NCERT Solutions for Class 12 Indian Economic Development Chapter 6 MCQ and extra question answers to prepare for exams in session 2023-24. Class 12 Economics chapter 6 Rural Development multiple choice questions answers are important for the board examination.

Class 12 Indian Economic Development Chapter 6 MCQ


The farming which relies on naturally occurring ecological process and biodiversity

[A]. Organic farming
[B]. Conventional farming
[C]. Both
[D]. None of the above

Credit taken for a period of 15 years

[A]. Short-term credit
[B]. Medium-term credit
[C]. Long-term credit
[D]. None of these

Non-farm areas for employment

[A]. Animal husbandry
[B]. Fisheries
[C]. Horticulture
[D]. All of the above

Father of ‘Green Revolution’ in India

[A]. M S Swaminathan
[B]. Norman Borlong
[C]. Chidambaram Subramaniam
[D]. None of the above

Agricultural Market System

Agricultural selling may be a method that involves the collection, storage, processing, transportation, packaging, grading and distribution of various agricultural commodities across the country. Before independence, farmers, whereas commercialism their manufacture to traders, suffered from faulty deliberation and manipulation of accounts. Farmers who failed to have the desired data on costs prevailing in markets were typically forced to sell at low costs. They additionally failed to have correct storage facilities to stay back their manufacture for commercialism later at an improved value.

Government Intervention

Government intervention became necessary to control the activities of the non-public traders. The primary step was regulation of markets to form orderly and clear selling conditions. By and enormous, this policy benefited farmers further customers. However, there’s still a requirement to develop concerning 27,000 rural periodic markets as regulated market places to understand the full complete potential of rural markets. Second element is provision of physical infrastructure facilities like roads, railways, warehouses, go-downs, cold storages and process units. The present infrastructure facilities are quite inadequate to fulfil the growing demand and wish to be improved. Cooperative selling, in realising honest costs for farmers’ products, is that the third side of presidency initiative.

Class 12 Indian Economic Development Chapter 6 Important Question Answers

What is TANWA?

Tamil Nadu Women in Agriculture (TANWA) was a project initiated in the late 1980s in Tamil Nadu to train women in latest agricultural techniques and in organic farming. It encouraged women to actively participate in raising agricultural productivity and family income. At a Farm Women’s Group in Tiruchirappalli, run by Anthonomus, trained women are successfully making and selling vermicompost and earning money from this venture. Many other Farm Women’s Groups are creating savings in their group by functioning like mini banks through a micro-credit system. With the accumulated savings, they promote small-scale household activities like mushroom cultivation, soap manufacture, doll making or other income-generating activities.

What is Kudumbashree?

Kudumbashree is a women-oriented community-based poverty reduction programme being implemented in Kerala. In 1995, a thrift and credit society were started as a small savings bank for poor women with the objective to encourage savings. The thrift and credit society mobilised ₹1 crore as thrift savings. These societies have been acclaimed as the largest informal banks in Asia in terms of participation and savings mobilised.

Which are the other alternate livelihood options?

The IT has revolutionised many sectors in the Indian economy. There is broad consensus that IT can play a critical role in achieving sustainable development and food security in the twenty-first century. Governments can predict areas of food insecurity and vulnerability using appropriate information and software tools so that action can be taken to prevent or reduce the likelihood of an emergency. It also has a positive impact on the agriculture sector as it can disseminate technologies and its applications, prices, weather and soil conditions for growing different crops etc. Though IT is, by itself, no catalyst of change but it can act as a tool for releasing the creative potential and knowledge embedded in the society. It also has potential of employment generation in rural areas. Experiments with IT and its application to rural development are carried out in different parts of India.

What is agricultural market?

Agricultural marketing is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country. Prior to independence, farmers, while selling their produce to traders, suffered from faulty weighing and manipulation of accounts. Farmers who did not have the required information on prices prevailing in markets were often forced to sell at low prices. They also did not have proper storage facilities to keep back their produce for selling later at a better price.

Which were the emerging alternate marketing channels?

It has been realised that if farmers directly sell their produce to consumers, it increases their incomes. Some examples of these channels are Apni Mandi (Punjab, Haryana and Rajasthan); Hadaspar Mandi (Pune); Rythu Bazars (vegetable and fruit markets in Andhra Pradesh and Telangana) and Uzhavar Sandies (farmers markets in Tamil Nadu). Further, several national and multinational fast-food chains are increasingly entering into contracts/ alliances with farmers to encourage them to cultivate farm products (vegetables, fruits, etc.) of the desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at pre-decided prices. It is argued that such arrangements will help in reducing the price risks of farmers and would also expand the markets for farm products. Do you think such arrangements raise incomes of small farmers.

Testimony to the Role of Cooperatives

The success of milk cooperatives in remodelling the social and economic landscape of Gujarat and a few alternative parts of the country is testimony to the role of cooperatives. However, cooperatives have received a happening throughout the recent past due to inadequate coverage of farmer members, lack of acceptable link between selling and process cooperatives and inefficient money management. The fourth element is the policy instruments like (i) assurance of minimum support prices (MSP) for agricultural products (ii) maintenance of buffer stocks of wheat and rice by Food Corporation of India (iii) distribution of food grains and sugar through PDS. These instruments are aimed at protecting the income of the farmers and providing foodgrains at a subsidised rate to the poor.

Class 12 Indian Economics Chapter 6 Multiple Choice Questions


SHG stands for

[A]. Self Human Group
[B]. Sufficient Humidity Growth
[C]. Self Help Group
[D]. Self Human Growth

Government has assured the farmers of some minimum income from the sale of their crop by introducing

[A]. Warehousing facilities
[B]. Regulated markets
[C]. Minimum support price policy
[D]. Co-operative agriculture marketing societies

Short-term credit is for

[A]. A period of 5 years
[B]. A period of 15 months
[C]. A period of 20 years
[D]. A period of 10 years

Which is related to micro finance

[A]. Self Help Group
[B]. Horticulture
[C]. Relatives and Friends
[D]. None of the above
Diversification into Productive Activities

Diversification includes 2 aspects -one relates to alter in cropping pattern and therefore the different relates to a shift of manpower from agriculture to different allied activities (livestock, poultry, fisheries etc.) and non-agriculture sector. The necessity for diversification arises from the actual fact that there’s larger risk in relying completely on farming for resources.

Diversification towards new areas is important not solely to cut back the chance from agriculture sector however additionally to supply property resources choices to rural individuals. A lot of the agricultural employment activities targeted within the Kharif season.

Inadequate Irrigation Facilities

Throughout the Rabi season, in areas wherever there are inadequate irrigation facilities, it becomes tough to search out paying employment. Therefore, growth into different sectors is important to supply supplementary paying employment and in realising higher levels of financial gain for rural individuals to beat poorness and different tribulations. Hence, there’s a desire to specialise in allied activities, non-farm employment and different rising alternatives of resources, although there are several different choices offered for providing property livelihoods in rural areas. As agriculture is already overcrowded, a serious proportion of the increasing labour force must realise alternate employment opportunities in different non-farm sectors.

Non-farm Economy

Non-farm economy has many segments in it; some possess dynamic linkages that allows healthy growth whereas others are in subsistence, low productivity propositions. The dynamic sub-sectors embrace agro-processing industries, food process industries, animal skin business, tourism, etc.

Those sectors that have the potential however seriously lack infrastructure and other support include traditional home-based industries like pottery, crafts, handlooms etc. Majority of rural women find employment in agriculture while men generally look for non-farm employment.