Question

Elaborate the importance of credit in rural development.

Hint:

Rural credit supports both agricultural and non-agricultural activities, ensuring balanced rural development.

Answer 1

Credit plays a vital role in rural development in the following ways: 
Investment in Agriculture: Credit enables farmers to invest in seeds, fertilizers, irrigation, and technology, boosting agricultural productivity. 
Rural Infrastructure Development: Credit facilitates the construction of roads, warehouses, and rural markets, enhancing connectivity and storage facilities. 
Entrepreneurship Promotion: Access to credit supports small-scale industries and self-employment opportunities, fostering rural entrepreneurship.