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Indian Economy

Notes Secondly, the PURA proposal imagines three types – A, B and C. Type C being in the interior
required much greater initial push, type B comparatively less and type A can attract even private
sector investment. Government should, thus, develop a vision 2020 for the PURA development
clusters and grade the degree of financial and other support consistent with the level of
development attained in a particular cluster. To overcome inertia, we require a big push and if
the process begins to move, relatively lesser energy is required to give it a momentum. Therefore,
a higher level of state support is required for Type C cluster.
Also, you must understand that the on-going programmes of rural development can be
re-oriented so that roads, electricity and water are made available. When the social overheads
are developed, it will be possible to appeal private sector investment. It is adequately clear that
private sector invests only in areas and projects which harvest a high rate of return. It will, thus,
hesitate to move in the remote interior clusters unless the Government offers essential
infrastructural support and some incentives for the goal.
The major obstacle to the PURA mission will be the on demand side. This can be attained by
undertaking such activities which generate wage employment and therefore, enlarge demand
potential of the rural population. If PURA can become a catalyst for another green revolution in
the backward rural areas in the less booming states, the Vision 2020 of the President to attain a
food production of 400 million tonnes can be attain. For this objective, it is essential to develop
synergy among the different components in the fulfilment of the PURA mission. Only then can
we have the dream of development of rural India without population transfers realised.
You must also keep in mind that even though PURA draws its inspiration from the Gandhian
model of development which focuses rural development as a fundamental postulate, however
in the prescription, it is neo-Gandhian in the sense, that it means to bring rural regeneration
with the avowed goal of taking modern technology and modern amenities to the rural areas. In
this sense, it does not enter into the disagreement of labour intensive versus capital intensive
measures. Nevertheless, it does emphasise the enlargement of employment as the sole purpose
to make use of rural manpower in several development activities. In this sense, it does not think
of a second grade status for rural citizens and therefore can become more tolerable to them.
In other words, the PURA model efforts a reconciliation between employment and GDP growth
objectives.
The Eleventh Plan has offered ` 248 crore for executing the PURA scheme in compact rural areas
in public-private partnership mode. The sum is very insufficient to provide urban amenities in
PURA groups to bridge the rural-urban divide.

Self Assessment

Fill in the blanks:

5. …………………… model involves four connectivities: physical, electronic, knowledge
and thereby leading to economic connectivity to enhance the prosperity of cluster of
villages in the rural areas.
6. The ……………………-has provided ` 248 crore for implementing the PURA scheme in
compact rural areas in public-private partnership mode.

7. …………………… of rural development can be re-oriented so that roads, electricity and
water are made available.
8. The objective of PURA is to propel …………………… without population transfers.
9. PURA as the lever of economic …………………… of the villages.

10. India currently has …………………… million people living below the poverty line.

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