Classroom 0 Poverty Read Upupdated 661836 PDF

Indian Economy for IAS by Pratik Gupta 1
Poverty and Unemployment 2019-20
Poverty and Unemployment in India
Poverty
Poverty may be defined as the state of not having enough money to afford the basic needs to live
such as food, clothing, and shelter" or it can be put in other way like the state of having some to no
money, and few or no material possessions. With both of these definitions, poverty can be described in
many different ways. Some attempts to reduce it to numbers, while others argue that a more ambiguous
definition must be used. Today, most economists and social workers use two ways in defining poverty,
"absolute poverty" and "relative poverty".
ABSOLUTE POVERTY
"Absolute poverty" is defined by Encarta online dictionary, as the measure of the number of
people living below a certain income threshold or the number of households unable to afford certain
basic goods and services. In India, absolute poverty is used with an official poverty line set in Rupees and
representing the monthly/annually income required to allow a family of a given size to purchase the
range of goods and services that are seen as constituting the minimum acceptable way of life in India.
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RELATIVE POVERTY
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When defining poverty in a relative state, "people are in poverty when they fall behind, by more
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than a certain degree, from the average income and life style enjoyed by the rest of the society in which
one lives". People living in "relative poverty" are placed in poverty because the income in which they live
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under is below a certain income threshold. There are people and families living in poverty in relative
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terms, but may have all the basic necessities to live a healthy lifestyle. en
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Multidimensional Poverty Index (MPI)

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The MPI was developed in 2010 by Oxford Poverty & Human Development Initiative and the
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United Nations Development Program (UNDP).

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The MPI is an index of acute multidimensional poverty. It reflects deprivations in very

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rudimentary services and core human functioning for people across 105 countries. Although deeply
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constrained by data limitations, MPI reveals a different pattern of poverty than income poverty, as it
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illuminates a different set of deprivations. The MPI has three dimensions: health, education, and
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standard of living. These are measured using ten indicators. Each dimension and each indicator within a
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dimension is equally weighted.

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The following ten indicators are used to calculate the MPI:

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Education (each indicator is weighted equally at 1/6)

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1. Years of Schooling: deprived if no household member has completed five years of schooling
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2. Child Enrollment: deprived if any school-aged child is not attending school in years 1 to 8
Health (each indicator is weighted equally at 1/6)
3. Child mortality: deprived if any child has died in the family
4. Nutrition: deprived if any adult or child for whom there is nutritional information is malnourished
Standard of Living (each indicator is weighted equally at 1/18)
5. Electricity: deprived if the household has no electricity
6. Sanitation: deprived if they do not have an improved toilet or if their toilet is shared (MDG Definition)
pratikjee2001@gmail.com
7. Drinking water: deprived if the household does not have access to clean drinking water or clean
water is more than 30 minutes’ walk from home (MDG Definition)
8. Floor: deprived if the household has dirt, sand or dung floor
9. Cooking fuel: deprived if they cook with wood, charcoal or dung
10. Assets: deprived if the household does not own more than one of radio, TV, telephone, bike, or
motorbike.
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The United Nations development Programme (UNDP) and the Oxford Poverty and Human Development
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Initiative (OPHI) developed a new version of the global Multidimensional Poverty Index (MPI). The global
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MPI covers 105 countries in total, which are home to 77 per cent of the world’s population, or 5.7 billion
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people. Of this proportion, 23 per cent of people (1.3 billion) are identified as multidimensionally poor.
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For the 2018 global MPI, five of the ten indicators have been revised jointly by OPHI and UNDP to align
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the MPI with the 2030 Agenda. This is in response to the Agenda’s call for a better measure of progress
toward Sustainable Development Goal (SDG) 1 – “to end poverty in all its forms” – and to help achieve
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the principle of leaving no one behind.

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Global Highlights
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• 1.3 billion people live in multidimensional poverty.

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• 83% of all multidimensionally poor people in the world live in Sub-Saharan Africa and South Asia.
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• Two-thirds of all MPI poor people live in middle-income countries.

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• Half of the multidimensionally poor are children aged 0-17.

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• 85% of MPI poor people live in rural areas.

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• 46% of those who are multidimensionally poor live in severe poverty.

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• In 2015/16, more than 364 million people are still MPI poor in India.
• In India, 271 million people moved out of poverty in ten years.
• Across the 640 districts in India, the poorest district is Alirajpur in Madhya Pradesh, where 76.5%
of people are MPI poor.
• Within India, 40.4 million people live in districts where more than 60% of people are MPI poor.
• 8 million Indians live in the poorest districts in the state of Bihar.
• In India, two in five children under 10 years of age are MPI poor.
• The poorest groups in India – Muslims and Scheduled Tribes – reduced poverty the most over
the ten years from 2005/06 to 2015/16.
About India by MPI

India has reduced its poverty rate drastically from 55% to 28% in ten years. 271 million people moved out
of poverty between 2005/6 and 2015/16. While progress has been remarkable, the country still has the
largest number of people living in multidimensional poverty in the world (364 million people).
If one considers the 364 million people who are MPI poor in 2015/16, 156 million (34.5%) are children. In
fact, of all the poor people in India, just over one in four—27.1 percent—has not yet celebrated their
tenth birthday. The good news is that multidimensional poverty among children under 10 has fallen the
fastest. In 2005/6 there were 292 million poor children in India, so the latest figures represent a 47
percent decrease or a 136 million fewer children growing up in multidimensional poverty. When
considering the durable and lifetime consequences of childhood deprivation, particularly in nutrition and
schooling, this is a tremendously good sign for India’s future.
Between 2005-06 to 2015-16, poverty level came down from 55% to 21%, improving the country’s MDP
ranking. Following the drop in poverty levels, India moved to the 26th rank from its earlier 54, in a
decade, among 102 developing countries with MDP.
Human Development Index
The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income
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per capita indicators, which are used to rank countries into four tiers of human development. A country
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scores higher HDI when the life expectancy at birth is longer, the education period is longer, and the
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income per capita is higher. The HDI was developed by Pakistani economist Mahbub ul Haq, often framed
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in terms of whether people are able to "be" and "do" desirable things in their life, and was published by
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the United Nations Development Programme.
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New Method: Published on 4 November 2010 (and updated on 10 June 2011), the 2010 Human
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Development Report (HDI) combines three dimensions:
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• A long and healthy life: Life expectancy at birth
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• Education index: Mean years of schooling and Expected years of schooling

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• A decent standard of living: GNI per capita (PPP US$)

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Old Method: The HDI combined three dimensions last used in its 2009 Report:
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• Life expectancy at birth, as an index of population health and longevity to HDI

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• Knowledge and education, as measured by the adult literacy rate (with two-thirds weighting)
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and the combined primary, secondary, and tertiary gross enrollment ratio (with one-third
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weighting).
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Standard of living, as indicated by the natural logarithm of gross domestic product per capita
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at purchasing power parity.

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The Ranking of 2018 for some of the countries are as follows:

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1. Norway 0.953
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3. Australia 0.939
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2. Switzerland 0.944
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13. USA 0.924

19. Japan 0.909
130. India 0.640
Criticism of HDI
The Human Development Index has been criticized on a number of grounds including alleged ideological
biases towards egalitarianism and so-called "Western models of development", failure to include any
ecological considerations, lack of consideration of technological development or contributions to the
human civilization, focusing exclusively on national performance and ranking, lack of attention to
development from a global perspective, measurement error of the underlying statistics, and on the
UNDP's changes in formula which can lead to severe misclassification in the categorization of 'low',
'medium', 'high' or 'very high' human development countries.
Economists Hendrik Wolff, Howard Chong and Maximilian Auffhammer discuss the HDI from the
perspective of data error in the underlying health, education and income statistics used to construct the
HDI. They identified three sources of data error which are due to (i) data updating, (ii) formula revisions
and (iii) thresholds to classify a country’s development status and conclude that 11%, 21% and 34% of all
countries can be interpreted as currently misclassified in the development bins due to the three sources
of data error, respectively. The authors suggest that the United Nations should discontinue the practice
of classifying countries into development bins because - they claim - the cut-off values seem arbitrary,
can provide incentives for strategic behavior in reporting official statistics, and have the potential to
misguide politicians, investors, charity donors and the public who use the HDI at large.
In 2010 the UNDP reacted to the criticism and updated the thresholds to classify nations as low, medium,
and high human development countries. In a comment to The Economist in early January 2011, the
Human Development Report Office responded to a January 6, 2011 article in the magazine which
discusses the Wolff et al. paper. The Human Development Report Office states that they undertook a
systematic revision of the methods used for the calculation of the HDI and that the new methodology
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directly addresses the critique by Wolff et al. in that it generates a system for continuous updating of the
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human development categories whenever formula or data revisions take place.
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Below Poverty Line in India
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The poverty line was originally fixed in terms of income food requirements in 1978. It was
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stipulated that the calorie standard for a typical individual in rural areas was 2400 calorie and was 2100
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calorie in urban areas. Then the cost of the grains (about 650 gms) that fulfill this normative standard was
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calculated.
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This cost was the poverty line. In 1978, it was Rs. 61.80 per person per month for rural areas and
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Rs. 71.30 for urban areas. Since then the Planning Commission calculates the poverty line every year
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adjusting for inflation.

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The Planning Commission on September 20, 2011 told the Supreme Court that the BPL
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population in the country is 40.74 crore and the poverty line for the urban and rural areas could be
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provisionally placed at Rs. 965 per capita per month (around Rs. 32 per day) and Rs.781 per capita per
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month (around Rs. 26 per day) respectively.

