RuD Unit-1.Pptx [Autosaved]

8/11/2019 RuD Unit-1.Pptx [Autosaved]

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SPECIAL FEATURES &REALITIES OF

RURAL INDIA


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Rural Push Policy of UPAGovernmentFour Consecutive years ofpositive growth in rural GDP40% hike in MSP of Crops overlast two yearsFarm Loan Waiver & NREGSGrowing Industry Demand forland (Overnight Wealth)Big rise in remittances from CitiesSlowing urban demand forcingcorporates to rural markets

Why Rural Marketing is

hot?


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Current Scenario Of Rural India

& Govt. Initiatives


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Rural Market


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700 million potential consumers,

over 40 per cent of the Indian middle-class, and about halfthe country's disposable income


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68% population of India is in Rural India.

More than 10 Government schemes Running.

Main Target is to Increase Rural income by generatingemployment.

SGSY, MNREGA, SHGs Step towards GeneratingEmployment.


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Budget Allocation up from INR 10,000 Crs. to 58,000 Crs.

for rural development.

As per BCG and CII reports Rural Customers will be 36% ofHouse Holds by 2025.

This market will be open for retail sector.

Ten Fold growth In rural Market by 2025 to reach USD 100Bn Mark. - HUL


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Definitions of Rural

Census Village:Basic Unit for rural areas is the revenue village, mightcomprise several hamlets demarcated by physical boundaries.

Town: Towns are actually rural areas but satisfy the followingcriteria.

Minimum Population >=5,000

Population density>= 400/ sq. km.

75% of the male population engaged in non-agri activity.

RBI Locations with population up to 10,000 will be considered as ruraland 10,000 to 100,000 as semi-urban.

Nabard All locations irrespective of villages or town, up to a population of10,000 will be considered as rural.

PlanningCommission

Towns with population up to 15,000 are considered as rural.

Sahara Locations having shops/ commercials establishments up to 10,000are treated as rural.

LG Electronics The rural and semi urban area is defined as all other than the sevenmetros.

What is Rural?


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RURAL AREA

Where the people are engaged in primary industry inthe sense that they produce things directly for the firsttime in co-operation with nature.


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Rural areas are separately settled places awayfrom the influence of large cities and towns.

Such areas are distinct from more intensively

settled urban and sub-urban areas, and alsofrom unsettled lands or wilderness, such asforest.

Rural areascan have an agricultural character,

though many rural areas are characterized by aneconomy based on cottage industry, mining, oiland gas exploration, or tourism.


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RURAL COMMUNITY

A group of people with a common characteristicor interest living together, in a village.

A Rural Communitycan be classified as ruralbased on the criteria of lower population density,less social differentiation, less social and spatialmobility, slow rate of social change, etc.

Agriculture is the major occupation of ruralpeople.


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MAIN FEATURES OF RURAL COMMUNITY

Village is an institution-

The Village is a primary institution. The development ofvillages is influenced considerably by the life of the village.It satisfies almost all the needs of the rural.

Community-They have a sense of unity and a feeling of belongingnesstowards each other.

Religion-

Faith in religion and universal power is found in the life of thevillages.

Agriculture-

Main occupation is agriculture which involves dependence onnature. Nature gives the livelihood to them. Farmers worship

forces of nature.


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Rural MarketingEnvironment

& Rural Economy


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Structure of RuralMarkets

DemographicEnvironment

1971 1981 1991 2001

Total population (million) 548.2 683.3 848.3 1026.9

Rural population (million) 524.0 628.8 741.6

Rural Proportion to total population (%) 80.1 76.7 74.3 72.2

Decadal Variation - 19.8 16.7 15.2

Source: Census of India 2001


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Education and the

Level of Demand

Rural Literacy 1981 1991 2001

% of literates 36 45 59



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Household PatternFamily Structure

