Question.
Suggest suitable measures to improve the rural economic structure in Bihar to bring out the overall economic development. ( 63rd BPSC, 2019)
Answer.
As far as the geographical areas and population of Bihar is concerned, it constitutes about 3% of the total geographical areas of India and it accounts for around 9% of the Indian population as per the 2011 census. The urban population of Bihar is about 11% and the rest is a rural population which makes Bihar the least urbanized state in India.
As far as Bihar's rural economic structure is concerned, agriculture contributes only 20% to the state's GDP and workers in agriculture constitute more than 62% of the total workforce. Labor participation in the rural economy is high, but the returns are low and they are subject to the devastating effects of droughts and floods. For this reason, poverty in Bihar is around 52%, which is the highest in the country.
The following are suitable measures to improve the rural economic structure in Bihar to bring about overall economic development:
- More than 50% of the rural population is landless. The strategy should be for shifting labor from agriculture to non-agricultural activities to improve the rural economy, the following should be incorporated:
- Agro-processing industries should be established in rural areas to absorb surplus labor from rural and urban areas.
- Market towns and market centers should be developed to provide rural markets access to urban markets.
- To make agriculture profitable, more innovation is needed in the agriculture sector and in flood control.
- Credit flow is very low in the rural economy, and wealth is generally concentrated in wealthy households. There is a need to streamline credit flow in the rural economy.
- Child labor is rampant and school enrollment should be increased. The quality of education should be provided by qualified teachers. If we impart skills through formal and non-formal education then the rural economy will be stronger; because more and more skilled labor go to work outside, more money will come from outside.
- The government should pay special attention to the health, nutrition, and sanitation sectors so that the rural population does not depend on private institutions.
- Women's participation in the workforce and access to funding is very low, women's empowerment is needed.
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