CBSE 2025, Set 2

Question

(b) (i) Describe briefly the importance of micro-credit programmes in Rural India.
(ii) State any one strategy involved in attaining sustainable development in India.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Importance of Micro-Credit:** Micro-credit programmes (like Self Help Groups or SHGs) have emerged to fill the gap in the formal credit system. The formal credit delivery mechanism has not been fully integrated into the rural social structure because of the requirement of collateral, leaving a vast proportion of poor rural households out of the credit network. The micro-credit system has brought these poor households into the ambit of the formal credit system by providing them small loans without strict collateral at concessional rates of interest, promoting rural empowerment. **(ii) Sustainable Development Strategy:** One strategy is the **Use of wind energy** (or solar power, mini-hydel plants, bio-composting) as a renewable and clean source of power.

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Economics > Indian Economic Development > Rural Development

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