Particulars 1991 2001

Rural Urban Total Rural Urban Total

Households (Million) 112 40 152 138 54 192

Family Size (Number) 5.55 5.32 5.36 5.31



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Rural Housing Pattern

House Type 1981 1991 2001

Pucca (%) 22 31 41

Semi-Pucca (%) 37 36 36

Kuccha (%) 41 33 23

Total 100 100 100



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Occupational Pattern

Distribution of Households by Occupation of theHead, 1999-2000

Heads Occupation Distribution of households(%)

Urban Rural All

Housewife 0.84 1.01 0.96

Cultivator 3.45 40.86 29.99

Wage earner 20.93 35.28 31.12

Salary earner 40.72 11.28 19.84

Professional 3.59 0.73 1.56

Artisan 6.90 3.41 4.42

Petty Shopkeeper 16.05 4.97 8.19

Businessman 3.68 0.46 1.40

Other 3.85 1.98 2.52

Total 100.00 100.00 100.00

Source: NCAER 2002


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Physical Environment

Rural and Urban Life:Distinguishing Features

Population Density (Urban + Rural) (Per Sq. Km.)

1971 1981 1991 2001

Popu. Density (Total) 177 216 267 312

Rural 171 214 253

Distribution of Towns and Villages

1991 2001

No. of Towns 3,697 5,161

No. of inhabited Villages 580,779 593,154

Total no. of Villages 634,321* 638,588*

* The total number of Villages also includes non-inhabited Villages.



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Settlements(Scattered and Clustered)

Townclass

Population No. ofTowns

% of totalTowns

% ofPopulation

DecadalGrowth

(1991-2001)

Class-I 1 Lakh and above 423 8.2 61.5 24

Class-II 50,000 99,999 498 9.6 12.3 15

Class-III 20,000 49,999 1,386 26.9 15.0 16

Class-IV 10,000 19,999 1,560 30.2 8.1 7

Class-V 05,000 09,999 1,057 20.5 2.8 8

Class-VI Less than 5,000 237 4.6 0.3 -22

Total 5,161 100.0 100.0

* 10 Lakh + : 27; 5-10 Lakh: 42; 1-5 Lakh:354

Source: Census 2001


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Economic Environment

%H

ouseho

lds

80 --

70 --

60 --

50 --

40 --

30--

20--

10--

0--

23.9

8.8

39.5

42.7 42.5

67.3

17.8

36.9

20.6

1989-90 2001-02 2009-10

Source: Market Information Survey of Households, NCAER

_________ Low (Rs.90k p.a)


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Changing RuralConsumers ExpenditurePattern

Per capita consumptionexpenditure (Rs. Per month)

Rural Urban

1983 112 166

1991 281 458

2001 486 855

Source: NSSO

Composition of rural per capitaconsumption expenditure

Food Non-Food

1983 66 34

1991 63 37

2001 59 41

Source: NSSO


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TechnologicalEnvironment


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Size of Rural Market

Estimated Annual Size : Rural Market

FMCG Rs. 65000 Crore

Durables Rs. 5000 Crore

Agri-inputs (incl. tractors) Rs. 45000 Crore

2/4 Wheelers Rs. 8000 Crore

Total Rs. 1,23,000 Crore

Source: Francis Kanoi 2002


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II-The Rural Economy:


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The EconomicScenario in RuralIndia

Human Development Index(HDI)

Year Rural Urban Total

1981 0.26 0.44 0.30

1991 0.34 0.51 0.38

2001 ------ ------ 0.47

Source: Human Development

Report, 2001

The HDI is a composite ofvariables capturingattainments in three

dimensions of humandevelopment, viz., economic,educational and health.


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The Changing Face ofRural Development

Population below the poverty line (Rural)

Period No. of Persons

(Million)

% of Persons Poverty line

(Rs.)

