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Panchayat Raj and Rural Development · Chapter 4

Rural sociology and rural poverty schemes

What to remember

  • Indian village society is shaped by caste, kinship, land and the joint family; the jajmani system and the village panchayat were its traditional features.
  • Rural poverty schemes moved from area development (CDP, 1952) to self-employment (IRDP, 1978-80), wage employment (JRY, 1989), group-based self-employment (SGSY, 1999) and finally the livelihood mission (NRLM, 2011).
  • NRLM builds Self-Help Groups of poor women and their federations; Andhra Pradesh's SERP model was a pioneer of this approach.

Village society

Rural sociology studies the structure, change and problems of village life. About two-thirds of India's people have lived in villages for most of the modern period, and agriculture remains the base of livelihood.

Main features of village society:

  • Close, face-to-face relations. People know each other, and the community has a strong role in decisions.
  • Agriculture as the main occupation, with crafts and services as supporting occupations.
  • Caste divides people by birth, occupation and status. It governs marriage, food and social contact, though its hold is weakening.
  • Family: the joint family has been common, where parents, sons and their families live together and share property. Nuclear families are now rising.
  • Religion and customs have a strong place in daily life and festivals.
  • Land is the main source of status and power. Landless labourers and small farmers are at the bottom of the rural economy.
  • Traditional village panchayat (caste and village councils) settled disputes and enforced customs.
  • Jajmani system: a hereditary relation in which families of service castes (carpenter, potter, washerman, barber) gave goods and services to landowning families in return for a share of the produce. The term was used by William Wiser in his study of a north Indian village.

Rural change

Land reforms, community development, education, roads, electricity, mobile phones, the Green Revolution, and the Panchayat Raj system have changed village society. Migration to towns, rise of non-farm jobs and new leaders from all castes through elected Panchayats are other signs of change. M.N. Srinivas used the terms Sanskritisation (lower castes copying customs of higher castes) and dominant caste (a numerically strong, land-owning caste with local power) to describe village life.

Rural poverty

Poverty means being unable to meet basic needs. Two ideas are used:

  • Absolute poverty: income or spending below a fixed line needed for food and basic needs.
  • Relative poverty: being poor compared with others in the society.

India measured poverty through a poverty line based on food energy needs and the cost of a basket of goods. Expert groups that studied this include the Lakdawala group, the Tendulkar committee and the Rangarajan committee. A common early norm used a minimum calorie intake per person per day, with a higher figure for rural people than urban people, because they do harder physical work.

Main causes of rural poverty:

CauseExplanation
Landlessness and small holdingsLittle or no land to earn from
Low productivityRain-fed farming, weak irrigation, poor inputs
Unemployment and underemploymentFarm work is seasonal, and idle months are many
IndebtednessDependence on money-lenders
Low education and skillsWeak access to better jobs
Social barriersCaste, gender and tribal exclusion
Weak infrastructurePoor roads, markets and credit

Historical rural development schemes

SchemeStartFocus
Community Development Programme1952All-round village development through blocks
National Extension Service1953Extension agency for the CDP
Integrated Rural Development Programme (IRDP)1978-80Subsidy and bank loans to poor families for assets and self-employment
TRYSEM1979Training of rural youth for self-employment
DWCRA1982Women's groups for income generation
National Rural Employment Programme and RLEGP1980 and 1983Wage employment; merged in 1989
Jawahar Rozgar Yojana (JRY)1989Wage employment through Panchayats, with a village-level focus
Employment Assurance Scheme (EAS)1993Wage work in lean periods in backward blocks
Swarnajayanti Gram Swarozgar Yojana (SGSY)1999Group-based self-employment; combined IRDP and allied schemes
Sampoorna Grameen Rozgar Yojana (SGRY)2001Merged wage schemes to give work and food grain
National Rural Employment Guarantee Act (MGNREGA from 2009); replaced by the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, with 125 days, from 1 July 20262005Legal right to wage work
National Rural Livelihoods Mission (NRLM)2011Livelihoods through Self-Help Groups

The IRDP was extended to all blocks in 1980. Its weakness was that it gave loans to individuals, with poor follow-up, leakage of subsidy and little training. The SGSY corrected this by shifting to groups and a "key activity" approach. Later, SGSY itself was restructured into NRLM.

