Economics for Class 11 Chapter 6 Rural Development

Learn CBSE Economics Index Terms for Class 11, Chapter 6 Rural Development

1. Rural Credit – Rural economy growth generally depends on the funds from one interval to another to understand the high-rise productivity in non-agriculture and agriculture areas. The interval gap from sowing seeds to understanding the post-production revenue is comparatively long.

Farmers lend money from different fronts to match the primary investment on fertilisers, seeds, tools, and other personal expenses. The term rural credit means the credit/loan needs that the farmers meet at the time of need from banks and other financial institutions.

2. Short-term Credit/Loan – A short-term loan is one kind of rural credit that is taken for a brief private or business capital requirement. It is a type of credit requiring a borrowed principal amount and interest percentage to be repaid at a given date, the course of which may be up to one year.

A short-term loan is a worthy but expensive option, particularly for small companies or basically for startups that are still not qualified for a credit line from a bank.

3. Medium-term Credit/Loan – A medium-term loan is a loan that has a repayment duration between 2 to 5 years or less than 10 years. Medium-term loans are an excellent option for small firms that are looking for a traditional way of credit with a set repayment duration and anticipated amounts.

The loan amount an individual receives may differ based on the cash flow, credit rating, and various other factors.

4. Long-term Credit/Loan – The repayment duration of a long-term loan is usually 5 to 20 years or even more in a few exceptional cases. In any business, long-term finance is essential to create permanent assets that will return over a period of time.

Especially in the agriculture sector, long-term investment comprises land levelling, fencing, sinking wells, permanent repairs on land, acquisition of heavy machinery such as tractors, etc. All the suggested long-term investments need large numbers of funds.

Although they have a considerable potential to make profits in the future, private farmers do not have the money to make such costly investments as they either have no savings or have very little savings.

5. NABARD – National Bank for Agriculture and Rural Development (NABARD) is India’s apex development bank. With headquarters in Mumbai, NABARD has branches across India. It was formed by a special parliamentary act. The chief focus of the organisation was the advancement of rural India by enhancing the flow of credit for the upliftment of agriculture as well as the rural non-agricultural sector.

6. Self-Help Groups – Self-Help Groups (SHGs) are informal associations of people who come together to find ways to improve their living conditions. They are generally self-governed and peer-controlled.

People of similar economic and social backgrounds associate, generally with the help of any NGO or government agency and try to resolve their issues and improve their living conditions.

7. RRBs – The Regional Rural Banks in India are the Commercial Banks operating in various rural areas of the country. The main aim of introducing RRBs in India was to comfort the people living in rural areas and provide them with all the necessary banking information and facilities.

8. Micro Credit Programmes – Microcredit is used to describe small loans granted to low-income individuals that are excluded from the traditional banking system. It is part of the larger microfinance industry, which provides not only credit but also savings, insurance, and other basic financial services to the poor.

9. Agro-based Industries – Agro-based industries, in general, are those industries that have direct or indirect links with agriculture. It covers a variety of industrial, manufacturing, and processing activities based on agricultural raw materials as well as activities and services that go as inputs to agriculture.

Famine Enquiry Commission (India), 1994 defined an agro-based industry as “The industries that are involved in supplying the farm with agricultural inputs besides handling the product of the farm, maybe termed as agro-based industries”. Agro-based industries consist of processing, preservation, and preparation of agricultural produce for intermediate and final consumption. The Government has undertaken the implementation of various schemes and policies to promote agro-based industries across the country to help the farmers in raising their income.

10. Animal Husbandry – Animal husbandry refers to livestock raising and selective breeding. It is the management and care of animals in which the genetic qualities and behaviour of animals are further developed for profit. A large number of farmers depend upon animal husbandry for their livelihood.

Animals provide us with a variety of food products that have high nutritional values. Therefore, they require a lot of care and attention.

Animals are bred commercially in order to meet the high demand for food. The care, breeding, and management of animals are particularly monitored by the department of animal husbandry. Animal husbandry is a large-scale business. The animals are bred, cared for, reared, and sheltered on a farm or region, which is specially built for them. Animal husbandry involves poultry, milk farms, apiculture (bee agriculture), aquaculture, etc.

11. Fisheries – The science of harvesting or producing fish and other aquatic resources for the purpose of providing humans and for the purpose of obtaining fish products, namely oil, recreational sports, obtaining ornamental fish, and more. Basically, a fishery is defined based on the type of fish, the number of people involved, the class of boats, the method of fishing, the seabed, and the purpose of activities.

12. Horticulture – The term horticulture is derived from two Latin words Hortus, meaning ‘Garden’, and Cultura meaning ‘Cultivation’. It refers to crops cultivated in an enclosure, i.e. garden cultivation. It is an art of production, utilisation, and improvement of horticultural crops, such as fruits and vegetables, spices and condiments, ornamental, plantation, medicinal, and aromatic plants.

13. Organic Farming – Organic farming can be defined as an agricultural process that uses biological fertilisers and pest control acquired from animal or plant waste. Organic farming was actually initiated as an answer to the environmental suffering caused by the use of chemical pesticides and synthetic fertilisers. In other words, organic farming is a new system of farming or agriculture that repairs, maintains, and improves the ecological balance.

We hope that the offered Economics Index Terms for Class 11 with respect to Chapter 6: Rural Development will help you.

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