1983 252 46 89.5

1993-94 244 37 206

1999-2000 193 27 328

Source: Human Development Report, 2001


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The Development Exercise:The Five-Year Plans

Sectoral allocations during the five-year plans (Rs. Billion)

Head ofDevelopment

SeventhPlan

Eighth Plan Ninth Plan Tenth Plan

(1985-90) (1992-97) (1997-2002) (2002-07)

1. Agriculture 105 225 372 589

2. Rural Development 89 344 890 1,219

Source: Planning Commission 2002

Percentage share of the different sectors in GDP (at 1993-94 prices)

Year Primary(Agri and Allied)

Secondary(Manufacturing)

Tertiary(Services)

Total

1950-51 57.2 14.8 28.0 100.0

1980-81 39.7 23.7 36.6 100.0

2001-02 23.9 26.6 49.5 100.0

Source: National Account Statistics, 1951-2001


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Transition of theRural Economy

1. Food grain crops

2. On-land activities

3. Farm activities

1. Non-food grain crops, cash

crops

2. Off-land allied activities like

livestock and fisheries

3. Non-farm activities, including

manufacturing and services.


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The Rural EconomicStructure

Farm Sector(Agri & Allied)

Agriculture

Animal Husbandry(Dairy, Goat, Poultry)

Horticulture

Forestry

Fishing

Rural Economy

Non-Farm Sector(Formal & Informal Sector)

Rural Industries Rural Services

Agro Processing(Sugarcane, Oilseed etc)

Retailing & Trading

Manufacturing(Handloom, Handicrafts etc)

Community & SocialService

Mining & Quarrying Transport & Storage

Construction Communication


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Income Disparity

Rural-Urban Income Comparison

Sector Bottom (30%) Middle (40%) Top (30%) All Classes

Rural Urban Rural Urban Rural Urban Rural Urban

AverageConsumption

Expenditure

(Rs./Annum)

3,270 4,580 5,110 8,150 9,400 18,720 5,830 10,260

Population

(Million)

223 86 297 114 223 86 742 285

Source: NSS 55th

Round (1999-2000), Census 2001


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The Rural InfrastructureRoad Connectivity

Road Connectivity at the Village level (%)

Populationless than

1,000

Populationbetween

1,000 and1,500

Populationmore than

1991-92 36.52 72.32 89.82

1994-95 37.45 76.54 91.72

1996-97 49.18 74.58 78.04

Source: National Human Development Report 2001


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Telephone Services

Telecom Density (Phone per 100)

2000 2005 Increase

Urban 8.2 26.2 220%

Rural 0.7 1.74 148%

All 2.9 9.08 213%

Source : Telecom Regulatory Authorityof India Report, 2005


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Why Agriculture Growthhas been slow & tardy?

1. Low priority to Agriculture

2. Subsistence Orientation of Agriculture

3. Failure of Land Reforms

4. Low size of operational Landholdings

5. Inadequate Food Supplies

6. Sluggish Infrastructural Growth

7. Disconnect between Research & Farmers

8. Insufficient Availability of Credit

9. Inadequate Inputs

10. Slowdown of Rural Industrialization


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Policy InterventionsRequired

1. Thrust on Land Reforms

2. Strengthening the Panchayati RajInstitutions

3. Financial Inclusion (Innovative CreditDelivery)

4. Development of Rural Infrastructure

5. Expansion of Kisan Credit Card Scheme

6. Protection of Farmers from naturalcalamities

7. Extensive use of ICT

8. Higher Investment in Agriculture & RuralDevelopment.

9. Focus on High Value Crops & Non-farmIncomes.

10. Bridging the Gap Between Agri-Research &


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LIFE OF RURAL PEOPLE


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RURAL DEVELOPMENT


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Rural developmentis a strategy designed to improvethe economic and social life of rural poor.

It is a process, which aims at improving the well beingand self realization of people living outside the

urbanized areas through collective process.

Rural Developmentis all about bringing changeamong rural community from the traditional way ofliving to progressive way of living. It is also

expressed as a movement for progress.


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DEV. IN RURAL AREA CAN BRING

INFA-

STRUCTURE

TECHNOLOGY

HEALTHEDUCATION

ECONOMY


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OBJECTIVES OF RURAL DEV.

1. To develop farm, home, public service and

village community.2. To bring improvement in producing of cropsand animals living condition.

