NABARD’s role in strengthening india through rural infrastructure development fund (RIDF)

Abstract

Economic and social infrastructures are crucial for developing rural India. Even a marginal improvement, in a scenario of poor rural infrastructure, could significantly boost economic development and human wellbeing. The development of rural infrastructure by improving basic infrastructure, such as roads, electricity, housing, health and education, water and sanitation, etc. and infrastructure for agriculture sector like irrigation, warehouses, market yards, etc. can make a big difference in the standard of living. Development of rural infrastructure can lead to improved mobility in terms of better availability of inputs and raw materials and access to market centres for the rural producers. Development of strong and sustainable economic infrastructure has always been the priority of the central government of India. It is in this respect, the creation of Rural Infrastructure Development Fund (RIDF) was initiated by NABARD (National Bank for Agriculture and Rural Development) in 1995-96 and by constructing Rural Infrastructure Indices (RIIs) in 2016, with the objective of providing low cost funds to the States to facilitate completion of the incomplete rural infrastructure projects and has emerged as a dependable source of public funding over the years.