JNANA VIKAS INSTITUTE OF MANAGEMENT STUDIES AND COMMERCE

UNIT-1

CHAPTER-1 INTRODUCTION TO RURAL ECONOMY

MEANING OF RURAL ECONOMY

Rural economy is the study of rural economies, Including: farm and non-farm industry,
Economic growth, Development, and change size and spatial distribution of production and
Household units and interregional trade. Land use.

OBJECTIVES OF RURAL ECONOMY

 Education
 Public health and sanitation
 Women empowerment
 Infrastructure development
 Facilities for agriculture extension and research
 Availability for credit
 Employment opportunities
 To improve productivity and wages of rural people
 To guarantee increased and quick employment opportunity
 To demolish unemployment and bring a notable decline in un employment
 To guarantee an increase in the standard of the living of the underprivileged
population

MAIN CHARECTERISTICES OF RURAL ECONOMY ARE

Public services like education, housing, health and sanitation, transport and communications,

Banking, roads and markets are limited and unavailable. Rural people rely much on faith,
superstition and traditional cultural practices.

1. Village is an institution: the village is a primary institution and it satisfies almost

all the needs of the rural community. The rural people have a feeling of belongingness and a sense of
unity towards each other.

2. DEPENDENCE ON AGRICULTURE: the rural economy depends much on nature

and agriculture activities. Agriculture and allied activities are the main occupation in rural areas.

3. LIFE OF RURAL PEOPLE: lifestyles in villages are very simple. Public services like
Education, housing, health and sanitation, transport and communication, banking, roads and
markets are limited and unavailable.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 4. POPULATION DESTINY: population destiny, measured by number of persons living
Per sq. km is very low and houses are scattered in the entire villages.

5. EMPLOYMENT: there exist employment, seasonal unemployment and Under

employment in rural areas. Unemployment refers to the situation of people with willingness and
ability to work but is not getting employed.

6. POVERTY: Poverty is a condition where the basic needs of the people like food,
clothing and shelter are not being met. According to the 2011-12 estimates, about 22 crores of
people in rural areas are proof and live below the property line.

7. DEPENDENCY: Rural households are largely dependent on social grams and

remittances from family members working in urban areas and cities.

INDICATOR OF RURAL DEVELOPMENT

The rural development takes into account the various indicators such as
economic, education, health care, environment, culture and leisure and converts them into
indices dimensionless numbers.

INDICATORS OF RURAL DEVELOPMENT IN INDIA.

 Changes in agriculture productivity
 Changes in rural employment, unemployment and underemployment
 Changes in income of different income groups
 Changes in distribution of power, influence participation in decision changes in
the degree of mobility, in the allocation of passion and removal of barriers to
access public facilities.
 Changes in literacy, schooling, literacy rate and life expectancy.
 Changes in values, believes and attitudes of members of state agencies all well as
the rural population making.

CONCEPT OF INCLUSIVE GROWTH:

Inclusive growth means economics growth and creates employment opportunities and
helps in reducing poverty. It means having access to essential services in health and education by the
poor. It includes providing equality of opportunities, empowering people through education and skill
development.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 ELEMENTS OF INCLUSIVE GROWTH:
1. Skill Development:
 Harnessing the demographic dividend will depend upon the employability of
the working age population, their health, education, vocational training and
skills. Skill development plays a key role here.
 India is facing dual challenge in skill development; first, there is a paucity of
highly trained workface; Second, there is non-employment of conventionally
trained youths.
 According to the economic survey 2017, over 30% of youths in india are
NEET(Not in education, employment or training).
2. Financial Inclusion:
 Financial inclusion is the process of ensuring access to financial services to vulnerable
groups at affordable costs.
 Financial inclusion is necessary for inclusive growth as it leads to the culture of saving,
which initiates a virtuous cycle of economic development.
3. Technological Advancement :
 The world is moving towards an era of industrial revolution 4.0.these techonological
advancements have capabilities to both decrease or increase the inequality depending
on the way these are being used.
 Several initiatives have been taken by the government, eg. Digital India Mission , so
that a digitally literate population can leverage for endless possibilities.
 Technology can help to combat other challenges too , eg;
 Agriculture.
 Manufacturing.
 Education.
 Health.
 Governance.
4. Economic Growth :
 India is among the fastest growing major economies in the world. However , currently
Indian economy is facing slowdown due to both cyclic and structural challenges.
 However, the target of becoming a $5 trillion economy by 2024-25 can allow India to
inequality, increase social expenditures and providing employment to all.
5. Social Development:
 It means the empowerment of all marginalized sections of the population like
SC/ST/OBC/Minorities , women and transgenders .
 Empowerment can be done by improving institutions of the social structure i.e.
hospitals especially primary care in the rural areas, schools, universities, etc.
6. Measuring Inclusive Growth:
 Inclusive Development Index.
 Social Progress Index.
 Global Slavery Index.

