Indian Economy & Rural Finance

Indian Economy of late, especially after the reforms has been growing rapidly by exploiting the potential inherent in it. The growth has not been retarded even under the negative influence of non-stable western, developed and big economies. When the major players are witnessing downfall of different quantum, Indian economy is marching with robust and steady growth. The forex and gold reserves are on a all time high and the per capita income showing steady upward trend. This however does not allow us to be complacent. Rural economy has some integrated advantages and thus has to be nurtured carefully to beneficially extract the advantages. The circulation/cycle of resources are pretty fast/smaller in rural economy and thus a given quantum of resources can serve a greater mass than in other forms of economies. Moreover these are also comparatively more stable as they are generally not affected by artificial reasons. Rural economy consists of a natural demand supply (non-artificial) curve and in normal circumstances they are bound to grow. These economies have a past history of sustainable growth in spite of extreme circumstances. One must remember that this economy has a legacy of surviving and growing profitably amidst highest lending rates ever. (the private lenders used rates as high as 3600 % p.a.). No other economy in the world has survived such high cost debts. This speaks volumes of potential available in our agrarian based rural economy.

Rural economy has extreme paucity of resources and thus is highly dependable on rural finance. While the government to boost up rural economy, has made statutory provisions for rural financing, but statutory provisions alone cannot fulfill the aim. Micro financing is the lifeline for such types of economy and thus has to be implemented at the smallest ground root level. Unfortunately at this phase, micro financing has again taken a back seat in the Indian Economy and we are sailing on the waves of imported turbulence. These waves while throwing high ups have also the potential to throng down if we miss our steps. So, if we can use this turbulence for resource mobilisation for the rural economy, it is certainly going to pay us rich dividends. With slashing stock markets and decreasing interest income, rural financing could be a lucrative avenue for investors, FIIs but in absence of any patronage from the Government, in terms of providing security to the investors, the avenue remains unpopulated till now. The potential investors, if adequately popularised, will look into it with gleaming eyes but will ensure that their resources does not run into rough weather. This could be a successful strategy as two acclaimed economists are in helm of affairs in form of Prime Minister and Finance Minister of the country.

While the Government is looking work towards long term solutions as an individual we should also contribute, may be in smaller quantum. We can always clone the efforts of Md. Yunus, who have revolutionized the rural financing in Bangladesh (Dr. Yunus was awarded with a Nobel Prize for Peace in recognition for his exemplary works in the field of rural financing in Bangladesh). The socio economic condition of Bangladesh are more similar than diverse in our country, specially in eastern and southern parts and therefore, implementation of methodology as suggested by Dr. Yunus can surely reap rich benefits. The other parts can implement it by editing it as per the regional requirements. The basic essence is to self-finance or to create resource from own resources. As already been mentioned above, the cycle of rural resource is extremely small and thus, it can self finance its projects. This requires small but cohesive coordination in a particular socio economic homogeneous group. Apart from the government and the individuals, the NGOs play an important and vital role in implementing them. The coordination needs to be cohesive and thus socio economic grouping is an essential ingredient for such coordinating groups. The NGOs by virtue of their approach have certainly more penetrations and they enjoy social proximity with the rural population. The communication is hassle free and thus can serve the cause with better efficiency. However, vis-à-vis social development, there is also a need for an individuals' economic and self-growth. The outflow of income in form of expenditure should be controlled with enhanced inflow of income; otherwise there will be no tangible growth of the individual, the society and the country. The evils of population, illiteracy, pollution, corruption should also be included in the curriculum of the governance. The rural population should inculcate the habit of saving a part of their income to sail them off at difficult times.

Thus, while the Government on its part has to ensure generation of adequate employment opportunity and income for the rural population, we cannot shrug off our social obligation to contribute for the same. With a little effort, we can not only save our centuries old time tested economy but can bring smiles in the faces of our fellow country men and hand over a better and secured future to our posterity. The result is highly effort elastic but requires honesty and integrity in the approach. Seeing an individual, a society and the country growing through its own efforts is certainly a celebration for the eyes and a solace to the heart. Let's work together and achieve the ultimate.

Hum honge kamayab; hum honge kamayab; hum honge kamyab ek din..
o o man mein biswas; poora hai biswas; hum honge kamayab ek din.........

[We shall overcome; we shall overcome; we shall overcome ...one day..
o o deep in our hearts; we do believe; we shall overcome one day....]