Roadmap for Answer Writing Introduction Context of Rural Credit Introduce the significance of agriculture and primary sector lending in India and the government’s role in prioritizing this area. Mention the findings of the Reserve Bank of India (RBI) study, highlighting the low percentage (3%) ...
Marxism's alienation theory posits that capitalism disconnects individuals from their humanity, creative labor and fellow beings resulting in four types of alienation i.e. from labor, product, others and human potential, stifling self realization and freedom. Key aspects of Alienation - In Marx's alRead more
Marxism’s alienation theory posits that capitalism disconnects individuals from their humanity, creative labor and fellow beings resulting in four types of alienation i.e. from labor, product, others and human potential, stifling self realization and freedom.
Key aspects of Alienation –
- In Marx’s alienation theory, alienation of labor occurs when workers are disconnected from their creative potential becoming commodities exploited for profit, losing control and meaning.
- Marx’s alienation from product occurs when workers do not own or control the goods/services they produce, separating them from their creative output and intellectual property.
- Marx’s alienation from others arises when capitalist competition and wage labor replace cooperative relationships, isolating individuals and converting social interactions into market transactions and exploitation.
- Marx’s alienation from human potential occurs when capitalism stifles individuals creative freedom, autonomy and self realization reducing them to specialized, mechanized labor, hindering personal growth and fulfillment.
Karl Marx’s alienation theory still holds truth today. Modern issues like gig work, social media and automation continue to disconnect people from their creativity, community and true potential, fueling feelings of isolation and disempowerment.
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Model Answer Introduction The Government of India has prioritized agriculture and primary sector lending, increasing fund allocations over the years. However, a study by the Reserve Bank of India (RBI) reveals that only about 3% of the credit offtake reserved for the primary sector is utilized by smRead more
Model Answer
Introduction
The Government of India has prioritized agriculture and primary sector lending, increasing fund allocations over the years. However, a study by the Reserve Bank of India (RBI) reveals that only about 3% of the credit offtake reserved for the primary sector is utilized by small and medium farmers. Instead, large farmers and agriculture-based industries have become the primary beneficiaries of expanded credit. This highlights the need for alternative credit mechanisms, such as cooperative societies.
Reasons Why Banks Struggle to Finance Agriculture
Conclusion
In rural areas, cooperative societies serve as an ideal credit organization, addressing the unique needs of local farmers. They have deep community roots, enabling better-targeted coverage and improved loan recovery. While formal banking is essential, banks must develop tailored products for rural credit, leveraging technology to enhance accessibility and reduce transaction costs. By doing so, they can effectively support the agricultural sector and empower local economies.
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