17 - Economic Problems and Challenges : Poverty and

Unemployment

Q-1 : State the meaning and features of people living below poverty line.
Meaning:- When a large number of people are not able to satisfied their basic
needs like food, clothes, shelter, education and health, such situation is known
as ‘comprehensive poverty’. And people living in such situation are known as
poor.
Features:-
Person who is not able to get two meals a day.
People who do not have shelter.
They are forced to live in shabby or slum areas.
Those who have income less than the expected income.
Those whose life span is less than national life expectancy.
Those who are illiterate.
Those who suffers from various diseases due to lack of nutritious food.
When the children have to take up the responsibility of earning at the age of
study.
Q-2 : How is poverty measured ? Describe the types of poverty.
There are two methods to know the number of people living below poverty line
1) On the basis of Expenditure behind various commodities and services done
by a family 2) On the basis of total income of the family.
There are two types of poverty 1) Absolute Poverty 2) Relative Poverty.
1) Those people of the society who are not able to purchase the basis needs like
food, clothes, shelter, education, health etc. at the market rate are known as
absolute poor.
2) When a particular group of society has the lower income in comparision of the
group having higher income are known as the Relative poor.

Q-3 : Write a Short note : Poverty line in India.

In 2011-12 Planning Commission of India declared per capita expenditure for
rural area as Rs. 816 per person per month and 4080 per family per month.
For urban area per capita expenditure was decided Rs. 1000 per person per
month and Rs. 5000 per family per month.
The families those don’t reach this limit are considered to be the family below
poverty line.
On the basis of this new criteria number of poor has reduced to 27 crore in
2011-12 and rate reduced to 21.9% from 29.8%.
Thus we can say that 35.47 crore people were living in poverty.
According to the report of the World Bank out of 121 cr. People 32.7% i.e. 45.6
cr. People were living below poverty line.
As per the report of UNDP – 2015, ratio of poverty in India in 2011-12 was
21.92% of the total population. Out of which 25.7% were the rural poor and 13.7
were the urban poor.
Chhattisgarh is the poorest state of India where the poverty is recorded 36.93%.
 Goa has the lowest poverty rate which is 5.09%.
In Gujarat the proportion of poverty is 16.63%.
Chhattisgarh, Assam, Uttar Pradesh, Manipur, Bihar, Arunachal Pradesh,
Jharkhand, Orissa, etc. have more than 30% proportion of poverty.

Q-4 : State the reasons of poverty.

