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General Overview of the Rural Development Sector

INTEGRATED development of rural areas is one of the abiding tasks before the Government of India. The National Common Minimum Programme' (NCMP) of the Central government reiterates the cardinal importance of villages to the overall development of the country and commits to work towards development of rural areas, which for various reasons could not keep pace with urban areas in the past.

In conformity with this commitment of the Government, the Ministry of Rural Development accords foremost priority to development in rural areas and eradication of poverty and hunger from the face of rural India. A number of new initiatives have been taken in the recent years for creation of social and economic infrastructure in rural areas to bridge the rural urban divide as well as to provide food security and to fulfill other basic needs of the rural populace.

The renewed emphasis on rural development is also visible in the commensurate progressive increase in the allocation of resources for implementation of poverty alleviation Programmes. For the Tenth Five Year Plan, the allocation of funds for rural development Programmes has been enhanced to Rs. 76,774 crore as against Rs. 42,874 crore in Ninth Plan. An allocation of Rs. 24480 crore was made for the Ministry during 2005-06. The budget estimate for the year 2006-07 is Rs. 31443.62 crore.

Addressing the challenge of unemployment in the rural areas of the country is central to the development of rural sector for ameliorating the economic condition of the people. Wage employment is provided in rural areas under National Rural Employment Guarantee Act (NREGA) and Sampoorna Grameen Rozgar Yojana (SGRY) whereas self employment is provided under Swranjayanti Gram Swarozgar Yojana (SGSY). Besides, generating employment these wage employment schemes also ensure creation of durable assets in rural areas. Initiatives are also taken by the Ministry to build and upgrade the basic rural infrastructure through various schemes. Under Pradhan Mantri Gram Sadak Yojana (PMGSY) construction and upgradation of rural roads are taken up to ensure rural connectivity. It is expected under the scheme that an expanded and renovated rural road network will lead to an increase in rural employment opportunities, better access to regulated and fair market, better access to health, education and other public services so as to accelerate the pace of economic growth in rural areas. Similarly basic amenities for housing, drinking water and toilets, etc., are provided under Indira Awaas Yojana (IAY), Accelerated Rural Water Supply Programme (ARWSP) and Total Sanitation Campaign (TSC) to enhance the welfare and well-being of the vulnerable sections of rural population. Area Development is encouraged through Watershed Programmes to check the diminishing productivity of waste land and loss of natural resources.

The Ministry of Rural Development is also committed to fulfill the goals of Bharat Nirman- a time bound action plan for development of rural infrastructure espoused by the President of India Dr. A.P.J Abdul Kalam who described it as "the platform on which my government will construct its New Deal for Rural India". Prime Minister Dr. Manmohan Singh extolled that "Bharat Nirman will be time-bound business plan for action in rural infrastructure for the next four years. Under Bharat Nirman, action is proposed in the areas of irrigation, roads, rural housing, rural water supply, rural electrification and rural telecommunication connectivity. We have set specific targets to be achieved under each of these goals so that there is accountability in the progress of this initiative." Bharat Nirman is thus viewed as an effort to unlock rural India's growth potential and be a key for ushering a new era. It is expected that Bharat Nirman will lead to considerable rural assets creation along with the National Rural Employment Guarantee Act.

Alongside, the new initiatives some of the existing schemes have also been streamlined and strengthened to make their implementation more speedy and effective.



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