Poverty alleviation programmes in India

The poverty alleviation programmes in India can be categorized based on whether it is targeted

for rural areas or urban areas. Most of the programmes are designed to target rural poverty as
prevalence of poverty is high in rural areas. Also targeting poverty is challenging in rural areas due
to various geographic and infrastructure limitations. The programmes can be mainly grouped into 1)
Wage employment programmes 2) Self-employment programmes 3) Food security programmes 4)
Social security programmes 5) Urban poverty alleviation programmes.
The five year plans immediately after independence tried to focus on poverty alleviation through
sectoral programmes.

awahar Gram Samridhi Yojana (JGSY)[edit]

This section does not cite any sources. Please help improve this
section by adding citations to reliable sources. Unsourced material may
be challenged and removed. (January 2017) (Learn how and when to remove
this template message)

Jawahar Gram Samridhi Yojana(JGSY) is the restructured, streamlined and comprehensive version
of the Jawahar Rozgar Yojana (JRY). It was started on 1 April 1999. The main aim of this
programme was development of rural areas. Infrastructure like roads to connect the village to
different areas, which made the village more accessible and also other social, educational (schools)
and infrastructure like hospitals. Its secondary objective was to give out sustained wage
employment. This was only given to BPL (below the poverty line) families and fund was to be spent
for individual beneficiary schemes for SCs and STs and 3% for the establishment of barrier free
infrastructure for the disabled people. The village panchayats were one of the main governing body
of this programme. ₹1841.80 crore was used and they had a target of 8.57 lakh works. 5.07 lakh
works were completed during 1999-2000.

National Old Age Pension Scheme (NOAPS)[edit]

This scheme came into effect on 15 August 1995. The scheme provides pension to old people who
were above the age of 65 (now 60) who could not find for themselves and did not have any means of
subsistence. The pension that was given was ₹200 a month (now it is 2000 per month). This
pension is given by the central government. The job of implementation of this scheme
in states and union territories is given to panchayats and municipalities. The states contribution may
vary depending on the state. The amount of old age pension is ₹200 per month for applicants aged
60–79. For applicants aged above 80 years, the amount has been revised to ₹500 a month
according to the 2011–2012 Budget.It is a successful venture.
National Family Benefit Scheme (NFBS)[edit]
This scheme was started in August 1995 . This scheme is sponsored by the state government. It
was transferred to the state sector scheme after 2002-03. It is under the community and rural
department. This scheme provides a sum of ₹20,000 to a person of a family who becomes the head
of the family after the death of its primary breadwinner. The breadwinner is defined as a person who
is above 18 who earns the most for the family and on whose earnings the family survives.

National Maternity Benefit Scheme[edit]

This scheme provides a sum of ₹6000 to a pregnant mother in three installments. The women have
to be older than 19 years of age. It is given normally 12–8 weeks before the birth and in case of the
death of the child the women can still avail it. The NMBS is implemented by states and union
territories with the help of panchayats and municipalities. During 1999–2000 the total allocation of
funds for this scheme was 767.05 crores and the amount used was ₹4444.13 crore. It is for families
below the poverty line. The scheme was updated in 2005-06 into Janani Suraksha Yojana with
₹1400 for every institutional birth.
First instalment (in first trimester of pregnancy) - ₹3,000/-[1]
• Early Registration of Pregnancy, preferably within first three months. • Received one antenatal
check-up.
Second instalment[2]
• At the time of institutional delivery - ₹1500/-
Third instalment (3 months after delivery) - ₹1500/-
• Child birth is compulsory to be registered.[3] • Child has received BCG vaccination. • Child has
received OPV and DPT-1 & 2.

Annapurna[edit]
This scheme was started by the government in 1999–2000 to provide food to senior citizens who
cannot take care of themselves and are not under the National Old Age Pension Scheme (NOAPS),
and who have no one to take care of them in their village. This scheme would provide 10 kg of free
food grains a month for the eligible senior citizens. The allocation for this scheme in 2000-2001 was
₹100 crore.They mostly target groups of 'poorest of the poor' and 'indigent senior citizens'.

Integrated Rural Development Program(IRDP)[edit]

Main article: Integrated Rural Development Program

This section does not cite any sources. Please help improve this

section by adding citations to reliable sources. Unsourced material may
be challenged and removed. (January 2017) (Learn how and when to remove
this template message)

IRDP in India is among the world's most ambitious programs to alleviate rural poverty by providing
income-generated assets to the poorest of the poor. This program was first introduced in 1978-79 in
some selected areas, but covered all the areas by November 1980. During the sixth five-year plan
(1980–85) assets worth 47.6 billion rupees were distributed to about 16.6 million poor families.
During 1987-88, another 4.2 million families were assisted with an average investment of 4,471 per
family or 19 billion rupees overall.
The main objective of IRDP is to raise families of identified target group below poverty line by
creation of sustainable opportunities for self-employment in the rural sector. Assistance is given in
the form of subsidy by the government and term credit advanced by financial institutions
(commercial banks, cooperatives and regional rural banks.) The program is implemented in all
blocks of the country as centrally sponsored scheme funded on 50:50 basis by the center and the
states. The target group under IRDP consists of small and marginal farmers, agricultural laborers
and rural artisans having annual income below ₹11,000 defined as poverty line in the Eighth Plan. In
order to ensure that benefits under the program reach the more vulnerable sectors of the society, it
is stipulated that at least 50 per cent of assisted families should be from scheduled castes and
scheduled tribes with corresponding flow of resources to them. Furthermore, 40 per cent of the
coverage should be of women beneficiaries and 3 per cent of physically challenged persons. At the
grassroots level, the block staff is responsible for implementation of the program. The State Level
Coordination Committee (SLCC) monitors the program at state level whereas the Ministry of Rural
Areas and Employment is responsible for the release of central share of funds, policy formation,
overall guidance, monitoring and evaluation of the program.

