Indian Economic Development: Rural Development

Topics in this chapter

• Land Reforms and Farm Productivity
• Rural Credit and Financial Inclusion
• Agricultural Marketing and Price Support
• Rural Employment and Diversification
• Rural Infrastructure and Social Development
• Sustainable and Organic Farming

Cheat sheet

Practice questions

1. Question 1Q-5D441A

   Which institution was established as the apex institution for coordinating and providing rural credit in India?

   1. A.National Bank for Agriculture and Rural Development (NABARD)
   2. B.Reserve Bank of India (RBI)
   3. C.Small Industries Development Bank of India (SIDBI)
   4. D.Securities and Exchange Board of India (SEBI)
   See the answer and solution
2. Question 2Q-F61F99

   Which of the following best represents agricultural diversification in rural development?

   1. A.Increasing dependence on a single food crop
   2. B.Combining crop production with activities such as dairy, fisheries and horticulture
   3. C.Replacing all agricultural activities with manufacturing
   4. D.Restricting farmers to subsistence production
   See the answer and solution
3. Question 3Q-46A1EE

   Which statement correctly describes the functioning of self-help groups (SHGs) in rural credit?

   1. A.Members save regularly, pool their savings and provide small loans to one another, often with access to bank credit.
   2. B.SHGs provide loans only to large landowners against substantial collateral.
   3. C.SHGs are formal commercial banks that accept deposits from the general public.
   4. D.SHGs eliminate the need for all institutional sources of rural credit.
   See the answer and solution
4. Question 4Q-B7FFB6

   Why is rural development considered broader than merely increasing agricultural production?

   See the answer and solution
5. Question 5Q-0645FF

   A small farmer sells most of the produce immediately after harvest because there is no safe place to store it. Which rural development measure would most directly help the farmer obtain a better price?

   1. A.Expansion of rural storage and warehousing facilities
   2. B.Reduction in access to institutional credit
   3. C.Replacement of all food crops with cash crops
   4. D.Restriction of transport facilities from villages
   See the answer and solution