Gandhian model

• Prepared by: Acharya S.N.Agarwal (1944)

• Revised in: 1948

Objective

• To raise basic standard of living (social & cultural)

• To improve economic conditions

• To improve agriculture scientifically &

• Rapid growth of cottage & village industries

Gandhian model

Agriculture Cottage &Village industries

Scientific development

Rapid Growth

Scientific development

• Reform of Agriculture• Self sufficient in food • Regional self sufficiency• Land reforms were undertaken• Better input (seed & fertilizer) in agriculture• Consolidation of land holdings (joint farming)• Organization of co-operative farms• Abolishing – money lending (private)• Credit facility by Govt. to farmers (Taccavi Loan)

• Expansion of cottage industry• Spinning & weaving of khadi (in every village)• Cotton ------ thread ----------- cloth • Every family to contribute apart from agriculture• Every village should be self-sufficient in clothes• Ghani oil, Gur making (allied activities), • Craftsmen : Woden work, Pottery work, Iron works & ,

other activities done by hands of men/women.

Cottage &Village industries

Rapid Growth

Dairy products: milk, gheeVegetablesOil seeds

Food grains

Get other items from urban area for village areas

For urban areas produced in villages

Labour force in village industry

• 1909-10: 40% of labour force

• 1945-46: 10 % of labour force

• 2005-06: 2.7% of labour force

• 2008-09: 2.5% of labour force.

• Rural labour force have migrated to nearby urban areas therefore, there is continous reduction of labour force from village area (No industrial set up in village)

Machinery & Gandhian views

• Gandhiji welcome machinery to reduce the burden of villagers but not to replace the human labour.

Positive aspect of Gandhian model

• It is employment oriented

• Agriculture production & employment exists in Gandhian Model

Agriculture includes

• Agriculture

• Animal husbandry

• Compost Fertilizer production & marketing

• Sanitation & Gobar gas

• Rural work: irrigation projects, soil conservation, land reclamation & aforestation, etc

• Cottage & rural industries

• Gandhian model of growth is in favour of small scale & cottage industries & it is against large scale industries producing consumer goods.

LPG Model

• Introduced in 1991

• By PM: Dr.Manmohan Singh

• Economic policy changed in terms of

LIBERALISATION

PRIVATISATION

GLOBALISATION

Major changes were planned in following areas

• Areas reserved for public sector were opened to private sector

• To set-up industry in private sector–No need for licensing

• Direct foreign investment up to 51%equity possible in high priority areas. (but need Govt. approval)

• Greater autonomy to PSU for improvement : to be professional

• MGT. & board of PSU to work as professional expert & earn more profit.

• Line to exports were opened to more countries.

• Import of foreign capital & technology: import duty reduced & several barriers were removed.

• More foreign investment was possible resulting support to growth to indian economy

Weakness of LPG model

• It concentrate on corporate sector which accounts for only 10% GDP

• LPG model by-passes agriculture & agro-based industries

• No infra structure for agro-based exports

• Adverse effect on SME of consumer goods as MNCs have entered in consumer goods.

• There is large trade gap due to more imports

• Only urban people have been taking advantage of LPG.

• Still, poverty & employment problem of rural is a matter of question

PURA Model

• Providing Urban Amenities in Rural Area

• Innovator : Dr. A.P.J. Abdul Kalam

• (former Hon’ble President of India)

• Objective: To eradicate poverty from India. PURA will work as lever of Economic Upliftment of the villages.

• People below poverty line are about 260 million and present GDP rate is 8.1%. It has to be increased to 10% and to be sustained for several years. Then it is possible for India to get the status of a DEVELOPED NATION.

• ROAD MAP INVOLVES INTEGRATED ACTION ON THE FOLLOWING FIVE AREAS:--

• 1. AGRICULTURE AND FOOD PROCESSING :-

Food Production target : 400 MT by2020

2. RELIABLE AND QUALITY ELECTRIC POWER for all parts of the country.

3. Education and Health Care for all.4. Expansion of Communication & Technology

to rural areas to promote education and create national wealth.

• 5. DEVELOPMENT OF STRATEGIC SECTORS: Growth in Nuclear Technology, Space Technology and Defence Technology.

• (a) Networking of Rivers (connectivity)• (b) High quality power Generation.• (c) Second Green Revolution• (d) Information & Commu. Tech. transforming

into knowledge products and Tourism Development.

• PURA Model involves FOUR connectivities :-

1. Physical Connectivity.

2. Electronic Connectivity.

3. Knowledge Connectivity.

4. Economic Connectivity.

to enhance the prosperity of cluster of villages in the rural areas.

1. PHYSICAL CONNECTIVITY:

• A group of 15-20 Villages linked by road.

• Also have a RING ROAD to connect each other.

• Besides roads, provision of ELECTRICITY and TRANSPORT facilities have also been included.

