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Class 11 (FYJC / HSC)Economics2026-27 Syllabus

Chapter 5 Rural Development in India Solutions

Complete Maharashtra State Board Balbharati & Yuvakbharati textbook solutions for Chapter 5 Rural Development in India. Step-by-step solved exercises, numerical problems, and digest answers.

17 Solved Questions1640 words

Maharashtra State Board Class 11 Economics Solutions Chapter 5 Rural Development in India

1. Complete the following Statements:

Question 1 Maharashtra Board Solution
Rural credit system assumes importance because _____________ (a) it leads to an increase in rural income. (b) savings are inadequate to finance farming and other economic activities. (c) it leads to the overall development of the rural areas. (d) it leads to a reduction in rural inequality.
Solution & Step-by-Step Answer:
(b) savings are inadequate to finance farming and other economic activities.
Question 2 Maharashtra Board Solution
Productive loans are economically justified because _____________ (a) they are related to agricultural production (b) they are used for personal consumption (c) they help in the eradication of poverty (d) they improve the quality of life of the people
Solution & Step-by-Step Answer:
(a) they are related to agricultural production
Question 3 Maharashtra Board Solution
Small farmers are unable to access rural credit provided by banks due to _____________ (a) presence of money lenders (b) no branches in rural areas (c) high transaction costs (d) preference is given to large farmers
Solution & Step-by-Step Answer:
(c) high transaction costs
Question 4 Maharashtra Board Solution
The rights of socially disadvantaged groups can be safeguarded through _____________ (a) empowerment of women (b) proper enforcement of law and order (c) infrastructural development (d) improvement in quality of life
Solution & Step-by-Step Answer:
(b) proper enforcement of law and order
Question 5 Maharashtra Board Solution
The quality of life of the rural people can be improved by _____________ (a) providing safe drinking water, health, and hygiene facilities (b) effective implementation of land reforms (c) providing subsidized credit facilities (d) reducing rural inequality
Solution & Step-by-Step Answer:
(a) providing safe drinking water, health, and hygiene facilities

2. Choose the wrong pair:

Question (i).

A. Agricultural Credit

B. Requirement

1. Short-term

(a) Purchase of fertilizers

2. Medium-term

(b) To meet expenditure on marriages

3. Long-term

(c) To buy a tractor

Answer:
Wrong Pair: Medium-term – To meet expenditure on marriages

Question (ii).

A. Rural Occupational Structure

B. Activity

1. Agricultural sector

(a) Banking and Insurance

2. Industrial sector

(b) Processing of raw materials

3. Service sector

(c) Computer-related service

Answer:
Wrong Pair: Agricultural sector – Banking and Insurance

3. Assertion and Reasoning questions:

Question 1 Maharashtra Board Solution
Assertion (A): Indian economy is predominantly rural economy Reasoning (R): As per the 2011 census, the country’s rural population is almost 83.25 crore (68.8% of the total population) Options: (i) (A) is true but (R) is False (ii) (A) is false but (R) is True (iii) Both (A) and (R) are true and (R) is the correct explanation of (A) (iv) Both (A) and (R) are true but (R) is not the correct explanation of (A)
Solution & Step-by-Step Answer:
(iii) Both (A) and (R) are true and (R) is the correct explanation of A.
Question 2 Maharashtra Board Solution
Assertion (A): Literacy is a powerful instrument of socio-economic change. Reasoning (R): Empowerment of women helps to reduce gender disparity. Options: (i) (A) is true, but (R) is False (ii) (A) is false, but (R) is True (iii) Both (A) and (R) are true and (R) is the correct explanation of (A) (iv) Both (A) and (R) are true but (R) is not the correct explanation of (A)
Solution & Step-by-Step Answer:
(iv) Both (A) and (R) are true but (R) is not the correct explanation of (A)
Question 3 Maharashtra Board Solution
Assertion (A): Agricultural credit is mostly for unproductive purposes. Reasoning (R): Agricultural credit is an important prerequisite for agricultural growth. Options: (i) (A) is true, but (R) is False (ii) (A) is false, but (R) is True (iii) Both (A) and (R) are true but (R) is the correct explanation of (A) (iv) Both (A) and (R) are true but (R) is not the correct explanation of (A)
Solution & Step-by-Step Answer:
(ii) (A) is false, but (R) is True
Question 4 Maharashtra Board Solution
Assertion (A): Non-institutional finance forms an important part of rural credit. Reasoning (R): Small farmers are unable to access bank credit because of borrowers’ unfriendly products. Options: (i) (A) is true, but (R) is False (ii) (A) is false, but (R) is True (iii) Both (A) and (R) are true and (R) is the correct explanation of A (iv) Both (A) and (R) are true, but (R) is not the correct explanation of A
Solution & Step-by-Step Answer:
(iv) Both (A) and (R) are true, but (R) is not the correct explanation of (A)