Because of insufficient development of agriculture and insufficient irrigation

facilities the income of farmers decreases.
Lack of alternative employment apart from farming in villages.
Lack of knowledge, other employment, education, skill and training in rural
areas.
Increase in debt and unproductive expenditure because of caste system,
orthodoxy and customs.
Due to illiteracy the poor become victim of exploitation and injustice.
They are not able to get the benefits of the government schemes because of
lack of information.
The needs of poor are ignored while framing the policies.
The production of cash crops has been increased and the production of food
grain has been decreased, it causes the scarcity of food grain which
encourages the price rise and poor become poorer.
Due to economic reforms the rural economy collapsed, cottage and small scale
industries broke down, migration increased and income decreased.
As poor people do not get nutritious food they become victim of diseases and
expenditure on health increases.
Due to change in technology, traditional business, cottage industry, etc.
deteriorated and unemployment increased.
 Population increased, death rate decreased, average life span increased, supply
of labour increased, demand of labour decreased, unemployment increased,
price rise occurred, living standard deteriorated, thus the poverty increased.
Q-5 : State the strategy for poverty eradication.
After the independence, government gave the importance to the large and
heavy industries with the slogan of ‘Garibi Hatao’, which encourage the
development of cities. On the other hand to bring the green revolution in
agricultural sector land reform acts were implemented, which increased the
agricultural production and increased the employment. It was believed that the
increase in the income of the rich industrialists and farmers will be distributed
among the poor people but it could not be happened. The poor remained poor
and the rich became richer.
To remove the income disparity, heavy tax was levied on the luxurious goods
and services. Essential commodities for the poor are provided at reasonable
price from the Fair Price Shops under Public Distribution System.
To improve the agriculture government implemented many land reform
programs like Land Ceiling Act, Regulation of Tenancy Act, Security of
Cultivating right, etc. so that the income of rich farmers decrease and the
income the poor farmer increase.
Government has started encouraging the labour intensive activities like cattle
rearing, dairy industry, pisciculture, afforestation, small irrigation scheme, house
hold industries, cottage industries, small scale industries, traditional industries
and handloom industries so that the employment increase.
To give the rural youth the alternative employment government has started
objective based education, training and skill development and the other new
fields of employment have been opened so that the income of poor people
increase.
 To stop the migration of youth to cities the government improved the facilities
of education, health, residence, employment, family planning, communication,
irrigation, roads, crop protection, skill and training, bank loans, etc. Moreover
government has started the schools and colleges providing technical and
vocational course at close distance.
For higher education government has started the programs like giving
scholarship, residential school, girls education, etc. and by that complete the
mission of World Bank to eradicate the poverty by 2030.
Q-6 : State the Poverty Alleviation Programs ( PAP )
Poverty alleviation programs are dived into six sections: 1) Wage based
employment programme
3) self-employment programmes 3) Programmes related to food security 4)
Programmes of elimination of poverty in urban areas 5) Programmes related to
social security 6) Programmes related to agricultural development.
i) Pradhan Mantri Krishi Sinchai Yojna :- Under this programme the works like
improvement in irrigation facilities, drip irrigation, construction of small, big and
medium sized check dams, etc. are carried out so that every field gets water.
The purpose of this plan is to save farmers from dangers of agriculture and to
provide them full time income.
ii) Prime Minister Farm Safety Insurance Plan :- Under this plan farmers are
being helped at the time natural calamity by providing them economic support.
To provide the fair price of the farm products to the farmers the government
has set up ‘Kshatimukt Krushi Bhav Panch’.
iii) National Drinking Water Programme :- Programmes like providing water
to every field, improving existing canal network, stop soil erosion, new tube well
for tribals, prevention of salinity, digging ponds, watershed development,
construction of tanks, conservation of rain water, afforestation, planting trees,
renovation of check dams etc. have been implemented to generate the
employment in the rural areas and bring the poor people above the poverty line.
iv) Reward Scheme :- Under this scheme online agricultural markets have
been setup where the farmers can sell their farm product with the help of
mediators and brokers. Thus they can get the good price of their farm products.
2) From Gramoday to Bharat Uday :- Under this programme farmers are being
helped by them providing economic help to build the fence to protect their farm
products, production of grass at the time of crisis or draught, construction of
cattle shelter, rain forecasting and discovering mineral rich areas, to maintain
the record of land survey, etc. For that they are provided finance at low rate to
buy the machines and tractors. They are being provided subsidy for the
facilities like construction of water tank, improving quality of plantation crops,
computerization in agriculture, finance society, setting up new testing
laboratory for the crops of pulses and spices, construction of farm ponds,
cleaning canals, increasing water capacity in ponds and canals, etc. So that
farmers get employment during non-agricultural season and at the same time
permanent property is also set up in rural areas.
3) Dindayal Upadhyay Gram Jyoti Yojna :- Under this plan 24*7 electricity is
provide to rural areas. For that the work of laying new lines of electricity is going
 on and 18000 villages which do not have electricity will get it. Farmers are also
provided the subsidy to purchase the instruments to utilize the solar energy.