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Planning Commission on March 19, 2012 further reduced the poverty line to Rs. 28.65 per capita
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daily consumption in cities and Rs. 22.42 in rural areas, scaling down India's poverty ratio to 29.8% in
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2009-10. An individual above a monthly consumption of Rs. 859.6 (Rs. 10,315/annum) in urban and Rs.
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672.8 (Rs.8073.6/annum) in rural areas is not considered poor as per the controversial formula (Fisher
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Price Index).
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As per the latest estimates, the number of poor in India has declined to 34.47 crore in 2009-10
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from 40.72 crore in 2004-05 estimated on the basis of Tendulkar Committee methodology.
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Among religious groups, Sikhs have lowest poverty ratio in rural areas at 11.9 per cent, whereas
in urban areas, Christians have the lowest proportion of poor at 12.9 per cent. Poverty ratio is the highest
for Muslims at 33.9 per cent, in urban areas.
Further, poverty in rural areas declined at a faster pace than in urban cities between 2004-05 and
2009-10.
Poverty in India
The HDR 2010 measures poverty in terms of a new parameter namely, multidimensional poverty
index (MPI), which replaced the human poverty index (HPI) used since 1997. The MPI indicates the share
of the population that is multi-dimensionally poor adjusted by the intensity of deprivation in terms of
living standards, health, and education.
According to this parameter, India with a poverty index of 0.296 and poverty ratios of 41.6% (in
terms of PPP $1.25 a day) and 28.6% (national poverty line) is not favorably placed when compared with
countries like China and Sri Lanka.
In fact, the difference in population below the poverty line (BPL) widens substantially in case of
India when this indicator is used instead of the national poverty line indicator, while for other countries,
there is less of a difference and in some cases even a fall.
The Planning Commission which is the nodal agency for estimating the number and proportion of
people living below the poverty line at national and State levels, separately for rural and urban areas,
makes poverty estimates based on a large sample survey of household consumption expenditure carried
out by the National Sample Survey Organization (NSSO) after an interval of approximately five years.
The Commission has been estimating the poverty line and poverty ratio since 1997 on the basis
of the methodology spelt out in the report of the Expert Group on ‘Estimation of Number and Proportion
of Poor’ (known as Lakdawala Committee Report). On the basis of NSS 61st Round (July 2004 to June
2005) consumer expenditure data, the poverty ratio is estimated at 28.3 per cent in rural areas, 25.7 per
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cent in urban areas, and 27.5 per cent for the country as a whole in 2004-05 using uniform recall period
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(URP).
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In URP, consumer expenditure data for all the items are collected for a 30-day recall period.
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Based on mixed recall period (MRP) for the same period, the poverty ratios are 21.8 per cent in rural
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areas, 21.7 per cent in urban areas, and 21.8 per cent for the country as a whole.
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In MRP, consumer expenditure data for five non-food items, namely clothing, footwear, durable
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goods, education, and institutional medical expenses, are collected for a 365-day recall period and the
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consumption data for the remaining items are collected for a 30-day recall period.
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The poverty estimate in 2004-05 based on URP consumption (27.5) is comparable to that of
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1993-94 (36). The poverty estimates in 2004-05 based on MRP consumption (about 21.8) is roughly (but
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not strictly) comparable to that of 1999-2000 (26.1).

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Two committees under the chairmanship of Prof. Suresh D. Tendulkar and Dr. N.C. Saxena have
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submitted their reports on methodology for estimation of poverty and methodology for conducting BPL
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census in rural areas, respectively. Further, an expert Group under the chairmanship of Prof. S.R. Hasim
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has been set up to recommend methodology for identification of BPL families in urban areas.
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Tendulkar Committee Report

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The Planning Commission constituted an Expert Group in December 2005 under the
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chairmanship of Professor Suresh D. Tendulkar to review the methodology for estimation of poverty. The
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Expert Group submitted its report in December 2009.

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While acknowledging the multidimensional nature of poverty, the Expert Group recommended
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moving away from anchoring poverty lines to the calorie intake norm to adopting MRP based estimates
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of consumption expenditure as the basis for future poverty lines and MRP equivalent of the urban
poverty line basket (PLB) corresponding to 25.7% urban headcount ratio as the new reference PLB for
rural areas.
On the basis of the above methodology, the all-India rural poverty headcount ratio for 2004-05
was estimated at 41.8 per cent, urban at 25.7 per cent, and all-India at 37.2 per cent. It may, however, be
mentioned that the Tendulkar Committee’s estimates are not strictly comparable to the official poverty
estimates because of different methodologies.
As has been indicated in the Mid Term Appraisal of the Eleventh Five Year Plan, the revised
poverty lines for 2004-05 as recommended by the Tendulkar Committee have, been accepted by the
Planning Commission. The Tendulkar Committee has specifically pointed out that the upward revision in
the percentage of rural poverty in 2004-05, resulting from the application of a new rural poverty line
should not be interpreted as implying that the extent of poverty has increased over time. These
estimates, as reported by the Committee, clearly show that whether we use the old method or the new,
the percentage of BPL population has declined by about the same magnitude.
Rangarajan Committee for Reviewing Poverty Line
On 23rd May 2012, the Planning Commission constituted an expert group headed by noted
economist C. Rangarajan to review the Tendulkar Committee methodology for estimating poverty.
“Government has decided to set up an expert technical group chaired by Chairman of Prime Minister’s
Economy Advisory Council C. Rangarajan to revisit the methodology for estimation of the poverty and
identification of the poor.
In June 2014, the findings of the Rangarajan panel report on poverty estimates states that three out of 10
people in India are poor. The report has hiked the poverty limit to Rs 47 per day in cities, stating that
people spending below that would be considered poor. The Tendulkar committee report had fixed the
poverty line at Rs 33 per day for urban areas.
The Rangarajan report also states that those spending less than Rs 32 per day in rural areas would be
considered poor. The Tendulkar committee had pegged the poverty line at Rs 27 a day for rural India.
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Centre Decides to Review Poverty Level, Sets Up Task Force for It
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The government has decided to review the poverty benchmark before it unrolls a comprehensive plan
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aimed at tackling the problem. It has set up a task force, headed by NITI Aayog Vice Chairman Arvind
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Panagariya, to define poverty and prepare a road map to alleviate it.
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In September 2016, it suggested to the government that another panel of specialists should be asked to
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do this job {if defining poverty line}. Informally, this committee supported the poverty line as suggested
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by Tendulkar Committee.
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On 2nd June, 2017, NITI Aayog submitted the report to the Government regarding poverty Estimation.
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ECONOMIC GROWTH and ECONOMIC DEVELOPMENT

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Economic Growth is a narrower concept than economic development. It is an increase in a

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country's real level of national output which can be caused by an increase in the quality of resources (by
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education etc.), increase in the quantity of resources & improvements in technology or in another way an
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increase in the value of goods and services produced by every sector of the economy. Economic Growth
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can be measured by an increase in a country's GDP (gross domestic product).

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Economic development is a normative concept i.e. it applies in the context of people's sense of morality
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(right and wrong, good and bad). The definition of economic development given by Michael Todaro is an
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increase in living standards, improvement in self-esteem needs and freedom from oppression as well as a
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greater choice. The most accurate method of measuring development is the Human Development Index
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which takes into account the literacy rates & life expectancy which affect productivity and could lead to
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Economic Growth. It also leads to the creation of more opportunities in the sectors of education,
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healthcare, employment and the conservation of the environment. It implies an increase in the per capita
income of every citizen.
Economic Growth does not take into account the size of the informal economy. The informal economy is
also known as the black economy which is unrecorded economic activity. Development alleviates people
from low standards of living into proper employment with suitable shelter. Economic Growth does not
take into account the depletion of natural resources which might lead to pollution, congestion & disease.
Development however is concerned with sustainability which means meeting the needs of the present
without compromising future needs. These environmental effects are becoming more of a problem for
Governments now that the pressure has increased on them due to Global warming.
Economic growth is a necessary but not sufficient condition of economic development.
Comparison chart
Economic Development Economic Growth
Economic development implies changes in Economic growth refers to an
income, savings and investment along with increase in the real output of goods
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progressive changes in socio-economic and services in the country.
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structure of country (institutional and
technological changes).
Development relates to growth of human Growth relates to a gradual
capital indexes, a decrease in inequality increase in one of the components
Factors figures, and structural changes that of Gross Domestic Product:
improve the general population's quality of consumption, government
life. spending, investment, net exports.
Qualitative. HDI (Human Development Quantitative. Increases in real GDP.
Measurem Index), gender- related index (GDI), Human
ent poverty index (HPI), infant mortality,
literacy rate etc.
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Brings qualitative and quantitative changes Brings quantitative changes in the
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Effect
in the economy economy
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Economic development is more relevant to Economic growth is a more relevant
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measure progress and quality of life in metric for progress in developed
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developing nations. countries. But it's widely used in all
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countries because growth is a
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necessary condition
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Concerned with structural changes in the Growth is concerned with increase

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economy in the economy's output
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Global happiness index

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The World Happiness Report is a measure of happiness published by the United Nations
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Sustainable Development Solutions Network. In July 2011, the UN General Assembly passed a resolution
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inviting member countries to measure the happiness of their people and to use this to help guide their
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public policies. On April 2, 2012 this was followed by the first UN High Level Meeting on "Happiness and
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Well-Being: Defining a New Economic Paradigm," which was chaired by Prime Minister Jigme Thinley of
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Bhutan, the first and so far only country to have officially adopted gross national happiness instead of the
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gross domestic product as the main development indicator.

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The first World Happiness Report was released on April 1, 2012, just ahead of as a foundational text for
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the conference.
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Rankings
On a scale running from 0 to 10, people in over 150 countries, surveyed by Gallup over the
period 2010-12, reveal a population-weighted average score of 5.1 (out of 10). Six key variables explain
three-quarters of the variation in annual national average scores over time and among countries. These
six factors include: real GDP per capita, healthy life expectancy, having someone to count on, perceived
freedom to make life choices, freedom from corruption, and generosity
World Happiness Report 2017
The first World Happiness Report was published in April, 2012, in support of the UN High Level Meeting
on happiness and well-being. Since then the world has come a long way. Increasing- ly, happiness is
considered to be the proper measure of social progress and the goal of public policy. In June 2016 the
OECD committed itself “to redefine the growth narrative to put people’s well-being at the center of
governments’ efforts”. 1 In February 2017, the United Arab Emirates held a full-day World Happiness
meeting, as part of the World Government Summit. Now on World Happiness Day, March 20th, we
launch the World Happiness Report 2017, once again back at the United Nations, again published by the
Sustainable Development Solutions Network, and now supported by a generous three-year grant from
the Ernesto Illy Foundation. Some highlights are as follows.
Norway has jumped from 4th place in 2016 to 1st place this year, followed by Denmark, Iceland and
Switzerland in a tightly packed bunch. All of the top four countries rank highly on all the main factors
found to support happiness: caring, freedom, generosity, honesty, health, income and good governance.
Their averages are so close that small changes can re-order the rankings from year to year. Norway
moves to the top of the ranking despite weaker oil prices. It is sometimes said that Norway achieves and
maintains its high happiness not because of its oil wealth, but in spite of it. By choosing to produce its oil
slowly, and investing the proceeds for the future rather than spending them in the present, Norway has
insulated itself from the boom and bust cycle of many other resource-rich economies. To do this
successfully requires high levels of mutual trust, shared purpose, generosity and good governance, all
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factors that help to keep Norway and other top countries where they are in the happiness rankings.
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India and World Happiness Report 2018
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India ranked 133nd, behind terror-riven Pakistan and poorest-of-poor Nepal in the global list of the
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happiest countries, according to a global report released on Monday.
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India ranked at 133 out of 156 countries in the World Happiness Report 2018, eleven notches below its
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previous rank of 122.
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2. Norway 7.594 5. Switzerland 7.487

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3. Denmark 7.555 1. Finland 7.632

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4. Iceland 7.495
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133. India 4.190

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IMPORTANT FLAGSHIP PROGRAMS

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NATIONAL EDUCATION MISSION

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National Education Mission was allocated a budget of ₹385.72 billion (US$5.6 billion) in 2019 Interim
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Union Budget of India. The mission comprises four schemes viz. Sakshar Bharat, Sarva Shiksha Abhiyan,
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Rashtriya Madhyamik Shiksha and teacher training programs.