CONCEPT OF SUSTAINABLE DEVELOPMENT:

Sustainable development is the idea that human societies must live and meet their
needs without compromising the ability of future generations to meet their own needs.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 Importance

 Development of non polluting renewable energy systems.

 Population stabilization.
 Integrated land use planning.
 Control of pollution in water and the air.
 Environmental education and awareness at all levels.
 Recycling of waste and residues.

Objectives
 Eradicates poverty and hunger, guaranteeing a healthy life.
 Universalize access to basic services such as water, sanitation and sustainable energy.
 Reduce inequality in the world, especially that concerning gender.

THREE PILLARS OF SUSTAINABLE DEVELOPMENT:

The concept of sustainable development is rooted in three main pillars that aim that achieves
inclusive growth as well as create shared prosperity for the current generation and to continue to
meet the needs of future generations. These three pillars are Economic, Social,and Environmental
development.
1. Economic Sustainability :
Economic sustainability strives to promote those activities through which long term
economic growth can be achieved without having a negative impact on the environment, social,
and cultural aspects of the community. The basic fundamentals of economic sustainability are as
follows:
 Finding effective solutions for hunger and poverty in the world in environmentally
sound ways.
 Economics is the study of how societies use their resources such as water, air, food,
fuel, etc.

2. Social Sustainability:
Social sustainability is a form of social responsibility that significantly takes place when a
community’s stable and unstable components need a revival of depleted resources.
 Systematic community participation.
 Strong civil society, including government.
 Commonly accepted standards of honesty.
 Gender equality.

3. Cultural sustainability:

Culture is one of the main components of the concept of sustainable development. The
needs for cultural sustainability arises from the growing awareness of the importance of cultural
rights and the preservation of cultural heritage.
 Cultured individual.
 Globalisation .

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 CHAPTER 2: APPORCHES TO RURAL DEVELOPMENT

GANDHIAN MODEL COMMUNITY DEVELOPMENT APPROACH:

Gandhian model of community development (GMCD) is a sustainable development
model for governments in the central, provincial, and local levels of democratic federal countries in the
world by the scientific analysis of Gandhian ideology in a specified community. Community Development
is a method, a strategy, and a campaign to uplift human life settlement and to solve the community
problems from a simple local perspectives. The human settlement with local communal acceptance,
health, education, sanitation, training, transportation, marketing etc. are the major components of the
Gandhian Model Of Community Development.

ELEMENTS OF THE GANDHIAN MODEL OF COMMUNITY DEVELOPMENT:

 Self-sufficient local Economy.
 Decentralization.
 Bread labour.
 Cottage industries.
 Cooperatives.
 Trusteeship.
 Cleanliness.
 Community Reconstruction though removal of untouchability.
 Training.
 Sustainable Development.

 Self-sufficient local Economy: The fundamental concept of Sarvodaya described in 1942

by M.K. Gandhi in Hind Swaraj was the benefit of all, achievable though the autonomy
of development for every Indian local. The local, as mentioned by Gandhi, should be self
sufficient for its basic needs- food, clothing, and other necessities are concerned.