4) Integrated Dairy Development Scheme For Tribal Women For Cattle Rearing :-
Under this programme help is provided for the development of geoponics and
plantation agriculture, to help the farmers in making pavilion for creeper crops,
training and guidance for organic farming, grading and packaging.
5) Encouragement to Organic Farming :- In this plan farmers are being helped in
registration, paying fees, purchasing farm products, training and education.
Environmental protection and reduction in expenditure in agricultural sector are
the main objectives of this scheme.
6) Chief Minister Village Road Scheme :- Under this plan the road network in
villages are being improved. Village panchayats are being provided help to
connect the village roads with the highways. Programme of construction toilets
are also carried out under this plan.
7) MAA Annapurna Yojna :- Under this programme the absolute poor and bpl
families in cities and villages are provided 35 kg food grains per family every
month by Gujarat government free of cost. The poor people of middle class are
given 5kg food grain per person at the cost of wheat Rs. 2 per Kg. and rice Rs. 3
per Kg. 3.82 crore people are covered under this programme. A large sum of
money spent on food grain will saved and there will be smile on the faces of the
poor people.
8) Sansad Adarsh Gram Yojna :- Under this programme the village adopted by the
member of parliament is provided with the facilities like education, health,
employment, etc. The purpose of this programme is to built the permanent
 public assets, promote social harmony and preserve cultural heritage and by
that to make the village the ‘Ideal Village’.

9) Mahatma Gandhi National Rural Employment Guarantee Act (MANREGA) :-

This is a wage based employment programme. One person from every below
poverty line family is guaranteed wage employment for minimum 100 days in
the financial year. The daily wages are fixed by the government and if it fails to
provide work, unemployment allowance is paid. Rural development activities like
horticulture, land leveling, tree plantation, water conservation, cleaning of canals,
etc. are undertaken.
10) Mission Mangalam :- Under this programme women are encouraged to form
self help groups. They are provided skill-training for household economic
activities. They are expected to become self-employed and come out of the
vicious circle of poverty.
11) Dattopand Thengdi Vyaj-Sahay Yojna :- This is a scheme through which the
government provides loans to village artisans at a low rate to purchase raw
material for their handicraft and cottage industry.
12) Jyoti Gramodyog Vikas Yojna :- This is a ‘Startup India’ scheme for
unemployed persons in the rural areas. They are provided financial help and
subsidies to undertake their production activities and overcome poverty.
13) Vajpayee Bankable Yojna:- This scheme is for the unemployed persons who
are in the age group of 18 to 65 years and have completed primary education.
They are provided skill training and financial help to undertake their production
 activities. This scheme is meant for unemployed persons in the rural as well as
urban areas.
Q-7 : State the meaning of unemployment and discuss its types.

Meaning :- Unemployment is forced situation where in the person in the age

group of 15 to 60 years is willing to work, is in search of work, is willing to work
at the rates prevailing in the market but does not get work. Such person is
called unemployed.
1) Seasonal Unemployment

Seasonal unemployment is found in the agricultural sector.

Lack of irrigation, irregular rainfall and non availability of alternate employment
are the main factors of seasonal unemployment.
The farmers and farm labourers in most parts of India remains unemployed for
3 to 5 months.
2) Frictional Unemployment.

Frictional unemployment occurs due to change in technology.

When new technology arrives the workers who don’t know the new technology
become unemployed for few months.
3) Structural Unemployment

Structural unemployment is taken place due to the orthodox nature of the Indian
society, illiteracy, sway of age old customs and traditions.
4) Disguised Unemployment

Disguised unemployment is found in agriculture, where more than the required

number of prsons are deemed to have employment.
They do not contribute to the total production.
5) Industrial Unemployment

Industrial unemployment is the result of conflict between the employers and

employees.
 This conflict leads to strikes, lockout and closure of industry.
6) Educated Unemployment

The person who has got minimum secondary education and yet not getting the
employment is known as educated unemployed.
This situation is known as educated unemployment.
Q-8 : Explain the nature and extent of unemployment in India.

