Rural Industrialisation

5/28/2018 Rural Industrialisation

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Rural Industrialization- its need inIndia- a critical review of programs for

rural industrialization


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Introduction;

Rural industrialization as a core program for rural development had been

given due recognition in the 1970s. In India this program had receivedmuch impetus even as early as 1951 when the First Five Year Plan had

been drafted.

In that process specially in the sixth Five Year Plan drafted during the

Janata Government had shifted the plan priorities where the rural

development had been given a central place in the strategy ofdevelopment.

The strategy of integrated rural development as adopted by Indian

planners consisted of programs for agriculture development and besides

all these programs rural industrialization had been given a new impetus

for the development of rural areas.


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Main approaches to Rural Industrialization:

The first approach the approach an Idealistic school pleads for

the revival and promotion of village industries as a part of the

broader program fro reorganizing the entire socio-economic

structure on a decentralized basis.

The second approach considers the problem in the perspective of

location and spatial diversification of manufacturing activity in a

balanced manner and

the third approach highlights the employment potentiality of villageindustries and looks at the problem from the socio-economic

distributional aspect.


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All these approaches had been experimented at one time or

other by planners in this country. On the first plan itself theimportance of rural industrialization has been recognized and it

implicitly mentioned that the existing occupational imbalance

between agriculture and industry between village and town be

controlled.

Even though the first three plans emphasized the need for the

dispersal of industries, there was a natural tendency on the part

of the new enterprise and new investment to gravitate towards

the already crowded areas.

This naturally accentuated ruralurban inequalities and led toregional imbalances instead of correcting them.


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Objectives of Rural Industrialization:

The objectives of rural industrialization program are:

To cover all the existing artisans by the development programs of the

khadi and village industries and to ensure continued and fuller

employment to them in their present occupation.

To widen the employment base by expanding and diversifying the

existing schemes and by undertaking additional schemes

To strengthen infrastructural facilities

To undertake research and development

To process at the village level locally available raw-materials for

intermediate and semi-finished products of other industries


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Basic thrust of the sixth plan was the creation of employment

opportunities by the village industries as quickly as possible with a view to

serve the national objective of removal of destitution.

Therefore, an important place had been accorded for village and small

industries sector for improving the incomes of rural poor as these

industries have a low capital output ratio and high employment potential.

Thus a discernible shift can be observed from Sixth Plan onwards to a

new strategy of rural industrialization with little modifications to the

integrated rural development strategy had been adopted even in the

modified Sixth Plan where rural industrialization is still being considered

as a core program


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Thus Rural Industries are now in the phase of expansion where due to

their low capital output ratio and high employment potential wereexpected to bring about more employment opportunities on a full time

basis in the rural areas. Their development is also need for spatial

diversification of manufacturing activity and they were expected to

provide balanced regional development.

Programs for Rural Industrialization:

The Karve Committee which was appointed to recommend the program of

development of small industries for second plan suggested organization

of industrial co-operatives for the implementation of the whole program. In

the third plan emphasis was on integration of village industries with the

rural economy. The rural industries projects also came up during this

period.


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Rural Industries Project:

A centrally sponsored scheme for rural industries projects was taken upin 1962-63. To start with, 45 areas were selected in the state and union

territories each covering 3 to 5 development blocks with a population of

300-500 thousand, for intensive development of small industries in rural

areas.

Later on four more areas, near large scale projects of Durgapur, Bhilai,Bhadravati and Ranchi were added in 1965. The progress made so far in

these projects varies considerably from one area to another. On the whole,

of 45 areas which were selected initially, progress in about one of these

has been encouraging.

The government of India set up a committee with Bhagvati as chairmanto suggest measures to solve the un-employment problem. Following the

publication of Bhagvati report in 1973, the government took the following

measures/programs to provide employment and alleviate under-

employment in India. They are:


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Rural Works Program: (RWP)

The emphasis under the program was on the construction of civil worksof permanent nature as would contribute to the mitigation. If not the total

eradication of the scarcity condition in the areas concerned.

Marginal Farmers and Agricultural Laborers: (MFAL)

Under the scheme, families were to be assisted with subsidized creditsupport for agricultural and subsidiary occupations like dairy, poultry,

fishery, piggery-rearing horticultural operations etc.,

Small Farmers Development Agency: (SFDA)

The object of the scheme was to make available to small farmers credit

to enable them to make use of the latest technology to practice intensive

agriculture and diversity their activities.