Pradhan Mantri Gramin Awaas Yojana[edit]

Main article: Pradhan Mantri Gramin Awaas Yojana

This scheme aimed at creating housing for everyone.It was initiated in 1985. It aimed at creating
20 lakh housing units out of which 13 lakhs were in rural areas. This scheme also would give out
loans to people at subsidized rates to make houses. It was started in 1999–2000. In 1999–2000,
₹1438.39 crore was used for this scheme and about 7.98 lakh units were built. In 2000-01 a central
outlay of ₹1710.00 crores was provided for this scheme. It improved the standard of living of rural
areas:health,primary education,drinking water,housing,roads.
The scheme has proved to be a major boost in Indian rural population's income.
To augment wage employment opportunities by providing employment on demand and by specific
guaranteed wage employment every year to households whose adult members volunteer to do
unskilled manual work to thereby extend a security net to the people and simultaneously create
durable assets to alleviate some aspects of poverty and address the issue of development in the
rural areas.[4]
The Ministry of Rural Development (MRD) is the nodal Ministry for the implementation of NREGA. It
is responsible for ensuring timely and adequate resource support to the States and to the Central
Council. It has to undertake regular review, monitoring and evaluation of processes and outcomes. It
is responsible for maintaining and operating the MIS to capture and track data on critical aspects of
implementation, and assess the utilization of resources through a set of performance indicators.
MRD will support innovations that help in improving processes towards the achievement of the
objectives of the Act. It will support the use of Information Technology (IT) to increase the efficiency
and transparency of the processes as well as improve interface with the public. It will also ensure
that the implementation of NREGA at all levels is sought to be made transparent and accountable to
the public.Now 100 to 150 days work for all is provided.[citation needed]
Integrated child development program is also one of the poverty alleviation program.

. Integrated Rural Development Programme (IRDP):

The Integrated Rural Development Programme (IRDP), which was introduced in 1978-
79 and universalized from 2nd October, 1980, aimed at providing assistance to the rural
poor in the form of subsidy and bank credit for productive employment opportunities
through successive plan periods. On 1st April, 1999, the IRDP and allied programmes
were merged into a single programme known as Swarnajayanti Gram Swarozgar
Yojana (SGSY). The SGSY emphasizes on organizing the rural poor into self-help
groups, capacity-building, planning of activity clusters, infrastructure support,
technology, credit and marketing linkages.

2. Jawahar Rozgar Yojana/Jawahar Gram Samriddhi Yojana:

Under the Wage Employment Programmes, the National Rural Employment

Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP)
were started in Sixth and Seventh Plans. The NREP and RLEGP were merged in April
1989 under Jawahar Rozgar Yojana (JRY). The JRY was meant to generate meaningful
employment opportunities for the unemployed and underemployed in rural areas
through the creation of economic infrastructure and community and social assets. The
JRY was revamped from 1st April, 1999, as Jawahar Gram Samriddhi Yojana (JGSY). It
now became a programme for the creation of rural economic infrastructure with
employment generation as the secondary objective.

3. Rural Housing – Indira Awaas Yojana:

The Indira Awaas Yojana (LAY) programme aims at providing free housing to Below
Poverty Line (BPL) families in rural areas and main targets would be the households of
SC/STs. It was first merged with the Jawahar Rozgar Yojana (JRY) in 1989 and in 1996
it broke away from JRY into a separate housing scheme for the rural poor.

4. Food for Work Programme:

The Food for Work Programme was started in 2000-01 as a component of EAS full
form??. It was first launched in eight drought-affected states of Chhattisgarh, Gujarat,
Himachal Pradesh, Madhya Pradesh, Orissa, Rajasthan, Maharashtra and Uttaranchal.
It aims at enhancing food security through wage employment. Food grains are supplied
to states free of cost, however, the supply of food grains from the Food Corporation of
India (FCI) godowns has been slow.

5. Sampoorna Gramin Rozgar Yojana (SGRY):

The JGSY, EAS and Food for Work Programme were revamped and merged under the
new Sampoorna Gramin Rozgar Yojana (SGRY) Scheme from 1st September, 2001.
The main objective of the scheme continues to be the generation of wage employment,
creation of durable economic infrastructure in rural areas and provision of food and
nutrition security for the poor.

6. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005:

It was launched on February 2, 2005.  The Act provides 100 days assured employment
every year to every rural household. One-third of the proposed jobs would be reserved
for women.  The central government will also establish National Employment Guarantee
Funds. Similarly, state governments will establish State Employment Guarantee Funds
for implementation of the scheme. Under the programme, if an applicant is not provided
employment within 15 days s/he will be entitled to a daily unemployment allowance.

Salient features of MGNREGA are:

I. Right based framework

II. Time bound guarantee of employment

III. Labour intensive work

IV. Women empowerment

V. Transparency and accountability

VI. Adequate funding by central government

7. National Food for Work Programme:

It was launched on November 14, 2004 in 150 most backward districts of the country.
The objective of the programme was to provide additional resources available under
Sampoorna Grameen Rojgar Yojna. This was 100% centrally funded programme. Now
this programme has been subsumed in the MGNREGA from Feb....... 2, 2006.

8. National Rural Livelihood Mission: Ajeevika (2011)

It is the skill and placement initiative of Ministry of Rural development. It is a part of

National Rural Livelihood Mission (NRLM)–the mission for poverty reduction is called
Ajeevika (2011). It evolves out the need to diversify the needs of the rural poor and
provide them jobs with regular income on monthly basis. Self Help groups are formed at
the village level to help the needy.

