‘Credit has its own unique role for development.’ Justify the stat

1.	‘Credit has its own unique role for development.’ Justify the statement with arguments.
Answer» Credit has a unique role in the economic development of the country. It is needed by all the three sectors of the economy. In urban sector, big businessmen and small manufacturers need loans either to expand their enterprises, bring new technology or diversifying their businesses. In rural sector, the main demand for credit is for crop production. Crop production involves cost of seeds, fertilizers, pesticides, water, electricity, repair of equipments. Cheap credit would thus lead to increase in production. Even tertiary sector needs loans to buy the latest equipments and technology. Thus, we can say that credit has a unique role in the development of a country.

‘Credit has its own unique role for development.’ Justify the statement with arguments.

Answer»

Credit has a unique role in the economic development of the country. It is needed by all the three sectors of the economy.

In urban sector, big businessmen and small manufacturers need loans either to expand their enterprises, bring new technology or diversifying their businesses.
In rural sector, the main demand for credit is for crop production. Crop production involves cost of seeds, fertilizers, pesticides, water, electricity, repair of equipments. Cheap credit would thus lead to increase in production.
Even tertiary sector needs loans to buy the latest equipments and technology. Thus, we can say that credit has a unique role in the development of a country.