Indian PM proposes Chinese model for rural development

Indian Prime Minister (PM) Manmohan Singh proposed Tuesday creation of rural business hubs across rural India on the lines of China to increase agricultural production.

"We need to learn from the Chinese model of rural business hubs that add value to agricultural produce within the rural area," the Indo-Asian News Service quoted Singh as saying.

Speaking at a conference of chief ministers on Panchayati Raj (village council) in New Delhi, Singh also made out a case for a comprehensive review of rural development programs in order to unleash the untapped potential of different parts of India where such programs had not penetrated.

Emphasizing the need to achieve Mahatma Gandhi's vision of decentralized production in rural areas, Singh recommended a fresh examination of rural development programs.

Concerns that we have not been able to unlock varying resource potential of different regions, use funds optimally and make Panchayati Raj institutions effective, can all perhaps be addressed by such a policy shift, he said.

Singh proposed that it was necessary to adopt a system of providing grants to districts, based on their incidence of poverty, to plan strategies for optimum use of the resources.

The funds need not be tied to specific schemes but linked to a holistic vision of rural development to make the district plan a reality, he said, reminding that was the original aim of local self-governance.

According to Singh, the compartmentalization of efforts in multiple schemes at the center and states without a core vision made investment in rural development sub-optimal.

"We perhaps need to architect a uniform vision for rural development that can respond differently to development situations in different states," he said.

In the best traditions of fiscal federalism, Singh added, the central government and states needed to cooperate in strengthening local government finances.

India's agriculture sector provides food and fiber to the country's large population.

About 70 percent of the Indian people live in more than 550,000villages in the country.

Source: Xinhua