9. Pradhan Mantri Kaushal Vikas Yojna:

The cabinet on March 21, 2015 cleared the scheme to provide skill training to 1.4 million
youth with an overall outlay of Rs. 1120 crore. This plan is implemented with the help of
Ministry of Skill Development and Entrepreneurship through the National Skill
Development Corporation. It will focus on fresh entrant to the labour market, especially
labour market and class X and XII dropouts.

10. National Heritage Development and Augmentation Yojna (HRIDAY):

HRIDAY scheme was launched (21 Jan. 2015) to preserve and rejuvenate the rich
cultural heritage of the country. This Rs. 500 crore programme was launched by Urban
Development Ministry in New Delhi. Initially it is launched in 12 cities: Amritsar,
Varanasi, Gaya, Puri, Ajmer, Mathura, Dwarka, Badami, Velankanni, Kanchipuram,
Warangal and Amarvati.
These programmes played/are playing a very crucial role in the development of the all
sections of the society so that the concept of holistic development can be ensured in the
real sense.

ntegrated Rural Development Programme (IRDP):

o To eliminate rural poverty by providing income-generated assets to the
poorest of the poor.
o Started in 1978-79.
o Main aim is to create sustainable opportunities for self-employment in
the rural sector.
o Assistance is given in the form of subsidy by the government.
o It is funded on 50:50 basis by the centre and the state.
National Rural Employment Guarantee Act (NREGA):
o Came into force in 2006.
o It was later modified as the Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) in October 2, 2009.
o It is an Indian labour law and social security measure that aims to
guarantee the “right to work”.
o It was started to enhance the livelihood security in rural areas by
providing at least 100 days of guaranteed wage employment in a
financial year.
o If work is not provided within 15 days of applying, applicants are entitled
to an unemployment allowance.
o Recently, Finance Minister Arun Jaitley announced Rs- 48000cr for the
MGNREGA.
National Maternity Benefit Scheme:
o It is for the family below the poverty line.
o Implemented by states and union territories.
 o It provides a sum of Rs-500 to a pregnant woman for the first two live
births.
o It was later changed into Janani Suraksha Yojana with Rs-1440 for every
institutional birth.
National Old Age Pension Scheme (NOAPS):
o To provide pension to old people, above the age of 65.
o Came into effect on 15 august 1995.
o Initially, 200 rupees per month was given but later it was changed to 500
rupees as per as 2011-12 budget.
Jawahar Gram Samridhi Yojana (JGSY):
o It is a comprehensive version of previously launched “Jawahar Rozgar
Yojana (JRY)”.
o Started on 1 April 1999.
o Main objective: - For the development of rural areas.
o Secondary objective: - To give out sustained wage employment.
o This was only for the below poverty line.
National Family Benefit Scheme (NFBS):
o Started in August 1955.
o Sponsored by the state government.
o Later it was transferred to the state sector scheme from 2002-03.
o It is under the community and rural development.
o It provides a sum of 20000 rupees to a person of family who becomes
the head of the family after the death of its primary breadwinner.
Annapurna:
o Started in 1999-2000 by the central government.
o Rs-100cr was allocated during 2000-01.
o It mostly covers groups of “poorest of the poor” and “indigent senior
citizens”.
Pradhan Mantri Gramin Awaas Yojana
o It was started in 1999–2000.
o This scheme aimed at creating housing for everyone.
 o It aimed at creating 20 lakh housing units out of which 13 lakhs were in
rural area.

Aajeevika Grameen Express Yojana (AGEY) 

o It is a part of Deendayal Antyodaya Yojana - National Rural Livelihood
Mission (DAY-NRLM).
o This will help to provide safe, affordable and community monitored rural
transport services to connect remote villages with key services and
amenities  

Employment Generation Schemes in India

MGNREGA:
Already discussed above.

Swarnjayanti Gram Swarojgar Yojana (SGSY):

o Started in 1999.
o For the self-employment of the rural poor.
o Later it became IRDP.
Pradhan Mantri Gram Sadak Yojana (PMGSY):
o Started on 25 December 2000.
o Comes under the authority of the minister of rural development.
Swarna Jayanti Shahari Rozgar:
o Started on 1 December, 1997.
o To provide employment to urban unemployed and under-employed
through the set up of self-employment ventures.
o Centrally sponsored.
Prime Minister’s Employment Generation Programme
(PMEGP):
o To generate continuous and sustainable employment opportunities in
rural and urban areas.
o Announced on 15 August 2008 by PM.
Food for Work Programme:
It was started in 2001 to provide food through wage employment in the
drought affected areas in eight states.

Sampoorna Grameen Rozgar Yojana (SGRY):

o It came in existence by merging Jawahar Gram Samridhi Yojana (JGSY)
and Employment Assurance Scheme (EAS).
o Launched in September 2001.
o To provide additional wage employment in the rural areas.
Rural Landless Employment Guarantee Programme
(RLEGP):
o It was started in 1983
o The aim was to provide employment to landless farmers and labourers.
Pradhan Mantri Kaushal Vikas Yojna:
o The cabinet on March 21, 2015 cleared the scheme to provide skill
training to 1.4 million youth with an overall outlay of Rs. 1120 crore.
o This plan is implemented with the help of Ministry of Skill Development
and Entrepreneurship through the National Skill Development
Corporation.
o It will focus on fresh entrant to the labour market, especially labour
market and class X and XII dropouts.
Heritage City Development and Augmentation Yojana
(HRIDAY):
o HRIDAY scheme was launched in 21 Jan. 2015.
o To preserve and rejuvenate the rich cultural heritage of the country. 

