Rural Development Class 11 Economics Exam Questions

Exam Questions Class 11

Please refer to Rural Development Class 11 Economics Exam Questions provided below. These questions and answers for Class 11 Economics have been designed based on the past trend of questions and important topics in your class 11 Economics books. You should go through all Class 11 Economics Important Questions provided by our teachers which will help you to get more marks in upcoming exams.

Class 11 Economics Exam Questions Rural Development

Class 11 Economics students should read and understand the important questions and answers provided below for Rural Development which will help them to understand all important and difficult topics.

1. Rural development means an action-plan for the economic and social upliftment of rural areas.
2. It aims at improving the quality of life of people living in villages.
3. It focuses on the action for the development of areas that are lagging behind in the overall development of the village economy.


• Development of human resources including– literacy, more specifically, female literacy, education and skill development– health, addressing both sanitation and public health
• Land reforms
• Development of the productive resources of each locality
• Infrastructure development like electricity, irrigation, credit, marketing, transport facilities including construction of village roads and feeder roads to nearby highways, facilities for agriculture research and extension, and
information dissemination
• Special measures for alleviation of poverty

Rural 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. 

At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap.

A major change occurred after 1969 when India adopted social banking and multiagency approach to adequately meet the needs of rural credit.

National Bank for Agriculture and Rural Development (NABARD) was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system.

This becomes more concrete when the Green Revolution came into begin and changed the credit system of the country, resulting in a productive lead of rural credit.

The institutional structure of rural banking today consists of a set of multi-agency institutions, namely, commercial banks, regional rural banks (RRBs), cooperatives and land development banks. They are expected to dispense adequate credit at cheaper rates.

Recently, Self-Help Groups (henceforth SHGs) have emerged to fill the gap in the formal credit system because the formal credit delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development. Since some kind of collateral is
required, vast proportion of poor rural households were automatically out of the credit network.

The SHGs promote thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small sare instalments rates. Such credit provisions  micro-credit programmes.

The four Government Measures to Improve Agriculture Marketing

1.The first step was transparent marketing conditions.
2.Second facilities like roads, and processing units. The inadequate to meet the growing demand
3. The third aspect is to decide on the fair price for the product
4. The fourth element is the
(i) assurance of products
(ii) maintenance  Corporation of India and 
(iii) distribution of food grains and sugar 
These instruments are aimed at protecting the income of the providing food grains at a subsidised rate to the poor.

Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions

Rural Banking — a Critical Appraisal Rapid expansion of the banking system had a positive effect on rural farm and non especially after the green revolution
credit facilities and a variety of loans for 


Agricultural marketing is a method that includes gathering, storage, preparation, shipping, and delivery of different farming materials across the country. In agriculture marketing, the selling of an agriculture product depends on various components like the demand for the etc.

Before Independence, farmers while selling their products to traders experienced massive incorrect weighing and manipulation of accounts. The farmers who did not have required information about the prices with no proper storage facility. Sometimes, the product could be sold at a weekly village market in the farmer’s village or in a neighbouring village. If these shops are not available, then the product is sold at irregular markets in a nearby town, or in the mandi. So, the government took various measures to control the activities of the traders.

Q1) What are the alternative channels available for agricultural marketing? Give some example.


Farmers market (mandi /bazars)
• It started to give small farmers direct access to the consumers and eliminating the middlemen.
• Few examples are:1. Apni Mandi in Punjab, Haryana and Rajasthan2. Hadaspar Mandi in Pune
3. Rythu Bazars in Andhra Pradesh
4. Uzhavar Sandies (farmers market) in Tamil Nadu.

Collaboration with national and multinational companies
• Many national and international fast foods are rapidly getting into a contract with farmers.
• They encourage the farmers to produce high quality fruits and vegetables by providing them not only seeds and other materials but also guarantee procurement of the product at pre decided prices.
• This type of arrangements reduces price risk for farmers and increase farm product in the market.

Rural Development Class 11 Economics Exam Questions

Agricultural diversification is one of the essential components of economic growth.
It is the stage where traditional agriculture is transformed into a dynamic and commercial sector by shifting the traditional agricultural product mix to high standard products,which has a high potential in stimulating production rate.

Rural Development Class 11 Economics Exam Questions

oultry and Livestock
• Animal Husbandry- Most of the farmers use mix crop -livestock system to increase their standards of living and income. Animal Husbandry is an
agricultural branch that deals with the practices of farming, breeding, and care of farm animals such as cattle, dogs, sheep, and horses In India about 70 million small, and medium farmers, labours, and a large number of women are dependent in the livestock sector.

• Fisheries- Aquaculture or fisheries is an important part of food production providing economic security to the millions of people besides livelihood support. In India, the total fish production contribution from inland sources is about 64% and 36% from the marine sector (sea and oceans). Today, fisheries contribute a total of 0.8% of the total GDP.

Husbandry- It is agriculture that deals with plantation of the garden crop, especially Horticultureespecially vegetables, fruits, flowers, tuber crops, species, and ornamental or medicinal plants, etc. These plants provide food and nutrition besides providing employment. In India, the horticulture sector 
GDP and one-third of agriculture output.

Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions

SUSTAINABLE DEVELOPMENT AND ORGANIC FARMING Organic farming can be defined as an agricultural process that uses biological fertilizers and pest control acquired from animal or plant waste.
In other words, organic farming is a new system of farming or agriculture that repairs, maintains and improves the ecological balance.

Advantages of Organic Farming • Economical- In organic farming no expensive fertilizers, pesticides, HYV seeds are required for the plantation of crops. Therefore, no extra expense.
Good return on Investment- With the usage of cheaper and local inputs, a farmer can make a good return on investment.
High Demand There is a huge demand for the organic product in India and across the globe, generating more income through export.
Nutritional- As compared to chemical and fertilizer utilized products, organic products are more nutritional, tasty, and good for health.
• Environment-Friendly- The farming of organic product is free of chemical and fertilizers, so it doesn’t harm the environment.

Disadvantages of Organic Farming
Incompetent – The major issue of organic farming is the lack of Inadequate infrastructure and marketing of the product.
Less production- The organic farming products are lesser in the initial years as compared to the chemical product. So, the farmers find it difficult to accommodate large scale production.
Shorter shelf-life- Organic products have more flaws and shorter shelf life than the chemical product.
Limited production Off-season crops are limited and have fewer choices option in organic farming.

Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions
Rural Development Class 11 Economics Exam Questions

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