3. To improve health and education condition etc.

4. To improve villagers with their own efforts.

5. To improve village communication.

M i Obj ti


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Main Objectives

To generate

Employment Farm & storageEconomicalactivities

To improve

Health Education Living condition

To build

Infrastructure Public Service Communication


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PROBLEMS IN RURAL DEVELOPMENT

1.People related

2.Agricultural related problems

3.Infrastructure related problems

4.Economic problems

5.Social and Cultural problems

6.Leadership related problems7.Administrative problems


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PEOPLE RELATED PROBLEMS


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AGRICULTURE RELATED PROB.


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1. Lack of expected awareness, knowledge, skilland attitude.

2. Unavailability of inputs.

3. Poor marketing facility.

4. Insufficient extension staff and services.

5. Multidimensional tasks to extension personnel.

6. Small size of land holding.

7. Division of land.

8. Unwillingness to work and stay in rural areas.


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INFASTRUCTRAL RELATED PROB.

Poor infrastructure facilities like-:

1.Water

2.Electricity

3.Transport

4.Educational institutions

5.Communication

6.Health

7.Employment

8.Storage facility etc.


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ECONOMIC PROBLEMS

1. Unfavourable economic condition to

adopt high cost technology.2. High cost of inputs.

3. Under privileged

rural industries


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LEADERSHIP RELATED PROBLEM

1.Leadership among the hands

of inactive and incompetent people.

2. Self interest of leaders.

3. Biased political will


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LEADERSHIP RELATED PROBLEMCONT


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ADMINISTRATIVE PROBLEMS

1. Political interference.

2. Lack of motivation and interest.

3. Unwillingness to work in villages.

4. Improper utilization of budget.

5. No proper monitoring of programs.

and lack in their implementation.


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SCOPE & IMPORTANCE OFRURAL DEVELOPMENT


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Importance of Rural Development

Rural development is a dynamic process,which is mainly concerned with the rural areas.

These include-Agricultural growth, putting up of economic andsocial infrastructure, fair wages as also housingand house sites for the landless, village

planning, public health, education andfunctional literacy, communication etc.

Rural developmentis a national necessity andhas considerable importance in India


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Rural development is needed because

1. To develop rural area as whole in terms of culture,society, economy, technology and health.

2. To develop living slandered of rural mass.

3. To develop rural youths, children and women.

4. To develop and empower human resource of ruralarea in terms of their psychology, skill, knowledge,attitude and other abilities.

5. To solve the problems faced by the rural mass fortheir development.


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6. To develop infrastructure facility of rural area.

7. To provide minimum facility to rural mass interms of drinking water, education, transport,electricity and communication.

8. To develop rural institutions like Panchayat,

cooperatives, post, banking and credit.

9. To develop rural industries through thedevelopment of handicrafts, small scaled industries,village industries, rural crafts, cottage industries and

other related economic operations in the rural sector.10. To develop agriculture, animal husbandry andother agricultural related areas.


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11. To restore uncultivated land, provide irrigationfacilities and motivate farmers to adopt improvedseed, fertilizers, package of practices of cropcultivation and soil conservation methods.

12. To develop entertainment and recreationalfacility for rural mass.

13. To develop leadership quality of rural area.

14. To improve rural marketing facility.

15. To minimise gap between the urban and rural interms of facilities availed.


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16. To improve rural peoples participation in thedevelopment of state and nation as whole.

17. To improve scopes of employment for rural

mass.18. For the sustainable development of ruralarea.

19. To eliminate rural poverty.

20. To empower them.


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TOPIC DISCUSSED

1. RURAL AREA

2. RURAL COMMUNITY & ITS MAIN FEATURES

3. LIFE OF RURAL PEOPLE

4. RURAL DEVELOPMENT5. OBJECTIVES OF RURAL DEVELOPMENT

6. VARIOUS PROBLESMS IN RURAL DEVELOPMENT

(PEOPLE, AGRICULTURE, INFASTRUCTURE,ECONOMIC, LEADERSHIP & ADMINISTRATIONRELATED PROBLEMS).

7. SCOPE & IMPORTANCE OF RURAL DEVELOPMENT.

Documents

RuD Unit-1.Pptx [Autosaved]