Mnerga
ational Rural Employment Guarantee Act 2005 (or, NREGA No 42, later renamed as the
"Mahatma Gandhi National Rural Employment Guarantee Act", MGNREGA), is an Indian labour
law and social security measure that aims to guarantee the 'right to work'.
It aims to enhance livelihood security in rural areas by providing at least 100 days of wage
employment in a financial year to every household whose adult members volunteer to do unskilled
manual work.[1][2]
The act was first proposed in 1991 by P.V. Narasimha Rao.[3] , it was finally accepted in the
parliament and commenced implementation in 625 districts of India. Based on this pilot experience,
NREGA was scoped up to cover all the districts of India from 1 April 2008.[4] The statute is hailed by
the government as "the largest and most ambitious social security and public works programme in
the world".[5] In its World Development Report 2014, the World Bank termed it a "stellar example of
rural development".[6]
The MGNREGA was initiated with the objective of "enhancing livelihood security in rural areas by
providing at least 100 days of guaranteed wage employment in a financial year, to every household
whose adult members volunteer to do unskilled manual work".[7]Another aim of MGNREGA is to
create durable assets (such as roads, canals, ponds and wells). Employment is to be provided within
5 km of an applicant's residence, and minimum wages are to be paid. If work is not provided within
15 days of applying, applicants are entitled to an unemployment allowance. Thus, employment
under MGNREGA is a legal entitlement.
MGNREGA is to be implemented mainly by gram panchayats (GPs). The involvement of contractors
is banned. Labour-intensive tasks like creating infrastructure for water harvesting, drought relief and
flood control are preferred.[citation needed]
Apart from providing economic security and creating rural assets, NREGA can help in protecting the
environment, empowering rural women, reducing rural-urban migration and fostering social equity,
among others."[8]
The law provides many safeguards to promote its effective management and implementation. The
act explicitly mentions the principles and agencies for implementation, list of allowed works,
financing pattern, monitoring and evaluation, and most importantly the detailed measures to ensure
transparency and accountability.[citation needed]
he law in action[edit]
Independent Academic Research[edit]
Academic research has focused on many dimensions of the NREGA: economic security, self-
targeting, women's empowerment, asset creation, corruption, how the scheme impacts agricultural
wages. An early overall assessment in the north India states suggested that NREGA was "making a
difference to the lives of the rural poor, slowly but surely." [44]
The evidence on self-targeting suggests that works though there is a lot of unmet demand for work.
[45][46]

One of the objectives of NREGA was to improve the bargaining power of labour who often faced
exploitative market conditions. Several studies have found that agricultural wages have increased
significantly, especially for women since the inception of the scheme.[47] [48][49] This indicates that
overall wage levels have increased due to the act, however, further research highlights that the key
benefit of the scheme lies in the reduction of wage volatility.[50] This highlights that NREGA may be an
effective insurance scheme. Ongoing research efforts try to evaluate the overall welfare effects of
the scheme; a particular focus has been to understand whether the scheme has reduced migration
into urban centers for casual work.[51]

Women employed under NREGA for de-silting a tank

Another important aspect of NREGA is the potential for women's empowerment by providing them
opportunities for paid work. One third of all employment is reserved for women, there is a provision
for equal wages to men and women, provision for child care facilities at the worksite - these are
three important provisions for women in the Act.[52] More recent studies have suggested that women's
participation has remained high, though there are inter-state variations.[53] One study in border
villages of Rajasthan, Madhya Pradesh and Gujarat studied the effect on short term migration and
child welfare.[54] and found that among children who do not migrate, grade completed is higher. The
same study found that demand for NREGA work is higher, even though migrant wages are higher.[55]
Over the last decade it has been observed that more than half the NREGA funds have been spent
on water related projects. This was very much needed because water bodies have been shrinking
especially in rural India. India became a water deficient nation 5 years ago and every year since then
the water level has been shrinking.Though over Rs 20,000 crores under MGNREGA has been spent
each year during the last decade on developing rural water bodies, wells, aquifers, catchment areas
they were not permanent assets.
On asset creation, there have not been too many detailed studies. A few focusing on the potential for
asset creation under NREGA suggest that (a) the potential is substantial and (b) in some places it is
being realized and (c) lack of staff, especially technical staff rather than lack of material are to blame
for poor realization of this potential.[56][57] Others have pointed out that water harvesting and soil
conservation works promoted through NREGA "could have high positive results on environment
security and biodiversity and environment conservation"[58] A study conducted by researchers at
the Indian Institute of Science and other collaborators attempts to quantify the environmental and
socio-economic benefits of works done through the NREGA [59]
Corruption in government programmes has remained a serious concern, and NREGA has been no
exception. According to recent estimates, wage corruption in NREGA has declined from about 50%
in 2007-8 to between 4-30% in 2009-10.[60] Much of this improvement is attributable to the move to
pay NREGA wages through bank and post office accounts.[61]Some of the success in battling
corruption can also be attributed to the strong provisions for community monitoring.[62] Others find
that "the overall social audit effects on reducing easy-to-detect malpractices was mostly absent".[63]
A few papers also study the link between electoral gains and implementation of NREGA. One
studies the effect in Andhra Pradesh - the authors find that "while politics may influence programme
expenditure in some places and to a small extent, this is not universally true and does not undermine
the effective targeting and good work of the scheme at large." [64]The two other studies focus on
these links in Rajasthan [65] and West Bengal.[66] Several local case studies are also being conducted
to identify the regional impacts of NREGA.[67]

Assessment of the act by the constitutional auditor[edit]

The second performance audit by the Comptroller and Auditor General (CAG) of India covered
3,848 gram panchayats (GPs) in 28 states and 4 union territories (UTs) from April 2007 to March
2012.[68] This comprehensive survey by the CAG documents lapses in implementation of the act.[69]
[70]
 The main problems identified in the audit included: a fall in the level of employment, low rates of
completion of works (only 30.3 per cent of planned works had been completed), poor planning (in
one-third of Gram Panchayats, the planning process mandated by the act had not been followed),
lack of public awareness partly due to poor information,[71] education and communication IEC) by the
state governments, shortage of staff (e.g., Gram Rozgar Sewaks had not been appointed in some
states) and so on.[72] Notwithstanding the statutory requirement of notification, yet five states had not
even notified the eight-years-old scheme. The comprehensive assessment of the performance of the
law by the constitutional auditor revealed serious lapses arising mainly due to lack of public
awareness, mismanagement and institutional incapacity. The CAG also suggested some corrective
measures.