 Decentralisation: Gandhi believes that local republics can be built and new philosophy will
establish only though the decentralization of all social and political power of people.

 Bread labour: According to the Gandhi, each man must do physical labour to earn his bread.
Physical labour is necessary for moral discipline and for the sound development of the mind.
Intellectual labour is only for one’s own satisfaction and one should not demand payment for it. 

 Cottage Industries: Gandhi stressed the need for cottage and small industries in place of
gigantic industries and advocated for a decentralised economy instead of a centralized one. He
realized the need for integrated community development and believed that education, health,
and vocation should be properly integrated for people.

 Cooperatives: Even in the field of community development and agriculture, Gandhi

recommended co-operatives farming. It would save labour, capital, tools, provide employment
to all adult locals and increase productivity.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Trusteeship: According to the Gandhi, trusteeship is a way of life rather than just a method to
achieve a particular end. According to his holistic approach, everything on the earth belongs to
God and is from God. Therefore, it was for these people as a whole not for a particular individual.

 Cleanliness: Gandhi was much ahead of his time is reflected through his life and work he made
futuristic statement on environment and development. Gandhi was deeply distressed by the
public squalor that he saw around him.

 Community Reconstruction through removal of untouchability: According to Vedic

philosophy and Bhagavad Gita, entire souls are equal. All souls are the same children of the
almighty nature. So the untouchability must be eradicated. Untouchability is a social evil. It
should not be looked upon as a mere political necessity.

 Training: Gandhi and India had no faith in the modern education system, which emphasized
only literacy and acquisition of information. He develop a new system of appropriate education
and training to the people.

 Sustainable Development: In order to achieve target of community development, developing

and developed countries are irrationally exploiting their natural resources without concern and
understanding of how to exploit and when to exploit them.

MINIMUM NEEDS APPROACH:

The Minimum Needs Program (MNP) was introduced in the first year of the Fifth Five Year Plan
(1974-78), to provide certain basic minimum needs and improve the living standards of people. It aims
at ‘social and economic development of the community, particularly the underprivileged and
underserved population’. It also promoted equality as from poor will be able to get basic needs.
There are six necessities identified under this approach are housing, water supply, sanitation,
health, food, and education. The basic needs approach emphasizes the six sectors as mentioned earlier
and ignores the question of human choices.
 Elementary Education.
 Adult Education.
 Rural Health.
 Rural Water supply.
 Rural Roads.
 Rural Electrification.
 Rural Housing.
 Environmental Improvement of Urban Slums.
 Nutrition.
 Rural Domestic Cooking Energy.
 Rural Sanitation.
 Public Distribution System.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Elementary Education: One of the important indicators of development in a country is the
status of literacy there in the country. At the time of independence, a little more than 16%
of the population was literate. To increase literacy was, therefore, an obvious objective for
developmental plans.

 Adult Education : Beside elementary education, it was necessary to impart literacy to a large
number of adults who are the backbone of the labour force. Accordingly, the Government of India
lauched the National Adult Education Program (NAEP) on 2nd October 1978.

 Rural Health: Health for all is the basic objective of primary health care and to achieve it target
dates and also the norms were fixed and revised many a time. Health facilities comprising health
sub centers (HSCs), Primary Health Centers (PHCs), Community Health Centers (CHCs).

 Rural water supply : Safe drinking water for rural areas was another thrust area of the national
policy under the Minimum Needs Program. Earlier the village was he unit for the provision of this
facilities.

 Rural Roads: The sixth plan indicated a target of covering all the villages with a population of 1,500
and above and 50% of the villages with population between 1,000-1,500 with all weather roads
within a time span of ten years ending 1990.

 Rural electrification : Rural Electrification is not only a means for providing electrical energy to the
villages for domestic, agricultural and commercial use, but also a symbol of rural modernization in
India. The latest objectives of the program is to achieve 100% rural electrification.

