (GrAMs), Higher Secondary Schools and Hospitals.
• A total of 5,99,090 Km road length has been constructed under the scheme since
inception till April, 2019
v. Agriculture infrastructure fund:

Financial assistance is provided in the form of Interest Subvention and Credit
Guarantee for setting up post-harvest management Infrastructure.
vi. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN):

• Income support of Rs.6000/- per year is provided to all land holding eligible
farmer families across the country, in three equal installments of Rs.2000/- every
four months.
• Supplement financial needs of farmers for procuring various inputs related to
agriculture and allied activities as well as domestic needs.
vii. National Agriculture Market (E-NAM):

• e-NAM is a pan-India electronic trading portal which seeks to network the
existing APMCs and other market yards to create a unified national market for
agricultural commodities. Until now, 1000 markets across 18 States and 3 UTs
have been linked with the e-NAM.
• Liberal licensing of traders / buyers and commission agents. One license for a
trader valid across all markets in the State
• Single point levy of market fees, i.e. on the first wholesale purchase from the farmer.
• To promote stable prices and availability of quality produce to consumers.
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4.2 Corporate Social Responsibility (CSR) in India:

Corporate social responsibility (CSR) means continuing commitment by the
business ventures to integrate social and environmental concerns while doing their
business operations. Business ventures who are doing their activities uses multiple
services of society viz. land, natural resources, human capital etc. therefore, it
becomes their moral responsibility to conduct their business operation in such a
manner that ensures win-win situation for all its stakeholders including the society at
large.
In India, as in many other countries facing similarly large development challenges,
the discourse around CSR is increasingly about the crucial role corporates can play
in bringing about positive change in the area of human development and social
inclusion. CSR is no longer seen as corporate social assistance or philanthropy, but
as essential to a good business strategy, helping reduce investment risks and
enhancing business profits by improving transparency and accountability. It is
about working together - with government, with civil society, and with the
community - to improve the lives of millions of people by making growth more
inclusive.
Over the course of last 75 years since independence, role of Government has changed
and so the responsibility of corporates towards society. Below captures the CSR regime
of India post-independence period:
Time period Economic State role Corporate CSR

currents forms
1947-1960 Socialism, Five year plans Support new state;launch
protectionism own rural
initiatives
1960-1990 Heavy Licence raj; development Corporate trusts
regulations failures
1991-2013 Liberalisation Shrinking in production; Family trusts, private-
expanding in social public partnerships,
provision NGO
sponsorship
2013- Globalisation Need to manage Introduction of
present inequality; new reforms mandatory 2% rule
to liberalise further
(table source: https://www.gatewayhouse.in/a-brief-history-of-indian-csr/)
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In the period immediately after Independence, the role of the Indian State expanded
greatly and the corporate sector took a backseat in development efforts. After some
time, the failures of the State to end poverty and support economic growth led to
dissatisfaction. The liberalization of the Indian economy in 1991 ushered in a new
globalized economic environment, with rapid growth in overall wealth and also in
inequality. The rising gap between the wealthiest Indians and those at the bottom
sparked innovation in efforts by the corporate sector to address social problems. It
also led the State to think about how to pull in more support from the
booming business world. Therefore, move was made to make CSR legally
mandatory for large business houses.
India is the first country in the world to make CSR mandatory, following an
amendment to the Companies Act, 2013 in April 2014. Every company with
• net worth of at least Rs 500 crore or
• turnover of Rs 1,000 crore or more, or
• minimum net profit of Rs 5 crore during the immediately preceding financial year
has to spend at least 2% of the average net profits, made during the three
immediately preceding financial years, on CSR activities. Businesses can invest
their profits in areas such as education, poverty, gender equality, and hunger as part
of any CSR compliance. Indian law provides for stringent compliance with CSR
rule. A company is mandated to :
• Constitute a CSR committee which should be headed Board of directors
• CSR policy of the company should be detailed one and spending should be
dulyaudited
Since it became mandatory, there has been steady increase in CSR spending by
Indian business houses. Total contribution towards CSR was more than Rs. 24,500 crs
in FY 2019- 20.
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4.3 Role of CSR in rural sustainability:

Indian law while prescribing for the activities for which CSR funds can be used has
listed Rural development as one of the CSR activity. This inclusion is very much
justified in the context of present time where government has assumed the role of
facilitator of public services and corporates are expanding their roots in rural Indian
quite steadily. As discussed earlier, government efforts have their own limitations
and thus ultimate beneficiaries may be left behind and purpose may not be served.
Corporates with their wide network of supply chain and infrastructure can very well
work to weed out this major problem and ensure that people living in hinterland of
rural areas are provided with access of basic facilities like food, education,
healthcare, and clean water etc. It will not only enhance the corporate image but also
ensure that efforts are properly channelized to make sure that rural communities are
very well included in the larger part of society in which these corporates function.
The value addition in rural development can be enhanced by corporates through
their resources and skills sharing, and employee volunteering in rural villages,
through building partnerships with implementing agencies/NGOs working in rural
space.
There are number of examples, which highlights the achievements of CSR in the
directionof Rural sustainability. Few of the examples are discussed as below:
Corporate Group- TATA:
i. 1000 schools project:
• Schools set up to revitalize the primary education in India especially from
economically backward blocks.
• Improving the quality of education in government schools and improving
governance of schools through School Management Committees and gram
panchayats
• Project has succeeded in making 68% of the habitations it covers in the six
blockschild labour free zones.
• 40,000 children have been helped to overcome their learning deficiency in Odisha
• With the help of The Hans Foundation the programme is also being
implemented in 2 blocks in Jharkhand, changing the lives of another 50,000
children.
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ii. Project Mansi:

• Project started in Saraikela, Odisha to provide training in relation to
maternalhealthcare and new born care
• It has helped to reduce the infant mortality rate and neonatal mortality rate
iii. Mission 2020 for Agriculture development:

• Tata Steel has been working towards the mission 2020 for agriculture
development to address poverty and food security issues by drastically
increasing the income ofpoor farmers.
• It aims to do so by increasing the efficiency of tribal farming communities by
giving them skill base training and improving the productivity of the land
through modern techniques of irrigation, wasteland development, horticulture
and dry land farming.
Corporate Group- MAHINDRA:

i. Mahindra pride schools:
• Empowering and educating youth from socially and economically weaker
sectionsof the society to enable them to get employment opportunities.
• The schools provide end-to-end vocational training in the fields of Hospitality
Craft,Sales, Information Technology Enabled Services and Retail Customer
Management.
• Till December 2017, they have trained more than 26,000 students with 100%
jobplacement
ii. Lifeline express:

• The Lifeline Express or Jeevan Rekha Expess is the first hospital train of
India thatstarted in 1991.
• Provides communities in remote rural areas access to healthcare facilities.
• The lifeline express was started to provide on- the- spot diagnostic, medical
andadvanced surgical treatment for preventive and curative interventions.
Corporate Group- ITC LTD.

i. Women empower programme:
• The company targets Ultra poor women with the objective of mainstreaming
themsocio-economically over a period of time.
• ITC also aims to enhance marginal female farmer’s knowledge about
modern agricultural practices and make agriculture more inclusive.
• has been successful in generating sustainable economic livelihood
opportunities for 61,000 women and 21,000 ultra-poor women have access
to sustainable sources of income through non-farm activities.
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4.4 Industrializing rural India: progress and constraints:

As discussed above, problem of unemployment has been a major impediment in the
path of Rural development. Seasonal unemployment, partial unemployment, artisans
who are at the margins because the technology they use has become obsolete is common
in Indian villages. Agriculture is widely found to be non-remunerative. This has
accelerated migration to urban areas in a big way, worsening the situation of urban
poverty.
Commencing from 1950s, one of the best strategy that was adopted by India to
improve employment situation in rural areas is of Industrialization. Rural industries
are non-farm activities that depend on rural resources, and are primarily meant for
employment generation through effective utilization of locally available resources,
human power and technologies that are native or home-grown. These are by nature
small-scale. These are usually based in villages. Hence, they are popularly addressed
as: small-scale industries / village industries / rural industries. Thus, rural
industrialization includes economic activities outside agriculture, carried out in
villages and varying in size from households to small factories. Some examples of
these activities are cottage, tiny, village and small- scale manufacturing and
processing industries; and services of various kinds.
Types of Rural Industries:
i. Traditional Village industries: It comprises of Khadi, leather tanning, wood
work, artisan industries, cotton cloth, both handloom and power loom and
fabrics, handicrafts, coir, sericulture and wool development, etc
ii. Heavy Industry: These include: (a) fertilizer plants which will use bio-mass
(b) pesticides using biological inputs, (c) Mini-steel plants, (d) ancillary
engineering that can meet the demand or medium and large farms-like
ploughs, threshers etc.
iii. Medium Group Industries: (a) Mini-cement plant which can use molasses or
coal as energy and can meet the rural construction works, (b) minor paper
plant, etc.
iv. Light Industries: (a) Animal feed and fodder industries, (b) construction
programme to meet the house demand of rural area, industries producing
building materials like hinges, screens, doors and windows frames and
roofing materials, (c) improved agricultural implements and machinery using
the steel and iron produced in the rural areas.
Significance of Rural industrialization:
• Slow down in urban migration and thus reducing the problems caused by
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excess‘urbanisation’
• improvement in environment by reducing the concentration of industrial
units inbig cities
• increase rural income and generate nonfarm employment to the farmers
• reduce both skilled and unskilled unemployment
• Promote balanced industrialization by avoiding excessive industrial concentration.
• Based on the local needs and can better meet the local consumption needs.
For Example: Negative impacts of urban migration were visible during nationwide
lockdown, which had made the life of rural migrants miserable as they were
struggling with lack of livelihood. Taking cognizance of this situation, various state
governments have taken pledge to develop indigenous industries in their villages.
For Example: Government has been promoting khadi industries, which can satisfy the
local clothing needs in villages. Also, khadi industries, not requiring too much
of modern machinery and equipment, can easily scaled up with locally available
resources in rural areas and thus providing greater source of non-farm income.
Another example rural industry is brick making units. These units are quite
expanded in rural area as the basic material i.e. soil required for making bricks are
available in abundance in rural areas. Further, these units also employ women in
large number and thus providing then additional source of income.
P a g e | 212
Government programmes to support rural industries:

There are number of programmes and institutions of government that support rural
industries. Some notable examples are discussed below:
i. Khadi and Village Industry commission:
It provides financial and technical support to village industries through its
institutional set ups. This body runs a number of schemes to support Rural
industries. Supports are provided for different types of activities such as Food
processing, Milk processing, Gur andKhandsari industry etc.
ii. National small Industries Corporation Ltd.:
It is involved in:
• Bank credit facilitation for small industries
• Export credit insurance Rural Industrialization
• Raw Material assistance
• Export assistance
• Bill Discounting Scheme
• Organising Exhibitions (both domestic and international)
• Providing Informediary Service
iii. MUDRA Loans:

Companies from both profit and non-profit sector can avail a loan under this
scheme and can avail a loan of up to Rs.10 lakh to kickstart their business. Loans are
provided withoutany collateral.
Constraints for Rural Industries:

i. Competition with modern technology:
Rural Industries basically operate with traditional technologies which face
difficulty in competition from modern technologies. . For example, on the first hand
we have hands spinning and on the other hand, there is presence of power
spinning, handloom and powerloom. This reduces the competitiveness of rural
industries. Therefore, government reserves certain quota of their procurement from
small industries and also provide some protection mechanism such as price
subsidy.
ii. Lack of professional entrepreneurial skills:
Rural entrepreneurs are not highly qualified and belong to hinterland of the
P a g e | 213
country. For e.g. a person starting his own poultry farm in village may not be
well versed withmanagerial skill which is possessed by his urban counterpart.
iii. Access to credit:
With the globalization there is a shift in credit system towards the urban
entrepreneur and real estate market keeping the rural entrepreneurs in credit
crunch.
iv. Lack of marketing infrastructure:
As long as rural products donot enter the normal supply chain, their products
cannot enjoy a good market. Therefore, rural industrialization would be a total
fiasco sans sound rural marketing infrastructure. This is the reason that in recent
times village community based organisations and self help groups have emerged
so that market access can be provided.
v. Poor performance of agriculture:
Agriculture provides raw material to many rural industries. For e.g. Kacchi
ghani oil processing is totally dependent farm inputs. If sufficient inputs are not
available thenindustries are bound to fail.
P a g e | 214
4.5 Collaborative role of community, state and market for rural sustainability:
Ever since the independence, state has played key role in rural development.
Government, has invested huge amount of financial resources on programs to
develop rural India. However, last-mile delivery challenges make it difficult to fully
achieve the stated objectives due to gaps in information and inadequate participation
at the grassroots level.
Members of village-level institutions are constrained by poor awareness, insufficient
skills, and limited resources, and therefore struggle to lead development activities in
villages. Rural women are at an added disadvantage due to wide gender gaps in
education and skill development as well as limited knowledge on health and hygiene,
financial insecurity, andgeneral lack of confidence.
From above premise, it is clear that government alone cannot work in isolation to
meet the agenda of Rural sustainability. Collaboration is necessary with different
stakeholder to ensure the last mile delivery of developmental benefits. This is
because it is not possible for government machineries to reach at local level in
hinterland of the rural areas. Civil society i.e. CBOs, NGOs, Social Enterprises,
Private sector enterprises all these bodies play a pivotal role in collaborative rural
development.
There are number of successful cases of collaboration which have given fruitful
results. Some of the examples are discussed below:
Tribal Co-operative Marketing Federation of India (TRIFED):
TRIFED was formed with the main objective of institutionalising the trade of
Minor forest products (MFP) and to provide the tribals of India a fair price for the
surplus agricultural products produced by them. Under its Van Dhan Yojana,
TRIFED has set up Vand Dhan Vikas kendras. Each vikas Kendra caters to 10
tribal Self Help Groups (SHGs). These Kendra provides act as collection centers for
tribal forest produce at Minimum Support Price (MSP).
In addition to procurement, kendras also provide necessary skill development
support to tribal SHGs. These SHGs act as basic unit which ensure last mile delivery
of TRIFED services to tribal communities. Kendras also provide primary processing
and value addition facilities which helps to enhance the market value of the forest
produce.
The scheme created some of the important success stories like that of Nagaland's
Langleng district, where tribals used to sell their unique hill broom grass for just ₹7
per kg. But afterbeing trained through the "Van Dhan Kendra" under Van Dhan
P a g e | 215
Yojna, they managed to earn ₹60 per broom which enhanced their income.
Rural ministry MoU with Amazon:

MoU is signed between Ministry of rural Development and Amazon for marketing
of the products of women SHGs through Amazon platform. SHGs belonging to
National Rural livelihood mission can list their products on Amazon and thereby
getting larger market access. Amazon will help market and promote products listed
by SHGs through the Saheli Storefront, Social media, Events and Onsite
merchandising.
Project Shakti by Hindustan Unilever Ltd. (HUL):

As a joint venture with government, HUL has started a programme for women
empowerment through women entrepreneurship. A woman from a SHG is selected
as a Shakti entrepreneur, commonly referred as “Shakti Amma” who receives
merchandise stocks from the HLL rural distributors. After getting trained by the
company, the Shakti entrepreneur then sells those goods directly to the consumers
and retailers in the village. Each Shakti entrepreneur usually services 6-10 villages
in the population strata of 1000- 2000 people with 4-5 major brands of HLL –
Lifebuoy, Wheel, Pepsodent, Annapurna salt and Clinic plus. The Shakti
entrepreneurs are given HLL products on a‟ cash and carry basis‟. However, the
local SHGs or banks provide them micro credit wherever required. HLL Project
Shakti is adding up to 15 per cent of HLL sales in rural AP.
The above case studies aptly highlight success stories of collaborative rural
development. In this collaborative model, interplay of vibrant market forces is
combined with effective state-community participation to ensure a rural
sustainability.
TEST YOUR UNDERSTANDING:
1. Explain the role of Indian government in rural development since post independence.
2. Corporate social responsibility is a new way of doing business. Explain in Indian context.
3. Discuss the success stories of various CSR projects in India.
4. How the interplay of vibrant market forces can be combined with collaboration of
stateand community to ensure last mile delivery of development benefits?
P a g e | 216
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Rural Sustainability