Major recommendations of the CAG audit on MGNREGA

Even though the mass social audits have a statutory mandate of Section 17 (as outlined in Chapter
11 of the NREGA Operational Guidelines), only seven states have the institutional capacity to
facilitate the social audits as per prescribed norms.[73] Although the Central Council is mandated to
establish a central evaluation and monitoring system as per the NREGA Operational Guidelines,
even after six years it is yet to fulfill the NREGA directive. Further, the CAG audit reports
discrepancies in the maintenance of prescribed basic records in up to half of the gram panchayats
(GPs) which inhibits the critical evaluation of the NREGA outcomes. The unreliability of Management
Information System (MIS), due to significant disparity between the data in the MIS and the actual
official documents, is also reported.[74]
To increase public awareness, the intensification of the Information, Education and Communication
(IEC) activities is recommended. To improve management of outcomes, it recommended proper
maintenance of records at the gram panchayat (GP) level. Further the Central Council is
recommended to establish a central evaluation and monitoring system for "a national level,
comprehensive and independent evaluation of the scheme". The CAG also recommends a timely
payment of unemployment allowance to the rural poor and a wage material ratio of 60:40 in the
NREGA works. Moreover, for effective financial management, the CAG recommends proper
maintenance of accounts, in a uniform format, on a monthly basis and also enforcing the statutory
guidelines to ensure transparency in the disposal of funds. For capacity building, the CAG
recommends an increase in staff hiring to fill the large number of vacancies.[75]

For the first time, the CAG also included a survey of more than 38,000 NREGA beneficiaries.[76] An
earlier evaluation of the NREGA by the CAG was criticized for its methodology.[77]

Evaluation of the law by the government[edit]

Ex-Prime Minister of India Manmohan Singh released an anthologys of research studies on the
MGNREGA called "MGNREGA Sameeksha" in New Delhi on 14 July 2012, about a year before the
CAG report.[78] Aruna Roy and Nikhil Dey said that "the MGNREGA Sameeksha is a significant
innovation to evaluate policy and delivery".[79] The anthology draws on independent assessments of
MGNREGA conducted by Indian Institutes of Management (IIMs), Indian Institutes of Technology
(IITs) and others in collaboration with United Nations Development Programme (UNDP) published
from 2008 to 2012.[80] The Prime Minister said:
The Mahatma Gandhi NREGA story in numbers is a story worth telling... the scheme scores high on
inclusivness...no welfare scheme in recent memory has caught the imagination of the people as
much as NREGA has ... under which ₹1,10,000 crore (about USD$25 billion) have been spent to
pay wages to 1,200 crore (12 billion) people.[81]
Minister of Rural Development Jairam Ramesh says in the 'MGNREGA Sameeksha':
It is perhaps the largest and most ambitious social security and public works programme in the
world. ... soundness and high potential of the MGNREGA are well established ... . That, at any rate,
is one of the main messages emerging from this extensive review of research on MGNREGA. It is
also a message that comes loud and clear from the resounding popularity of MGNREGA—today,
about one-fourth of all rural households participate in the programme every year.[5]
Meanwhile, the social audits in two Indian states highlight the potential of the law if implemented
effectively.
Further the Minister says:
MGNREGA’s other quantitative achievements have been striking as well:

1. Since its inception in 2006, around ₹1,10,000 crore (about USD$25 billion) has gone directly
as wage payment to rural households and 1200 crore (12 billion) person-days of
employment has been generated. On an average, 5 crore (50 million) households have
been provided employment every year since 2008.
2. Eighty per cent of households are being paid directly through bank/post office accounts, and
10 crore (100 million) new bank/post office accounts have been opened.
3. The average wage per person-day has gone up by 81 per cent since the Scheme’s
inception, with state-level variations. The notified wage today varies from a minimum
of ₹122 (USD$1.76) in Bihar, Jharkhand to ₹191 (USD$2.76) in Haryana.
4. Scheduled Castes (SCs) and Scheduled Tribes (STs) have accounted for 51 per cent of the
total person-days generated and women for 47 per cent, well above the mandatory 33 per
cent as required by the Act.
 5. 146 lakh (14.6 million) works have been taken up since the beginning of the programme, of
which about 60 per cent have been completed.
6. 12 crore (120 million) Job Cards (JCs) have been given and these along with the 9 crore (90
million) muster rolls have been uploaded on the Management Information System (MIS),
available for public scrutiny. Since 2010–11, all details with regard to the expenditure of the
MGNREGA are available on the MIS in the public domain.[82]
Social audit[edit]
Main article: Social audit

Civil society organisations (CSOs), nongovernmental organisations (NGOs), political representatives,

civil servants and workers of Rajasthan and Andhra Pradesh collectively organise social audits to
prevent corruption under the NREGA.[83] As the corruption is attributed to the secrecy in governance,
the 'Jansunwai' or public hearing and the right to information (RTI), enacted in 2005, are used to fight
this secrecyGoetz 1999 Official records obtained using RTI are read out at the public hearing to
identify and rectify irregularities. "This process of reviewing official records and determining whether
state reported expenditures reflect the actual monies spent on the ground is referred to as a social
audit."Aiyar 2009, pp. 8–9 Participation of informed citizens promotes collective responsibility and
awareness about entitlements.Chandoke 2007