 Rural Housing: According to the 1991 census, it was estimated that the shortage of houses in rural
areas was 1,37,25,000, according for 12.30% of the total households. The eight plan, therefore,
tixed the target to achieve houses for all by 2000. Under the Indira Awas Yojana, from 1985-86 to
2001-2002, nearly 78.65 lakh houses were constructed distributed to the houseless, particularly
the SCs, STs and the very poor families of other social groups at a total cost of 13,376.94 crores.

 Environmental Improvement of Urban Slums: The target population, which is above 17.5
million in strength, has yet to be provided relief under the scheme of Environmental Improvement
of Urban Slums.

 Nutrition: even at present, more than 50% of the new born children are under weight and 55%
suffer from malnutrition. There are three approaches for combating nutrient deficiency.
 Medicinal Supplementation
 Food fortification
 Dietary diversification.
 Rural Domestic cooking energy: The main sources of energy used for cooking in rural area are
non-commercial (firewood, crop waste, animal dung, etc.). of the total domestic cooking energy
needs, 75.5% are met though firewood and chips and 10.6% by dung cake. Thus, more than 86% of
the total demand is met locally.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Rural sanitation: the rural sanitation program was also added as one of the components of the
Minimum Needs Program in 1987-88. The rural sanitation program would supplement the effort
made under the various central and state sector program by providing sanitation facilities in rural
areas though the construction of rural sanitary latrines for individual households so as to improve
the quality of life in these areas.
 Public Distribution System: Food security is one of the main objectives of the Public Distribution
System (PDS), and was, therefore, made one of the important components of the MNP in 1987-88.
The PDS is to ensure that essential items of daily use are made available at reasonable prices to the
public, particularly to the vulnerable sections of the society both in the urban and the rural areas.

INTIGRATED RURAL DEVELOPMENT APPROACH:

Integrated development approach emphasis is the need of coordinating different agencies under a
single management system of essential components required to get agricultural or rural development
moving. The management system may be highly authoritarian credit may be designed to provide an
important role for local people in planning, decision making, and implementation of the program. As a
solution to this situation the Intensive Agriculture District Programm (IADP) was launched in selected
districts. The IADP used the integrated development approach in tackling the problems of rural
development.
Objectives
 Adequate farm credit through strengthened cooperatives.
 Adequate supplies of fertilities pesticides, improving seeds, implements and other essential
production needs through strengthened services cooperatives.
 Price incentives to participating farmers through assured price agreements for rice, wheat, and
millet.
 Marketing arrangements and services to enable famers to obtain a full market price for their
marketed surplus.
 Intensive educational, technical and farm management assistance made available in every village.
 Participation of all interested farmers in farm planning for increased production.

INCLUSIVE GROWTH APPROACH:

Today, there seems to be a universal consensus that the ultimate objectives of rural
development is to improve the quality of life of rural people. This makes it essential to go beyond
the income related factors such as prices, production, and productivity to a range of non-income
factors that influence quality of life and hence inclusiveness of rural development.

More specifically , inclusive rural development covers three different but interrelated dimensions.
1. Economic dimension.
2. Social dimension.
3. Political dimension.

Elements of Inclusive Growth in Rural India

 Poverty reduction.
 Employment generation and increase in quantity & quality of employment.
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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Agriculture development.
 Industrial development.
 Social sector development.
 Reduction in regional disparities.
 Protecting the environment.
 Equal distribution of income.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 CHAPTER 3: POVERTY AND UNEMPLOYMENT IN RURAL INDIA

Meaning
Rural poverty is often a product of poor infrastructure that hinders development and mobility. Rural
areas tend to lack sufficient roads that would increase access to agricultural inputs and markets.
Without roads, that rural poor are cut off from technological development and emerging markets in
more urban areas.