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Saakshar Bharat
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Saakshar Bharat is a government of India initiative launched by Prime Minister, Dr. Manmohan Singh to
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create a literate society through a variety of teaching learning programmes for non-literate and neo-
literate of 15 years and above. It was launched on 8 September 2009 as a centrally sponsored scheme. It
aims to recast India's National Literacy Mission to focus on literacy of women, which is expected to
increase the literate population by 70 million adults, including 60 million women. It is a scheme from
Department of School Education, Ministry of Human Resource Development, Government of India. The
National Literacy Mission covered 597 districts under Total Literacy Campaign, 485 districts under Post
Literacy Programme and 328 districts under Continuing Education Programme. As per 2001 census, over
127 million adults have been made literate of which 60% were women, 23% were SC and 12% were ST.
The Saakshar Bharat Mission has chosen six villages for 'Model Adult Education Centres' under Lok
Shiksha Samiti in the Karimnagar district, in Telangana state.
The National Literacy Mission (NLM) is a nationwide program started by Government of India in 1988. It
aims to educate 80 million adults in the age group of 15-35. By "literacy", the NLM means not only
learning how to read, write and count but also helping people understand why they are deprived and
helping them move towards change. In India, 81% of youths from ages 15–24 and 63% of all adults are
literate, based on a 2005-2010 UNESCO study.
PMAY-G
IAY changed to PMGA-Y from 1st April, 2016.
PMAY-G aims at providing a pucca house, with basic amenities, to all houseless householder and those
households living in kutcha and dilapidated house, by 2022. The immediate the objective is to cover 1.00
crore household living in kutcha house/dilapidated house in three years from 2016-17 to 2018- 19.The
minimum size of the house has been increased to 25 sq.mt (from 20sq.mt) with a hygienic cooking space.
The unit assistance has been increased from Rs. 70,000 to Rs. 1.20 lakh in plain and from Rs75,000 to Rs
1.30 lakh in hilly states, difficult areas and IAP district. The beneficiary is entitled to 90.95 person day of
unskilled labour from MGNREGS. The assistance for construction of toilet shall be leveraged though
convergence with SBM-G, MGNREGS or any other dedicated the source of funding. Convergence for
piped drinking water, electricity connection, LPG gas connection etc. different Government programmers
are also to be attempted.
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The cost of unit assistance is to be shared between Central and State Government in the ratio 60:40 in
plain areas and 90:10 for North Eastern and the Himalayan States.
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Once of the most important features of PMAY-G is the selection of beneficiary. To ensure that assistance
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is targeted at those who are genuinely deprived and that the selection is objective and verifiable, PMAY-G
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instead of selecting a the beneficiary from among the BPL households selects beneficiary using housing
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deprivation parameters in the Socio Economic and Caste Census (SECC), 2011 date which is to be verified
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by the Gram Sabhas. hr
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Pradhan Mantri Gram Sadak Yojana

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PMGSY was launched on December 25, 2000 as a 100 per cent Centrally-sponsored scheme with the
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primary objective to provide all-weather connectivity to all the eligible unconnected habitations in the
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rural areas. The programme is funded mainly from the accruals of diesel cess in the Central Road Fund. In
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addition, support of the multilateral funding agencies and the domestic financial institutions are being
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obtained to meet the financial requirements of the programme. Up to March 2009, a total length of
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about 2,14,281.45 kilometers of road works has been completed with cumulative expenditure of Rs.
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46,807.21 Crore.
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PMGSY was a 100 per cent GOI funded Centrally Sponsored Scheme till FY 2014-15. From FY 2015-16, the
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sharing ratio has been revised, with GOI providing 60 per cent and states providing 40 per cent of the
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funds. For the North East and hilly states the funding ratio is 90:10. 50 per cent of the cess on high-speed
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diesel is earmarked for the programme.

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PMGSY allocations increased sharply post 2005, when the scheme was included in GOI’s flagship
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‘Bharat Nirman’ Programme Between FY 2004-05 and FY 2010-11, allocations increased from Rs. 2,219
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crore to Rs.19,886 crore. Allocations, however, fell sharply between FY 2011-12 and FY 2013-14. In FY
2014-15, allocations rose again and in FY 2017-18 budget estimates (BE), Rs. 19,000 crore was allocated
to PMGSY. This allocation remains unchanged from FY 2016-17 RE.
Deen Dayal Upadhyaya Gram Jyoti Yojana

Rajiv Gandhi Rural Electrification Scheme changed to Deen Dayal Upadhyaya Gram Jyoti Yojana.
The DDUGJY scheme will enable to initiate much awaited reforms in the rural areas. It focuses on
feeder separation (rural households & agricultural) and strengthening of sub-transmission & distribution
infrastructure including metering at all levels in rural areas. This will help in providing round the clock
power to rural households and adequate power to agricultural consumers. The earlier scheme for rural
electrification viz. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) has been subsumed in the new
scheme as its rural electrification component.
The Ministry of Power has launched a new app, GARV-II app to provide real-time data of all six
lakh villages of the country. The app is envisaged to ensure transparency in the implementation of rural
electrification programme. The new app will also enable the citizens to participate in the developmental
works and can give their feedback and inputs related to the rural electrification programme. The
participation of Citizens will enable public scrutiny of the rural electrification programmes. In addition,
the village-wise works sanctioned under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) has been
mapped to scrutinise the progress of work carried out under the project in each village.
The deadline for the Centre's rural electrification programme is May 2018.
Total Sanitation Campaign or Nirmal Bharat Abhiyan

It is a Community-led total sanitation program initiated by Government of India in 1999. It is a
demand-driven and people-centered sanitation program. It evolved from the limited achievements of the
first structured programme for rural sanitation in India, the Central Rural Sanitation Programme, which
had minimal community participation. The main goal of Total Sanitation Campaign is to eradicate the
practice of open defecation by 2017.
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TSC changed to Swachh Bharat Abhiyan
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Swachh Bharat Abhiyan is a campaign by the Government of India to keep the streets, roads and
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infrastructure of the country's 4,041 statutory cities and towns and its rural areas clean. The mission is
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bifurcated into sub-missions as Swachh Bharat Abhiyan (Gramin), under Ministry of Drinking Water and
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Sanitation, and Swachh Bharat Abhiyan (Urban), under Ministry of Housing and Urban Affairs. It includes
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ambassadors and activities such as a run, national real-time monitoring and updates from NGOs.
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The campaign was officially launched on 2 October 2014 at Rajghat, New Delhi, by Prime
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Minister Narendra Modi. It is India's largest ever cleanliness drive with 3 million government employees,
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especially school and college students from all parts of India, participating in the campaign.
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The objectives of Swachh Bharat are to reduce or eliminate open defecation through the construction of
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individual, cluster and community toilets. The Swachh Bharat mission will also make an initiative of
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establishing an accountable mechanism of monitoring latrine use.

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The government is aiming to achieve an Open-Defecation Free (ODF) India by 2 October 2019, the 150th
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anniversary of the birth of Mahatma Gandhi, by constructing 12 million toilets in rural India, at a
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projected cost of Rs. 1.96 lakh crore (US$30 billion).

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National Rural Water Supply Programme

The Accelerated rural water supply programme (ARWSP) has been renamed as the National rural water
supply programme (NRWSP). To provide every rural person with adequate water for drinking, cooking
and other domestic basic needs on a sustainable basis. This basic requirement should meet certain
minimum water quality standards and be available at all times, in all situations, in which it is readily and
conveniently accessible.
National Rural Drinking Water Programme
In the Union Budget 2017-18, a provision of Rs. 6050.00 crore has been made for NRDWP including Rs.
575.00 crore for North-Eastern Region and Sikkim for the year 2017-18. Further, 22% of the total
allocation i.e. Rs. 1331.00 crore and 10% amounting Rs. 605.00 crore is earmarked for the meeting
expenditure on Scheduled Castes Component (SCC) and Scheduled Tribe Component (STC) respectively
for the year 2017-18.
MGNREGA: MNREGA was launched on February 2, 2006 from Anantapur District in Andhra Pradesh and
initially covered 200 "poorest" districts of the country. The Act was implemented in phased manner – 130
districts were added in 2007–08. With its spread over 625 districts across the country, the flagship
program of the Government has the potential to increase the purchasing power of rural poor, reduce
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distress migration and to create useful assets in rural India. NREGA is an Act to provide a legal guarantee
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of 100 days of wage employment in a financial year to every rural household whose adult members
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volunteer to do unskilled manual work.
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All adult members of a rural household, resident in the area, willing to do unskilled manual work can
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apply. Even if a person is already employed/engaged in work, he/she has the right to demand
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employment under NREGA. Priority shall be given to women. At-least one-third of the beneficiaries shall
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be women who have registered and requested for work under the Scheme. en
Starting from 200 districts on 2 February 2006, the NREGA covered all the districts of India from 1 April
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2008.
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The Ministry of Rural Development has issued a directive to provide 150 days of wage employment under
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MGNREGA for Scheduled Tribe households living in forest areas. The move will benefit about Eight lakh
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people in the states like Jharkhand, Odisha, Chhattisgarh and Andhra Pradesh. The additional 50 days of
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employment beyond the stipulated 100 days under the Mahatma Gandhi National Rural Employment
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Guarantee Act (MGNREGA) will be applicable to those individuals who got pattas under Forest Rights Act,
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FRA (2006).
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SWAYAM or Study Webs of Active –Learning for Young Aspiring Minds programme of Ministry of Human
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Resource Development, Government of India, Professors of centrally funded institutions like IITs, IIMs,
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central universities will offer online courses to citizens of India.

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All courses would be offered free of cost under this programme however fees would be levied in case
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learner requires certificate.