2. DIGITAL OR ELECTRONIC CONNECTIVITY:

• It aim to link villages with MODERN TELECOMMUNICATION and

• INFORMATION TECHNOLOGY SERVICES, e.g.

• Public Call Offices,• Cybre Cafes, Computer service etc.

3.KNOWLEDGE CONNECTIVITY:

• Knowledge connectivity means:

• A School within a distance of 5 to 7 Kms. of circular ring road.

• Higher Education Centre.

• Hospital and Primary Health centre in villages.

4. ECONOMY CONNECTIVITY:

a) To establish within this group of villages(15-20 villages) good MARKETING FACILITIES so that all the Commodities and Services of daily use can be procured and

b) Rural people can sell their produce in these markets.

CLASSIFICATION OF PURA IN 3 CATEGORIES:

• Category I --Type-A clusters.(Big Area)• Category II --Type-B clusters.(Medium)• Category III --Type-C clusters.(Small A.)TYPE-A Clusters:

- Closer to an urban area;- having minimal road connectivity;- limited infrastructure; limited support of School, Primary Health Centre (PHC).

• Type –B cluster:-– It is situated close to urban area but has

sparsely spread infrastructure and– no connectivity.Type –C cluster:--Located far interior (Remote areas),--with no infrastructure,--no connectivity and --no basic amenities.

IMPLEMENTATION OF- PURA MODEL BY NATION:

• Govt. Action on the PURA Model:

• 1. Govt. planned to develop 4,000 Rural clusters location of Backward Regions.

• 2. Budget allocated : Rs. 3 Crores for each cluster (i.e. 3 x 4000 = Rs.12000 Cr.)

• 3. To be implemented through CDP : Irrigation facilities were enlarged & Green Revolution was possible through CDPs.

• 4. There is a migration of population from Rural to Urban areas, which has created difference between Urban/ Rural which continues.

• 5. In 1951 Urban Population was : 17.3% In 2001 Population have increased to: 27.8% and it will be reaching the level of : 32.0% by 2011.

OBJECTIVE OF PURA:

• To propel Economic Development without population Transfers.

• Take Infrastructure to villages where Human beings live (said by late Prof. A.M.Khusro).

• PURA concept also invite Private Sector for Investment for creating Social & Economic infrastructure in Rural Area.

• For this purpose Rs.3 Crore is not sufficient to develop One Cluster (15 to 25 villages). Development areas are as under:

• 1. Roads and Ring Road

• 2. Electricity 3. Transport Facilities

• 4. Telecomm. & Inf. Tech. Services

• 5. Knowledge Connectivity :Higher Edu.

• 6. Hospital & Health Centre.

• 7. Marketing Facilities : Where rural people can sell their products and can procure all the commodities & services of daily use.

• SUGGESTED APPROACH TO GOVT. BY EXPERTS IS AS UNDER:

• (a) Select 600 Blocks in Back ward areas.

• b) Invest Rs. 25 Crores per Block :• (25 x 600 =15,000 Crore) This amount

should be given to Block Development Committee to develop the Clusters.

• The amount will be given in THREE Phases:

• Ist Phase: Under Xth Plan : 25%• 2nd Phase: Under XIth Plan : 35%• 3rd Phase: Under XIIth Plan :40%

• Out of the total amount, 20% amount should be contributed by the State Govt., so that 80% can be released by the Central Govt. to State Govt.

• There are 3 categories of PURA clusters:

• (i) Urban (Type “A” Cluster)

• (ii) Semi urban (Type “B” Cluster)

• (iii) Village (Type “C” Cluster)

• Govt. should start work of infrastructure at bottom level (out of ongoing programmes) i.e. Type “C” Cluster be taken first by State Govt. with ROADS, ELECTRICITY & WATER.

• These 3 essential infrastructure should be made available by State Govt. funds. Then for remaining developmental work i.e. Hospital, Education, Telecommunication,

• Transportation and Inf. Technology, Private Sector investments can be invited. Private Investor needs basic infrastructure in village (to reach) with some support & some incentives for the purpose.

• XIth Plan Provision in Budget: Rs.248 Cr. for implementing the PURA Scheme in compact rural areas in Public Pvt. Partnership (PPP) mode.

• This amount is very inadequate to provide urban amenities in PURA Clusters to bridge the Rural Urban divide.

• OPPORTUNITIES AVAILABLE:

• 1. Second Green Revolution : in backward Rural areas in the less prosperous States (by use of Modern Technology in Agriculture)..

• Food Production of 400 Million Tonnes (as against present production level of 288 Million Tonnes.

• (ii) Rural people should get opportunity of Employment in Rural or nearby area to stop migration from Rural area.

• (iii) Creating Employment opportunities should be shared by PPP.

• *****

States/Places where PURA Scheme is being implemented: