Question

Discuss the importance of credit in rural development

Answer 1

Savings and credit are two sides of a coin which play an important role in rural develpment . One can not exist without the other. saving provide capital for items like machinery and irrigation system . Credit helps borrower for short term production inputs or provide daily ecpenses interm period

Answer 2

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✦ To realise higher productivity in agriculture adequate credit is required by agriculturist .

✦ The timely availability of credit helps in enhancing the confidence of the farmer has there is in gap between crop sowing and realisation of income after production .

✦ Credit from government Agencies helps in relieving the farmers from the burden of local money lenders and traders .

✦ That provides strong base for an efficient growth of agriculture sector .

✦ Credit enables the farmers to have faith in themselves as Indian agriculture, even after 59 years of independence ,is still dependent on the vagaries of monsoon .