Causes of Rural Poverty:

1. Economic causes:
 Low Agricultural Production: Absence and lack of knowledge in using modern
technologies of agriculture has resulted in the inability of formers to protect their
fields from pests and animals.
 Unemployment: This is one of the major causes for poverty. Non-availability of
proper employment leads to lowering the standards of living of people.
 Economic Depression and Inadequate Development: Economic depression
usually causes a decline in trade and commerce activities, lockout of mills, and
factories leading to unemployment of millions of workers and small traders.
2. Social Causes:
 Lack of Sufficient Housing: Houselessness is a problem faced by millions, especially
in India. The family’s dwelling unit and the neighborhood within which it is located are
important elements in the problems associated with poverty.
 Faults in the Education System: Our education system generates thousands of
educated persons, who are unemployed and live in poverty because of their inability
to get suitable job.
 Joint family system, caste system and Religious Beliefs: according to Madan, the
joint family system, the caste system and religious beliefs, have been an impediment in
the development of industrial growth.
 Colonial Rule: The colonial rule of the Britishers is one of the important causes of
poverty in India. It ruthlessly destroyed our small scale and handicraft industries for
mercantile purposes.
3. Personal Causes:
 Sickness and Mental Health: When a man is sick, he is enable to work, which
reduces the income of the family.
 Illiteracy: Peoples, who are illiterate, cannot get good employment opportunities. As
a results, they go for some small jobs, such as daily wage laborer’s and other less paid
jobs. Hence, illiteracy increases poverty and poverty also compels persons to remain
illiterate.
 Idleness: In spite of sufficient opportunity and capacity to work, some people remain
idle. Such kind of attitude leads to poverty.
 Large size of Family: This is also an important cause of poverty, where a head of the
family has to maintain a large family.
4. Geographic Causes:
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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Climate: Favorable climate conditions are necessary for work as well as for
production, both agricultural and industrial. In extreme hot or cold climates, there is a
tendency for a reduction in the amount of work that contributes for production.
 Availability of Natural Resources: Due to insufficient availability of natural
resources, the people, who stay in such areas, tend to be poor.
 Natural Calamities: Natural calamities such as floods, earthquakes, volcanoes, cause
serious damage to the life and property of the people, who lose everything in such
calamities and could not recover from such losses. Such situation leads to poverty.

RURAL UNEMPLOYMENT IN INDIA

Rural unemployment refers to unemployment that exists in rural areas. It is primarily a

phenomenon of the agricultural sector. Unemployment rates in the rural areas claimed to 8.03% from
6.62% in May, while urban unemployment shrank to 7.30% in June from 8.21 % a month ago. The
overall employment in India in June fell by 13 million to 390 million, against a gain of 8 million jobs in
April and May, 2022.

Nature of Rural Unemployment

The rural unemployment has two aspects viz. seasonal and perennial. The agriculture which
is the principal occupation in rural India, is by nature a seasonal occupation. It is estimated that at least
for five to seven months a year, depending upon conditions, the agricultural workers face seasonal
unemployment.

Types of Rural Unemployment:

1. Open Unemployment: So far as open unemployment is concerned; identification of the

people without work is an easy task. Agriculture in the Indian context is a seasonal occupation
and there is always a heavy demand for labor at the time of sowing, wedding and harvesting
whereas in slack season, demand for labor falls considerably.
2. Concealed unemployment: In concealed unemployment, it is difficult to identify an
unemployed person.
3. Educated rural unemployment: The problem of unemployment among the educated rural
youth is another major area of concern. The spread of education has created many
unemployed young persons who are in search jobs.

CAUSES OF RURAL UNEMPLOYMENT:

 Rapid growth of population
 Pressure on agricultural land.
 Seasonal nature of agriculture.
 Vagaries of Monsoon.
 Sub-division of land.
 Traditional method of cultivation.
 Disappearance of traditional occupation.
 Defective social system.
 Lack of occupational mobility.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Disorganization of agriculture.
 Faulty system of education.
 Poverty.
 Lack of employment policy.