From SGSY to NRLM

NRLM was launched in June 2011 by the Ministry of Rural Development and was later named Deen Dayal Antyodaya Yojana-NRLM (DAY-NRLM). It is also known as Aajeevika. Its key ideas:

  • Poor households, especially women, are organised into Self-Help Groups (SHGs) and their higher federations.
  • It builds a three-level structure: SHG, village-level federation and higher-level federation.
  • It offers revolving funds, community investment support and bank credit at low cost.
  • It supports skills, livelihoods, farm and non-farm activities and financial inclusion.
  • It is a demand-driven, state-led mission. Each state prepares its own plan.
  • The poor are identified through participatory methods, not only by lists.

Andhra Pradesh's contribution

AP built a large SHG network through the Society for Elimination of Rural Poverty (SERP). Its earlier programme was known as Velugu, later called Indira Kranthi Patham. Women SHGs took up thrift, bank loans, procurement of produce and food security work. This experience helped to shape NRLM at national level.

Self-Help Groups: how they work

A Self-Help Group is a small group of people, often 10 to 20 women from poor households, who save small amounts regularly, lend to each other from the common fund, and keep records. After the group runs well for some months, banks lend to it. Repayment is supported by group pressure and trust, so default is low. Groups form larger bodies at the village and higher levels, which help in buying inputs, selling produce and settling disputes. The basic rules are called "Panchasutra" in some programmes: regular meetings, regular savings, regular internal lending, timely repayment and proper books of accounts.

Types of rural employment

TypeMeaningExample
Wage employmentPaid work on public worksJRY, EAS, employment guarantee
Self-employmentOwn business or farm activityIRDP, SGSY, NRLM
Skill-based employmentTraining followed by a jobRural skill training programmes

Rural institutions and agencies

  • District Rural Development Agency (DRDA): implemented IRDP and many poverty schemes at the district level.
  • Gram Panchayat: chooses beneficiaries through the Gram Sabha and carries out works.
  • Cooperative societies and banks: give credit, seeds and fertiliser.
  • NGOs and community groups: help in organising the poor.
  • Panchayat Raj bodies: plan and monitor the programmes.

Lessons from the old schemes

Many early schemes had problems: wrong selection of beneficiaries, shortage of bank credit, lack of training and marketing, weak monitoring and heavy dependence on officials. These lessons led to three changes: (1) a shift from individuals to groups, (2) a stress on women and the poorest, and (3) a legal right to work, instead of a scheme that could be closed. NRLM also gives importance to community ownership and capacity building.

Poor planning of time, weak coordination between departments and lack of community voice were also common complaints, which is why later schemes use Gram Sabha approval and public display of lists.

Exam traps

  • CDP (1952, area development) is not the same as IRDP (1978-80, self-employment).
  • JRY is wage employment; IRDP is self-employment.
  • SGSY (group-based) replaced IRDP (individual-based).
  • NRLM replaced SGSY; it did not replace the employment guarantee scheme.
  • TRYSEM trained youth; DWCRA organised women.
  • Jajmani system is about service castes and landowners, not about money-lending.
  • Absolute poverty uses a fixed line; relative poverty compares groups.
  • Sanskritisation and dominant caste are terms of M.N. Srinivas, while jajmani is linked with Wiser.

One-liners

  • 1. The Community Development Programme began in 1952.
  • 2. IRDP gave assets to poor families through subsidy and bank loans.
  • 3. TRYSEM stands for Training of Rural Youth for Self-Employment.
  • 4. DWCRA stands for Development of Women and Children in Rural Areas.
  • 5. JRY was started in 1989 by merging NREP and RLEGP.
  • 6. SGSY was launched in 1999.
  • 7. NRLM was launched in 2011 and is now called DAY-NRLM.
  • 8. NRLM works through Self-Help Groups of women.
  • 9. SERP is Andhra Pradesh's poverty elimination society.
  • 10. Joint family means several generations living and sharing property together.
  • 11. Jajmani system links service castes with landowners.
  • 12. M.N. Srinivas used the term Sanskritisation.

Practice questions

  1. The Integrated Rural Development Programme mainly aimed at

    1. Building national highways
    2. Teaching Hindi
    3. Running urban housing
    4. Giving assets to poor families through subsidy and bank loans
    Answer

    D. Giving assets to poor families through subsidy and bank loans

    IRDP gave self-employment assets through subsidy and credit.

  2. TRYSEM stands for

    1. Training of Rural Youth for State Employment
    2. Total Rural Youth Skill Mission
    3. Training of Rural Yojana Service Members
    4. Training of Rural Youth for Self-Employment
    Answer

    D. Training of Rural Youth for Self-Employment

    TRYSEM trained rural youth for self-employment.

