Table of Contents
Class 11 Economics Chapter 5 – Rural Development Important Questions
Rural Development is one of the most important chapters in NCERT Class 11 Economics for board examinations and competitive exams. This chapter covers key concepts such as rural credit, agricultural marketing, SHGs, NABARD, diversification of productive activities, animal husbandry, fisheries, horticulture and organic farming. The following MCQs, one-word questions, assertion and reason questions and descriptive questions are designed for complete NCERT-based revision.
These important questions are highly useful for UPSC, CUET, SSC, Railway, PSC and school examinations. The question bank includes conceptual, factual and analytical questions extracted from all major NCERT topics, examples, boxes, schemes, statistics and case studies discussed in the chapter.
MULTIPLE CHOICE QUESTIONS (MCQs)
These MCQs from Rural Development help students revise important NCERT concepts related to rural economy, agricultural marketing, diversification, rural banking, SHGs, sustainable farming and government initiatives.
1. Rural development mainly focuses on:
A. Urban industrialisation
B. Development of lagging rural areas
C. Foreign trade
D. Inflation control
2. More than two-thirds of India’s population depends on:
A. Mining
B. Services
C. Agriculture
D. Trade
3. Rural development includes:
A. Only agriculture
B. Only industrialisation
C. Human resource and infrastructure development
D. Export promotion only
4. Which among the following is a component of rural infrastructure?
A. Irrigation
B. Transport
C. Credit facilities
D. All of these
5. Which sector witnessed deceleration after economic reforms?
A. IT sector
B. Banking sector
C. Agriculture sector
D. Mining sector
6. Rural credit is necessary mainly because:
A. Farmers need funds before harvest
B. Farmers avoid working
C. Crops grow instantly
D. Inputs are free
7. Before independence, farmers were mainly exploited by:
A. Commercial banks
B. SHGs
C. Moneylenders and traders
D. Cooperatives
8. NABARD was established in:
A. 1969
B. 1975
C. 1982
D. 1991
9. NABARD is:
A. Rural marketing agency
B. Apex body for rural financing
C. International bank
D. Export institution
10. SHGs mainly promote:
A. Luxury spending
B. Large-scale industries
C. Thrift and micro-credit
D. Heavy industries
11. Micro-credit programmes mainly help:
A. Rich farmers
B. Urban exporters
C. Poor rural households
D. Industrialists
12. Which scheme encouraged adults to open bank accounts?
A. MGNREGA
B. Jan-Dhan Yojana
C. PM-KISAN
D. SGSY
13. Agricultural marketing includes:
A. Storage
B. Transportation
C. Packaging
D. All of these
14. Regulated markets were created to:
A. Increase exploitation
B. Create transparent marketing conditions
C. Eliminate agriculture
D. Reduce production
15. Which organisation maintains buffer stocks of wheat and rice?
A. RBI
B. FCI
C. NABARD
D. SEBI
16. MSP stands for:
A. Market Selling Price
B. Minimum Storage Policy
C. Minimum Support Price
D. Maximum Support Price
17. Which system distributes food grains at subsidised rates?
A. GST
B. SHG
C. PDS
D. MSME
18. Apni Mandi is an example of:
A. Rural bank
B. Alternative marketing channel
C. Cooperative bank
D. Fertiliser scheme
19. Diversification means:
A. Dependence on one crop
B. Shift to allied and non-farm activities
C. Urbanisation
D. Privatisation
20. Which of the following is an allied activity?
A. Poultry
B. Fisheries
C. Animal husbandry
D. All of these
21. Which livestock has the largest share in India?
A. Sheep
B. Goats
C. Poultry
D. Camels
22. Operation Flood is associated with:
A. Fisheries
B. Dairy development
C. Organic farming
D. Irrigation
23. Which state is considered a success story in milk cooperatives?
A. Bihar
B. Gujarat
C. Odisha
D. Assam
24. Inland fisheries contribute approximately what percentage of fish production?
A. 25%
B. 40%
C. 50%
D. 75%
25. Horticulture contributes nearly what share of agricultural output value?
A. One-third
B. Half
C. One-fourth
D. Two-thirds
26. India is a world leader in production of:
A. Mangoes
B. Bananas
C. Spices
D. All of these
27. Organic farming is associated with:
A. Heavy chemical use
B. Eco-friendly agriculture
C. Industrial pollution
D. Artificial flavouring
28. Organic farming helps:
A. Soil degradation
B. Sustainable development
C. Chemical pollution
D. Overfishing
29. Organic products usually command:
A. Lower prices
B. Equal prices
C. Higher prices
D. No market value
30. Which project trained women in organic farming in Tamil Nadu?
A. SGSY
B. TANWA
C. PMGSY
D. AMUL
31. Which programme in Kerala became one of the largest informal banks in Asia?
A. Kudumbashree
B. Operation Flood
C. e-NAM
D. TANWA
32. e-NAM refers to:
A. National employment scheme
B. Online agricultural marketing portal
C. Export bank
D. Insurance policy
33. Rural diversification reduces:
A. Employment
B. Income opportunities
C. Risk from agriculture dependence
D. Infrastructure
34. Which sector provides livelihood to over 70 million small and marginal farmers?
A. Mining
B. Livestock sector
C. Tourism
D. Banking
35. Organic farming generally requires:
A. Less labour
B. More labour
C. No labour
D. Machine labour only
Looking for the other chapters questions to revise ?
