Question

what can be done so that more non farm production activities can be started in villages ?

Answer 1

Non farm production activities would be increased in a rural areas by

Infrastructure the infrastructure should be made building of factories hospitals managing banks can encourage non farm production activities in rural areas

Health and education health and education will lead to human capital formation

Establishment of markets markets should be established in rural areas to encourage non farm production activities

Cheap loans the government should provide cheap loans to farmers for encouraging non-farm production activities

Answer 2

Three things that need to be done to encourage non-farm production activities in villages:

(i) The government should set up schemes whereby landless labourers and small farmers are able to get cheap loans to start small individual/community businesses.

(ii) In addition to financial assistance, the government should set up rural workshops to enable the villagers to build on their skill levels.

(iii) The government should also work towards improving the infrastructure of villages so that the rural parts of the country are well connected to the urban areas.

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