  3. DWCRA was meant mainly for

    1. Large farmers
    2. Urban youth
    3. Women's groups in rural areas
    4. Government employees
    Answer

    C. Women's groups in rural areas

    DWCRA organised women into groups for income generation.

  4. Jawahar Rozgar Yojana was started in

    1. 1978
    2. 2011
    3. 1952
    4. 1989
    Answer

    D. 1989

    JRY (1989) merged NREP and RLEGP.

  5. Swarnajayanti Gram Swarozgar Yojana was launched in

    1. 2005
    2. 1989
    3. 1999
    4. 2011
    Answer

    C. 1999

    SGSY began in April 1999.

  6. NRLM was launched in

    1. 1999
    2. 2016
    3. 2011
    4. 2006
    Answer

    C. 2011

    The National Rural Livelihoods Mission began in June 2011.

  7. NRLM is now known as

    1. DAY-NRLM
    2. SGRY
    3. JRY
    4. PMGSY
    Answer

    A. DAY-NRLM

    It was renamed Deen Dayal Antyodaya Yojana-NRLM.

  8. The main organisational tool of NRLM is

    1. Private companies
    2. Moneylenders
    3. Contractors
    4. Self-Help Groups of poor women
    Answer

    D. Self-Help Groups of poor women

    NRLM organises women into SHGs and federations.

  9. Andhra Pradesh's society for poverty elimination in rural areas is called

    1. DRDA
    2. SERP
    3. NABARD
    4. IRDA
    Answer

    B. SERP

    The Society for Elimination of Rural Poverty built SHG networks in AP.

  10. Which scheme began on 2 October 1952 for all-round village development?

    1. JRY
    2. SGSY
    3. Community Development Programme
    4. IRDP
    Answer

    C. Community Development Programme

    The CDP started in 1952.

  11. The jajmani system is a relation between

    1. Landowning families and service caste families
    2. Teachers and students
    3. Banks and borrowers
    4. States and the Centre
    Answer

    A. Landowning families and service caste families

    Service castes gave goods and services to landowners for a share of produce.

  12. Sanskritisation is a term associated with

    1. Dilip Singh Bhuria
    2. M.N. Srinivas
    3. L.M. Singhvi
    4. Balwantrai Mehta
    Answer

    B. M.N. Srinivas

    Srinivas used the term for imitation of upper-caste customs by lower castes.

  13. A joint family means

    1. A caste council
    2. One couple living alone
    3. A group of neighbours
    4. Several generations living together and sharing property
    Answer

    D. Several generations living together and sharing property

    Parents, sons and their families share home and property.

  14. A poverty measure that uses a fixed line of income or spending is

    1. Underemployment
    2. Absolute poverty
    3. Relative poverty
    4. Social capital
    Answer

    B. Absolute poverty

    Absolute poverty compares people with a fixed minimum standard.

  15. Poverty judged by comparing one group with others is

    1. Seasonal poverty
    2. Absolute poverty
    3. Chronic hunger
    4. Relative poverty
    Answer

    D. Relative poverty

    Relative poverty is measured against others in the society.

  16. Which scheme was based on group-based self-employment?

    1. SGSY
    2. IRDP
    3. JRY
    4. CDP
    Answer

    A. SGSY

    SGSY used groups, unlike individual-based IRDP.

  17. Which of the following is a wage employment scheme?

    1. TRYSEM
    2. IRDP
    3. JRY
    4. DWCRA
    Answer

    C. JRY

    JRY created wage work through Panchayats.

  18. IRDP was extended to all blocks in

    1. 1999
    2. 2011
    3. 1980
    4. 1952
    Answer

    C. 1980

    IRDP started in 1978-79 and was extended to all blocks in 1980.

  19. Which expert body is associated with measurement of the poverty line?

    1. Singhvi Committee
    2. Balwantrai Mehta Committee
    3. Bhuria Committee
    4. Tendulkar Committee
    Answer

    D. Tendulkar Committee

    The Tendulkar Committee suggested a method of measuring poverty.

  20. Dominant caste refers to a caste that is

    1. Always of the highest ritual rank
    2. Without land
    3. Numerous and land-owning with local power
    4. Only urban
    Answer

    C. Numerous and land-owning with local power

    It is a local power group, as used by Srinivas.

  21. Why did IRDP face problems?

    1. It banned loans
    2. It was only for towns
    3. It lacked any subsidy
    4. Poor beneficiary selection, weak follow-up and leakage of subsidy
    Answer

    D. Poor beneficiary selection, weak follow-up and leakage of subsidy

    The shift to groups and training aimed to cure these gaps.

