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RURAL INDUSTRY

INNOVATIONS

INFRASTRUCTURE

P.SIVA NAGENDRA
RURAL INDUSTRIES:

A country is said to be economically developed nation only if the fruits of economic development
can be equitably distributed both in rural and urban areas. But in practice, the benefits of
development have been enjoyed by the people of urban areas, rather than the rural because most of
the industries are generally located in and around urban areas. But nearly three- fourth of India's
population lives in rural areas and more than two-third of the workers are engaged in agriculture and
allied activities which provide employment only for 180 days'. The pressure on agriculture is
mounting, leading to unemployment, seasonal unemployment and under employment in the rural
areas Moreover, out of the total industrial employment in the country, the large and medium
industries hardly account for about 20 Penn 2 percent, the remaining 80 percent employment is
provided by small scale industries including cottage industries. In this context, rural industries are
regarded as the thrust area of employment generation.

RURAL AREA HAS MORE SPACE THAN URBAN AND DEVELOPED AREA. SO MANY PEOPLE IN THE AREAS DEPENDS
ON FORMING AND CULTIVATIONS, THEY HAVE SMALL AMOUNT OF ECONOMIC SCALE COMPARED TO LARGE
INDUSTRIES.

I VISITED A VILLAGE NEAR TO RAJAHMAHENDRAVARAM NAME ADDATEEGALA,I LOOK WHOLE LANDSCAPE OF


THAT VILLAGE THEY ARE MORE INDUSTRIES LIKE CEMENT MARBLES AND AYURVEDA PRODUCTS LIKE WE NEVER
SEE BEFORE THEY HAS SMALL AMOUNT COMAPARED TO ENGLISH DRUGS.

AND I SAW A RICE MILL IN VILLAGE THE ONLY MILL IN THAT AREA, ALL THE PEOPLE AROUND THAT VILLAGE
TO CAME FOR MILLING THEIR CROP INTO RICE TO MAKE SOME MONEY.BRICKS INDUSTRIES GOING WELL DUE TO
AMOUNT OF SUPPLY TO CUSTOMERS.BEFORE THEY ALL USING TO BUILD THEIR HOUSE WITH PALM LEAVES AND
STICKS COMBINATION OF STICKY SOILS. NOW THEY ALL USED TO BUILD WITH BRICKS.
NEEDS FOR RURAL INDUSTRY
Large scale disguised rural unemployment is one of the main characteristics of most of the densely
populated underdeveloped economy. These economies suffer from the problem of rural over-
population, mainly dependent on agriculture as a means of livelihood. With unchanged techniques of
production, a large part of the population engaged in agriculture and allied activities may be removed
without reducing the output. Disguised rural unemployment is the main obstacle to economic
development.

A solution for the problem lies in rural industrialization through which productive employment may be
provided for excess rural population. The concentration of industries in urban areas increases the
disparities between the rural and urban income levels. Rural industrialization serves as an effective
means of reducing rural-urban disparities. It stops migration of people from rural to urban areas and
accelerates the process of rural development. In brief, to break the vicious circle of poverty,
unemployment, inequality and urbanization, rural industrialization is essential, especially when the
emphasis on a policy macro-economic growth has proved ineffective in generating balanced socio-
economic development.

Rural industrialization plays an effective role in rural transformation, generation of balanced socio-
economic development through an increase in gainful employment and a rise in income levels in the
region. Rural industrialization therefore is a part of the larger problem of regional development. Rural
industries need as special mention since their importance in the Indian context gets further
enhanced.

The researcher has now learnt enough to make a contribution to rural research. He or she has the
confidence and wit to explore new ideas and to pursue the unexpected. There is evidence enough of
this in the books by social anthropologists who have undertaken second and subsequent spells of
fieldwork. But it is precisely at this time that the able academic is chained to desk, lectern and
home. If the university rewards ability, then the more able persons are likely to be most trapped.
Ageing, ability, promotion and the domestic cycle conspire to prevent further rural contact. The
amalgam which glues these forces together and finally

