How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?By s

Q: What is UPSC Prelims?

UPSC Prelims is a competitive examination conducted in India. This question is from the 2012 UPSC Prelims Economy paper.

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Question

How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?By setting up a large number of new manufacturing industries and agribusiness centres in rural areas.By strengthening 'self-help groups' and providing skill development.By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers.Select the correct answer using the codes given below:

Accepted Answer

Correct Answer: B — 2 onlySolution:Statement 1 — Setting up manufacturing industries and agribusiness centres: This is incorrect. The NRLM (National Rural Livelihoods Mission), now called DAY-NRLM (Deendayal Antyodaya Yojana-NRLM), does not set up manufacturing industries or agribusiness centres. It focuses on organising rural poor women into Self-Help Groups (SHGs), building their financial and social capital, and linking them to livelihood opportunities — not on establishing industrial or agri-business infrastructure. ✗Statement 2 — Strengthening self-help groups and skill development: This is correct. NRLM's core strategy is to organise rural poor women into SHGs, federate these SHGs at village and district levels, link them to financial services (banks), provide skill training (Deen Dayal Upadhyaya Grameen Kaushalya Yojana — DDU-GKY is related), and build their capacity to access government schemes and markets. ✓Statement 3 — Supplying seeds, fertilizers, diesel pumps free of cost: This is incorrect. NRLM does not provide free agricultural inputs like seeds, fertilizers, or irrigation equipment to farmers. Such input subsidies are channelled through separate agricultural programmes (National Food Security Mission, PM-KISAN, etc.). NRLM's approach is to empower SHGs to access credit and markets — not to provide free inputs. ✗Why other options are incorrect:Options A, C, D: All include incorrect Statements 1 or 3.Key Concept: DAY-NRLM (launched 2011, revamped 2013) is the world's largest poverty alleviation programme. It aims to reach 90 million rural households through about 10 million SHGs. Key components: institution building (SHGs, Village Organisations, Cluster Level Federations); financial inclusion (SHG-bank linkage — India has the world's largest SHG-bank linkage programme); skill development (DDU-GKY for wage employment; RSETI for self-employment); digital literacy; support to start-ups and enterprises. The 'SHG-bank linkage model' pioneered in India is now a global model. DAY-NRLM has demonstrated significant impacts on women's empowerment, reduction of poverty, and improved access to financial services — particularly in states like Andhra Pradesh, Telangana, Kerala, and Bihar.

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