Rural banking CAIIB notes – Unit 1
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These notes are a part of 2024 CAIIB Video library course of Rural Banking (Elective Paper) by Motivational Banker. These notes are intended to help you prepare better for your CAIIB exam.
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UNIT 1
Demographic Features
DEMOGRAPHIC FEATURES:
- India’s population has steadily grown since independence.
- The annual increase in population is equivalent to the entire population of Australia.
- Human Development Index (HDI) developed by the United Nation Development Programme (UNDP), measures living conditions worldwide. It is used to assess whether people have a better life compared to the past.
- Due to population pressure on land and agriculture, people migrate to urban areas in search of better opportunities.
Population:
- India’s population history marked by high mortality from famines, diseases, and war.
- High fertility once necessary for population stability.
- Progress achieved: better disease control, monsoon adaptation, increased life expectancy.
- India among world’s most populous countries. Decadal growth rate: Declined from 21.5% to 17.7%.
- Decadal growth rate decline more prominent in EAG states (Empowered action group states viz. Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan & Odisha).
- India currently in stage three of demographic transition.
- Transition from high mortality and fertility to low.
- Crude birth rate at 20.0 in 2018, declining from 2017.
- Crude birth rate Highest in Bihar (26.2), lowest in Kerala (13.9).
- Crude death rate at 6.2 in 2018.
- Infant mortality rate (IMR) declined to 32 in 2018.
- Improving sex ratio at birth (943 in 2011).
- Total fertility rate (TFR) stable at 2.2 in 2017-18.
- Population Pyramids represent complex changes in age structure of the population. In developed countries, the shape of population structure is almost cylindrical instead of a pyramid because of the high life expectancy, low fertility and relatively low population in reproductive age group.
- Developing countries, including India, have more children and young adults. Hence, the shape of population structure is pyramid.
- GDP growth rate over 10.2% during 2001-10. Per capita income doubled.
- Food production growth slightly lower than population growth.
Literacy:
- Literacy means the ability to read, write, and understand information to communicate effectively. It is crucial for personal development, awareness, and skills.
- Literacy Rates in India (2011 Census):
- India’s average literacy rate is 74.04%.
- Kerala has the highest literacy rate at 93.91%, while Bihar has the lowest at 63.82%.
- India improved its literacy rate from 64.80% in 2001 to 74.04% in 2011.
- Female literacy rate increased from 53.7% (2001) to 65.5% (2011).
- Article 30 of the Indian Constitution gives all minorities, the right to establish and administer institutions of their own choice.
- The Constitution of India (u/a 41, 45 and 46 of the Directive Principles of State Policy instructs the state to ensure that all citizens receive free education.
- Article 21 (A) of the Constitution of India was amended to provide free and compulsory education as a fundamental right to all children aged between 6 and 14 years.
- Article 15, 17, and 46 of the Indian Constitution safeguard the educational interests of weaker sections of the society.
- Gender disparity in literacy exists due to lack of education for women and deep-rooted discrimination.
- Government Initiatives:
- Scholarships, free textbooks, and stationery to encourage studying.
- The Mid-Day Meal Scheme was launched by the government in 1995, to provide students free food so as to improve enrolment, attendance, and retention in government schools.
- Samagra Shiksha Program for improving school effectiveness.
- Awareness campaigns to promote education in rural areas.
Sixth Economic Census :
- Data is essential for planning and development.
- Central Statistics Office, GOI, creates and updates databases for economic sectors.
- Sixth economic census conducted across all Indian states and Union Territories (2013-14).
- Economic included all economic activities except crop production, public administration, defence, and social security.
- India has 58.50 million establishments in the country, engaged in different economic activities other than crop production, plantation, public administration, defence and compulsory social security services.
- 80 million (59.48%) in rural areas, 23.70 million (40.52%) in urban areas.
- Uttar Pradesh, Maharashtra, West Bengal, Tamil Nadu, and Andhra Pradesh have the most establishments.