  22. Which approach marked the shift from IRDP to SGSY?

    1. From villages to towns
    2. From individuals to groups
    3. From groups to individuals
    4. From loans to taxes
    Answer

    B. From individuals to groups

    SGSY focused on SHGs and key activities.

  23. Which feature is typical of village society?

    1. Face-to-face relations and community role in decisions
    2. Absence of customs
    3. Anonymous crowds
    4. No land use
    Answer

    A. Face-to-face relations and community role in decisions

    People know each other and the community is strong.

  24. Landlessness as a cause of rural poverty means

    1. Lack of land to earn a living from
    2. Too many roads
    3. Too many schools
    4. Excess land
    Answer

    A. Lack of land to earn a living from

    Landless labourers depend on wages.

  25. Underemployment means

    1. No work at all
    2. Doing a government job
    3. Working overseas
    4. Work for only part of the year or a few hours
    Answer

    D. Work for only part of the year or a few hours

    Farm work is seasonal, so many people are underemployed.

  26. NRLM gives financial support to SHGs mainly through

    1. Revolving funds and bank credit
    2. Taxes
    3. Lottery
    4. Land revenue waivers only
    Answer

    A. Revolving funds and bank credit

    It provides revolving funds, community investment support and bank linkage.

  27. Which scheme was NOT a wage employment scheme?

    1. JRY
    2. IRDP
    3. EAS
    4. SGRY
    Answer

    B. IRDP

    IRDP was a self-employment scheme.

  28. Consider the statements about IRDP and JRY. 1. IRDP was a self-employment scheme. 2. JRY was a self-employment scheme.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    JRY was a wage employment scheme.

  29. Consider the statements about NRLM. 1. It was launched in 1952. 2. It organises poor women into Self-Help Groups.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    NRLM began in 2011; the CDP began in 1952.

  30. Consider the statements about SGSY. 1. It replaced IRDP and allied schemes. 2. It was an individual-subsidy scheme only.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    SGSY was group-based.

  31. Consider the statements about village society. 1. Caste has no influence on rural life. 2. The jajmani system was linked with service castes.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Caste influences marriage, food and social contact, though its hold is weakening.

  32. Consider the statements about the CDP. 1. It was launched in 1952. 2. It was launched in 1999.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    The CDP began in 1952.

  33. Consider the statements about poverty. 1. Relative poverty uses a fixed line of calories. 2. Absolute poverty uses a fixed line.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Relative poverty compares groups.

  34. Consider the statements about SERP. 1. It is an AP agency working on SHG-based poverty reduction. 2. It is a national bank.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    SERP is a state society.

  35. Consider the statements about causes of rural poverty. 1. Poor roads and credit are not causes. 2. Low productivity is a cause.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Weak infrastructure and credit access also contribute.

  36. Consider the statements about NRLM structure. 1. Groups form higher federations at village and above. 2. It works without any state role.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    It is a state-led mission.

  37. Consider the statements about TRYSEM and DWCRA. 1. TRYSEM trained youth. 2. DWCRA organised women.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are correct.

  38. Consider the statements. 1. NRLM replaced the SGSY. 2. NRLM replaced the employment guarantee scheme.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    NRLM is a livelihoods mission, not a replacement for wage employment guarantee.

  39. Consider the statements about village change. 1. Migration to towns has stopped completely. 2. Panchayat Raj has brought new leaders in villages.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Migration to towns is a continuing feature.

  40. Consider the statements about Self-Help Groups. 1. Members save and lend among themselves. 2. Banks lend before any group record exists.

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Banks lend after the group has worked well for some months.

  41. Match the scheme with its type: JRY

    1. Training of youth
    2. Self-employment
    3. Wage employment
    4. Housing
    Answer

    C. Wage employment

    JRY created wage work.

  42. Match the scheme with its type: IRDP

    1. Road building
    2. Sanitation
    3. Wage employment
    4. Self-employment
    Answer

    D. Self-employment

    IRDP gave assets for self-employment.

  43. Match the scheme with its start: TRYSEM

    1. 1999
    2. 2011
    3. 1952
    4. 1979
    Answer

    D. 1979

    TRYSEM began in 1979.

  44. Match the scheme with its start: DWCRA

    1. 1999
    2. 2006
    3. 1982
    4. 1952
    Answer

    C. 1982

    DWCRA began in 1982.

  45. The National Extension Service was started in

    1. 1978
    2. 1999
    3. 1947
    4. 1953
    Answer

    D. 1953

    The NES followed the CDP in 1953.

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