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In the first phase, IIT Bombay, IIT Madras, IIT Kanpur, IIT Guwahati, University of Delhi, Jawahar Lal Nehru
University, IGNOU, IIM Bangalore, IIM Calcutta, Banaras Hindu University, alone as well as with the help
of faculty from foreign universities will be offering courses in areas of engineering education, social
science, energy, management, basic sciences. At least one crore students are expected to benefit in 2 to 3
years through this initiative.
Rajiv Awas Yojana Now Changed to Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana (Urban) is an iniative by Prime Minister Narendra Modi of India in which
affordable housing will be provided to the urban poor. The government has identified 305 cities and
towns have been identified in 9 states for beginning construction of houses for urban poor.
NRLM: The National Rural Livelihood Mission was established in June 2010 by the Government of India,
to be implemented in all States of the country to establish efficient and sustainable institutions of the
rural poor that enable them to increase household income through livelihood enhancements and
improved access to financial and selected public services. NRLM incorporates lessons from previous State
project experiences and builds upon them through a comprehensive livelihoods approach encompassing
four inter-related tasks: (a) mobilizing all rural, poor households into effective self help groups (SHGs) and
SHG federations; (b) enhancing access to credit and other financial, technical, and marketing services; (c)
building capacities and skills for gainful and sustainable livelihoods; and (d) improving the delivery of
social and economic support services to poor. Through NRLM, a combination of financial resources and
technical assistance will be provided to the States to achieve these objectives.
Under NRLM, Government of India is availing a credit from the International Development Association
(IDA) for implementing the National Rural Livelihood Project (NRLP) to broadly support the following
components: (i) Institution and human capacity development at the National, State, District and Sub-
District level such that support institutional structures are created, (ii) State Livelihood Support towards
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establishment of institutional platforms of the rural poor for improved access to financial, livelihood and
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public services, (iii) Innovation and Partnership to identify and partner innovative ideas which address the
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livelihood needs of the rural poor and help pilot or scale them, (iv) Project management and monitoring
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and learning systems.
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The scheme was succeeded by Deen Dayal Antyodaya Yojana on 25 September 2015.
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Deen Dayal Antyodaya Yojana or DAY is a Government of India scheme for the helping the poor by
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providing skill training. It replaces Aajeevika. The Government of India has provisioned Rs.500
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crore (US$78 million) for the scheme. The objective of the scheme is to train 0.5 million people in urban
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areas per annum from 2016. In rural areas the objective is to train 1 million people by 2017. Further, in
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urban areas, services like SHG promotion, training centres, vendors markets, and permanent shelters for
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homeless will be provided for. The aim of the scheme is skill development of both rural and urban India
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Mission Indradhanush was launched by Union Health Minister J.P Nadda on 25 December 2014.
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It aims to immunize all children against seven vaccine preventable diseases namely diphtheria, whooping
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cough, tetanus, polio, tuberculosis, measles and hepatitis B by 2020. In addition to this, vaccines for
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Japanese Encephalitis (JE), rotavac and Haemophilus influenzae type B (HIB) are also being provided in
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selected states.
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Atal Pension Yojana: Atal Pension Yojana is a government-backed pension scheme in India targeted at
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the unorganized sector. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun
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Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata.
As of May 2015, only 11% of India's population has any kind of pension scheme, this scheme aims to
reduce the number.
In Atal Pension Yojana, for every contribution made to the pension fund, the government will
contribute an equal amount to his/her fund. Depending on the contribution made between 18 and 40, at
the age of 60 a sum of Rs. 1,000, 2,000, 3,000, 4,000, or Rs.5,000 will be paid monthly.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan
Yojana scheme and the contributions will be deducted automatically. Most of these account had zero
balance initially. The government aims to reduce the number of such zero balance accounts by using this
and related schemes.
National Campaign for Dignity and Eradication of Manual Scavenging: Eradication of inhuman practice
of manual scavenging and comprehensive rehabilitation of manual scavengers in India – A report by
Rashtriya Garima Abhiyan.
The practice continues in the country in spite of efforts of several people, implementation of
government schemes such as the National Scheme for Liberation and Rehabilitation of Scavengers since
1992 and Self Employment Scheme for Rehabilitation of Manual Scavengers since 2007, and regardless of
it being banned in 1993 through a central legislation.
Those involved in manual scavenging not only suffer from the inhuman pain of scavenging human faeces
but also go through the unbearable pain and humiliation of discrimination, untouchability and social
exclusion.
Pradhan Mantri Suraksha Bima Yojana: It is a government-backed accident insurance scheme in India. It
was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It
was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20%
of India's population has any kind of insurance, this scheme aims to reduce the number.
Pradhan Mantri Suraksha Bima Yojana is available to people between 18 and 70 years of age with bank
accounts. It has an annual premium of ₹12 excluding service tax, which is about 14% of the premium.
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The amount will be automatically debited from the account. In case of accidental death or full disability,
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the payment to the nominee will be ₹200,000 and in case of partial disability ₹100,000. Full disability has
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been defined as loss of use in both eyes, hands and feet. Partial disability has been defined as loss of use
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in one eye, hand or foot.
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This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana
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scheme. Most of these account had zero balance initially. The government aims to reduce the number of
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Pradhan Mantri Jeevan Jyoti Bima Yojana: It is a government-backed Life insurance scheme in India. It
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was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It
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was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20%
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of India's population has any kind of insurance, this scheme aims to increase the number.
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Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people between 18 and 50 years of age with
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bank accounts. It has an annual premium of Rs. 330 Rupees excluding service tax, which is above 14% of
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the premium. The amount will be automatically debited from the account. In case of death due to any
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cause, the payment to the nominee will be ₹ 200,000.

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This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana
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scheme. Most of these account had zero balance initially. The government aims to reduce the number of
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such zero balance accounts by using this and related schemes.

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Pradhan Mantri Jan Dhan Yojana

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It is National Mission for Financial Inclusion to ensure access to financial services, namely Banking
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Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. This
financial inclusion campaign was launched by the Prime Minister of India, Narendra Modi on 28 August
2014. He had announced this scheme on his first Independence Day speech on 15 August 2014.
Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15
million) bank accounts were opened under this scheme. Guinness World Records Recognises the
Achievements made under PMJDY, Guinness World Records Certificate says "The most bank accounts
opened in 1 week as a part of financial inclusion campaign is 18,096,130 and was achieved by
Department of Financial Services, Government of India from 23 to 29 August 2014" Officially Amazing. By
13 May 2015, 15.58 crore accounts were opened, with around ₹16,918 crore (US$2.7 billion) were
deposited under the scheme.
In a run up to the formal launch of this scheme, the Prime Minister personally mailed to Chairmans of
all PSU banks to gear up for the gigantic task of enrolling over 7.5 crore (75 million) households and to
open their accounts. In this email he categorically declared that a bank account for each household was a
"national priority".
The scheme has been started with a target to provide 'universal access to banking facilities' starting
with "Basic Banking Accounts" with overdraft facility of Rs. 5,000 after six months and RuPay Debit card
with inbuilt accident insurance cover of Rs. 1 lakh and RuPay Kisan Card. In next phase, micro insurance &
pension etc. will also be added.
Under the scheme:
1. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to
accidental insurance cover of Rs. 1 lakh (to be given by 'HDFC Ergo').
2. Those who open accounts by January 26, 2015 over and above the Rs.1 lakh accident, they will be
given life insurance cover of Rs. 30,000(to be given by LIC).
3. After Six months of opening of the bank account, holders can avail Rs. 5,000 overdraft from the
bank.
4. With the introduction of new technology introduced by National Payments Corporation of India
(NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited
only to smart phones so far.
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5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for
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which all banks and mobile companies have come together.
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National Heritage City Development and Augmentation Yojana (HRIDAY): It was launched on 21 January
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2015 with the aim of bringing together urban planning, economic growth and heritage conservation in an
inclusive manner to preserve the heritage character of each Heritage City.
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The Scheme shall support development of core heritage infrastructure projects including
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revitalization of linked urban infrastructure for heritage assets such as monuments, Ghats, temples etc.
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along with reviving certain intangible assets. These initiatives shall include development of sanitation
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facilities, roads, public transportation & parking, citizen services, information kiosks etc.
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With a duration of 27 months (completing in March 2017) and a total outlay of INR 500 Crores,
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the Scheme is set to be implemented in 12 identified Cities namely, Ajmer, Amaravati,(Andhra Pradesh),
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Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.
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The objectives of the scheme are:

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• Planning, development and implementation of heritage-sensitive infrastructure

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• Service Delivery and infrastructure provisioning in the core areas of the historic city
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Preserve and revitalize heritage wherein tourists can connect directly with city’s unique
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• Develop and document a heritage asset inventory of cities – natural, cultural, living and built
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heritage as a basis for urban planning, growth, service provision and delivery
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• Implementation and enhancement of basic services delivery with focus on sanitation services like
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public conveniences, toilets, water taps, street lights, with use of latest technologies in improving
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tourist facilities/amenities.
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• Local capacity enhancement for inclusive heritage-based industry.
UNGA ADOPTED TRANSFORMING OUR WORLD: THE 2030 AGENDA FOR SUSTAINABLE
DEVELOPMENT
The 193-Member United Nations General Assembly (UNGA) formally adopted the
Transforming Our World: the 2030 Agenda for Sustainable Development along with a set of bold
new Global Goals, that are a universal, integrated and transformative vision for a better world.
The 2030 Agenda and the Global Goals were adopted during the UN Sustainable Development
Summit that is being held at the UN headquarters in New York.
The 2030 Agenda for Sustainable Development is an agenda for people to end poverty in all
its forms. It is composed of 17 goals and 169 targets to wipe out poverty, fight inequality and tackle
climate change over the next 15 years.
While, the Global Goals aim to build on the work of the historic Millennium Development Goals
(MDGs), which in September 2000, rallied the world around a common 15-year agenda to tackle the
indignity of poverty.
The agenda conveys the urgency of climate action. It is rooted in gender equality and respect for the
rights of all. UN Secretary-General Ban Ki-moon urged the world leaders and others to successfully
implement the Global Goals or Agenda 30 by launching a revitalised Global Partnership for
Sustainable Development, based on a spirit of strengthened global solidarity.
Highlights of the 2030 Agenda for Sustainable Development
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• This Agenda is a plan of action for people, planet and prosperity. It seeks to strengthen
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universal peace in larger freedom.
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• The 17 Sustainable Development Goals and 169 targets of the agenda demonstrate the scale
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and ambition of this new universal Agenda. They seek to build on the Millennium
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Development Goals and complete what these did not achieve.
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The goals and targets seek to realize the human rights of all and to achieve gender equality
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and the empowerment of all women and girls. They are integrated and indivisible and
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balance the three dimensions of sustainable development: the economic, social and
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environmental.
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• The agenda is determined to end poverty and hunger in all their forms and dimensions and
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to ensure that all human beings can fulfil their potential in dignity and equality and in a
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healthy environment.
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• It aims to protect the planet from degradation, including through sustainable consumption
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and production, sustainably managing its natural resources and taking urgent action on
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climate change.
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• It will ensure that all human beings can enjoy prosperous and fulfilling lives and that
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economic, social and technological progress occurs in harmony with nature.
17 Sustainable Development Goals (SDG)

