Rural development is the process of improving the quality of life and economic well-being of people living in rural areas. According to 2011 Census 68.84% of population lives in villages. The backwardness of the rural sector would be a major impediment to the overall progress of the economy. India is predominately an agricultural country and farming is their main occupation. According to 2011 Agricultural Census of India, an estimated 61.5% dependent on agriculture. Technical developments in field of agriculture have increased the gap between the rich and poor, as the better off farmers adopted modern farm technology to a greater extent than the small farmers. The all India Rural Credit Review Committee in its report warned “If the fruits of development continue to be denied to the large sections of rural community, while prosperity accrues to some, the tensions social and economic may not only upset the process of orderly and peaceful change in the rural economy but even frustrate the national affords to set up agricultural production. ’’ Report of the All India Rural Credit Committee, New Delhi, 2003 has rightly pointed out that a purely agricultural country remains backward even in respect of agriculture. Most of the labour force in India depends on agriculture, not because it is remunerative but because there are no alternative employment opportunities. This is a major cause for the backwardness of Indian agriculture. A part of the labour force now engaged in agriculture needs to be shifted to non-agricultural occupations. Until the 1970s, rural development was synonymous with agricultural development and hence focused on increasing agricultural production. Today, Inclusive rural development is more specific concept than the concept of rural development of earlier, in broader terms, inclusive rural development is about improving the quality of life of all rural people.

Which of the following is the reason behind the increased borrowing of farmer in the rural sector?

1. To meet the investment need of the farmer in the initial phases of farming.
2. To meet personal and family expenses like education and marriage of their child.
3. The gestation period of crop sowing and realisation of income is less.

A and B

The correct answer is option 1: A and B

1. To meet the investment need of the farmer in the initial phases of farming. : This correct.
2. To meet personal and family expenses like education and marriage of their child. : This is correct.
3. The gestation period of crop sowing and realisation of income is less.This is incorrect. The gestation period of crop sowing and realisation of income is more (not less as mentioned in the statement).

"Credit:Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agriculture sectors. As the time gestation between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilisers, implements and other family expenses of marriage, death, religious ceremonies etc."