The Core Books

Ch 5 Rural Development

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Class 11 • Indian Economic Development

NCERT Class 11 Economics Chapter 5 Questions (MCQ, One-Word or Descriptive)

This page provides complete NCERT Class 11 Indian Economic Development Chapter 5 questions, including MCQs, one-word and descriptive questions. All questions are extracted line-by-line from NCERT for full syllabus coverage and exam preparation.

This chapter, Rural Development, emphasises that real progress in India cannot be achieved without developing rural areas, where more than two-thirds of the population depends on agriculture. Rural development is a comprehensive term covering human resource development (literacy, health, skill development), land reforms, infrastructure (electricity, irrigation, credit, marketing, transport), and poverty alleviation measures.

The chapter notes that after the 1991 reforms, the agriculture sector’s growth rate decelerated to about 3% per annum (1991-2012), with volatility in recent years : the GVA growth rate was about 2% in 2023-24. Key issues addressed include rural credit, agricultural marketing, diversification into non-farm activities, and sustainable development through organic farming.

The chapter critically examines the rural credit system : from moneylenders exploiting farmers at independence to the multi-agency system of commercial banks, RRBs, cooperatives, and NABARD (established 1982). Self-Help Groups (SHGs) have emerged as a micro-credit alternative, with 6 crore women members in 54 lakh SHGs by May 2019. The Jan Dhan Yojana has expanded banking access.

For agricultural marketing, the chapter discusses regulated market yards, e-NAM (launched 2016), cooperatives (Gujarat’s milk cooperatives under Operation Flood), and policy instruments like MSP, buffer stocks, and PDS. Alternate marketing channels like Apni Mandi, Rythu Bazars, and Uzhavar Sandies are highlighted. Diversification into animal husbandry (poultry 61% of livestock), fisheries (75% inland contribution), and horticulture (6% of GDP) is presented as essential for sustainable livelihoods.

Organic farming is promoted as an eco-friendly alternative, though initial yields are lower and shelf life shorter. The chapter concludes that vibrant rural areas require diversification, infrastructure, farmer-friendly policies, and constant dialogue between farmers and the state.

Topics Covered:

Section A: Descriptive Questions

  1. What is rural development? Page 76-77
  2. What are the key areas requiring fresh initiatives for rural development in India? Page 76
  3. Why was NABARD set up and in which year? Page 78
  4. What is a Self-Help Group (SHG)? Page 78
  5. What is the Kudumbashree programme mentioned in Box 5.1? Page 78
  6. What is agricultural marketing? Page 80
  7. What are the four measures initiated by the government to improve agricultural marketing? Page 80-81
  8. What is e-NAM? Page 81
  9. What is diversification in the context of rural development? Page 82
  10. What is Operation Flood? Page 84
  11. What is the contribution of the horticulture sector to India’s GDP? Page 85
  12. What is organic farming? Page 86-87
  13. What are the benefits of organic farming? Page 87
  14. What is the Saansad Adarsh Gram Yojana (SAGY) mentioned in Box 5.3? Page 86
  15. What are the limitations of organic farming? Page 88

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Section B1: Objective MCQs

Page 76

More than what percentage of India’s population depends on agriculture?

A) One-thirdB) HalfC) More than two-thirdsD) Three-fourths
View Answer
Correct Answer: More than two-thirds
Reference: NCERT Page 76
Page 77

What was the growth rate of the agriculture sector during 1991-2012?

A) 5% per annumB) About 3% per annumC) 6% per annumD) 8% per annum
View Answer
Correct Answer: About 3% per annum
Reference: NCERT Page 77
Page 78

In which year was NABARD set up?

A) 1969B) 1982C) 1991D) 2000
View Answer
Correct Answer: 1982
Reference: NCERT Page 78
Page 78-79

By May 2019, how many women in India were members of SHGs?

A) 1 croreB) 3 croreC) 6 croreD) 10 crore
View Answer
Correct Answer: 6 crore
Reference: NCERT Page 78-79
Page 78-79

How many women SHGs existed in India by May 2019?

A) 20 lakhB) 34 lakhC) 54 lakhD) 70 lakh
View Answer
Correct Answer: 54 lakh
Reference: NCERT Page 78-79
Page 79

Under the Jan Dhan Yojana, how much accidental insurance coverage is provided to bank account holders?

A) Rs 50,000B) Rs 1-2 lakhC) Rs 5 lakhD) Rs 10 lakh
View Answer
Correct Answer: Rs 1-2 lakh
Reference: NCERT Page 79
Page 79

What is the overdraft facility amount under Jan Dhan Yojana?

A) Rs 5,000B) Rs 10,000C) Rs 25,000D) Rs 50,000
View Answer
Correct Answer: Rs 10,000
Reference: NCERT Page 79
Page 80

What percentage of farm goods are wasted due to lack of storage even today?

