SESSION 6

PRESENTED BY GROUP A
ANNS LALU
ALINA BENNY
ARUNIMA R
HELEN BRIGHT
 INDIAN ECONOMY

RURAL SECTOR URBAN SECTOR

AGRICULTURAL NON-AGRICULTURAL
RURAL ECONOMY
India is predominantly a rural country with 65% of
population (897 million ) living in rural areas and 35% in
urban. Rural economy constitutes 40% of
national income(GDP). It is estimated that by 2050 the
urban sector will overtake the rural sector.
Traditionally, agriculture is the prime sector of rural
economy and rural employment. The transition in
composition of output and occupation from agriculture to
more productive non-farm sectors is considered as an
important source of economic growth and transformation
in rural and total economy.
CHARACTERISTICS
 Excessive dependence on nature
 High incidence of poverty
 Low per capita income
 High rate of population growth
 Existence of chronic unemployment and under-
employment
 Lack of basic infrastructure
 standard of living
DEMOGRAPHY
 Sizeof the Population –out of the total population 1380 million ,
size of rural population is 897million residing in 7 lakh villages.
When comparing the population size of rural sector from 1950 to
2020 there is a decrease by 17.89 %

 Income - An average rural consumer has a much lower income

than his urban counterpart. common traits of rural consumers are
low purchasing power, low standard of living, low per capita
income and low economic and social positions.

 Literacy-literacy rate in rural India is 64.7% , among females –

56.8 and males- 72.3% as per 2018 census. There are still some
villages which are underdeveloped. Maximum education is
primary school or in some cases high school.
 Density -. India has one of the densest rural populations
in the world , scattered across 7 lakh villages, with a
population density of up to 460 per square kilometer.
This implies that rural demand is scattered and urban
demand is concentrated.

 Sexratio - In rural area, there are 949 females to 1000

men as per 2011 census.
What is Land Use Pattern?
 The layout or arrangement of the uses of the land is known as “land
use pattern”. The land may be used for agriculture, forest, pasture
etc. Land use is determined by many factors like relief features,
climate, soil, density of population, technical and socio-economic
factors.
Land Use Classification
 Out of India’s total geographical area of 328.7 million
hectares, the statistical information about the land use pattern
in India is available for only about 305.69 million hectares. It
is based on village papers and on estimates. The land use has
changed drastically since 1950-51.
Why is it important?

Understanding land use has many benefits, but there are two that
directly affect a land buyer. First, it helps prevent a costly and time-
consuming misunderstanding when it comes to what can be built
where. For example, it prevents someone from buying a property
designated as residential with plans of building a farm. Knowing the
purpose of land allows the buyer to find the land that will work the
best for what he/she is planning.
 
On a larger scale, understanding land use helps to understand
patterns that are associated with land and urbanization.
Understanding how land was used in the past can be a significant
indicator of how the property will be used in the future. It’s safe to
assume that humans will always rely on crops and livestock as their
food sources, which highlights the importance of land designated for
agricultural use in the community.
Types of Land Use in India

