Self-Help Groups (SHGs):
(a) Self Help Groups are informal voluntary association of poor people, from the similar socio-economic background, up to 20 women (average size is 14). They come together· for the purpose of solving their common problems through selfhelp and mutual help.
(b) The SHG promotes small savings among its members. They save small amounts Rs.10 to Rs.50 a month. The savings are kept with a bank. After saving regularly for a minimum of 6 months, they lend small amounts to their members for interest.
(c) Based on their performance, they are linkedwith the bank for further assistance under SHG Bank Linked Programme (SBLP) started in 1992. It is a holistic programme of micro-enterprises covering all aspects of self-employment, organization of the rural poor into self Help groups and their capacity building, planning of activity clusters, infrastructure build up, technology, credit and marketing.
(d) The main objective of this programme is to bring the beneficiaries above the poverty line by providing income generating assets to them through bank credit and government subsidy. NABARD estimates that there are 2.2 million SHGs in India, representing 33 million members that have taken loans from banks under its linkage program to date.
(e) The SHG Banking Linkage Programme since its beginning has been predominant in certain states, showing spatial preferences especially for the southern regions like Andhra Pradesh, Tamil Nadu, Kerala and Karnataka. These SHGs have helped the Banks to accumulate more funds
(f) Under NABARD SHG Linkage Programme, SHGs can borrow credit from bank on showing their successful track record of regular repayments of their borrowers k has been successful in the states like Andhra Pradesh, Tamil Nadu, Kerala and Karnataka during 2005-06. These States received approximately 60 per cent of SHG linkage credit (Taruna and Yadav, 2016).
(g) In 2009-10, the number of new SHGs having credit-linked with banks was 1.59 million and a bank loan of Rs.14,453 Crores was disbursed to these SHGs. Further, the number of SHGs which maintained savings accounts with banks at the end of March 2010 was 6.95 million.

Rural Electrification:
(a) Rural Electrification refers to providing electrical power to rural areas. The main aims of rural electrification are to provide electricity to agricultural operations and to enhance agricultural productivity, to increase cropped area, to promote rural industries and to lighting the villages.
(b) In order to improve this facility the supply of electricity is almost free for agricultural purpose in many states and the electricity tariff charged in rural areas is kept very low.
(c) In India 99.25% of villages were electrified at the end of March 2017. As on 31.03.2017, 100 percent electrification was achieved in villages of 20 States/UTs namely. Chandigarh, Delhi, Haryana, Himachal Pradesh, Punjab, Rajasthan, Daman & Diu, D & N Haveli, Goa, Gujarat, Maharashtra, Andhra Pradesh, Kerala, Lakshadweep, Puducherry, Tamil Nadu, Telangana, Andaman & Nicobar Island, Sikkim and Tripura.
The factors hindering the progress of rural electrification in India are:
(1) Lack of Funds: The generation and transmission of power involves huge expenditure and the fund allocation is low.
(2) Inter-state Disputes: As there are inter-state disputes in managing power projects, power distribution is affected.
(3) Uneven Terrain: As rural topography is uneven without proper connection, developing new lines are costlier and difficult.
(4) High Transmission Loss: Transmission loss in power distribution is almost 25 per cent in rural areas.
(5) Power Theft: Unauthorized use and diversion of power are evil practices adopted by affluent people that hinders the rural electrification process.

Introduction:
Rural indebtedness refers to the situation where the rural people are unable to repay the loan accumulated over a period.
Causes:
Poverty of farmers:
The vicious circle of poverty forces the farmers to borrow for consumption, cultivation and celebrations. Poverty, debt and high rates of interest hold the farmer in the grip of money lenders.
Failure of monsoon:
So it is difficult to identify good years to repay their debts.
Litigation:
(i) Due to land disputes, litigation in the court compels them to borrow heavily
(ii) Being uneducated and ignorant they are caught in the litigation process and lose their savings.
Money lenders-high interest rate:
The rate of interest charged by the local money lenders is very high and the compounding of interest leads to indebtedness of the farmer.