• End poverty in all its forms everywhere
• End hunger, achieve food security and improved nutrition and promote sustainable
agriculture
• Ensure healthy lives and promote well-being for all at all ages
• Ensure inclusive and equitable quality education and promote lifelong learning opportunities
for all
• Achieve gender equality and empower all women and girls
• Ensure availability and sustainable management of water and sanitation for all
• Ensure access to affordable, reliable, sustainable and modern energy for all
• Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all
• Build resilient infrastructure, promote inclusive and sustainable industrialization and foster
innovation
• Reduce inequality within and among countries
• Make cities and human settlements inclusive, safe, resilient and sustainable
• Ensure sustainable consumption and production patterns
• Take urgent action to combat climate change and its impacts*
• Conserve and sustainably use the oceans, seas and marine resources for sustainable
development
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• Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage
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forests, combat desertification, and halt and reverse land degradation and halt biodiversity
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loss
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• Promote peaceful and inclusive societies for sustainable development, provide access to
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justice for all and build effective, accountable and inclusive institutions at all levels
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• Strengthen the means of implementation and revitalize the global partnership for
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sustainable development
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The Revitalized Global Partnership

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The revitalized Global Partnership will facilitate an intensive global engagement in support of
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implementation of all the goals and targets. It will bring together Governments, civil society, the
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private sector, the United Nations system and other actors and mobilize all available resources.
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This Agenda, including its seventeen goals, can be met within the framework of a revitalized
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global partnership for sustainable development, supported by the concrete policies and actions
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outlined in the Addis Ababa Action Agenda, which is an integral part of the 2030 Agenda for
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sustainable development.
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The Addis Ababa Action Agenda supports, complements and helps contextualize the 2030 Agenda’s
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means of implementation targets.

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• Ujwal DISCOM Assurance Yojana (UDAY)

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It is the financial turnaround and revival package for electricity distribution companies of India
(DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the
financial mess that the power distribution is in.
The scheme comprises four initiatives - improving operational efficiencies of discoms, reduction of
cost of power, reduction in interest cost of discoms and enforcing financial discipline on discoms
through alignment with state finances. It allows state governments, which own the discoms, to take
over 75 percent of their debt as of September 30, 2015, and pay back lenders by selling bonds.
Discoms are expected to issue bonds for the remaining 25 percent of their debt.
• “Pradhan Mantri Awas Yojana
Housing for All (Urban)” Mission for urban area will be implemented during 2015-2022 and this
Mission will provide central assistance to implementing agencies through States and UTs for
providing houses to all eligible families/beneficiaries by 2022. Mission will be implemented as
Centrally Sponsored Scheme (CSS) except for the component of credit linked subsidy which will be
implemented as a Central Sector Scheme. A beneficiary family will comprise husband, wife,
unmarried sons and/or unmarried daughters. The beneficiary family should not own a pucca house
either in his/her name or in the name of any member of his/her family in any part of India to be
eligible to receive central assistance under the mission.
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• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Approved for another four years (2016-2020) to benefit 10 million youth.
Allocated Budget 12,000 Crores.
It is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). The
objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up
industry-relevant skill training that will help them in securing a better livelihood. Individuals with
prior learning experience or skills will also be assessed and certified under Recognition of Prior
Learning (RPL).
Backward Regions Grant Fund

The Backward Regions Grant Fund (BRGF) is an Indian government program designed to "address
regional imbalances in development." The programme was launched by Indian Prime Minister
Manmohan Singh at Barpeta, Assam on 19 February 2007.
The BRGF Programme covers 250 districts in 27 States, of which 232 districts fall under the purview
of Parts IX and IX-A of the Constitution dealing with the Panchayats and the Municipalities,
respectively. The remaining 18 districts are covered by other local government structures, such as
Autonomous District and Regional Councils under the Sixth Schedule of the Constitution and state
specific arrangements as in the case of Nagaland and the hill areas of Manipur.
The program calls for each district to undertake a study to determine the district's problems and
then create a plan to address those problems. The program was funded with 19.25 billion rupees in
2006–2007.
BRGF Development Grants
District Plans received from the various States indicate that the united fund allocated to the districts
are generally being used for filling infrastructural gaps in drinking water, connectivity, health,
education, social sectors, electrification, etc. The basket of works taken up includes construction of
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school buildings /class rooms, health sub-centres, drinking water facility, sanitation facilities,
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anganwadi buildings, Panchayat buildings, irrigation tanks/channels, street lights, link roads,
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culverts, soil and water conservation measures, etc.
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UNIVERSAL BASIC INCOME
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“Wiping every tear from every eye” based on the principles of universality, unconditionally, and
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agency—the hallmarks of a Universal Basic Income (UBI)—is a conceptually appealing idea. A

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number of implementation challenges lie ahead, especially the risk that UBI would become an add-on
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to, rather than a replacement of, current anti-poverty and social programs, which would make it
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fiscally unaffordable. But given their multiplicity, costs, and questionable effectiveness, and the real
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opportunities afforded by the rapidly improving “JAM” infrastructure, UBI holds the prospects of
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improving upon the status quo. This chapter provides some illustrative costs for a UBI (varying
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between 4 percent and 5 percent of GDP), and outlines a number of ideas to take UBI forward,
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highlighting the practical difficulties. UBI’s appeal to both ends of the political spectrum makes it an
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idea whose time has come perhaps not for immediate implementation but at least for serious public
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deliberation. The Mahatma would have been conflicted by the idea but, on balance, might have
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endorsed it.
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*For further details refer Chapter 9 of Indian Economic Survey 2016-17

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A BRIEF HISTORY OF TARGETING (Indian Economic Survey 2016-17) en
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An immediate and intuitively appealing solution to the fiscal costs of UBI is to make it a targeted
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basic income scheme, attempting to guarantee a basic income to only the poor and the deserving.
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However, India’s record of targeting welfare programmes to the poor has been suspect. Targeting
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commenced with the drawing up of lists of poor based on self-reported income in 1992 with
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subsequent survey rounds done with different – and more multidimensional – identification
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criteria in 1997 and 2002. Even the 2002 list of criteria for identifying BPL households, considered
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to be more rigorous than either of the previous rounds of surveys came under criticism from
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many sides. Studies – and government audits – showed data manipulation and corruption, with
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the crowding out of the poor and the truly deserving from BPL card ownership and leakages to the
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rich. Targeting was both inefficient and inequitable, a license to fraud that spawned an entire
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ecosystem of middlemen and petty abuse. Recognizing this, the government of the day attempted
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to measure poverty using an easily identifiable list of criteria and a simple scoring methodology
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through the Socio-Economic Caste Census (2011). Simultaneously, acknowledging the inherent
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problems with targeting, individual states- like Tamil Nadu and Chhattisgarh - universalized access
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to the PDS and a few other government schemes. The National Food Security Act (2013), in a clear
break away from targeting to a minority of the population, mandated access to the PDS to nearly
70 percent of all households, choosing to exclude only the identifiably well-off. This gradual move
towards greater inclusion error in order to avoid exclusion issues is directly in line with Gandhiji’s
talisman – the poorest are the ones who benefit the most from such a move. There is some
empirical evidence to back this: Himanshu and Sen (2013) document a negative relationship
between quantum of leakages and PDS coverage – in other words, the higher the coverage, the
lower the leakages.
India floats the idea of a universal basic income (The Economist, 3rd Feb, 2017)
NOVEMBER 8th was not just the day of Donald Trump’s election. It was also when Indians found
out most banknotes would lose all value unless promptly exchanged. Ever since, many have
expected their patience in enduring the ensuing chaos to be rewarded in some way. Might
scrapped cash unredeemed by presumed tax-dodgers be recycled into a lump-sum payment to
each and every citizen? Or would the annual budget, presented on February 1st, be full of
giveaways ahead of a string of state elections? In the event, the budget was restrained to the
point of dullness. But the government’s closely-watched “economic survey”, released the
previous day, hinted at a much bigger giveaway in the works: a universal basic income (UBI)
payable to every single Indian.
The idea of a cash payment made to citizens irrespective of their wealth is centuries old. It has
become newly fashionable in some rich countries, among both left-wing thinkers (who like its
redistributive aspects) and their right-wing foes (who think it results in a less meddlesome state).
The idea has had its fans in India: a small UBI scheme was launched as a pilot in the state of
Madhya Pradesh in 2010.
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Its inclusion in the annual survey, a breeding ground for policies that was drafted by the
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government’s chief economic adviser, Arvind Subramanian, gives a new focus for fans of the
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measure (and its opponents). A UBI is usually discussed in abstract terms. There is now a
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proposed amount: 7,620 rupees ($113) a year. Equivalent to less than a month’s pay at the
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minimum wage in a city, it is well short of what anyone might need to lead a life of leisure. But it
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Mr Subramanian also provides an outline of how it would be paid for. Crucially, the money
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would largely come from recycling funds from around 950 existing welfare schemes, including
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those that offer subsidised food, water, fertiliser and much else besides. Altogether these add up
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to roughly the 5% of GDP he thinks his version of UBI would cost. Starting such a programme
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from scratch would take up around half the central government’s annual budget, such is the
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The pros of UBI are clear: India is keen in theory to help its poor, but not very good at it in
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practice. Much of its welfare subsidies ends up in the hands of the relatively rich, who are more
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likely to make use of air-conditioned trains or cooking gas—or able to bribe the bureaucrats in
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charge of deciding who deserves subsidies. In-kind benefits are pilfered by middlemen who
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would find it harder to get at payments made to beneficiaries’ bank accounts.