 The important types of land use in the country are :-

  
 Forests area
 Land not available for cultivation
 Cultivable westeland
 Fallow land
 Net area sown
Forest area
 During 1950-51 the area under forest was only 40.48 million
hectares (14.2%) in India. But it has been increased to 80.20
million hectares (24.39%) in 2017-2018. According to National
Forest Policy 1952, the reporting area of the forest must be 33.3%
of the total land. The proportion of the forest area is not evenly
distributed in the country. Madhya Pradesh, Arunachal Pradesh,
Odisha, Maharashtra, Andhra Pradesh, Andaman Nicobar islands
are reporting more area under forest. It is due to heavy rainfall and
relief features. In contrast Dadra and Nagar Haveli, Haryana,
Punjab and Goa states have less area under forests.
Land not available for cultivation
 The land used for human settlements, transport routes, canals,
quarries, the mountains, deserts, marshes etc. are coming
under this category. It accounts 12.11% of total land in India.
Arunachal Pradesh, Rajasthan, Gujarat, and Madhya Pradesh
states are having more area under this category. In contrast,
Dadra and Haveli, Chandigarh, Andaman and Nicobar and
Sikkim are having less area under this category.
Other uncultivated lands including fallow lands
 Thiscategory includes permanent pasture and other grazing area,
land under miscellaneous tree, crops, groves and cultivable waste.
This category covers about 8.6 % of the country’s total reporting
land. The permanent pasture and other grazing are is reported high
in the states of Rajasthan, Himachal Pradesh and Madhya Pradesh.
But it is less in Manipur, Dadar and Nagar Haveli, Goa and
Andaman and Nicobar islands. The land under miscellaneous tree
crops and groves is found high in the states of Uttarakhand, Uttar
Pradesh, Odisha and Andhra Pradesh. On the other hand
Chandigarh, Goa, Delhi and Puducherry reported very less area
under this category. The cultivable waste land is found more in the
states of Rajasthan, Madhya Pradesh and Maharashtra. But it is
reported very less in Tripura, Manipur, Sikkim and Punjab states.
Fallow lands
 The land which is not utilized for cultivation for last 3 to 5
years is considered as fallow land. It may be cultivated. It
accounts for about 8.13 % of the India’s total land. The land
under this category is reported more in the states of
Rajasthan, Andhra Pradesh and Jharkhand. It is less in
Tripura, Dadar and Nagar Haveli, Puducherry and Andaman
Nicobar islands.
Net area sown
 India has a net sown area of 46.2% of the total reporting land in
India. There has been a phenomenal increase in the net area
sown during the last five decades.This increase is due to the
reclamation of barren, uncultivable land pasture land etc. As per
the land use statistics 2013-14, the total geographical area of the
country is 328.7 million hectares, of which 141.4 million
hectares is the reported net sown area and 200.9 million
hectares is the gross cropped area with a cropping intensity of
142 %.
 Net sown area has reached its maximum level in Haryana.
Punjab, Uttar Pradesh, Himachal Pradesh, Jammu and Kashmir,
Meghalaya, Nagaland, Mizoram and Arunachal Pradesh are
reporting less than 30% of net area sown.
 Irrigation
 
Concept of Irrigation
 
The artificial application of water to plant for its proper growth and
development is called irrigation.
 
Objectives of irrigation
 
 To ensure the proper growth and development of plant.
 To control soil temperature.
 The decomposition of organic matter.
 To soften tillage pans and clods.
 To control some destructives pests and diseases.
Sources of irrigation water
 Surface water irrigation:rivers,tributaries,streams,estuaries channels
lakes tanks,ponds,dams.
 
 Ground water:through shallow tubewells and deep tubewells.
 
Methods of Irrigation
 
 .Surface Irrigation
 .Sub-surface Irrigation
 .Sprinkler Irrigation
 .Drip Irrigation
A.Surface Irrigation
 Types of surface irrigation
 1.Flood irrigation :Water is allowed from the irrigation cannels into
the entire field and it slowed spread all the land.
2.Border strip irrigation
 Border strip method involves irrigation a field by dividing it into
long strips separated by low parallel borders.The size of the strip
ranges 30 to 300 m in breadth.
3.Furrow irrigation
 Water is applied in small stream between the rows of crops grown
on ridges or furrow sides.This method of irrigation is generally
used to irrigation row crops and vegetables.
4.Basin irrigation
 Basin method is almost similar to check basin method where only
the basins around the plants are irrigation.This method is suitable
for fruit crops.
B.Sub-surface irrigation
 Water is applied below the ground surface by construction trench or
installing underground perforated pipe lines or title lines.
C.Sprinkler or overhead irrigation
 This irrigation refers to application of water to crops in forms of
spray from above the crop like rain.
D.Drip irrigation
 Drip irrigation is also called micro irrigation.It refers to the
application of water at a slow drop by drop.
Conclusion
 Irrigation is the important theme for crop production.So we have to
select effective method for it and also should not select any costly
method.
Land Distribution in India

 Five facts, gleaned from the 2011-12 agricultural census and 2011
socio-economic caste census and this correspondent’s data,
summarise the failure of India’s land reforms:
 