For government staff, there are similar pressures and patterns. On first appointment, when ignorant
and inexperienced, technical or administrative officers are posted to the poorer, remoter, and politically
less significant areas. Those who are less able, less noticed, or less influential, remain there longer.
The more able, and those who come favorably to attention or who have friends in headquarters, are
soon transferred to more accessible or more prosperous rural areas, or to urban centers. Administration
is, anyway, an urban-based and urban-biased activity. So with promotion, contact with rural areas,
especially the remoter ones, recedes. If a serious error is committed, or a powerful politician offended,
the officer may earn a 'penal posting', to serve out punishment time in some place with poor facilities -
a pastoral area, an area without irrigation, an area distant from the capital, an area which is hot and
unhealthy - in short, a place where poorer people will be found. But the pull of 8 Rural poverty
unperceived urban life will remain: children's education, chances of promotion, congenial company,
consumer goods, cinemas, libraries, hospitals, and quite simply power; all drawing bureaucrats away
from rural areas and towards the major urban and administrative centers.
INDUSTRIES NEAR TO RURAL AREAS
RUBBER:

RUBBER IS ONE OF THE SIGNIFICANT COMMERCIAL CROPS IN INDIA. RUBBER INDUSTRY IN


INDIA HAS ACCOUNTED FOR A PRODUCTION OF 6.49 LAKH TONS FOR THE YEAR 2006.
PLACES IN INDIA WHERE RUBBER IS CULTIVATED INCLUDE AREAS OF SOUTHWEST KONKAN
AND MALABAR COAST IN KERALA AND IN SOME AREAS OF TAMILNADU, WE HAVE HERE ALSO
RUBBER CROPS IN MAREDUMILLI NEAR TO ADDATEEGALA.

POULTRY:
POULTRY BUSINESS IS ONE OF THE MAJOR CONTRIBUTORS TO THE GROWING ECONOMY OF RURAL AND SEMI-
URBAN INDIA. INDIA HAS WITNESSED A REMARKABLE GROWTH IN THE EGG AND POULTRY MEAT INDUSTRY IN THE
RECENT PERIOD. STATES OF ANDHRA PRADESH, KARNATAKA, KERALA AND TAMIL NADU CONTRIBUTE TO
AROUND 45 PERCENT OF THE TOTAL EGG PRODUCTION IN INDIA WHEREAS THE EASTERN AND CENTRAL PARTS
OF INDIA CONTRIBUTE TO AROUND 20 PERCENT OF THE SAME. INDIA IS THE SEVEN LARGEST POULTRY
PRODUCER ALL OVER THE WORLD

MILK :
The advent of dairying has been a boon for dairy farmers and of particular importance to those
segments of the society that have been traditionally weak, the small landholders, landless labourers
and women. It has provided a year-round source of income for people who previously could only
depend on payments from small seasonal crops or from occasional labour. It is estimated that up to
60-65 percent of the income of this group (marginal and small-scale farmers) now comes from
dairying. Studies have shown that dairying in rural areas surpassed crop production in terms of profit
in marginal, small and medium-sized holdings. For small-scale farmers with irrigated land, dairying
and crop production together, were more profitable than crop farming alone. Over the period,
dairying has also acquired the contours of a fully-fledged industry in the country and has positively
improved the life of those engaged in this business, directly or indirectly, bringing significant
socioeconomic changes. The Indian context for Dairy Indian agriculture is an economic symbiosis of
crop and cattle population. Millions of rural smallholder milk producers dominate India's dairy
industry, contributing 62 percent of total milk produced in the country. The milch animals are fed on
crop residues and milch animal dung is used as manure for crops. Livestock plays a vital role in the
economy; animal husbandry is the most important economic activity in rural areas. The dairy sector
today provides 80 million farm households with the triple benefits of nutritive food, supplementary
income and productive employment for family labour, mainly for women. Animal husbandry provides
self-employment to millions of households in rural areas. Dairying with crossbred cattle and high-
yielding buffaloes has become a lucrative business.