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Mr Subramanian acknowledges that managing the transition to a new system would be difficult.
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In much of India, citizens have to travel at least 3km (2 miles) to get to a bank. Digital payments
are still a minority pursuit. One advantage of the proliferation of welfare schemes is that if one
of them fails to pay out, others might.
Another obstacle is that a fair few billionaires would also benefit from a truly universal UBI.
Telling an illiterate farmer that a food-in-kind scheme he has used for decades is being scrapped
to finance a programme that will put him on par with Mukesh Ambani, a tycoon who lives in a
27-storey house, will not be a vote-winner. In truth, Mr Subramanian’s proposal stops a little
short of true universality: for his sums to add up, take-up must be limited to just 75% of Indians.
That means either a return to flawed means-testing, or a hope that the better-off will voluntarily
opt out.
Implementing a UBI would be easier in India in one important way: getting the money to
recipients. Well over 1bn Indians now have biometric identification cards, known as Aadhaar.
The system can handle money, usually by diverting incoming payments to a bank account linked
to an Aadhar number. A blast of cash to all citizens enrolled in the scheme would be a feasible
way to distribute the money—though that would mean everyone got money, including the
conspicuously rich.
It will take time before 1.3bn Indians receive such a transfer. Keen as Mr Subramanian is, he
concludes that UBI is “a powerful idea whose time even if not ripe for implementation is ripe for
serious discussion.” For now the government is focused on meeting its long-held 3% deficit
target, which it expects to miss by just 0.2 percentage points next year, and on the aftermath of
“demonetisation”. But the idea will not go away. It may seem folly in a country home to over a
quarter of the worlds truly poor to give people money for nothing. But it would be a swift,
efficient way to make it home to far fewer of them.
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Unnat Bharat Abhiyan
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Unnat Bharat Abhiyan is a Ministry of Human Resource Development, Government of India
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programme to uplift rural India. The programme is being launched in collaboration with the Indian
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Institutes of Technology (IITs), National Institutes of Technology (NITs) and other leading
Government Engineering Institutes like College of Engineering, Pune across the country.
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Unnat Bharat Abhiyan is being coordinated and steered by IIT Delhi. The programme involve
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engaging with neighbouring communities and using technologies for their up-liftment. The
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programme is currently being planned and is yet to be launched.

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Recently an article has been published outlining a roadmap for rural India. This could supplement
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the strategies to be adopted in the program.

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Government Programmes for Women and Children (Economic Survey 2017-18)

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In the current financial year (2017-18) the scope of several existing programmes and schemes
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have been expanded and several new initiatives have been taken up to foster all round
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development of Women and Children in the country. Some of the schemes are mentioned below:
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Integrated Child Development Services (ICDS): ICDS scheme aims at the holistic development of
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children upto 6 years of age and to meet nutritional needs of pregnant women and lactating
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mothers. Recently, rationalization, restructuring and continuation of four child centric schemes
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such as (a) Anganwadi Services (in place of ICDS); (b) Scheme for Adolescent Girls (SAG) (in place
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of SABLA); (c) Child Protection Services (in place of Integrated Child Protection Scheme) and (d)
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National Crèche Scheme (in place of Rajiv Gandhi National Crèche Scheme) of the Ministry under
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‘Umbrella Integrated Child Development Services’ Scheme has been approved by the
Government. Keeping in line with the Swachh Bharat Abhiyan, special emphasis has been given on
providing toilet and safe drinking water facility at every Anganwadi Centre under the restructured
Anganwadi Services Scheme. The scheme has been universalized with cumulative approval of
7076 projects and 14 lakh Anganwadi Centres (AWCs) including 20,000 anganwadis on demand.
Digitization of Anganwadi Centres (AWCs) has already begun in 8 States with ICTs enabled
monitoring of the Schemes through smart phones/Tablets to anganwadi worker and supervisor. A
new web-portal has been created for enabling the MIS data entry by the States/UTs. The Ministry
has taken an initiative to address the micro-nutrient deficiencies among women and children in
the country. In this regard, fortification of food items with essential micro-nutrients has been
made mandatory in the Government funded nutrition related schemes.
Pradhan Mantri Matru Vandana Yojana (PMMVY): The earlier Maternity Benefit Programme, for
the eligible pregnant women and lactating mothers (PW&LM) has now been named as Pradhan
Mantri Matru Vandana Yojana (PMMVY) a Centrally Sponsored Scheme, in January, 2017 for
providing partial compensation for the wage loss in terms of cash incentive so that the woman can
take adequate rest before and after delivery of the first child. The cash incentive provided would
lead to improved health seeking behaviour amongst the PW&LM. The Scheme envisages providing
cash incentive amounting to Rs. 5,000/- in DBT Mode during pregnancy and lactation. The
remaining cash incentive of Rs. 1000/- is provided towards maternity benefit under Janani
Suraksha Yojana (JSY) after institutional delivery so that on an average, an eligible woman will get
Rs. 6,000/-.
National Nutrition Mission (NNM): The Government of India has approved setting up of National
Nutrition Mission (NNM) commencing from 2017-18 The NNM, as an apex body, will monitor,
supervise, fix targets and guide the nutrition related interventions across the Ministries. The
programme through the targets will strive to reduce the level of stunting, under-nutrition,
anaemia and low birth weight babies. It will create synergy, ensure better monitoring, issue alerts
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for timely action to achieve the targeted goals.
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Pradhan Mantri Ujjwala Yojana (PMUY): PMUY was launched in May 2016, for providing LPG
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connections to 5 crore women belonging to the BPL families over a period of 3 years from 2016-
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17. The scheme aims to safeguard the health of women & children by providing them with a clean
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cooking fuel – LPG, so that they do not have to compromise their health in smoky kitchens or
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wander in unsafe areas collecting firewood. Since inception, around 3.3 crore LPG connections
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have already been provided as on 18.01.2018.
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AYUSHMAN BHARAT-NATIONAL HEALTH PROTECTION MISSION
Ayushman Bharat is National Health Protection Scheme, which will cover over 10 crore poor and
vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per
family per year for secondary and tertiary care hospitalization. Ayushman Bharat - National Health
Protection Mission will subsume the on-going centrally sponsored schemes - Rashtriya Swasthya
Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS).
Salient Features
• Ayushman Bharat - National Health Protection Mission will have a defined benefit cover of
Rs. 5 lakh per family per year.
• Benefits of the scheme are portable across the country and a beneficiary covered under the
scheme will be allowed to take cashless benefits from any public/private empanelled
hospitals across the country.
• Ayushman Bharat - National Health Protection Mission will be an entitlement based scheme
with entitlement decided on the basis of deprivation criteria in the SECC database.
• The beneficiaries can avail benefits in both public and empanelled private facilities.
• To control costs, the payments for treatment will be done on package rate (to be defined by
the Government in advance) basis.
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• One of the core principles of Ayushman Bharat - National Health Protection Mission is to co-
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operative federalism and flexibility to states.
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• For giving policy directions and fostering coordination between Centre and States, it is
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proposed to set up Ayushman Bharat National Health Protection Mission Council (AB-
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NHPMC) at apex level Chaired by Union Health and Family Welfare Minister.
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• States would need to have State Health Agency (SHA) to implement the scheme.
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• To ensure that the funds reach SHA on time, the transfer of funds from Central Government
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through Ayushman Bharat - National Health Protection Mission to State Health Agencies
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may be done through an escrow account directly.

• In partnership with NITI Aayog, a robust, modular, scalable and interoperable IT platform will
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be made operational which will entail a paperless, cashless transaction.

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IMPLEMENTATION STRATEGY
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At the national level to manage, an Ayushman Bharat National Health Protection Mission Agency
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(AB-NHPMA) would be put in place. States/ UTs would be advised to implement the scheme by a
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dedicated entity called State Health Agency (SHA). They can either use an existing Trust/ Society/
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Not for Profit Company/ State Nodal Agency (SNA) or set up a new entity to implement the scheme.
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States/ UTs can decide to implement the scheme through an insurance company or directly through
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the Trust/ Society or use an integrated model.

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SAANSAD ADARSH GRAM YOJANA (SAANJHI)
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Saansad Adarsh Gram Yojana (SAGY) is a village development project launched by Government
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of India in October 2014, under which each Member of Parliament will take the responsibility of
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developing physical and institutional infrastructure in three villages by 2019. The goal is to develop
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three Adarsh Grams or model villages by March 2019, of which one would be achieved by 2016.
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Thereafter, five such Adarsh Grams (one per year) will be selected and developed by 2024. (Saansad
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means Sansad Sadasya or Member of Parliament, Adarsh refers to model, Gram refers to village and
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Yojna means Scheme)

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The Project was launched on the occasion of birth anniversary of Lok Nayak Jai Prakash Narayan and
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is inspired by the principles and values of Mahatma Gandhi. It aims to provide rural India with quality
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access to basic amenities and opportunities.

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The Scheme has a holistic approach towards development. It envisages integrated development of
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the selected village across multiple areas such as agriculture, health, education, sanitation,
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environment, livelihoods etc. Far beyond mere infrastructure development, SAGY aims at instilling
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and nurturing values of national pride, patriotism, community spirit, self-confidence people's
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participation, dignity of women, etc. in the people.

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The scheme is implemented through Members of Parliament (MPs) with District Collector being the
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nodal officer. The MP would be free to identify a suitable gram panchayat for being developed as
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Adarsh Gram, other than his/her own village or that of his/her spouse. Gram Panchayat, which has a
population of 3000-5000 in plain areas and 1000-3000 in hilly, tribal and difficult areas, would be the
basic unit for development.
A village development plan would be prepared for every identified gram panchayat with special
focus on enabling every poor household to come out of poverty. The constituency fund, MPLADS,
would be available to fill critical financing gaps. The outcomes include 100% immunization, 100%
institutional delivery, reduced infant mortality rate, maternal mortality rate, reduction in
malnutrition among children etc.
If each MP adopts three villages, the scheme will be able to develop 2,379 gram panchayats over the
next five years. (The Lok Sabha has 543 MPs and the Rajya Sabha 250, of which 12 are nominated.
There are 2,65,000 gram panchayats in India.)
Prior to this, a scheme called Pradhan Mantri Adarsh Gram Yojana (PMAGY) was launched in March,
2010 on a pilot basis, for the integrated development of 1000 villages each with more than 50%
scheduled caste (SC) population. Under this Scheme, each village would be able to avail gap funding
of Rs.10 lakh over and above the allocations under Rural Development and Poverty Alleviation
Schemes. The scheme was being implemented in five States of the Country viz Assam (100-villages),
Bihar (225-villages), Himachal Pradesh (225-villages), Rajasthan (225-villages) and Tamil Nadu (225-
villages). The expected time-frame for implementation of the pilot phase was 3 years. Expansion of
the scheme was to be based on successful implementation of the pilot phase. PMAGY also focuses
on basic needs- housing, sanitation, water supply, electricity, communications, banking,
infrastructure connectivity, health care, nutrition etc. and aims for convergence of existing programs
in these sectors.
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UNEMPLOYMENT
Unemployment is the most persistent problems in India. Problem of unemployment is being faced
even by most of the industrialized countries in the world.
Dictionary of Economics defines unemployment as involuntary idleness of a person willing to work at
the prevailing rate of pay but unable to find it.” It implies that only those persons are to be regarded as
unemployed who are prepared to work at the prevailing rate of pay but they do not find work.
Voluntarily unemployed persons who do not want to work like the ‘idle rich, are not considered
unemployed.
Unemployment can also be defined as, “the number of people in a country that are actively seeking
work but are unable to obtain it. This number is reported as a percentage of the general work force and is
used as an indicator of the health of an economy at a given point of time”.
Types:
1. Seasonal Unemployment: It results from seasonal fluctuations in demand. Ice-cream sellers remain
unemployed during winter and chestnut sellers during summers.
2. Cyclical Unemployment. It arises due to cyclical fluctuations in the economy. It is during the
downswing of the business cycle that income and output fall leading to widespread unemployment.
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3. Structural Unemployment. It results from a variety of causes. It may be due to lack of the factors of
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production, or changes in the economic structure of the society.
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The word structural implies that the economic changes are massive, extensive, deep-seated,
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amounting to transformation of an economic Structure, i.e., the production functions or labour
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supply distribution.
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More specifically, it refers to changes which are large in the particular area, industry or occupation. In
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fact India’s unemployment is structural in nature.
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It is associated with the inadequacy of productive capacity to create enough jobs for those able and
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willing to work.
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4. Technological Unemployment. Modern production process is essentially dynamic where innovations

