Lok Sabha Question No. 827 (UNSTARRED), answered on 2015-07-24
Subject: Economic Conditions of Rural Areas
Ministry: FINANCE
Asked by: MUZAFFAR HUSSAIN BAIG

(a) whether the Government is aware of the fragile economic conditions in the rural areas;

(b) if so, the details thereof and the reasons therefor;

(c) whether the Government has implemented/propose to implement various social sector programmes to boost economic activities in the rural areas; and

(d) if so, the details thereof and other steps being taken in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) & (b): As per latest estimates based on Tendulkar methodology, poverty ratio for rural areas declined from 41.8 percent in 2004-05 to 25.7 percent in 2011-12. The provisional results of the Socio-Economic and Caste Census (SECC) 2011, has identified that 56 per cent of rural households own no agricultural land and the major sources of income are manual casual labour for 51.14 per cent, and cultivation for 30.10 per cent of rural households.

The growth rate of Gross Domestic Product (GDP) at constant (2011-12) market prices is estimated at 5.1 per  cent,  6.9  per  cent  and  7.3  per  cent  respectively  in  2012-13,  2013-14  and  2014-15  (Provisional Estimates).  According  to  the  Economic  Survey  2014-15,  growth  rate  of  the  Indian  economy  can  be expected to be in the range of 8.1 to 8.5 per cent in 2015-16. The ramifications of improved growth can be seen  in  the  rural  areas  as  the  SECC  reports  that  while  55.38  per  cent  of  households  own  'pucca'  type houses, more than 68.35 per cent of households own mobile phones.

(c)  &  (d):    Government  has  focused  on  rural  poverty  alleviation  through  programmes  that  are  directly targeted  at  the  rural  poor  households  for  creation  of  assets,  skill  development  and  self  employment.    In order  to  ensure  that  the  benefits  of  growth  reach  the  poor  and  the  vulnerable  and  to  address  all  issues related to poverty, Government has introduced some new programmes which include Pradhan Mantri Jan Dhan Yojana, Swachh Bharat Mission (Gramin), Rupay Debit Card, Deen Dayal Kaushal Vikas Yojana, Nai Roshni, Nai Manzil, Modified Direct Benefit Transfer (MDBT) scheme, while Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana are aimed to provide universal social security cover. Besides, existing programmes like Pradhan Mantri Gram Sadak Yojana, Indira Awas Yojana,  Sarva  Siksha  Abhiyan,  National  Rural  Drinking  Water  Programme,  National  Health  Mission, National  Rural  Livelihood  Mission  (Aajeevika),  National  Social  Assistance  Programmes  etc.,  have  been continued, whereas some modifications in the existing programme such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), have been effected to make it more meaningful and outcome based.  These  programmes  are  expected  to  make  a  positive  dent  in  overall  improvement  in  economic activities  and  quality  of  life  in  rural  areas.  The  SECC  data  is  an  opportunity  to  make  evidence  based selection, prioritization and targeting of beneficiaries in different programmes.

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