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Thakur College of Science and Commerce – TCSC, MUMBAI

S.Y.Bcom (Entrepreneurship) Batch year 2021-24

1.3.2 Emergence and Progress........................................................................ 62

Bharat Petroleum ..................................................................................... 83

2.3.2 DFID Framework ............................................................................... 98

1.6 Role of Micro Savings and Micro Insurance ............................................ 135

Test your understanding: .......................................................................... 184

UNIT 1: INTRODUCTION TO RURAL LANDSCAPE: UNDERSTANDING

CHAPTER 1: INTRODUCTION TO RURAL

1.1. WHAT IS RURAL?

(b) All other places which satisfy the following criteria:

(i) A minimum population of 5,000;

• Criteria of total population and population density is in line with almost

Rural population trend post-Independence:

1.2 : DEMOGRAPHIC STRUCTURE OF RURAL INDIA:

Census Overall Sex Rural Urban

Census Urban Rural Gap

1.3 CONCEPT OF DEMOGRAPHIC DIVIDEND:

Demographic dividend has historically contributed up to 15 % of the overall growth

1.4 WHAT IS RURAL SOCIETY?

• A sizable number of rural people are engaged in agriculture, which is the

• Rural society is regarded as the repository of traditional mores and folkways. It

Education: Education is the process of socialisation, which begins informally at

• Economic: Economy provides basic physical sustenance of the society by

• Family: It is the most basic social institution in a society, and is a system of

• Religion: It is belief in supernatural. Religion constitutes a set of beliefs

1.5 UNDERSTANDING RURALITY:

1.6 FEUDAL STRUCTURE, HUMAN DEVELOPMENT INFRASTRUCTURE,

1.6.1 Feudal Structure:

administrative positions became hereditary.

1.6.1 Specific Rural market and Transaction process:

Type # 1. Periodic Markets:

Type # 3: Permanent Retail Shops:

Rather, it should include equity and environmental aspects so as to benefit all in

1.7 SOCIAL STRATIFICATION:

Some of these features are as follows:

a. Rules of Endogamy and Exogamy:

g. Social and Occupational Mobility:

In rural areas, classes consist principally of a) landlords, b) peasant proprietors, c)

• Peasants proprietors: They may be broadly divided into three categories,

• Tenants: On the eve of Independence, there were various categories of tenants.

• Definite common topography: Tribal people live within a definite topography

• Common dialect: Members of a tribal community exchange their views in a

• Protection awareness: Tribal people always need protection from intrusion

• Importance of kinship: Kinship forms the basis of tribal social organisation.

• Egalitarian values: The tribal social organisation is based on the principle of

• Simple form of religion: Tribes believe in certain myths and a rudimentary

1.7.2 Social Norms and Social Order:

1.7.3 Inequality and exclusion:

TEST YOUR UNDERSTANDING

2.1 UNDERSTANDING CULTURE:

2.1.1 Cultural Identity:

What are values?

Cultural identities are the distinct identities of people or groups in cultural or

2.1.2 : Multiplicity of culture:

2.1.3 : Cultural Change:

SANSKRITISATION: The term Sanskritisation was introduced into Indian

WESTERNISATION: The process of Westernization of caste-system in India

MODERNISATION: Modernisation involves the replacement of sacred

2.1.4 Challenge of Diversity:

2.2 ELEMENTS OF CULTURE:

2.1 Language and symbols:

An integral part of India’s culture is the wide