NCERT Class 11 Economics Chapter 7 Environment and Sustainable Development Important Questions
NCERT Class 11 Economics Chapter 4 Human Capital Formation in India Important Questions and MCQs
NCERT Class 11 Economics Chapter 2 Indian Economy 1950–1990 Important Questions with Answers
ONE-WORD / VERY SHORT ANSWER QUESTIONS
These one-word and very short answer questions from Rural Development are useful for quick revision of rural banking, agricultural marketing, diversification and organic farming concepts.
| # | Question | Answer Details |
|---|---|---|
| 1 | Which sector is the major source of livelihood in rural India? | Agriculture Page: 76 |
| 2 | Expand NABARD. | National Bank for Agriculture and Rural Development Page: 78 |
| 3 | In which year was NABARD established? | 1982 Page: 78 |
| 4 | What do SHGs stand for? | Self-Help Groups Page: 78 |
| 5 | What type of lending is provided through SHGs? | Micro-credit Page: 79 |
| 6 | Which scheme encouraged mass opening of bank accounts? | Jan-Dhan Yojana Page: 79-80 |
| 7 | Which corporation maintains buffer stocks? | Food Corporation of India Page: 81 |
| 8 | Expand MSP. | Minimum Support Price Page: 81 |
| 9 | Expand PDS. | Public Distribution System Page: 81 |
| 10 | Name the alternative marketing channel in Punjab and Haryana. | Apni Mandi Page: 81 |
| 11 | Name the farmers’ market in Tamil Nadu. | Uzhavar Sandies Page: 81 |
| 12 | Which activity includes rearing cattle and goats? | Animal Husbandry Page: 83 |
| 13 | Which programme revolutionised milk production? | Operation Flood Page: 84 |
| 14 | Which state became famous for milk cooperatives? | Gujarat Page: 84 |
| 15 | Which sector contributes nearly one-third of agricultural output value? | Horticulture Page: 85 |
| 16 | Which farming method avoids chemical fertilisers? | Organic Farming Page: 86 |
| 17 | Expand TANWA. | Tamil Nadu Women in Agriculture Page: 83 |
| 18 | Which women-oriented poverty reduction programme operates in Kerala? | Kudumbashree Page: 78 |
| 19 | Which portal connects mandis online? | e-NAM Page: 81 |
| 20 | Which farming system maintains ecological balance? | Organic Agriculture Page: 87 |
| 21 | Which livestock category has the highest share in India? | Poultry Page: 83 |
| 22 | Which fishery source contributes most to fish production? | Inland Sources Page: 84 |
| 23 | Which crop category includes fruits and vegetables? | Horticulture Page: 85 |
| 24 | Which government scheme involved MPs developing villages? | SAGY Page: 86 |
| 25 | Expand SAGY. | Saansad Adarsh Gram Yojana Page: 86 |
ASSERTION AND REASON QUESTIONS
These assertion and reason questions from Rural Development help students strengthen conceptual clarity and analytical understanding for board exams and competitive examinations.
Question 1
Assertion (A): Rural development is necessary for India’s overall progress.
Reason (R): Majority of India’s population depends on agriculture.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Question 2
Assertion (A): Farmers require credit before harvest.
Reason (R): There is a long gestation period between sowing and income realisation.
Question 3
Assertion (A): SHGs promote thrift and self-employment.
Reason (R): SHGs provide loans at reasonable interest rates.
Question 4
Assertion (A): Rural banking completely solved all rural credit problems.
Reason (R): Loan default rates remain high in agriculture.
Question 5
Assertion (A): Agricultural marketing includes transportation and storage.
Reason (R): Agricultural products move through market channels before consumption.
Question 6
Assertion (A): Government regulates agricultural markets.
Reason (R): Farmers were exploited through faulty weighing and manipulation.
Question 7
Assertion (A): Diversification reduces dependence on agriculture.
Reason (R): Agriculture alone cannot provide sustainable livelihood to all rural people.
Question 8
Assertion (A): Poultry has the largest share among livestock in India.
Reason (R): Poultry farming provides quick returns and employment.
Question 9
Assertion (A): Operation Flood improved dairy development in India.
Reason (R): Milk cooperatives ensured fair prices to farmers.
Question 10
Assertion (A): Organic farming supports sustainable development.
Reason (R): Organic farming avoids excessive use of chemical fertilisers and pesticides.
Question 11
Assertion (A): Organic products command higher prices in markets.
Reason (R): Demand for organic food is increasing globally.
Question 12
Assertion (A): Horticulture is important for employment generation.
Reason (R): Horticulture includes labour-intensive activities.