The process of a social audit

A continuous process of social audit on NREGA works involves public vigilance and verification at the
stipulated 11 stages of implementation: registration of families; distribution of job cards; receipt of
work applications; selection of suitable public works; preparation of technical estimates; work
allocation; implementation and supervision; payment of wages; payment of unemployment
allowance; evaluation of outcomes; and mandatory social audit in the Gram Sabha or Social Audit
Forum. The Gram Panchayat Secretary called ‘Sarpanch’ is designated as the authority responsible
for carrying out the social audit at all stages. For some stages, the programme officer and the junior
engineer is also responsible along with Sarpanch.[84]
The statute designates the Gram Sabha meetings held to conduct social audit as the ‘Social Audit
Forums’ and spells out three steps to make them effective: publicity and preparation of documents;
organizational and procedural aspects; and the mandatory agenda involving questions verifying
compliance with norms specified at each of the 11 stages of implementation.[85]
An application under the RTI to access relevant official documents is the first step of the social audit.
Then the management personnel of the social audit verify these official records by conducting field
visits. Finally, the 'Jansunwai' or public hearing is organised at two levels: the Panchayat or village
level and the Mandal level. The direct public debate involving the beneficiaries, political
representatives, civil servants and, above all, the government officers responsible for implementing
the NREGA works highlights corruption like the practice of rigging muster rolls (attendance registers)
and also generates public awareness about the scheme.[86]
These social audits on NREGA works in Rajasthan highlight: a significant demand for the scheme,
less that 2 per cent corruption in the form of fudging of muster rolls, building the water harvesting
infrastructure as the first priority in the drought-prone district, reduction of out-migration, and above
all the women participation of more than 80 per cent in the employment guarantee scheme. The need
for effective management of tasks, timely payment of wages and provision of support facilities at
work sites is also emphasised.[87][88]
To assess the effectiveness of the mass social audits on NREGA works in Andhra Pradesh, a World
Bank study investigated the effect of the social audit on the level of public awareness about NREGA,
its effect on the NREGA implementation, and its efficacy as a grievance redressal mechanism. The
study found that the public awareness about the NREGA increased from about 30 per cent before the
social audit to about 99 per cent after the social audit. Further, the efficacy of NREGA implementation
increased from an average of about 60 per cent to about 97 per cent.[89][90]

Views of the critics of MGNREGA[edit]

The critics claim that the scheme leads to wastefulness and contributes to fiscal deficit of the
Government of India.

Views of the proponents of MGNREGA[edit]

Proponents of the scheme enumerate number of benefits. For example, Rejaul Karim Laskar, an
ideologue of the Congress party- the largest constituent of the UPA Government which introduced
the scheme, claims that the scheme has multifarious benefits including "reduction in poverty,
reduction in migration, women empowerment, improvement of productivity of agricultural land and
regeneration of water resources".±[91]

MNREGA
On September 5th 2005 with assent of the president of India a new policy came into
existence which worked towards providing livelihood security in rural areas of India. It
started with the name “NREGA” which stood for National Rural Employment Guarantee
Act and then an additional letter “M” was prefixed making it “MNREGA” Mahatma
Gandhi National Rural Employment Guarantee Act. MNREGA is an employment
scheme which provides social security by guaranteeing a minimum of 100 days paid
work per year to all the families whose adult members opt for unskilled labor-intensive
work.

 
 

History
After three years of observation, the government launched schemes like Jawahar
Rozgaar Yojana, Food for Work Programme, Sampurna Grameen Rozgaar Yojna. These
acts were predecessor to Mahatma Gandhi National Rural Employment Guarantee Act,
which was a legal title. This act was firstly initiated in Maharashtra in 1970’s by Former
Chief Minister of Maharashtra Vasant Rao Naik. NREGA act resulted in a boon for
millions of farmer families. This act was accepted by Planning Commission and later on
accepted nationwide. Such acts gave lessons to government regarding ‘Rural Manpower
Programme’ ‘Crash Scheme for Rural Employment’ ‘Drought Prone Area Programme’
‘Marginal Farmers and Agricultural Laborers Scheme’. Keeping the objectives of wage
employment, production of valuable assets and food security still, the government
focuses on implementing new schemes by seeking drawbacks of old ones. MNREGA is
one of the outcomes of same.
 

Key Features
1. To provide job security to all adult members for at least 100 days in a financial year
2. To create permanent wealth such as roads, ponds, wells.
3. Employment is provided within a range of 5 kms from residence of applicants.
4. Minimum wages will be provided.
5. Applicants will be given unemployment allowances, if work is not provided within 15
days of application.

RURAL POVERTY AND URBAN

POVERTY

Poverty is not made up of a cut-and-dry set of circumstances. Rural poverty and

urban poverty differ on many levels, with distinctive, environment-based issues that
characterize quality of life.

There are similarities, of course, that span both rural and urban poverty. The
International Monetary Fund (IMF) states that poverty usually entails deprivation,
vulnerability and powerlessness. However, these issues are sometimes inflicted on
certain individuals or groups more than others. For example, women and children are
more likely to experience poverty more intensely than men and minorities tend to
suffer more greatly than other groups.

The IMF reports that 63 percent of the world’s impoverished live in rural areas.
Education, health care and sanitation are all lacking in rural environments. This
causes many of the rural poor to move to cities, which often leads to a rise in urban
poverty.

Compare and Contrast: Rural Poverty and Urban Poverty

 

The rural poor are divided into further subsets based on profession: typically,
cultivators who own land and noncultivators who do not. Cultivators are slightly
better off, as they are able to make some money operating farms and charging
tenants for using their land. Noncultivators, however, are extremely poor, working as
seasonal laborers on farms. Their pay is both low and erratic, as it is based on the
schedules of farm owners and the other few employers available. The rural poor
often suffer more than the urban poor because public services and charities are not
available to them.