- Among these establishments, 45.37 million (77.55 per cent) were engaged in non-agricultural activities, while the rest 13.13 million (22.45 per cent) were engaged in agricultural activities, other than crop production and plantation.
Employment:
- 29 million people employed in establishments (67.89 million in rural, 63.40 million in urban).
- Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu, and Gujarat account for 50% of employment.
- About 108.41 million workers, constituting 82.57% of total employment, worked in non-agricultural establishments and 22.88 million (17.42 per cent) worked in agricultural establishments.
- Seventh Economic Census also initiated but delayed due to the pandemic.
- The share of females in total employment of 131.29 million was 33.04 million, which is around 25.17 per cent of total employment; 61.90 per cent of the female employment was in rural areas.
- Under agricultural activities livestock give maximum employment with 19.42 million workers, constituting 84.86 per cent of the total employment in the agricultural sector.
Agricultural Establishments:
- Agricultural Establishments including agriculture, livestock, forestry and fishery.
- 13 million agricultural establishments (22.45% of total).
- 92% in rural areas.
- 88 million employed (17.42% of total employment).
- 85% of employment for females.
- Gujarat, Tamil Nadu, Maharashtra, Andhra Pradesh, and Uttar Pradesh have the most agricultural establishments.
Non – Agricultural Establishments:
- 36 million non-agricultural establishments.
- 15 million females employed (22.28% of total non-agricultural employment).
- Manufacturing, retail trade, and education employ the most.
Handicraft/Handloom Establishments:
- 73 lakh handicraft/handloom establishments in India.
- Majority (59.6%) in rural areas.
- West Bengal, Uttar Pradesh, Odisha, Andhra Pradesh, and Tamil Nadu have the most establishments.
- Around 42 lakh people employed; 52.67% in rural areas.
- Women-run establishments make up 13.76% of the total.
- 05 million establishments owned by women entrepreneurs.
- Tamil Nadu, Kerala, Andhra Pradesh, West Bengal, and Maharashtra have the most women-owned establishments.
Agriculture Census :
- Agriculture is vital for India’s economy, providing livelihoods and raw materials.
- Accurate agricultural statistics are crucial for land-holdings and development planning.
- Agriculture Census Scheme started in 1970-71, conducted every five years.
- Focuses on operational holdings (land use, cropping, irrigation, etc.).
- Provides data for development planning, policy, and national priorities.
On the basis of operated area, operational holdings in Agriculture Census are categorized as follows:
| Sl. No. | Category | Area operated |
| 1 | Marginal Holding | Below 1 hectare |
| 2 | Small Holding | 1- 2 hectare |
| 3 | Semi-medium holding | 2-4 hectare |
| 4 | Medium holding | 4-10 hectare |
| 5 | Large holdings | 10 hectare and above |
Highlights of Agriculture Census 2015-16:
- Total operational holdings increased to 146.45 million (5.86% increase from 2010-11).
- Marginal category had the highest share (68.5%).
- Total operated area decreased slightly to 157.82 million ha.
- Average size of operational holdings decreased to 1.08 ha.
- Female operational holders increased to 13.96%.
- Almost 98% of holdings are wholly owned and self-operated.
- Gross cropped area decreased slightly to 191.76 million ha.
- Highest net sown area was observed in marginal category (90.4%) and lowest in large category (82.8 per cent).
- Net irrigated area increased to 48.7% of net sown area.
- Gross irrigated area increased to 49.8% of gross cropped area.
- Cropping intensity remained static at 1.37.
- Slight decrease in the percentage share of food crops in gross cropped area (75.1%).
- Slight increase in the percentage share of non-food crops (24.9%).
- Highest net sown area was observed in marginal category (90.4%) and lowest in large category (82.8 per cent).
- Net irrigated area increased to 48.7% of net sown area.
- Gross irrigated area increased to 49.8% of gross cropped area.
- Cropping intensity remained static at 1.37.
- Slight decrease in the percentage share of food crops in gross cropped area (75.1%).
- Slight increase in the percentage share of non-food crops (24.9%).