Question 13
Assertion (A): IT has no role in rural development.
Reason (R): IT can disseminate information on weather and crop conditions.
Question 14
Assertion (A): Inland fisheries contribute more than marine fisheries in India.
Reason (R): Inland fish production contributes about 75% of total fish production.
Question 15
Assertion (A): Infrastructure development is essential for rural development.
Reason (R): Infrastructure improves productivity and market access.
IMPORTANT EXAM-BASED CONCEPT QUESTIONS
These conceptual and descriptive questions are highly important for board exams, CUET, UPSC, SSC and university entrance examinations.
- Explain the meaning and objectives of rural development.
Page Reference: 76 - Discuss the major issues associated with rural development in India.
Page Reference: 76-77 - Explain the importance of rural infrastructure in rural development.
Page Reference: 76 - Analyse the causes of agricultural distress in rural India.
Page Reference: 77 - Explain the role of rural credit in agricultural development.
Page Reference: 77-78 - Discuss the importance and functions of NABARD.
Page Reference: 78 - Explain the role of SHGs in rural development.
Page Reference: 78-79 - Critically evaluate the rural banking system in India.
Page Reference: 79 - Explain how Jan-Dhan Yojana promotes rural development.
Page Reference: 79-80 - What is agricultural marketing? Explain its major functions.
Page Reference: 80 - Discuss the problems faced by farmers before regulation of agricultural markets.
Page Reference: 80 - Explain government measures to improve agricultural marketing.
Page Reference: 80-81 - Analyse the role of MSP and buffer stocks in protecting farmers.
Page Reference: 81 - Explain the importance of alternative marketing channels.
Page Reference: 81-82 - Discuss the meaning and importance of diversification in rural development.
Page Reference: 82 - Explain the role of non-farm employment in rural areas.
Page Reference: 82-83 - Discuss the importance of animal husbandry in rural diversification.
Page Reference: 83-84 - Explain the role of Operation Flood in dairy development.
Page Reference: 84 - Analyse the problems faced by fishing communities in India.
Page Reference: 84 - Explain the importance of horticulture in improving rural livelihoods.
Page Reference: 85 - Discuss the role of women in rural diversification activities.
Page Reference: 83-85 - Explain how IT can support sustainable rural development.
Page Reference: 86 - What is organic farming? Explain its features.
Page Reference: 86-87 - Discuss the benefits of organic farming.
Page Reference: 87 - Explain the limitations of organic farming.
Page Reference: 88 - Why is organic farming considered environmentally sustainable?
Page Reference: 86-88 - Discuss the significance of cooperative marketing in India.
Page Reference: 81 - Explain the role of infrastructure in horticulture and fisheries development.
Page Reference: 85-86 - Discuss the importance of eco-friendly technologies in rural development.
Page Reference: 88 - Explain how diversification can reduce rural poverty.
Page Reference: 82-88 - Discuss the role of women SHGs in rural empowerment.
Page Reference: 78-79 - Explain the contribution of fisheries to India’s economy.
Page Reference: 84 - Analyse the importance of credit facilities in fisheries and livestock sectors.
Page Reference: 84-85 - Explain the role of cooperative institutions in milk production.
Page Reference: 84 - Why is sustainable development important for rural India?
Page Reference: 86-88
VERY IMPORTANT BOARD EXAM QUESTIONS
- Explain the concept and importance of rural development.
- Discuss the role of NABARD and SHGs in rural credit.
- Explain the measures taken by the government to improve agricultural marketing.
- Discuss the importance of diversification in rural livelihoods.
- Explain the contribution of animal husbandry, fisheries and horticulture to rural development.
- What is organic farming? Explain its advantages and limitations.
- Analyse the role of infrastructure in rural development.
- Explain the significance of alternative marketing channels.
- Discuss the role of women in rural development activities.
- Explain how sustainable development can be achieved through organic farming.
IMPORTANT FACTUAL & DATA-BASED QUESTIONS
1. About how many women SHGs existed in India by May 2019?
Answer: 54 lakh women SHGs
Page Reference: 79
2. How many crore women became members of SHGs by May 2019?
Answer: Nearly 6 crore women
Page Reference: 79
3. How many crore bank accounts were opened under Jan-Dhan Yojana?
Answer: More than 50 crore
Page Reference: 80
4. Approximately what percentage of farm produce is wasted due to lack of storage?
Answer: More than 10%
Page Reference: 80
5. What share does poultry hold in India’s livestock distribution?
Answer: 61%
Page Reference: 83
6. About how many million cattle were present in India in 2019?
Answer: 303 million
Page Reference: 84
7. How much did milk production increase between 1951 and 2021?
Answer: About twelve times
Page Reference: 84
8. Inland fisheries contribute what percentage to fish production value?
Answer: About 75%
Page Reference: 84
9. Horticulture contributes approximately what percentage to India’s GDP?
Answer: About 6%
Page Reference: 85
10. Organic foods may command how much higher prices than conventional products?
Answer: Around 10-100% higher
Page Reference: 87
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