 No more than 4.9% of farmers control 32% of India’s farmland.
 A “large” farmer in India has 45 times more land than
 the “marginal” farmer. 101.4 million–or 56.4%–of rural households
own no agricultural land.
 Only 12.9% of land marked–the size of Gujarat–for takeover from
landlords was taken over by December 2015.
 Five million acres—half the size of Haryana—was given to 5.78
million poor farmers by December 2015.
As of December 2015, land
declared “surplus” (meaning, it
could be taken away from
landlords) across India stood at
6.7 million acres; the
government took over 6.1
million acres; and distributed
5.1 million acres—less than half
the area of Haryana, or five-and-
a-half times the area of Goa—to
5.78 million people.
 
 Rural Retail Outlets

 The distribution network in India is characterized by a

predominance of family owned proprietary concerns. Although
urban areas have a range of distribution outlets, from large
supermarkets and superstores to the smaller neighborhood retail
stores, villages have only small shops that are part of the local
supply network.
 The rural retail environment primarily comprises traditional mom-
and-pop stores and a few modern retail stores that have emerged in
recent years in some pockets of the rural markets.
 Types of Retail outlets

Department Stores
 A department store is a set-up which offers wide range of products to the end-
users under one roof. In a department store, the consumers can get almost all
the products they aspire to shop at one place only. Department stores provide a
wide range of options to the consumers and thus fulfill all their shopping needs.
 Examples - Shoppers Stop, Pantaloon
Discount Stores
 Discount stores also offer a huge range of products to the end-users but
at a discounted rate. The discount stores generally offer a limited range
and the quality in certain cases might be a little inferior as compared to
the department stores.
 Wal-Mart currently operates more than 1300 discount stores in United
States. In India Vishal Mega Mart comes under discount store.
 Merchandise:
 Almost same as department store but at a cheaper price.
Supermarket
 A retail store which generally sells food products and household
items, properly placed and arranged in specific departments is
called a supermarket. A supermarket is an advanced form of the
small grocery stores and caters to the household needs of the
consumer. The various food products (meat, vegetables, dairy
products, juices etc) are all properly displayed at their respective
departments to catch the attention of the customers and for them to
pick any merchandise depending on their choice and need.
Warehouse Stores
 A retail format which sells limited stock in bulk at a discounted rate
is called as warehouse store. Warehouse stores do not bother much
about the interiors of the store and the products are not properly
displayed.
Mom and Pop Store (also called Kirana Store in India)
 Mom and Pop stores are the small stores run by individuals in the
nearby locality to cater to daily needs of the consumers staying in the
vicinity. They offer selected items and are not at all organized. The
size of the store would not be very big and depends on the land
available to the owner. They wouldn’t offer high-end products.
Speciality Stores
 As the name suggests, Speciality store would specialize in a particular
product and would not sell anything else apart from the specific
range.Speciality stores sell only selective items of one particular brand
to the consumers and primarily focus on high customer satisfaction. 
 Example -You will find only Reebok merchandise at Reebok store and
nothing else, thus making it a speciality store. You can never find
Adidas shoes at a Reebok outlet.
E Tailers
 Now a days the customers have the option of shopping while sitting
at their homes. They can place their order through internet, pay
with the help of debit or credit cards and the products are delivered
at their homes only. However, there are chances that the products
ordered might not reach in the same condition as they were ordered.
This kind of shopping is convenient for those who have a hectic
schedule and are reluctant to go to retail outlets. In this kind of
shopping; the transportation charges are borne by the consumer
itself.
 Example - EBAY, Rediff Shopping, Amazon
Malls
 Many retail stores operating at one place form a mall. A mall would
consist of several retail outlets each selling their own merchandise
but at a common platform.
Dollar Stores
 Dollar stores offer selected products at extremely low rates but here
the prices are fixed.
 