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Integrated Dry Land Agricultural Development: (IDLAD)

Under the scheme, permanent works like soil conservation, land

development and water harnessing were undertaken these programs

were labor intensive and it was estimated that for an expenditure of everyone crore of rupees, about 15,000 persons would get employment.

Agro Service Centres: (ASC)

The schemes provided for assistance for self employment to the

unemployed graduates and diploma holders in mechanical agriculturaland electrical engineering and allied fields and graduates in agriculture

and science with experience in industry or agriculture it aimed to help in

establishing work shops organizing agricultural machinery, repairing and

hiring facilities and other technical services like supply of spare parts,

inputs, etc.,

Area Development Schemes: (ADS)

These Schemes relate to the development of adequate infrastructure

facilities like roads, market complexes etc., in areas commanded by ten

major irrigation projects.


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National Rural Employment Program: (NREP)

The Food for Work Program was restructured and renamed as NREP

(National Rural Employment Program) from October, 1980. This is being

implemented as centrally sponsored program with 50 per cent central

assistance. Additional employment of order of 300-400 million mandays

per year for the unemployed and under employed is envisaged under the

NREP.

Rural Landless Employment Guarantee Program: (RLEGP)

It was launched on the 15th August 1983 (RLEGP) with the objective of

generating gainful employment, creating productive assets in rural areas

and improving the overall quality of rural life. The guarantee part of the

Program has not been operational zed so far, due to paucity of resources.Preference in employment is given to landless laborers, women,

scheduled castes and scheduled tribes.


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Integrated Rural Development Program: (IRDP)

A multiplicity of agencies has been carrying on the task of providing

rural employment. They include: Employment Guarantee Schemes,

Food for work programs, SFDA, MFAL, Drought prone area program,

Desert development program, Command area development program etc.,

The Sixth plan proposed that such multiplicity of programs for the ruralpoor operated through a multiplicity agencies should be ended and

replaced by one single program operative throughout the country. This

program has been named as the Integrated Development Program

(IRDP).

IRDP was initiated on October 2, 1980 in the entire 5011 block in the

country. During the 5 year period in each block 600 poor families were to

be assisted. In this way, a total of 15 million families of about 75 million

persons below poverty line were targeted to be beneficiaries.


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Jawahar Rozgar Yojana: (JRY)

Then Prime Minister Rajiv Gandhi announced on 28th April 1989. All the

existing rural wage employment programs were merged into JRY. This implies

that NREP and RLEGP have been merged so as to be brought under this

umbrella program referred to as JRY. The objective of the program is to

provide gainful employment for the unemployed in rural areas.

Thereafter also several other programs implemented in rural areas by

considering rural industrialization as a part of over rural development

strategy. However it is useful to asses the impact of above programs.

Critical Assessment of the Program:

During the process of implementation, several programs are affected to

the extent of deviations from the avowed objectives take place. For instance,the various schemes under the Fourth plan or the Crash Program could not

succeed in removing rural unemployment and under employment because

efforts were not made to organize the army of the rural unemployed into

appropriate supply camps to shift to places of demand at the desired

minimum wage.


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Employment Guarantee Scheme which was implemented in Maharashtra

provides only subsistence wages to workers.

Thus this experiment could well be a model for similar schemes in other

states so that minimum level of living is guaranteed to every citizen in India.

Similarly in the process of implementation, integrated area development

programs are affected to the extent of deviations from the avowed objectives

take place.

Various evaluation studies about the IRDP have been made which reveal

that the actual percolation effect of the program has been much less in terms

of poverty alleviation as compared with the impressive figures doled out by

government reports in terms of subsidies bank credit and poverty line

crossers.


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Summary

Rural Industries are now in the phase of expansion where due to their low

capital output ratio and high employment potential were expected to bring

about more employment opportunities on a full time basis in the rural areas.

Their development is also need for spatial diversification of manufacturing

activity and they were expected to provide balanced regional development.

As a part of rural development Strategy, rural industrialization activities

also considered by the government of India. Several programs implementedin India time to time for the development of rural areas.

During the process of implementation, several programs are affected to the

extent of deviations from the avowed objectives take place.

Various evaluation studies about the IRDP have been made which reveal that

the actual percolation effect of the program has been much less in terms of

poverty alleviation as compared with the impressive figures doled out by

government reports in terms of subsidies bank credit and poverty line

crossers.

Documents

Rural Industrialisation