(a) “Micro-credit programmes have helped to fill in the gaps in the formal credit system.” Justify the given statement.

Micro-credit programmes have emerged to fill the gap in the formal credit system. The formal credit delivery mechanism has not been fully integrated into the rural social structure. Since, some collateral is required, vast proportion of poor rural households go out of the credit network.

Micro-credit system has brought these poor households in the ambit of formal credit system by providing them loans at the concessional rate of interest.

In India, Information Technology (IT) plays a crucial role as government can predict areas of food insecurity and vulnerability using appropriate information and software tools. It helps in disseminating information regarding emerging technologies and their applications, prices, weather and soil conditions for growing different crops etc. It acts as a tool for releasing the creative potential and knowledge embedded in the society. Moreover, it generates employment in rural areas. Hence, IT plays a vital role in achieving rural development and food security in a nation like India.