INNOVATIONS
 Coir industry is an agro based traditional industry providing means of livelihood for more than
7 lakhs of workers predominantly women. The industry is still using age old equipments and
technologies for the spinning of coir yarn and manufacture of coir products. Realising the
need for modernization of the industry, Coir Board through its research and development
programmes have developed different modern machineries and technologies for production
and processing of coir and coir products. The Board has also evolved schemes for providing
financial assistance to the entrepreneurs for setting up of coir units with modern machinery
items. In spite of these, the entrepreneurs are not keen to acquire new technologies and
install modern machinery without getting convinced on the viability of these machineries and
technologies.
 The centrality of entrepreneurship in the economic growth of nations is increasingly coming
into focus. In modern open economies, entrepreneurship is argued to be far more important
than it ever was. There is a general consensus that almost all new jobs in the last couple of
decades have been created by startups spearheaded by energetic entrepreneurs. The large
companies, if anything, have been steadily losing jobs. The economic growth led by
entrepreneurship is believed to be more comprehensive. The coir sector has also take
advantage of the emerging scenario.
 India is a young country with about 63% population currently being in the age group of 15-59
years. Every year India adds more than 5 million people eligible for securing jobs. India’s
young demographic profile has placed the country favourably in terms of manpower
availability. People can be turned to economic assets if they can be gainfully employed. This
demographic dividend requires engaging our youth in creative pursuits through developing
appropriate skills, including entrepreneurial skills in coir industry also. Added to this are the
burning issues of unemployment and poverty that continue to pose serious challenges to
polity and economy of the nation. The need of the hour, therefore, is to create ‘job
providers’ in large numbers rather than ‘job seekers’. Coir sector provides scope for
creating ‘job providers’ in the modern coir projects.
 The myth that the entrepreneurs are born, no more holds good, rather it is well recognized
now that entrepreneurs can be created and nurtured through appropriate interventions in the
form of entrepreneurship development programmes.

The objective of promoting entrepreneurship development in the country can be achieved by


providing handholding support to first generation entrepreneurs by helping them to set up
their own micro and small enterprises. In addition, in order to inculcate entrepreneurial skills
to the youth, skill development needs to be encouraged through which the youth can become
employable and/ or create their own enterprise. There are several trades which can be
covered to cater to the skill demands. Coir sector is one such trade which could be
developed in the coconut producing states. With the concerted efforts of the Coir Board and
the respective state governments, the coir industry has now proliferated to more than 14
States and Union Territories of the country. 2. Statement of problems: 2.1 Various Ministries
/ Departments of Government of India are operating
PROBLEM FACING IN RURAL INDUSTRY
Various Ministries / Departments of Government of India are operating a number of schemes to
support first generation entrepreneurs. However, most of these schemes/ departments are working
in silos. There is a need for establishing a network, building a database of these efforts in order that
these are easily accessible to the entrepreneurs to select and convert them into commercial
ventures. This would also provide a platform for sharing best practices, technological advancements
and could ultimately bring up the ground realities before the policy makers for making policy changes.

 Development of the rural economy has been one of the prime concerns for Government of
India. Accordingly, efforts have been made on a continuous basis for improving the economic
and social well-being of people in rural areas on a sustainable basis. Despite the sincere
efforts, the problems of poverty, unemployment, drudgery and migration still exist in rural
economy. There is a need to address these problems by creating employment opportunities
in the rural areas and this could be done by setting up of small enterprises in the Coir-
based industry sector more so as nearly 80 % of the workforce are women. There is ample
scope for innovation, value addition and entrepreneurship development in this sector. This is
possible only by skill up-gradation, handholding, mentoring, incubation and credit support
aimed especially at rural youth and women providing them employment opportunities at their
doorstep.
RURAL INFRASTRUCTURE
Infrastructure plays a crucial role for not just the country's economic growth

but also its progress in human development. Rural areas account for a larger

part of the geographical area in India. Census 2011 reports that there are 6.4

lakh villages in India, which shelter more than two-third of the country's

population. Provisioning of basic infrastructure facilities for this large

section of the population spread across 3.28 million square kilometer of the

country's geographical area has been a major challenge. The present status

of rural infrastructure in the country under various categories is discussed in

the following.

