Question

Why is rural credit important for rural development in India?

• A. It supports urban migration.
• B. It reduces agricultural activities.
• C. It helps farmers and small businesses access funds for production and development.
• D. It decreases industrial investment.

Answer 1

Answer:

C. It helps farmers and small businesses access funds for production and development.

Rural credit is important for rural development in India because it helps farmers and small businesses access funds for production and development. It addresses the financial needs of the rural population, particularly for purchasing essential agricultural inputs and managing household expenses. Rural credit is a financial mechanism designed to provide financial support to individuals, farmers, and businesses in rural areas. This type of credit is essential for fostering agricultural development, promoting rural entrepreneurship, and improving the overall economic well-being of rural communities. Access to rural credit allows farmers to invest in seeds, equipment, and technology, empowering them to enhance productivity and contribute to the growth of the agricultural sector.