People related problems:
The problems related to individuals and their standard of living consist of illiteracy, lack of technical know how, low level of confidence, dependence on sentiments, and beliefs.
Agriculture related:
1. Lack of expected awareness, knowledge, skill and attitude.
2. Unavailability of inputs
3. Poor marketing facility.
4. Insufficient extension staff and services.
5. Multidimensional tasks to extension personnel.
6. Small size of land holding.
7. Sub-division and fragmentation of landholdings.
8. Absence of infrastructure to work and stay in rural areas.
9. Primitive technology and low adoption of modern technologies
10. Reduced public investment and absence of role for farmers in fixing price for their products.
Infrastructure related:
Poor infrastructure facilities like water, electricity, transport, educational institutions, communication, health, employment, storage facility, banking and insurance are found in rural areas.
Economics related:
(i) There is inability to adopt high cost technology, high cost of inputs, under privileged rural industries, low income, indebtedness and existence of inequality in land holdings and assets.
(ii) Infertile areas, a few absentee landlords own large area and they do not show any interest in improving the performance of agriculture.
Leadership related:
Leadership is in the hands of inactive and incompetent people, self-interest leaders, biased political will, less bargaining power and dominance of political leaders.
Administrative Problems:
There is political interference, lack of motivation, low wages in villages, improper utilization of budget, absence of monitoring and implementation of rural development programmes.
Conclusion: The problems found in rural economy are endless.

(i) Enemity and lack of basic amenities in rural areas push the people to migrate to urban areas.
(ii) This is called 'double poisoning' by Schumacher, one side villages are empty, on the other side towns are congested.

Poverty line is a hypothetical line based on Income (or) Consumption levels that divides the population as people below poverty line and above poverty line. Persons consuming less than 2,400 calories per day in rural areas are treated as they are under rural poverty.

Rural areas are facing the problems relating to
i) People
ii) Agriculture
iii) Infrastructure
iv) Ecoomy
v) Society and culture

Enterprises having not exceeding Rs. 25 Lakhs investment in plant and machinery and service sector industries having not exceeding Rs. 10 Lakhs investment in equipment.

(i) Village industries are traditional in nature and depend on local raw material.
(ii) Examples of village industries are gur and khandsari, cane and bamboo basket, shoe making,. pottery and leather tanning.

Requirements for Rural Development
i) Efforts need to be made to raise farm and non-farm rural real incomes.
ii) Investment in basic infra-structure and social services need to be increased.
iii) Coordinated and integrated programmes for solving the present problems and to achieve sustainable development need to be designed. 
iv) Persons and leaders with an understanding of reality of rural problems and with the required foresight vision should be consulted while designing development programmes.

Rural Market refers to the infrastructure created to buy and sell the products produced in rural areas and also to purchase the needed products and farm inputs produced in urban and other regions. The rural marketing is still defective as farmers lack bargaining power, long chain of middlemen, lack of organisation, insufficient storage facilities, poor transport facilities, absence of grading, inadequate information and poor marketing arrangements.

(i) India's road network is one of the world's largest.
(ii) The road length of India increased from about 4 lakh kms in 1950-51 to 34 lakh kms at present.
(iii) Rural roads in India constitute 2650 lakh kms of which 13.5 percent of the roads are surfaced.

(i) NRHM focuses on reproductive, maternal newborn, child health and adolescent services.
(ii) It recognises the inextricable linkages between adolescent health, family planning, maternal health and child survival.
(iii) The key features of the mission include making the public health delivery system fully functional and accountable to the community.

(i) Several remedial measures have been introduced to reduce rural indebtedness.
(ii) It includes regulation of money lenders, development of rural banks, Regional Rural Banks, Micro Finance, Formation of self help groups, primary co-operative banks and land development banks, crop loan schemes.
(iii) Lead Bank schemes, Micro units development and Refinance Agency bank (MUDRA) promotion of subsidiary occupation, off farm employment opportunities, skill development programmes etc