Several factors tend to perpetuate rural poverty. For example, political instability
and corruption, customs of discrimination, unregulated landlord/tenant arrangements
and outdated economic policies often make it impossible for the rural poor to rise
above poverty lines.

While generally considered less severe, urban poverty provides the poor with a host
of separate issues. The World Bank found that urban populations in developing
countries are growing rapidly, at a rate of 70 million new city-dwellers per year.
Former residents of rural areas are typically drawn to the city for the perceived
wealth of economic opportunities, but often, those dreams fall short.

Compared to rural villages, there are indeed more job opportunities in urban areas.
However, many migrants lack the skillset to take on many jobs, and positions for
unskilled laborers fill up quickly. This shortage of jobs leaves new residents without
a steady income, which creates a series of new problems in the city.

Without an income, the urban poor often find themselves in inadequate housing with
poor safety and sanitation. Additionally, health and education packages are limited.
Crime and violence are also much more rampant in urban settings than in rural ones,
threatening the authority of law enforcement and the peace of mind of city dwellers.

Health is quite variable throughout rural and urban settings. While the rural poor lack
access to urban health care programs, they sometimes benefit from the distance
between the country and the city. In the close quarters that characterize city living,
it is easy for disease to spread.
Additionally, communal resources in cities can actually lead to health problems.
According to The Guardian, families usually have their own personal latrine, so if a
health problem starts among the family, the latrine can be closed off and the health
risk minimized. However, in cities where many people on a daily basis use public
restrooms, disease can spread rapidly and tracking down the source can be nearly
impossible.

Though rural poverty is currently higher than urban poverty, research shows that
soon, urban areas will become home to the majority of impoverished people. The
perception of greater opportunity leads the rural poor away from the countryside and
into the cities, where they often end up in even further poverty. An overhaul of urban
development programs is necessary to combat the issues with sanitation, safety and
hunger that propagate urban poverty.

How emphasids is laid on dev of skill and

enterp
National Skill Development Mission
The National Skill Development Mission was approved by the Union Cabinet on
01.07.2015, and officially launched by the Hon’ble Prime Minister on 15.07.2015 on the
occasion of World Youth Skills Day. The Mission has been developed to create
convergence across sectors and States in terms of skill training activities. Further, to
achieve the vision of ‘Skilled India’, the National Skill Development Mission would not
only consolidate and coordinate skilling efforts, but also expedite decision making
across sectors to achieve skilling at scale with speed and standards. It will be
implemented through a streamlined institutional mechanism driven by Ministry of Skill
Development and Entrepreneurship (MSDE). Key institutional mechanisms for achieving
the objectives of the Mission have been divided into three tiers, which will consist of a
Governing Council for policy guidance at apex level, a Steering Committee and a
Mission Directorate (along with an Executive Committee) as the executive arm of the
Mission. Mission Directorate will be supported by three other institutions: National Skill
Development Agency (NSDA), National Skill Development Corporation (NSDC), and
Directorate General of Training (DGT) – all of which will have horizontal linkages with
Mission Directorate to facilitate smooth functioning of the national institutional
mechanism. Seven sub-missions have been proposed initially to act as building blocks
for achieving overall objectives of the Mission. They are:
(i) Institutional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v)
Overseas Employment, (vi) Sustainable Livelihoods, (vii) Leveraging Public
Infrastructure.
Skill Development
 
Why Skill Development?
The new policy focus on skill development has emerged a result of a combination of
factors. The changing demographic profile of the country, with 54% of its population
under 25 years of age, the rising aspirations of our youth who seek better jobs and
higher incomes, and the growing requirements of industry for an efficient, well trained
workforce – have contributed to a focus on skill development. Speed, Scale and Quality
are the three driving themes of the Ministry’s efforts.
The Ministry of Skill Development and Entrepreneurship takes a multidimensional view
of the term ‘skill’. ‘We recognise the fact that ‘skill’ has both intrinsic and instrumental
value. Possessing a skill can be an end in itself – giving individuals greater self-
confidence, self esteem and dignity, which results from the knowledge that they can
stand on their own feet. A skill can also be a means to an end. It can a tool, which
helps individuals realise their aspirations by pursing better jobs, leading to stable,
sustainable livelihoods.
Skilling is a lifelong process. Hence, skill upgradation and reskilling are fundamental
components of the skilling cycle. The Ministry also sees a close connection between
skilling and entrepreneurship. We seek to create synergies between these two areas, so
that our youth can aspire to being job seekers and job creators.

Pradhan Mantri Kaushal Vikas Yojana

(PMKVY)
Approved for another four years (2016-2020) to benefit 10 million youth
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 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). Under this Scheme, Training and Assessment fees are completely
paid by the Government.
Key Components of the Scheme:
1. Short Term Training
The Short Term Training imparted at PMKVY Training Centres (TCs) is expected to
benefit candidates of Indian nationality who are either school/college dropouts or
unemployed. Apart from providing training according to the National Skills Qualification
Framework (NSQF), TCs shall also impart training in Soft Skills, Entrepreneurship,
Financial and Digital Literacy. Duration of the training varies per job role, ranging
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 Kaushal and
Rozgar Melas every six months with press/media coverage; they are also required to
participate actively in National Career Service Melas and on-ground activities.
5. Placement Guidelines
PMKVY envisages to link the aptitude, aspiration, and knowledge of the skilled
workforce it creates with employment opportunities and demands in the market. Every
effort thereby needs to be made by the PMKVY TCs to provide placement opportunities
to candidates, trained and certified under the Scheme. TPs shall also provide support to
entrepreneurship development.
6. Monitoring Guidelines 
To ensure that high standards of quality are maintained by PMKVY TCs, NSDC and
empaneled Inspection Agencies shall use various methodologies, such as self-audit
reporting, call validations, surprise visits, and monitoring through the Skills
Development ManagementSystem (SDMS). These methodologies shall be enhanced
with the engagement of latest technologies.
The scheme will be implemented through the National Skill Development Corporation
(NSD
 SANKALP (Skills Acquisition and
Knowledge Awareness for Livelihood
Promotion)

UDAAN
Udaan is a Special Industry Initiative for Jammu & Kashmir in the nature of partnership
between the corporates of India and Ministry of Home Affairs and implemented by
National Skill Development Corporation. The programme aims to provide skills training
and enhance the employability of unemployed youth of J&K. The Scheme covers
graduates, post graduates and three year engineering diploma holders. It has two
objectives:
 (i) To provide an exposure to the unemployed graduates to the best of Corporate
India;

 (ii) To provide Corporate India, an exposure to the rich talent pool available in
the State.