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lead to the adoption of new machineries and inventions thereby displacing existing workers leaving
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behind a trail of unemployment. When there is automation or displacement of old technology by a

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new one requiring fewer workers than before, there is technological unemployment.
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5. Disguised unemployment: This refers to unemployment that is not in the open for everyone to see, it
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remains invisible. For example, in India villages, where most of the unemployment exists in this form,
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people are found to be apparently engaged in agricultural activities. But such employment is mostly a
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work-sharing device i.e. the existing work is shared, howsoever large may be the number of workers.
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In such a situation, even if many workers are withdrawn, the same work will continue to be done be
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fewer people. It follows that all the workers are not needed to maintain the existing level of
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production.
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6. Educational Unemployment: In India the situation is at present moment very much to be seen when
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people who are educated do not get any employment it is known as educational unemployment.
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There are various factors responsible for it. Sometimes the lesser number of avenues of employment
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as compared to the persons coming out of the educational institutions are responsible for this
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situation.
7. Voluntary unemployment: In this type of unemployment a person is out of job of his own desire. He
does not work on the prevalent or prescribed wages. Either he wants higher wages or does not want
to work at all. It is in fact an imposed situation. In economic terminology, this situation is “voluntary
unemployment”.
8. Involuntary unemployment: In these types of situation the person who is unemployed has no say in
the matter. It means that a person is separated from remunerative work and denied of wages
although he is capable of earning his wages and is also anxious to earn them.
9. Frictional Unemployment: Frictional unemployment is unemployment that comes from people

moving between jobs, careers, and locations. It can be illustrated by someone who leaves their
current job to look for another. Until they successfully find and begin another job, they are
temporarily unemployed or another example would be a recent college graduate who suddenly
becomes available in the job market, but has yet to find his first job.
REASONS OF UNEMPLOYMENT IN INDIA

• Unemployment results when the rate of growth of labour force is more than the rate at which new
jobs are created. The rate of growth of labour force, in turn, is a function of the rate of growth of
population.
• Apparently, when we say that the number of unemployed in the economy has been increasing it
means that new jobs have only been created at an inadequate rate, so that it has not been possible
to absorb in gainful employment the increasing labour force.
• The rate of growth of the economy has been much slower than what would have been ideally
required to find new job opportunities for the additional labour force. On top of it, the employment
generation capacity of growth has been limited.
• Therefore, despite the economy building up steam through industrial growth, the engine of growth is
not axiomatically pulling along wagonloads of unemployed in its wake.
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• After remaining at schools and colleges for a numbers of years men and women come out in large
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numbers, having gained neither occupational nor vocational training nor functional literacy from
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which all future skilled, educated professional and managerial manpower is drawn.
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• The growth strategy underlying our plans has been found to be faulty.
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• Efforts to lay sufficient infrastructure in the country for a balanced economic development have been
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lacking.
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• The plans could not halt the drift of the rural population into cities by making rural areas more
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attractive and congenial by enabling them to earn a better living off the Land and encouraging the
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development of ‘growth centers’ around villages.

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• The plans have filed to put a due emphasis on schemes of irrigation, waste land reclamation, soil
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conservation, and development of dairies, fisheries and poultry farming etc., so as to generate
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employment avenues for various categories of skilled, semi-skilled and unskilled workers.
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XII FIVE YEAR PLAN TO CREATE 50 MILLION NON-FARM JOBS

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The 12th Five Year Plan has set a target of a whopping 50 million new jobs in the non-farm sector
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alone in the coming five years, even as India lagged far behind in achieving the previous plan target of
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employment generation.
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The Plan document for 2012-17, which was cleared by the full Planning Commission for the first time
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in the late September, talks of separating agriculture and non-agriculture sectors for job creation. Non-
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agriculture sector includes manufacturing and services among others.

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Earlier five-year plans gave the target of overall employment generation which including all sectors.
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The 11th five year plan had set a target of 58 million new jobs (which was not met) in the five-year period
from 2007-2012, but it also included the farm sector.
The estimates were given by Planning Commission Deputy Chairman Montek Singh Ahluwalia in the
full plan panel, chaired by PM Manmohan, when the draft 12th five-year plan was approved. The plan
awaits NDC approval before it enters implementation mode.
VARIOUS EMPLOYMENT GENERATION PROGRAMMES

Poverty reduction has been an important goal of development policy since the inception of planning in
India. Various anti-poverty, employment generation and basic services programmes which are being
implemented are as follows:
• Mahatma Gandhi National Rural Employment Guarantee Scheme: Please Refer the above Flagship
Programmes.
• Self Employed Women’s Association: SEWA is a trade union registered in 1972. It is an organization
of poor, self-employed women workers. These are women who earn a living through their own
labour or small businesses. They do not obtain regular salaried employment with welfare benefits
like workers in the organized sector. They are the unprotected labour force of our country.
Constituting 93% of the labour force, these are workers of the unorganized sector. Of the female
labour force in India, more than 94% are in the unorganized sector. However their work is not
counted and hence remains invisible. In fact, women workers themselves remain uncounted,
undercounted and invisible.
SEWA’s main goals are to organize women workers for full employment. Full employment means
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employment whereby workers obtain work security, income security, food security and social
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security (at least health care, child care and shelter). SEWA organizes women to ensure that every
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family obtains full employment.
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PRADHAN MANTRI YUVA YOJANA
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Pradhan Mantri YUVA Yojana (Yuva Udyamita Vikas Abhiyan) is a is a centrally sponsored Scheme on
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entrepreneurship education and training being implemented by the Ministry of Skill Development and
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The Scheme aims at creating an enabling ecosystem for Entrepreneurship development through
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Entrepreneurship education and training; Advocacy and easy access to entrepreneurship support
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network and Promoting social enterprises for inclusive growth.

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The scheme spans over five years (2016-17 to 2020-21) with a project cost of Rs. 499.94 crore, and will
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provide entrepreneurship education and training to over 7 lakh students in 5 years through 3050
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Institutes. It will also include easy access to information and mentor network, credit, incubator and
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accelerator and advocacy to create a pathway for the youth.

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Specific objectives and deliverables

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1. Educate and equip potential and early stage entrepreneurs

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• Develop and deliver entrepreneurship education to all citizens free of charge through
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Massive Open On - line Courses (MOOCs) and other on - line programmes accessible
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through a Learning Management System (LMS).

• Design an assessment and certification mechanism.
• Equip a total of 3,050 institutions to deliver world class entrepreneurship education
programmes : 2,200 Institutes of Higher Learning (Universities, Colleges, Premier
Institutions and AICTE Institutions including Polytechnics); 300 schools (10+2); 500
Industrial Training Institutes (ITIs) and 50 Entrepreneurship Development Centres
(EDCs).
• Focus on the promotion of social entrepreneurship.
2. Connect entrepreneurs in enabling networks of peers, mentors, funds and business services
• Create an "on - line market place" - a web based platform connecting entrepreneurs to
each other for peer - to - peer networking and investors, financial institutions and
business services such as legal, accounting, technology and HR services.
• Set up a national mentor network for young entrepreneurs.
• Establish a national network of incubators, accelerators and credit agencies.
• Establish a national network of business service providers.
• Leverage schemes/initiatives of Central Ministries and State/UT Governments.
3. Support entrepreneurs through Entrepreneurship Hubs (E - Hubs)
• Establish a National Entrepreneurship Resource and Coordination Hub to coordinate and
support entrepreneurship development programmes.
• Establish Regional, Nodal, and Entrepreneurship Hubs to coordinate and support
entrepreneurship programmes at all levels.
• Develop a cloud based Management Information System that tracks entrepreneurs,
training institutes (Project Institutes), faculty, students and outcomes.
• Factory on Wheels.
4. Catalyze a culture shift to encourage entrepreneurship
• Create a culture of dynamic entrepreneurship through events, branding and media.
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• Drive entrepreneurship research & advocacy.
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• Social Entrepreneurship Awareness Programmes for SC/ST and minority beneficiaries.
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• Supervision of progress of the beneficiaries
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PRADHAN MANTRI KAUSHAL VIKAS YOJANA (PMKVY)
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Approved for another four years (2016-2020) to benefit 10 million youth.
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Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development
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& Entrepreneurship (MSDE). The objective of this Skill Certification Scheme is to enable a large number of
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Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood.
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Individuals with prior learning experience or skills will also be assessed and certified under Recognition of
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Prior Learning (RPL). Under this Scheme, Training and Assessment fees are completely paid by the
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Government.
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Key Components of the Scheme:

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1. Short Term Training;