 Example - 99 Store would offer all its merchandise at Rs 99 only.
No further bargaining is entertained. However the quality of the
product is always in doubt at the discount stores.
 RURAL MARKETING

Rural marketing is a process of developing, pricing, promoting, and

distributing rural specific goods and services leading to desired exchange
with rural customers to satisfy their needs and wants, and also to achieve
organizational objectives.
The term ‘rural marketing’ used to be an umbrella term for the people who
dealt with rural people in one way or other. It got a separate meaning and
importance after the economic revaluation in India after 1990.

It is a three -way marketing process wherein

 Urban to rural
 Rural to urban
 Rural to rural
An organization follows rural marketing for the
following reasons:
 Rural Population – Consists of more than 720 million
people and forms a huge market for organizations.
 Rural Economy – Contributes significantly in the
country’s GDP. Rural India has a large number of
households who are aware about the branded products
and willing to buy them.
 Relation between Rural and Urban Economy – Refers to
economic connectivity between rural and urban areas.
 Features of Rural Marketing
More Prospective
Size
Nature
Response to marketing mix
Predictability
Role of Government
Rigidity
High Level of Heterogeneity
Components of Rural Marketing
 Existence of a good commodity for transactions
(physical existence is, however, not necessary)
 Existence of buyers and sellers.
 Business relationship or intercourse between buyers and
sellers; and.
 Demarcation of area such as place, region, country or
the whole world.
RURAL MARKETING
Affordability

Availability
MIX

Awareness

Acceptability
Changing patterns in rural
demand.
 Scope of rural marketing or demand

• Large population- The population in rural sector is

comparatively more that is spread over a wide range of area
that leads to the rising rural prosperity .The average income
has improved over the years.
• Growth in Consumption- means growth in purchasing power
of rural consumers.
•Changing lifestyle
• Life cycle advantage- many products that reached maturity
in urban areas is on the growth stage in rural areas.
•Market growth rate higher than urban areas.
•Rural marketing is not that expensive.
Other factors that lead to the changing
pattern of rural demand includes
• Employment opportunities
• Green Revolution
• Favourable Government Policies
• Literacy Growth
• Rising disposable income
• Attraction towards high standard of living
 Changing pattern of rural demand is moving very
fastly in todays world. They became more prone to
many items and new products as their income
increases their standard of living changed. The demand
of rural people increased they started demanded for
new products like toiletries, body care products,
consumer durables etc.
• The reason for the change on demand pattern is due to
1) Production of food grains has increased.This
enhCredit the purchasing power.
2) Export of food grains increased
3) Credit facilitation increased
4) Co operatives and public sector banks are
extending loans and employment opportunities
5) Emergence of cable TV, satellite and other
technologies also played important role in the
changing demand.
6 )Liberalization facilitated contract farming.
7) Remittances from Indians working abroad.
8) Marketing Efforts
Firms like HLL, Bajaj Auto, Godrej soaps,
BFL, Brooke Bond, etc. have started
penetrating rural market.
Constraints of Rural Development
There are many problems that hinders the rural
development which includes:
People related problems
Agricultural related problems
Infrastructure related problems
Economic problems
Social and Cultural problems
Leadership related problems
Administrative Problems
People related problems
• Traditional way of thinking
• Poor understanding
• Low level of education to understand
developmental efforts and new technology
•Deprived psychology and scientific orientation
•Lack of confidence
•Poor awareness
•Low level of education
•Existence of unfelt needs
•Personal ego
Agricultural related problems
•Lack of expected awareness, knowledge, skill,
and attitude
•Unavailability of inputs
•Poor marketing facility
•Insufficient extension staff and staff
•Multudimensional tasks to extension personnel
•Small size of land holding
•Division of land
•Unwillingness to work and stay in rural areas.
Infrastructural related problems
Water

•Electricity
•Transport
•Educational institutions
•Communication
•Health
•Employment
•Storage facilities etc
Economic problems
•Unfavourable economic conditions fo
adopt high cost technology •High cost of
inputs
under privileged rural industries
Leadership related problems
• leadership among the hands of inactive a d
incompetent people
•self interest of leaders
• Biased political will
Administrative problems
• Political interference
•Lack of motivation and interest
•Unwillingness to work in villages
•improper utilization of budget
•No proper monitoring of programs and lack in their
implementation.