A) Less than 5%B) About 10%C) More than 10%D) 25%
View Answer
Correct Answer: More than 10%
Reference: NCERT Page 80
Page 80

How many rural periodic markets still need to be developed as regulated market places?

A) 5,000B) 10,000C) 27,000D) 50,000
View Answer
Correct Answer: 27,000
Reference: NCERT Page 80
Page 81-82

Which of the following is an example of an alternate marketing channel mentioned in the chapter?

A) NABARDB) Apni MandiC) FCID) RRB
View Answer
Correct Answer: Apni Mandi
Reference: NCERT Page 81-82
Page 81

Rythu Bazars are vegetable and fruit markets in which states?

A) Punjab and HaryanaB) Tamil NaduC) Andhra Pradesh and TelanganaD) Gujarat
View Answer
Correct Answer: Andhra Pradesh and Telangana
Reference: NCERT Page 81
Page 81

Uzhavar Sandies are farmers markets in which state?

A) KeralaB) KarnatakaC) Tamil NaduD) Maharashtra
View Answer
Correct Answer: Tamil Nadu
Reference: NCERT Page 81
Page 83-84

According to Chart 5.1, which category accounts for the largest share of livestock in India?

A) CattleB) BuffaloesC) PoultryD) Other animals
View Answer
Correct Answer: Poultry (61%)
Reference: NCERT Page 83-84
Page 84

In India, fish production from inland sources contributes what percentage to the total value of fish production?

A) 75%B) 65%C) 50%D) 25%
View Answer
Correct Answer: 75%
Reference: NCERT Page 84
Page 84

Total fish production accounts for what percentage of India’s GDP?

A) 0.50%B) 1.00%C) 1.50%D) 2.50%
View Answer
Correct Answer: 1.50%
Reference: NCERT Page 84
Page 85

Which country is the largest producer of mangoes, bananas, coconuts, cashew nuts, and a number of spices?

A) ChinaB) BrazilC) IndiaD) Indonesia
View Answer
Correct Answer: India
Reference: NCERT Page 85
Page 85

India is the second largest producer of which agricultural category globally?

A) RiceB) WheatC) Fruits and vegetablesD) Cotton
View Answer
Correct Answer: Fruits and vegetables
Reference: NCERT Page 85
Page 84-85

What percentage of the workforce in export marketing of fish are women?

A) 20%B) 40%C) 60%D) 75%
View Answer
Correct Answer: 60%
Reference: NCERT Page 84-85
Page 88

In the initial years, organic farming yields compared to modern agricultural farming are

A) HigherB) About the sameC) LessD) Much higher
View Answer
Correct Answer: Less
Reference: NCERT Page 88
Page 77

In 2023-24, the GVA growth rate of agriculture and allied sectors was about

A) 5%B) 2%C) 8%D) 10%
View Answer
Correct Answer: 2%
Reference: NCERT Page 77

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Section B2: Factual One-Liners

Name the apex body set up in 1982 to coordinate rural financing institutions. Page 78

Reveal Answer
NABARD (Page 78)

What does SHG stand for? Page 78

Reveal Answer
Self-Help Group (Page 78)

What does e-NAM stand for? Page 81

Reveal Answer
electronic National Agriculture Market (Page 81)

What does MSP stand for? Page 81

Reveal Answer
Minimum Support Price (Page 81)

What does PDS stand for? Page 81

Reveal Answer
Public Distribution System (Page 81)

Name the scheme that encourages adults to open bank accounts. Page 79

Reveal Answer
Jan Dhan Yojana (Page 79)

What is the new name of MNREGA mentioned in the chapter? Page 79

Reveal Answer
Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) / VB-G RAM G (Page 79)

Name the milk cooperative success story state mentioned in the chapter. Page 84

Reveal Answer
Gujarat (Page 84)

What is the term for farmers markets in Tamil Nadu? Page 81

Reveal Answer
Uzhavar Sandies (Page 81)

Name the five major milk producing states mentioned in the chapter. Page 84

Reveal Answer
Gujarat, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Maharashtra (plus Punjab, Rajasthan) (Page 84)

Which scheme was introduced in October 2014 for MPs to adopt villages? Page 86

Reveal Answer
Saansad Adarsh Gram Yojana (SAGY) (Page 86)

In which year did the Indian Parliament pass three laws to reform agricultural marketing? Page 82

Reveal Answer
2020 (Page 82)

What happened to those three farm laws later? Page 82

Reveal Answer
They were repealed (Page 82)

Name the project initiated in the late 1980s in Tamil Nadu to train women in agriculture. Page 83

Reveal Answer
Tamil Nadu Women in Agriculture (TANWA) (Page 83)

What is vermicompost? Page 83

Reveal Answer
Compost made using earthworms (Page 83)

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