In India, about 80 percent of farmers are small farmers, who need cultivation.
(a) Why might banks be unwilling to lend to small farmers? (b) What are the other sources from which the small farmers can borrow? (c) Explain with an example of how the terms of credit can be unfavorable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
(a) Banks ask for proper document before providing loans. But the small farmers might not be able to provide such documents. In addition to this there is possibility that the small farmers fail to repay the loan if their crop gets ruined due to dome reason. So banks might not be willing to lend to small factors as there are high risks.
(b) Apart from the banks, other sources from which the small farmers can borrow include informal sources of credit like local money lenders, agricultural traders, nig landlords, cooperatives SHGs etc.
(c) The terms of credit can be unfavorable for the small farmer can be explained with the help of the following example: It a farmer borrows money from the bank during the harvest season his crops are ruined. Then he small not be able to repay the loan to the bank. He might have to sell a part of his land to repay the amount. In such condition he will further fall into the debt trap.
(d) The small farmers can get cheap from the different sources like banks, agricultural cooperatives and SHGs.
The following table shows the proportion of adults (aged 15-49 years) whose BMI
is below normal (BMI <18.5 kg/m2) in India. It is based on a survey of various
states for the year 2015-16. Look at the table and answer the following questions.
(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around one-fifth of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words.
Explain how public sector contributes to the economic development of a nation.
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
“Tertiary sector is not playing any significant role in the development of Indian
economy.” Do you agree? Give reasons in support of your answer.
For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
Why is the issue of sustainability important for development?
For each of the items given in Table 1.6, find out which country is at the top and
which is at the bottom.
Critically examine the progress of the consumer movement in India?
Distinguish between open unemployment and disguised unemployment.
Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector _________ increased to the same extent as production. (has / has not)
(ii) Workers in the _________ sector do not produce goods. (tertiary agricultural) (iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)
(v) Cotton is a _________ product and cloth is a _________ product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are _________. (independent / interdependent)
How does money solve the problem of double coincidence of wants? Explain with example of your own.
How has liberalisation of trade and investment policies helped the globalisation process?
In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
The following tables gives the GDP in Rupees (Crores) by the three sectors:
Year |
Primary |
Secondary |
Tertiary |
1950 |
80,000 |
19,000 |
39,000 |
2000 |
3,14,000 |
2,80,000 |
5,55,000 |
i. Calculate the share of the three sectors in GDP for 1950 and 2000.
ii. Show the data as a bar diagram similar to Graph 2 in the chapter.
iii. What conclusions can we draw from the bar graph?
Make a long list of all kinds of work that you find adults around you doing for a living. In what way can you classify them? Explain your choice.
Kerala, with lower per capita income has a better human development ranking
than Haryana. Hence, per capita income is not a useful criterion at all and should
not be used to compare states. Do you agree? Discuss.
By what means can the consumers express their solidarity?
Mention a few factors which cause the exploitation of consumers.
Choose the most appropriate answer.
(i) In an SHG most of the decisions regarding savings and loan activities are taken by
(a) Bank.
(b) Members.
(c) Non-government organization.
(ii) Formal sources of credit do not include
(a) Banks.
(b) Cooperatives.
(c) Employers.
What are the reasons why the banks might not be willing to lend to certain borrowers?