GOVERNAMENT INITIATIVE TO DECREASE UNEMPLOYMENT IN INDIA

 National Rural Employment Programmed (NREP,1980).
 Rural Landless Employment Guarantee (RLEG,1983).
 Jawahar Rozgar Yojana (JRY,1989).
 Employment Assurance Scheme (EAS,1993).
 Jawahar Gram Samridhi Yojana (JGSY,1999).
 Swarna Jyanti Gram Swarojgar Yojana (SJGSY,1999).
 Sampoorna Gramin Rozgar Yojana (SGRY,2001).
 National Food for Work Programme (NFWP,2004).
 National Rural Employment Guarntee Scheme (NREGS,2006).
 Prime Minister Employment Generation Programme (PMEGP,2008).
 Rural Self-Employment Training Institution (RSETIs,1982).
 Prime Minister’s Shram Awards’s scheme (PMSAS,1975).

MEANING OF POVERTY
Poverty is defined as a state or circumstance in which an individual or a group lacks the financial
means and necessities for a basic level of living.

CAUSES OF POVERTY:

ECONOMIC CAUSES
 Poor economic growth and development: poverty is widespread in countries with slow economic
growth as a result of faulty government policy.
 Increasing unemployment: an imbalanced population-to-jobs ratio can result in mass
unemployment, which is a significant source of poverty.
 Reduced agricultural output: unpredictable weather patterns may be to blame. Inflationary
pressures are exacerbated by lower agricultural output.
 Inadequate infrastructure: infrastructural development promotes economic growth and as a
result, determines a place’s poor position.
 Inadequate industrialization in some areas: industrial generate jobs for the people who live in
area.

SOCIAL CAUSES
 Untouchability: is an unfair social practice in certain of the countries most backward areas that
denies individuals of the lower castes their democratic rights.
 Unethical abuse of authority: When power is abused, it has a skewed perspective and never aids
the poor and disadvantaged.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
  Ignorance and illiteracy are widespread: Illiteracy is another important source of poverty. People
who are uneducated are unable to realize their full potential.
 Densely populated areas: Densely populated areas boost competition in the labour market as
result, poverty emerges in any overcrowded area as competition rises and opportunities declines.
 Using the caste system: The caste system divides people in society and prevents them from
seeking work outside of their caste.

MEASUREMENT OF POVERTY

The poverty ratio in India has been measured from an exogenously determined poverty line
quantified in terms of per capita consumption expenditure over a month and the class distribution
of persons obtained from the large sample survey of consumer expenditure data of the National
Sample Survey Office (NSSO).

Measurement of Poverty in India

1. Absolute Measurement Of Poverty:

According to United Nations world summit for economic development, absolute poverty is a
condition characterized by severe deprivation of basic human needs, including food, safe
drinking water, sanitation facilities, health, shelter, education and information.
Poverty Threshold: The poverty threshold in absolute measurement of poverty is set using
the monetary of the basket of essential products.
2. Relative Measurement of Poverty:
It is present when a household income is lower than the median income in a particular
country and is used mainly by the developed countries.
Poverty Threshold: in this method certain percentage of economically bottom population is
always considered below the poverty line.
3. Data Collection Methods.
 Uniform Resource Period (URP):
 Mixed Reference Period (MRP)
 Pre- independence Poverty Estimation: Dadabhai Navoroji through his book “Poverty and
Unbritish Rule in India” made earliest estimation of poverty line.
 National Planning Committee(1938) : poverty line is 15 to 20 rupees per capita per
month was also based on a minimum standard of living.
 The Bombay Plan(1944): poverty line of 75 rupees per capita per month.
4. Post –independence Poverty Estimation.
 Alagh committee(1979):under the chairmanship of YK Alagh , poverty line on the basis of
nutritional requirements and related consumption expenditure.
 Lakdawala committee.

TENDULKAR COMMITTEE (2009)

Expert group constituted by the Planning Commission and, chaired by Suresh Tendulkar, was
constituted to review methodology for poverty estimation and to address the following
shortcomings of the previous methods;
 Obsolete Consumption Pattern.
 Inflation Adjustment.
 Health and Education Expenditure.
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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 FARM AND NON-FARM EMPLOYMENT

FARM EMPLOYMENT:

Farm employment is characterized by seasonal labour peaks, where large number of workers
may be hired for relatively short periods. With 1.3 million people employed in the sector, agriculture is
the second greatest source of employment worldwide after services and it accounts 28% of global
employment.

