Why is state intervention necessary to regulate the activities of private traders in rural development sector?

Rural development calls for taking account for such aspects as human capital formation in rural areas, development of productive resources, development of rural infrastructure, reduction of poverty and generation of new employment activities. The private sector would hesitate to venture in such areas due to low profit viability and if left completely to the private sector, the activities would not be adequate to fill the required gap. This necessitates intervention of the public sector. It is the public sector, with the motive of social welfare can  work towards the development of rural areas, where a bulk of Indian population lives.  

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