[Answered] “A focus on Rural development is must to achieve the $5 trillion economic target. Discuss.

Demand of the question
Introduction. Contextual Introduction.
Body. Why rural focus is important to achieve $5 trillion economic target? How to achieve rural development?
Conclusion. Way forward.

Rural agriculture is the main source of livelihood in India. It give livelihood to about 48% people in India contributing only about 17.5% to GDP. Thus it is evident that a focus on rural area and development would not only boost agricultural productivity but would also help in achieving inclusive growth and thus would ensure $5 trillion goal of Indian economy.

Why Rural push is important to achieve $5 trillion economy mark?

  1. Targeting policy support and investment in rural areas to build vibrant food systems and supporting agro-industries will allow more inclusive economy to thrive towards a $5 trillion mark.
  2. Transformed rural economies will generate much-needed jobs and will contribute to making out-migration to urban areas a more of a choice, rather than a necessity. This would reduce pressure on urban areas and would allow better urban planning and growth.
  3. Increase in agricultural production and the rise in the per-capita income of the rural community, together with the industrialisation and urbanisation, would lead to an increased demand in industrial production and thus economic growth.
  4. Without reaping demographic dividend locked in rural areas it is not possible to reach $5 trillion economy mark before 2022.
  5. The lessons drawn from the economic history of many advanced countries tell us that agricultural prosperity of rural areas contributed considerably in fostering economic advancement. The leading industrialised countries of today were once predominantly agricultural.
  6. Rural population is around 65% of Indian population, therefore there inclusion is must to arrive at a $5 trillion economy mark.
  7. Rural and agricultural advancement is necessary for improving the supply of raw materials for the agro-based industries especially in developing countries.
  8. The progress in agricultural sector provides surplus for increasing the exports of agricultural products. An increase in the exports earning is more desirable for economic growth.
  9. The development requires roads, market yards, storage, transportation railways, postal services and many others for an infrastructure creating demand for industrial products and the development of commercial sector.

The ways and means of rural development:

  1. Education of the masses by establishing evening schools for adults.
  2. Provisions for cheap medical aid through Ayurveda and Herbals – Naturopathy and Yogic Science should be promoted for affordable and accessible healthcare.
  3. Construction of good roads and infrastructure is important to make roadways for economic growth.
  4. Establishment and promotion of the Co-operative Credit Societies to promote Self Help Groups of that particular Local area.
  5. Co-operative system should be promoted in Agro based Industries and the advantages of the government schemes should reach to the last section of the society.
  6. Banks should not ridicule the crop Insurance scheme run by the central government. They should extend their best possible support in every way to our innocent farmers.

From the above it is evident that rural development is a must for the economic development of a country. Agricultural progress is essential to provide food for growing non-agricultural labour force, raw materials for industrial production and saving and tax revenue to support development of the rest of the economy, to earn foreign exchange and to provide a growing market for domestic manufactures. So supportive public policies and investments will be key to harnessing demand as an engine for transformative and equitable growth, and measures designed to ensure market participation by small-scale, family-farmers must be hard-wired into policies.

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