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The Short-Term Training imparted at PMKVY Training Centres (TCs) is expected to benefit candidates of
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Indian nationality who are either school/college dropouts or unemployed. Apart from providing training
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according to the National Skills Qualification Framework (NSQF), TCs shall also impart training in Soft
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Skills, Entrepreneurship, Financial and Digital Literacy. Duration of the training varies per job role, ranging
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between 150 and 300 hours. Upon successful completion of their assessment, candidates shall be
provided placement assistance by Training Partners (TPs). Under PMKVY, the entire training and
assessment fees are paid by the Government. Payouts shall be provided to the TPs in alignment with the
Common Norms. Trainings imparted under the Short-Term Training component of the Scheme shall be
NSQF Level 5 and below.
2. Recognition of Prior Learning
Individuals with prior learning experience or skills shall be assessed and certified under the Recognition of
Prior Learning (RPL) component of the Scheme. RPL aims to align the competencies of the unregulated
workforce of the country to the NSQF. Project Implementing Agencies (PIAs), such as Sector Skill Councils
(SSCs) or any other agencies designated by MSDE/NSDC, shall be incentivized to implement RPL projects
in any of the three Project Types (RPL Camps, RPL at Employers Premises and RPL centres). To address
knowledge gaps, PIAs may offer Bridge Courses to RPL candidates.
3. Special Projects
The Special Projects component of PMKVY envisages the creation of a platform that will facilitate
trainings in special areas and/or premises of Government bodies, Corporates or Industry bodies, and
trainings in special job roles not defined under the available Qualification Packs (QPs)/National
Occupational Standards (NOSs). Special Projects are projects that require some deviation from the terms
and conditions of Short Term Training under PMKVY for any stakeholder. A proposing stakeholder can be
either Government Institutions of Central and State Government(s)/Autonomous Body/Statutory Body or
any other equivalent body or corporates who desire to provide training to candidates.
4. Kaushal and Rozgar Mela
Social and community mobilisation is extremely critical for the success of PMKVY. Active participation of
the community ensures transparency and accountability, and helps in leveraging the cumulative
knowledge of the community for better functioning. In line with this, PMKVY assigns special importance
to the involvement of the target beneficiaries through a defined mobilisation process. TPs shall conduct
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Kaushal and Rozgar Melas every six months with press/media coverage; they are also required to
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participate actively in National Career Service Melas and on-ground activities.
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5. Placement Guidelines
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PMKVY envisages to link the aptitude, aspiration, and knowledge of the skilled workforce it creates with
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employment opportunities and demands in the market. Every effort thereby needs to be made by the
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PMKVY TCs to provide placement opportunities to candidates, trained and certified under the Scheme.
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TPs shall also provide support to entrepreneurship development.
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6. Monitoring Guidelines
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To ensure that high standards of quality are maintained by PMKVY TCs, NSDC and empaneled Inspection
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Agencies shall use various methodologies, such as self-audit reporting, call validations, surprise visits, and
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monitoring through the Skills Development Management System (SDMS). These methodologies shall be
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enhanced with the engagement of latest technologies.

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The scheme will be implemented through the National Skill Development Corporation (NSDC).
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TEJASWINI PROJECT
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Tejaswini Socio-Economic Empowerment of Adolescent Girls and Young Women (AGYW) Project aims at
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empowering 6.8 lakh adolescent girls and young women (in age group 14-24 years) in 17 districts of
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Jharkhand.
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A Financing Agreement for International Development Association credit of $63 million was signed
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between World Bank and the government.

It provides opportunities to acquire market driven skill training or completion of secondary education
after empowering them with basic life skills.
The project has three main components:
1. Expanding social, educational and economic opportunities.
2. Intensive service delivery.
3. State capacity-building and implementation support.
The Union Government has signed a Financing Agreement with World Bank for IDA credit of $63 million
for the Tejaswini Socio-Economic Empowerment of Adolescent Girls and Young Women (AGYW) Project.
It is World Bank’s first project in India solely focused on the welfare of adolescent girls and young women
(AGYW) aged between 14 and 24 to complete their secondary level education and provide relevant skills
for job market.
NSSO’S 68TH ROUND FINDINGS

1. The unemployment rate per 1,000 population is at 29, while it was 25 two years ago.
2. As on January 1, 2010, the number of unemployed was 9.8 million. By January 1, 2012, it has
increased to 10.8 million.
3. India has witnessed a work force (activity status determined on the basis of reference period of
one year) growth of 13.9 million in just two years, between 2010 and 2012.
4. As per the NSS 66th round survey, as on January 2010, the workforce at the all-India level, was
about 459 million (rural men - 231.9, rural women - 104.5; urban men - 99.8 million and urban
women - 22.8 million). As on January 2012 (present survey), it has increased to 472.9 million
(rural men - 234.6, rural women - 101.8 million; urban men -- 109.2 million and urban women -
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27.3 million).
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5. Out of the given work force more than half the population (52%) is self-employed, while 18%
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work as regular wage/salaried employees and 30% as casual laborers.
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6. Nearly half the population (49%) is engaged in agriculture, while 24% are working in secondary
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sector and 27% in tertiary sector.
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7. In India, women are more self-employed than men.
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8. In the rural areas, 59% men work in agriculture, but the figures are 75% for women.
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9. When it comes to wages, urbanites are paid more than their rural counterparts. Men are paid
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more than women. At the national level, average wages earned by regular wage/salaried
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employees is Rs. 396 per day (Rs. 299 in rural areas and Rs 450 in urban areas).
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Periodic Labour Force Survey of 2017-18

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This Report is based on the Periodic Labour Force Survey (PLFS) conducted by NSSO from July 2017 to
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June 2018. The survey was spread over 12,773 FSUs (7,014 villages and 5,759 urban blocks) covering
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1,02,113 households (56,108 in rural areas and 46,005 in urban areas) and enumerating 4,33,339 persons
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(2,46,809 in rural areas and 1,86,530 in urban areas). Estimates of the labour force indicators are
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presented in this Report based on the usual status (ps+ss) approach and current weekly status approach
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adopted in the survey for classification of the population by activity statuses. The reference period for
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usual status (ps+ss) approach is 1 year and for current weekly status approach, it is 1 week.
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Some of the key results at the all-India level for the period July 2017 - June 2018 emerging from PLFS are
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highlighted below.
Some Important Findings:
§ About 70.7 per cent of the persons in India belonged to rural areas.
§ The average household size in India was about 4.2. It was about 4.3 in rural India and about 3.9 in
urban India.
§ The sex ratio (number of females per 1000 males) in India was 956. It was 952 in rural India and
965 in urban India.
§ Persons aged 15-29 years, who are considered as the youth, accounted for 27.4 per cent of rural
males, 27 per cent of rural females, 28.2 per cent of urban males and 27.8 per cent of urban
females.
§ In India, literacy rate (among persons of age 7 years and above) during 2017-18 was 76.9 per
cent.
§ The Worker Population Ratio (WPR) in usual status (ps+ss) was about 34.7 per cent at the all-
India level. It was about 35 per cent in rural areas and 33.9 per cent in urban areas.
§ Share of self-employed among workers in usual status (ps+ss) was about 57.8 per cent among
rural males, 57.7 per cent among rural females, 39.2 per cent among urban males and 34.7 per
cent among urban females.
§ In rural areas, about 55 per cent of the male workers and 73.2 per cent of the female workers
were engaged in the agricultural sector. The proportions of male and female workers in rural
areas engaged in ‘construction’ sector were 14.5 per cent and 5.3 per cent respectively. The
proportions of male and female workers in rural areas engaged in ‘manufacturing’ sector were
7.7 per cent and 8.1 per cent respectively.
§ In India, among regular wage/salaried employees in the non-agriculture sector, 71.1 per cent had
no written job contract: 72.3 per cent among males and 66.8 percent among females.
§ In rural areas, average wage earnings per day by casual labour engaged in MGNREG public works
ranged between Rs. 141 to Rs. 171 among males and nearly Rs. 131 to Rs. 165 among females
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during July – September 2017, October- December 2017, January – March 2018 and April – June
2018.
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§ In the usual status (ps+ss), unemployment rate was 5.8 per cent among males and 3.8 per cent
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among females in rural areas, while the rates were 7.1 per cent among males and 10.8 per cent
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among females in urban areas.
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§ In CWS, the unemployment rate was 8.8 per cent among males and was 7.7 per cent among
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females in rural areas while the rates were 8.8 per cent among males and 12.8 per cent among
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females in urban areas.
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§ For educated (highest level of education secondary and above) rural males and rural females of
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age 15 years and above, unemployment rates in usual status (ps+ss) were 10.5 per cent and 17.3
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per cent respectively.

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Indian Economy for IAS by Pratik Gupta 1

Poverty and Unemployment 2019-20

Poverty and Unemployment in India

Multidimensional Poverty Index (MPI)

United Nations Development Program (UNDP).

The MPI is an index of acute multidimensional poverty. It reflects deprivations in very

dimension is equally weighted.

The following ten indicators are used to calculate the MPI:

Education (each indicator is weighted equally at 1/6)

the principle of leaving no one behind.

• 1.3 billion people live in multidimensional poverty.

• Two-thirds of all MPI poor people live in middle-income countries.

• Half of the multidimensionally poor are children aged 0-17.

• 85% of MPI poor people live in rural areas.

• 46% of those who are multidimensionally poor live in severe poverty.

About India by MPI

• Education index: Mean years of schooling and Expected years of schooling

• A decent standard of living: GNI per capita (PPP US$)

• Life expectancy at birth, as an index of population health and longevity to HDI

at purchasing power parity.

The Ranking of 2018 for some of the countries are as follows:

13. USA 0.924

adjusting for inflation.

month (around Rs. 26 per day) respectively.

not strictly) comparable to that of 1999-2000 (26.1).

Tendulkar Committee Report

Expert Group submitted its report in December 2009.

ECONOMIC GROWTH and ECONOMIC DEVELOPMENT

Economic Growth is a narrower concept than economic development. It is an increase in a

can be measured by an increase in a country's GDP (gross domestic product).

Concerned with structural changes in the Growth is concerned with increase

Global happiness index

gross domestic product as the main development indicator.

World Happiness Report 2017

2. Norway 7.594 5. Switzerland 7.487

3. Denmark 7.555 1. Finland 7.632

133. India 4.190

IMPORTANT FLAGSHIP PROGRAMS

NATIONAL EDUCATION MISSION

Rashtriya Madhyamik Shiksha and teacher training programs.

Pradhan Mantri Gram Sadak Yojana

diesel is earmarked for the programme.

Deen Dayal Upadhyaya Gram Jyoti Yojana

Total Sanitation Campaign or Nirmal Bharat Abhiyan

establishing an accountable mechanism of monitoring latrine use.

projected cost of Rs. 1.96 lakh crore (US$30 billion).

National Rural Water Supply Programme

central universities will offer online courses to citizens of India.

learner requires certificate.

Rajiv Awas Yojana Now Changed to Pradhan Mantri Awas Yojana

as per requisite international standards

cause, the payment to the nominee will be ₹ 200,000.

such zero balance accounts by using this and related schemes.

Pradhan Mantri Jan Dhan Yojana

The objectives of the scheme are:

• Planning, development and implementation of heritage-sensitive infrastructure

• Local capacity enhancement for inclusive heritage-based industry.

Highlights of the 2030 Agenda for Sustainable Development

economic, social and technological progress occurs in harmony with nature.

17 Sustainable Development Goals (SDG)

The Revitalized Global Partnership

means of implementation targets.