| Date post: | 17-Jul-2015 |
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Economy & Finance |
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A Study on Impact of Rural Industrialization
towards Rural Development
Nelson Marwin
Fernandes
Lecturer PG Department of Commerce
SVS College Bantwal
Contact: 9480792520
Sharaschandra KS
Lecturer PG Department of Commerce
SVS College Bantwal
Contact: 9535052522
In India the Rural areas are more when compared with
the other economy. Rural areas are still developing in
India and it’s not yet developed, there are many reasons
behind the backwardness of rural areas, sometimes the
government of an economy may not pay much
attention towards the development of rural areas. The
reason behind this act is strategically defined “No
profit, No investment”, but the scenario is completely
changed now and the government realized the
importance of rural areas and they are with the
phenomena which states “More concentration, better
the result”, Less concentration- No result”.
The Problems Faced for Rural Development in
India
1. The financial, manpower and managerial resources devoted
to the implementation of rural development programmes are
utterly inadequate.
2. Better implementation of rural development programmes
can be ensured only if those responsible for actual
implementation are paid reasonably well, appropriately
trained, and sufficiently motivated. But this has not been done
as yet.
3. It is being increasingly observed that the objectives of
one programme conflict with those of others, and there
is no institutional mechanism for reconciling them.
Consequently, many programmes utterly fail in fulfilling
their objectives. In addition, they also affect other
programmes.
4. In many cases, instruments of rural development are
not properly selected, and their levels are not consistent
with the objectives they seek to achieve. The is results in
the wastage of valuable public resources, and
unnecessary delays in achieving the objectives.
5. Honesty, hard work, helping others, thrift and such other virtues indirectly help in economic development. In the Indian context, not much attention has been paid to this aspect of development.
The Role of Government in Rural Development.
Rural Development in India is one of the most important factors
for the growth of the Indian economy. India is primarily an
agriculture-based country. Agriculture contributes nearly one-
fifth of the gross domestic product in India. In order to increase
the growth of agriculture, the Government has planned several
programs pertaining to Rural Development in India. The
Ministry of Rural Development in India is the apex body for
formulating policies, regulations and acts pertaining to the
development of the rural sector. Agriculture, handicrafts,
fisheries, poultry, and diary are the primary contributors to the
rural business and economy.
Strategies and programs for rural development.
Integrated Rural Development Program (IRDP): First introduced
in 1978-79, IRDP has provided assistance to rural poor in the
form of subsidy and bank credit for productive employment
opportunities through successive plan periods. Subsequently,
Training of Rural Youth for Self Employment (TRYSEM),
Development of Women and Children in Rural Areas (DWCRA),
Supply of Improved Tool Kits to Rural Artisans (SITRA) and
Ganga Kalyan Yojana (GKY) were introduced as sub-programs of
IRDP to take care of the specific needs of the rural population.
Rural Industrialization.
Entrepreneurship emerging at village level which can
take place in a variety of Endeavour such as business,
industry, agriculture, etc and acts as a potent factor for
economic development. Rural industrialization means
encouraging location of large and small scale units away
from urban areas Planned shifting of small units from
urban to rural. Existing Medium and large urban units
not to be disturbed.
ADVANTAGES OF RURAL INDUSTRIALIZATION.
1] Small and cottage industries require low
capital investment
2] Rural industries can take advantage of local
resources
3] By catering to local demand, avoid transaction
cost.
4] Employment generation.
ISSUES AND STRATEGIES.
1. Formulation of Rural Industrial Policy.2. Reversal of the Trend – Towards Decentralization.3. Multiplicity of Technologies and Reservation of Industries.4. Nature of Employment.5. Organizational Difficulties.6. Technology Gap.7. Promoting Managerial and Entrepreneurial Skills in Rural Entrepreneurs.8.Role of clarity.9.Credit gape.