The nature and extent of unemployment in India varies from state to state,
depending on the extent of industrialization and the state of agriculture.
In India The National Sample Survey of Ministry of Labour and Employment give
us the idea of extent of unemployment.
According to the census of 2011, there were 116 million unemployed people in
India. Of these 32 million were illiterate and 84 million were educated.
47 million people in the age group of 15 to 24 were jobless.
According to the report of Labour Bureau, the rate of unemployment in 2013-14
for India was 5.32% and 1.2% for Gujarat.
The percentage of unemployment among the women was 7.7%
The unemployment rate is relatively high in Sikkim, Kerala, West Bengal, Uttar
Pradesh, Chhattisgarh, Jammu-Kashmir and Tripura.
The rate of unemployment is relatively low in the states like Himachal Pradesh,
Haryana, Karnataka, Chandigarh and Gujarat.
Q-9 : state the reasons of unemployment.
Increase in population.
Theoratical knowledge only.
Lack of practical knowledge.
Lack of technical knowledge or skill.
Failure in providing complete employment.
Irregularity in rain agricultural areas.
 Losing interest in agricultural sector.
Improper irrigation facilities.
Lack of alternative employment.
Weak condition of cottage industry, small scale industries and house hold
industries.
Cast system.
Joint family system.
People are forced to follow traditional business or family business.
Lack of courage to set up new industry of or business.
Lack of knowledge, skill training and experience.
Immobility of labour.
Flawless planning of labour.
Low growth rate of industrial development.
Less rate of saving tendency.
Q-10 : state the measures to reduce the unemployment.
The aim of economic development must be 10% per annum. To increase the
capital investment. New fields must be developed along with the development
in agriculture, small scale, cottage and house hold industries.
Government should give importance to the development of labour intensive
industries like small and cottage industries, gramodyog, handloom and
handicraft.
To remove the unemployment in the agriculture sector government must bring
new land under cultivation, arranging water and electricity for every filed, small
and big irrigation scheme, dam, check dam, ponds, canals, tubewell, activities of
construction of road, poultry, fishing, cattle rearing, dairy industry, programmes
of afforestation, etc. must be implemented.
To maintain the human development in rural areas health, education, pure
drinking water, nutritious food, electricity, roads, banking, insurance, internet,
water harvesting activities, constructing permanent public property, etc. must
be implemented.
To remove the educated unemployment, the youth must be provided skill,
training and education according to the requirement of the industries. The
school curriculum must be changed according to that.
Labour ministry of India and state government have implemented programmes
like ‘Make in India’, ‘Skill India’ and ‘Digital India’ to increase knowledge,
understanding and work capacity of youth. For that technical universities and
colleges have been setup nation wide. IIT and IIM are the best examples of that.
There is much potential of giving employment in the new fields like computer
technology, information technology, pharmaceutical, business management,
packing and processing, out sourcing, marketing, catering, event management,
office management, hotel management, share stock marketing, etc. The
curriculum of the colleges must be changed according to that.
Short term diploma courses like spinning, weaving, tanning, plumbing, radio, tv,
fridge, A.C. repairing, etc. give the instant employment to the unemployed
persons.
New industries must be established for the industrial growth and to generate
the employment opportunities. For that government provides financial help at
low rate of interest. Banks and other financial institutions also provide loan to
the women to start the household industries.
Employment exchange is a link between the unemployed and the job givers.
This organizations provide the authentic information regarding jobs according
to the education. Magazines like ‘Rozgar Karkirdi’ also help unemployed to find
 the appropriate job. 1800-425-1514 is toll free number which provide
information regarding skill, training and employment.
Q-11 : Short note : World Labour Market.
Because of globalization the free flow of labour across the world has take place.
To get the better working conditions, higher salaries, comfortable life, and
social status many people now a days go to the foreign countries.
This loss of intelligent persons in is known as ‘Brain Drain’.
In the present time demand for people having knowledge and skill in
information technology, communication, biotechnology, computer science or
medical has increased.
Many countries are appointing such people who have special qualification and
skill as trained expert labours and expers.
Industrial firms send their employees to foreign countries to obtain required
qualification, knowledge and skill so that they may survive in the competition.
The only benefit for the country like India is the earning the foreign exchange.