Standard Training Assessment and

Reward (STAR) Scheme:
The National Skill Certification and Monetary Reward Scheme, known as STAR
(Standard Training Assessment and Reward),was operational between August 2013 and
September 2014.
NSDC is the designated implementing agency of the scheme and is working through
various Sector Skill Councils (SSCs), Training Providers (TPs) and independent
Assessment Agencies (AAs).
The achievements made under the scheme as on Feb, 2015 are as under:
Outcomes: (As of 03 July 2015)

Enrolled 1,400,848
 Training completed 1,400,844

Assessment Completed 1,362,296

Passed 915,242

Certified 861,077

Reward Money Disbursed 833,144 (Rs. 851.67* Cr)

World Skills
What Is WorldSkills India?
WorldSkills India is an initiative of the National Skill Development Corporation (NSDC)
under the Ministry of Skill Development and Entrepreneurship. NSDC, through its
WorldSkills India initiative, has been leading the country's participation at WorldSkills
International competitions since 2011.
The key objectives of WorldSkills India are to:
 Promulgate skills in the society and motivate the youth to pursue vocational
education.
 Champion skills and learning for work through local, regional, national and
international skills competition and contribute to the society.
 Invite sponsorships to organize the local, regional, national and international
skills competitions and also host international competitions.
 Establish links and a long-term association with the WSI secretariat along with
development of cooperation with the Government of India, state Governments,
registered vocational skills training and awarding bodies.\

proverty
At present, 28.5% of the Indian population lives below the poverty line.
In the category of poor falls the people whose daily income is less than
33 rupees a day in cities and 27 rupees a day in villages. But do you
think this amount is enough to survive even for a day in the country
where every food item is available at sky-high prices? This means, the
actual number of people living below the poverty line is much higher,
as according to the statistical data, anyone earning 40 rupees won’t be
considered as poor but must be facing the same difficulties in life.

Who comes in the category of the poorest class in India? –

Tribal people, Dalits and labour class including farm workers in villages
and casual workers in cities are still very poor and make the poorest
class in India.
Where do the majority of poor live in India? – 60% of the poor still
reside in the states of Bihar, Jharkhand, Odisha, Madhya Pradesh,
Chattisgarh, Uttar Pradesh and Uttarakhand. The reason for these
states to be in the category of the poorest state is because 85% of
tribal people live there. Also, most of these regions are either flood-
prone or suffer from calamities. These conditions hamper agriculture to
a great extent, on which the household income of these people
depends.

Statistics[edit]
According to the National Sample Survey Office (NSSO) report, the unemployment rate was at an
all-time high of 6.1 percent in 2017-18, the highest in 45 years. The report also says that male youth
had an unemployment rate of 17.4 percent and 18.7 percent in rural and urban areas, while women
youth had rates of 13.6 percent and 27.2 percent respectively in 2017-18. However, the think tank
of Government of India, NITI Aayog says that these are not official and the data is not yet verified.
[3]
 The employees in the country are estimated to grow by 8 million per annum for the next decade
and a half, which is a little part of the job requirements in the economy, with a lot of workforce still
finding employment.[4]
Union Ministry for Labour and Employment claimed national unemployment hovers around 3.7
percent in 2015-16. However, the data is based on usual principal subsidiary status (UPSS)
approach that requires only 30 days of work in a year to call the person employed. 77 percent of the
families reportedly have no regular wage earner and more than 67 percent have income less
than ₹11,000 per month. Around 58 percent of unemployed graduates and 62 percent of
unemployed post graduates cited non-availability of jobs matching with education/skill and
experience as the main reason for unemployment. As per the National Skill Development Mission
Document, as much as 97 percent of the workforce in India has not undergone formal skill training.
About 76 percent of the households did not benefit from employment generating schemes like
MGNREGA, PMEGP, SGSY, SJSRY, etc.
A significant change in inequality in income and wealth is possible only in a longer term prospective.
Employment structure of an economy is the normal instrument that can cause a change in inequality
either way i.e. an increase or a decrease in inequality. Since the government functions within the
administrative and fiscal constraints, the target group programmes normally have a marginal impact
on income redistribution. Income of labour enables flow of resources across income classes of
people and across the social and ethnic groups. Flows of income across locations are influenced
both by assets available and modes of creating employment opportunities. However, income
generated by employment of migrant labour, facilitates flow of resources across regions of a given
regional distribution of capital assets. Employment and equity of income across classes of people
and across regions are therefore, closely related to each other in the long term.[5]
According to India Skills Report launched in the 3rd CII National Conference on Skill Development,
96 percent were found unemployable out of 100,000 candidates. The Report not only captured the
skill levels of talent pool but also brought out the hiring estimates across major Industry sectors in
the country. The report also brings out a general trend amongst the employers to look for skills
rather than qualifications in candidates.[6][7] According to NSS (66th Round) Report from Ministry of
Statistics and Programme Implementation, Government of India published on 2013[8]