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Which of the following statements is true about life in rural India? A. About four-fifths of farmers in India are large farmers. B. Farmers in India get into a debt trap when do not expect yield. C. Small farmers depend mainly on banks for their credit requirements. Choose the correct option.

Which of the following statements is true about life in rural India? A. About four-fifths of farmers in India are large farmers. B. Farmers in India get into a debt trap when do not expect yield. C. Small farmers depend mainly on banks for their credit requirements. Choose the correct option. Correct Answer Only A and B

The correct answer is Only A and B.

Key Points

  • Agriculture is the major source of livelihood in the rural sector.
  • About four-fifiths of farmers in India are large farmers.
  • Farmers in India get into a debt trap when they do not expect yield.
  • Small and marginal farmers are largely dependent on informal sources of credit.
  • Informal sources of credit are moneylenders, traders, employers, friends, and Self Help Groups (SHGs).
  • Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agricultural sectors.

 Thus, we can say that small farmers depend mainly on informal sources for their credit requirements.

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