4. Identify and explain the concepts from the given illustrations:

Question 1 Maharashtra Board Solution
Kusumatai knowingly set up her business enterprise in the rural area so that people living there could be gainfully employed.
Solution & Step-by-Step Answer:
Rural Development. Rural development is a strategy designed to improve the economic and social life of a specific group of people i.e rural poor. It involves extending the benefits of development to the poor staying in rural areas.
Question 2 Maharashtra Board Solution
Raoji purchased a new tractor for his farm by taking a loan.
Solution & Step-by-Step Answer:
Long Term Loan. A long-term loan is taken for a period of more than 5 years. It is generally taken for buying tractors, making permanent improvements on the land, etc.
Question 3 Maharashtra Board Solution
Subsidized credit is provided by banks to small farmers for the purchase of High Yielding Variety (HYV) seeds.
Solution & Step-by-Step Answer:
Short Term Loan. A short-term loan is taken for a period not exceeding two years. It is taken to meet short-term requirements like buying fertilizers, buying HYV seeds, etc.
Question 4 Maharashtra Board Solution
Damaji borrows a loan from a credit society established in the village this season rather than taking it from a moneylender.
Solution & Step-by-Step Answer:
Institutional Source of Credit. It includes commercial banks, Regional Rural Banks (RRB’s), Rural Co-operative Credit Institutions, etc. They provide loans to farmers for agricultural productive activities at a lower rate of interest.
Question 5 Maharashtra Board Solution
Ramraoji takes a loan from the bank for a period of ten years subject to terms and conditions for the purpose of irrigated farming.
Solution & Step-by-Step Answer:
Long Term Loan. A long-term loan is taken for a period of more than 5 years and is generally taken to buy a tractor or making permanent improvements on the land.

5. Read the following passage carefully and answer the questions given below:

Rural development is one of the thrust areas of administration. As Mahatma Gandhi rightly said, “India lives in villages and the development of the nation cannot be achieved without the development of the villages”. The need of the hour is the convergence of all development interventions, at the grass-root level which can be possible through effective governance at the village level. The movement towards decentralization of the National and State governments through the Panchayati Raj system needs to be strengthened through lessons learned from the ‘successful stories of Model villages’ around India. Though India is progressing in the right direction in reducing education inequalities and increasing literacy levels, there is still a lot that needs to be done. An understanding of social issues is important for effective planning and policy development. Self-governance ensures that Indian citizens, even the previously marginalized, can participate in decision-making.

Questions 1.
Explain in short Mahatma Gandhi’s views on rural development.
Answer:
According to Mahatma Gandhi, “India lives in villages and the development of the nation cannot be achieved without the development of the villages.”
It means rural development is necessary for the development of the nation.

Question 2 Maharashtra Board Solution
Highlight the role of the government in achieving rural development.
Solution & Step-by-Step Answer:
The role of the government in achieving rural development is very important. It needs the convergence of all development interventions at the grass-root level which can be possible through effective governance at the village level.
Question 3 Maharashtra Board Solution
What measures have been suggested to achieve rural development?
Solution & Step-by-Step Answer:
Following measures are suggested to achieve rural development:
Question 4 Maharashtra Board Solution
Express your idea of a ‘Model Village’.
Solution & Step-by-Step Answer:
India is a country of villages. My idea of a model village is as follows:

11th Economics Digest Chapter 5 Rural Development in India Intext Questions and Answers

Find out: (Textbook Page No. 34)

Information about the latest achievements of NABARD.
Answer:
NABARD plays a pivotal role in reducing regional inequality and help small farmers, marginal farmers, and weaker sections of society.

Achievements:
(i) Refinance – short term loans:
In the year 2017-18, NABARD sanctioned short-term credit limits of ₹ 55,000 crores for seasonal agricultural operations to financial institutions.

(ii) Refinance – long term loans:
In the year 2017-18, refinance of ₹ 65,240 crores has been provided to financial institutions to carry forward a wide gamut of activities comprising of farm and non-farm activities.

(iii) Rural Infrastructure development fund:
NABARD disbursed ₹ 24,993 crores in RIDF which has now contributed substantially to the rural infrastructure funding.

(iv) Pradhan Mantri Awaas Yojana – Grameen (PMAY-G):
NABARD released ₹ 7,329.43 crores in 2017-18 to the National Rural Infrastructure Development Agency (NRIDA). Financial assistance was further provided by PMAY-G that planned to provide houses with basic amenities to houseless households by 2022.

(iv) Food Processing Fund:
To promote the food processing industry the Government of India instituted a special fund in NABARD in the year 2014-15. However, as of 31st March 2018, 11 Mega Food Park Projects, one integrated Food Park Project and three Food Processing Units have been sanctioned.

(v) Watershed Development:
Watershed Development programmes in 27 states have been sanctioned as of 31st March 2018.

(vi) Tribal Development:
712 projects have been sanctioned covering ₹ 5.21 lakh tribal families. ₹ 2,121 crores have been provided for their development.