Question:

Elaborate the importance of credit in rural development.

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

Updated On: Feb 5, 2025

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Solution and Explanation

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.

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Top Questions on Rural Development

Match List-I with List-II:

List-I	List-II
(A) Rural banking	(I) Micro-credit programmes
(B) Self-Help Groups	(II) Golden revolution
(C) Agricultural marketing	(III) Land development banks
(D) Horticulture	(IV) Distribution of different agricultural commodities across the country

Choose the correct answer from the options given below:

CUET (UG) - 2024
Economics
Rural Development

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Read the given passage carefully and answer the five questions that follow.
Jhabua district is located in the westernmost agro-climatic zone in Madhya Pradesh. It is, in fact, one of the five most backward districts of the country. It is characterised by a high concentration of tribal population (mostly Bhils). The people suffer due to poverty which has been accentuated by the high rate of resource degradation, both forest and land. The Watershed Management Programmes funded by both the ministries of ”Rural Development” and ”Agriculture”, Government of India, have been successfully implemented in Jhabua district which has gone a long way in preventing land degradation and improving soil quality. Watershed Management Programmes acknowledge the linkage between land, water and vegetation and attempt to improve livelihoods of people through natural resource management and com- munity participation. In the past five years, the programmes funded by the Ministry of Rural Development alone (implemented by Rajiv Gandhi Mission for Watershed Management) have treated 20 percent of the total area under Jhabua district. The Petlawad block of Jhabua is located in the northernmost part of the district and represents an interesting and successful case of Government-NGO partnership and community participation in managing watershed programmes. The Bhils in Petlawad block, for example, (Sat Rundi hamlet of Karravat village) through their own efforts, have revitalized large parts of Common Property Resources (CPR). Each household planted and maintained one tree on the common property. They also have planted fodder grass on the pasture land and adopted social-fencing of these lands for at least two years. Even after that, they say, there would be no open grazing on these lands, but stall feeding of cattle, and they are thus confident that the pastures they have developed would sustain their cattle in future. An interesting aspect of this experience is that before the community embarked upon the process of management of the pasture, there was encroachment on this land by a villager from an adjoining village. The villagers called the Tehsildar to ascertain the rights on the common land. The ensuing conflict was tackled by the villagers by offering to make the defaulter encroaching on the CPR, a member of their user group and sharing the benefits of greening the common lands/pastures.
- CUET (UG) - 2024
- Geography
- Rural Development
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Match List - I with List - II.

List - I (Rural Settlement Patterns)		List - II (Their Development)
(A)	Rectangular Pattern	(I)	On both sides of a river with bridge or ferry
(B)	Circular Pattern	(II)	Where several roads converge
(C)	Double Village	(III)	Develop around lakes
(D)	Star like Pattern	(IV)	Settlement found in Plain areas

Elaborate the importance of credit in rural development.

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