Rural Development in India – Emerging Economies

Mahatma Gandhi once said that the real progress of India did not mean simply the growth and expansion of industrial urban centers but mainly the development of the villages. In this article, the significant aspects of rural development with the help of a case study on the village Palampur will be studied.

Additionally, an exploration into concerns about food security in India and the measures taken in this regard will be conducted.

At last, Rural Developmental aspects of 3 emerging economies will be studied: India, China & Pakistan.

The Story of Palampur: Exploring Rural Development in a Make-Believe Village in India

• An imaginary village, serves as a backdrop to explore various production activities in rural India. 
• Agriculture is the primary production activity in most Indian villages, undergoes significant Rural Development with complementary while non-farm activities like small-scale manufacturing, transportation, and shop-keeping complement these agricultural endeavors. 
• Following discussion, delve into both types of activities after establishing a basic understanding of production.

Foundations of Rural Development: Understanding the Organization of Production in India

The aim of production is to create desired goods and services, and this process relies on four key requirements:

In the picture, identify the land, labour and fixed capital used in production.

• Land and Natural Resources: It includes land and other natural resources like water, forests, and minerals.
• Labor for Rural Development: The second requirement is the workforce or labor, which can vary from highly educated individuals for certain tasks to manual laborers who contribute to production. 
• Physical Capital (Capital): It comprises physical capital, which encompasses various inputs used throughout the production process. It includes:
  • Fixed Capital: 
    • Like Tools and machines, ranging from simple tools like a plough to advanced machineries like generators and computers. 
    • It can be used in production over many years.
  •  Working Capital: 
    • Raw Materials and Money in Hand These are necessary for the production process. 
    • These are known as working capital and are consumed during production.
• Human Capital: 
  • There is also a fourth requirement, which is knowledge and enterprise, needed to effectively combine land, labor, and physical capital for production. 
  • This is referred to as human capital.
• Factors of Production: 
  • Every production process involves the organization of these factors: land, labor, physical capital (capital), and human capital. 
  • These factors are collectively known as the factors of production.

Managing Challenges and Opportunities for Rural Development

• Primary Occupation for Rural Development: 
  • Farming is the primary source of livelihood for the majority of the population.
  • 75% of the people engaged in farming activities, including both farmers and farm laborers.

Different Crops

• Constraints on Land for Rural Development: 
  • Village faces a constraint in expanding its farm production due to limited cultivable land. 
  • Since 1960, there has been no increase in the land area under cultivation. 
• Crop Rotation: 
  • Farmers practice crop rotation to maximize agricultural output. 
  • Farmers grow jowar and bajra in the rainy season (kharif) which are also used as cattle feed. 
  • It is followed by the cultivation of potatoes between October and December. 
  • In the winter season (rabi), fields are sown with wheat. 
  • After keeping enough for the family, the surplus is sold in the market. 
  • A part of the land area is also devoted to sugarcane which is harvested once every year.

Cultivated area over the years

• Irrigation for Rural Development: 
  • A well-developed irrigation system, powered by electricity, has enabled multiple cropping in the village. 
  • Tubewells have replaced traditional Persian wheels for a more efficient water supply.
• Multiple Cropping: Multiple cropping, or growing more than one crop in a year on the same land, is a common practice in villages and is essential for increasing production.

Modern Farming Methods: HYV seeds, chemical fertilizer etc.

• Green Revolution in the 1960s: 
  • The introduction of High Yielding Variety (HYV) seeds, along with irrigation, chemical fertilizers, and pesticides, led to significant increases in crop yields, particularly wheat. 
    • Farmers of Punjab, Haryana, and Western Uttar Pradesh were the first to try out the modern farming method in India (Reer Figure 16.3). 
    • The farmers in these regions set up tube wells for irrigation and made use of HYV seeds, chemical fertilizers, and pesticides in farming. 
    • Some of them bought farm machinery, like tractors and threshers, which made plowing and harvesting faster. 
    • They were rewarded with high yields of wheat.

Distribution of Cultivated Area and Farmers

• Sustainable Farming: 
  • Modern farming methods have raised concerns about the depletion of soil fertility and groundwater levels. 
  • Sustainable farming practices are essential to maintain long-term agricultural productivity.
• Land Distribution: 
  • Land distribution in the village varies, with some families owning small plots and others cultivating larger areas. 
  • Around one-third of the families are landless, primarily belonging to the Dalit community, underscoring challenges and opportunities for Rural Development (Refer figure to understand the distribution of cultivated area and number of farmers).
• Labour: 
  • Labor is a crucial factor in farming, and many small farmers engage in farming activities with their families. 
  • Larger farmers hire farm labourers, often from landless or small farming families.
• Capital in Farming: 
  • Modern farming methods require significant capital investment, and small farmers often need to borrow money at high-interest rates to arrange for capital.
  • The rate of interest on such loans is very high. They are put in great distress to repay the loan. 
  • In contrast to the small farmers, the medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.
• Sale of Surplus Produce for Rural Development:
  • Farmers sell surplus agricultural produce in the market, with medium and large farmers supplying most of the surplus. 
  • They save some of their earnings to invest in capital for future farming seasons or other non-farm activities.

Non-Farm Activities in Palampur and Their Role in Rural Development

Only 25 percent of the people working in Palampur are engaged in activities other than agriculture.

• Dairy Farming for Rural Development: 
  • Dairy farming is a common activity in the village, where people feed their buffalos on locally grown grass, jowar, and bajra. 
  • Milk is sold in nearby Raiganj, and traders from Shahpur operate collection and chilling centers there to transport milk to distant towns and cities.
    
• Small-Scale Manufacturing: 
  • Palampur has small-scale manufacturing activities involving simple production methods and family labor, contributing to the ongoing process of Rural Development in the village.
  • Farmers are engaged in activities like sugarcane processing, jaggery making, etc. 
    
• Shopkeepers and Their Role in Rural Development: 
  • Shopkeepers play a role in trade in Palampur. They purchase various goods from wholesale markets in cities and sell them in the village. 
  • These small general stores offer a range of items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles, and stationery. 
  • Some families near the bus stand also run small shops selling food items.
    
• Transport Sector and Its Role in Rural Development: 
  • The transport sector in Palampur is diverse and includes rickshaw pullers, tonga drivers, jeep and tractor operators, truck drivers, bullock carts and bogey operators. 
  • They transport people and goods, earning income in return.
  • Over the years, the number of people involved in the transport sector has grown significantly.

Thus, the story of Palampur provides a glimpse of rural life. This helps to plan and study various aspects of rural development.

Conclusion
The intricate tapestry of life in Palampur, spanning farming, non-farm activities, and the evolving transport sector, paints a comprehensive picture of rural existence. Exploring these dynamics offers valuable insights into the challenges and opportunities for Rural Development, guiding efforts to enhance the well-being and sustainability of rural communities.

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