ROAD
India has developed a reasonably wide road network in the last few decades. World Road
Statistics 2009 says that India's road density is 1.25 km/sqkm (2008), which is higher than
that of China's 0.36 km/sqkm (2007) and Brazil's 0.20 km/sqkm (2004), and that it can be
compared to France and UK's road density of 1.72 km/sqkm (2007). As far as rural India is
concerned, the road network has been increased from 3,54,530 km in 1971 to 24,50,559 km
in 2008 ( including 10,61,809 lakh km roads constructed under Jawahar Rozgar Yojana and
Pradhan Mantri Gram Sadak Yojana) registering an annual compound growth rate of 5.4
percent over this period. However, the rural surfaced road coverage is just 33 percent of
the total rural road network in India.The kutcha roads cover a large portion in total rural
road network, which are highly vulnerable and inaccessible particularly during the rainy
season. Given the wide diversity in physical structure of the country, the need for greater
surfaced road connectivity is particularly important in the hilly terrains and low lying areas.
POWER

Electricity has become a necessity for every household. The governments at the Centre and States
have been trying to push various reforms in power sector in order to provide Electricity to people at
affordable prices. However, the aim to provide Power to all by 2012 has not been fulfilled. According
to the Central Electricity Authority, Government of India, a total of 5,56,633 villages have been
electrified, which stands at 87 percent of total villages in the country at present. However, even
within the electrified villages, many households are not connected with electricity. The Census 2011
indicates that 45 percent of the rural households are not connected with electricity and depend on
kerosene and other means for lighting. In terms of the per capita power consumption level, India
continues to be among the low performing countries in the world. India's annual per capita electricity
consumption stands at 670 kwh compared to China's 3310 kwh and USA's 13,230 kwh in 2011. The
Central Government has launched a few policies like provisioning of 1 kwh of free power per day to
the BPL families. The hybrid electricity provisioning through off-grid connectivity and power supply
from cogeneration, solar and micro-hydro projects have been some of the programmes implemented
by the Central Government to bring the remote villages under the coverage of power supply.

HOUSING

The housing conditions in rural India have not improved much. According to Census 2011, as much as
20.7 percent of the total 206 million (or 20.6 crore) occupied rural houses are with thatched roofs. These
houses are not safe for living, highly vulnerable to rainfall, wind blow, fire and many other accidents. Some
of the government interventions, such as, Indira Awas Yojana (IAY), operation of corpus funds like Rural
Infrastructure Development Fund (RIDF) by the National Bank for Agriculture and Rural Development
(NABARD) and Rural Housing Fund by the National Housing Bank, aim at promoting rural housing in the
country. However, a lot more needs to be done to provide better housing facilities to the rural population.

Health infrastructure in rural India is still quite inadequate. As on March 2011, the total of 6.4 lakh
villages in the country were covered with only 23,887 Primary Health Centres (PHCs) and 1,48,124
Sub-Centres. This shows that, on an average, 4.3 villages have one sub-centre and only one PHC
exists for as many as 27 villages. Added to this, many health centres are also run without doctors
(or absentee doctors) and in some cases treatment is done by unskilled healthcare workers.
Absence of connectivity to the villages and inadequate number of health centres and skilled health
workers still endangers the life of rural population in the country .

DRINKING WATER AND SANITATION

Provisioning of safe drinking water to every household should be one of the basic policy priorities.
However, the Census 2011 reports a mere 30 percent of rural area being covered with tapped water
supply. Households in the remaining rural areas in the country depend on other means like hand pumps,
bore well and fetching water from nearby rivers and canals etc. The poor sanitation facilities in the rural
belt have been an equally challenging issue for the government. The Census 2011 report reveals that 69.3
percent of rural households in the country still resort to open defecation. The Union Ministry of Drinking
Water and Sanitation also reports that many Primary Schools and Anganwadi Centres in the rural areas
do not yet have toilets. Hence, provisioning of safe drinking water and sanitation facilities in rural areas
need to be a top priority for the government now.

We need to remember that rural economy still plays a significant role in India's overall economy. The rural
sector has a very high potential in terms labour and natural resources, which are the basic inputs in
production process. However, among other factors, lack of adequate infrastructure has been driving the
rural labour into poverty and deprivation. Provisioning of basic infrastructure facilities would help in
tapping the vast resources in the rural areas in India. Therefore, the gaps in rural infrastructure need to
be addressed properly so as to achieve redistributive growth and alleviate poverty in the country.

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