Characteristics of farm employment in India

 Attached labourers are those workers who are attached to some other farmer household on the
basis of a written or oral agreement.
 Landless labourers who exclusively work for others.
 Tenants who work on leased land but work most of the time on the land of others.
 Shareholders who also work as agricultural labourers.

Measures adopted by the government to improve the conditions of farm labour

 Abolition of bonded labour
 Minimum wages act
 Distribution of landless labourers
 Provisions for housing sites.
 Various employment schemes.
 Special Agencies.
 20-point programme.

NON-FARM EMPLOYMENT

Employment in the informal economy as a percentage of total non-agricultural employment. It

basically includes all jobs in unregistered and small scale private unincorporated enterprises that
produce goods or services meant for scale or barter.
The non-farm sector includes all economic activities in rural areas except agriculture, livestock,
fishing, and hunting.
Measurement of work
 Regular work.
 Self-employment.
 Casual employment.

REVIEW OF POVERTY ALLEVIATION

Alleviation of remains a major challenge of planned economic development. Experience of

different states with economic growth and poverty reduction have been so varied that it is
different to offer any general policy prescription.

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Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
 Factors influencing on review of poverty alleviation:
 Fiscal crisis faced by state government resulting in lower spending on social sectors.
 Slowing down of and less dispersed agricultural growth, especially foodgrains.
 Failure of Targeted Public Distribution System (TPDS).
 A negligible expansion in the non-form sector.
 Indifferent functioning of the poverty alleviation and watershed development schemes.

EMPLOYMENT GENERATION PROGRAMMES IN INDIA

1. Nehru Rozgar Yojana: it was implemented in April 1,1989, its main objective is generates
additional employment opportunities for the under development part of population.
2. National Food for Work Programme: It was launched by minister of rural development, central
government on November 14 2004. It’s main objective is generating supplementary wage
employment.
3. Training of Rural Youth For Self-Employment: To provide rural youths(18-35 years) from
families below the poverty line with training and technical skills to enables them to take up self
employment in agriculture, industry, services and business activities.
4. Rural Landless Employment Guarantee Programme : RLEGP was introducing on 15 august
1983, with the objective of a) improving and expanding employment opportunities, b) Creating
durable assets for strengthening the infrastructure so as to meet the growing requirements of rural
economy.
5. Jawahar Rozgar yojana: JRY was lunched on 1st April 1989 in the seventh five year plan the
veteran Prime Minister lt. Atal Bihari Vajpayee. The main objective of this initiative was to provide
additional employment in rural area.
6. Prime Minister’s Rozgar Yojana: PMRY has been designed to provide employment to educated
unemployed youth by setting up of microenterprises by the educated unemployed poor.
7. Swarna Jayanti Shahari Rozgar Yojana : (SJSRY) it was 1 December 1997. The scheme strives to
provide gainful employment to the urban unemployment and underemployed poor, through
encouraging the setting up of self-employment ventures or provision of wage employment.
8. Swrnajayanti Gram Swarozgar Yojana: SGSY was introducing from 1 April 1999. Since its
inception DRDC(District rural Development cell) is now giving more emphasis on self help groups
(SHGs) which has been found to be more feasible and acceptable in the rural areas of West Bengal
because of its stress in community participation for removing poverty alleviation and social
injustices.
9. Sampoorna Grameen Rozgar Yojana: SGRY is a scheme lunched by the Government of India to
gain the objective of providing gainful employment for the rural poor.
10. Deen Dayal Upadhyaya Grameen Kaushalya yojana : DDUGKY aims to skill rural youth who are
poor and provide them with jobs having regular monthly wages or above the minimum wages.

[Type here]
Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI
[Type here]
Assistant Proffessor CHANDRASHEKARA C, MCom, KSLET, JVIMS&C BIDADI