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The challenges before the unorganized sector are linked with the dismal status of infrastructure and communication network in India. Dismal road and other communication network, no electricity for many management, packing, branding, certification of non-farm activities in India. Further to his are problems of inappropriate and unorganized markets, inelastic output, lack of timely and qualitative input supplies, high input prices, inappropriate pricing, stiff competition form organized and big industries, lack of invocation and poor trade practices. Coupled together all this has led to the disappearance of traditional; non-farm activities across many parts of India.
Problems and Constraints:
Unorganized sector entrepreneurs raising loans from money lenders since it is available at their door-step and that too hassle free, even though the rate of interest is high. The All India Dept and Investment Survey (2002) reveal that the share of moneylenders in total dues of the rural households rose from 17.5 per cent in 1991 to 29.6 per cent in 2002.
What makes the moneylender’s services grow in rural and non-farm sector?
The reasons seem to be clear. The information problem is serious in rural credit markets. Banks cannot match money lenders in getting information on the credit worthiness of borrowers and their utilization and repayment capacity. The high rates of interest charged by money lenders is party on account of collecting information on the credit worthiness of the borrowers, monitoring their actions and ensuring repayments. For unorganized borrowers, timely credit is more important than the associated costs.
Recognizing the significance of the role of rural artisans in shaping the growth and development of the country, NISTADS undertakes ‘S&T studies for weaker sections with a focus on rural artisans and urban poor’. It functions as a bridge between artisans and R&D personal on one-hand and development functionaries on the other.
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Participants