11th Economics Chapter 5

Rural development focuses on improving areas lagging behind in the village economy's overall development. It is crucial for India's progress as over two-thirds of the population depends on agriculture, with one-fourth of rural India living in poverty, highlighting the need for a developed rural India for real progress.

Challenges in rural India include the development of human resources (such as education and health), land reforms, infrastructure development, poverty alleviation, and access to productive employment opportunities.

Credit plays a critical role in rural development by providing means for people to increase productivity in farm and non-farm activities, supporting diversification, and enabling better access to healthcare, sanitation, and education for rapid rural development.

Agricultural diversification is essential to reduce risk in the agriculture sector and provide sustainable livelihood options. It allows for increased productivity, better access to resources, and opportunities for diversification into non-farm productive activities.

Organic farming is an environmentally sustainable production process that avoids synthetic inputs. It promotes sustainable development by preserving soil fertility, reducing environmental impact, and producing healthier food. It also has advantages for both domestic and international markets.