Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsPOVERTY5 Marks
Question
Discuss the measures to reduce poverty in India.
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Answer
$1.$ Introduction:
Till $1970$ the indirect steps were to be taken to reduce poverty.
At that time government focused on capital and infrastructure.
But after $1970$ they added education and health facilities in economic development and that importance was accepted.
In $\text{W.D.R. 2000-01,}$ suggestions were given to measure job, loan, road, electricity, schools, water, health etc.to reduce poverty.
Also they gave protection to economic ups and downs, natural calamities, illness of poor people.
From $1970$ through planning India has taken below steps to reduce poverty.
$2.$ Measures to Reduce Poverty:
$[1]$ To Increase Agriculture Productivity
$[2]$ Development of Small Scale Industries
$[3]$ Development of Unorganized sector
$[4]$ Use of Appropriate Tax Policy
$[5]$ Rise in Human Capital Investment
$[6]$ Goods and Services at Reasonable Rate
$[7]$ Employment Programmers
$[8]$ Housing Schemes
$[9]$ Social Security Schemes
$[10]$ Jan Dhan Yojana
$(1)$ To Increase Agriculture productivity:
In India, most of population depends on agriculture and they live in village.
The low per capita agriculture Productivity is the main reason of their poverty.
With increase in productivity and income of agriculture a poverty can be reduced.
For that government arranged the public programmes, farmers are informed about upgraded technology, available resources at reasonable rates, improved infrastructural facilities, maximum price and regulated market for their product are given.
Through this development of agriculture will increase productivity per labour.
These programmes reduce poverty through two ways.
$(1)$ Price of food grains decrease.
$(2)$ Employment opportunities increase.
This will be more advantageous to the poor and poverty can be reduced.
$(2)$ Development of Small Scale Industries:
There is a huge contribution of small and cottage industries in gross national income of India.
80 to reduce poverty, the importance Is given to small scale and cottage industry.
If small and cottage industry can be developed and encouraged they can reduce poverty on a large scale. Government has reduced the restriction on small scale industries and taking steps to provide proper market and bank loan at reasonable rate so that it can be developed easily.
Indian Government established $\text{MUDRA (Micro Unit Development & Refinance Ltd.) on 8th April 2015.}$
The main objective of $\text{MUDRA}$ is to provide loan to small scale industries.
Moreover from $2016$ the Government provide loan to new establish business under the concept of startup India.
$(3)$ Development of Unorganized Sector:
The major part of labour and workers are working under unorganised sector.
The ratio of contribution in national production and employment are higher in unorganised sector.
According to one survey in $2005, 86\%$ workers work in these sector.
Unorganised sector includes vegetable vendors, masons in construction sector, agriculture labourers, vendors etc. To improve the condition of these workers, national commission has recommended to dicide working conditions, life insurance, health, old age pension and other social security measures.
Moreover for small and marginal farmers, it is recommended to provide them with irrigation facilities and loan facility to improve income and reduce poverty.
Moreover it was advocated to create national funds for unorganized sector.
Also given importance to self-employment, increasing standard for job and national rural employment guarantee are given.
$(4)$ Use of Appropriate Tax Policy:
To reduce the inequality of income and poverty, government uses tax policy to achieve this objectives, government makes such a policy werein more tax is imposed on rich class which can afford that tax and less tax is imposed on poor class.
This way government collects fund by imposing taxes on rich people.
As a result, socio-economic condition of the poor gets improve and reduction in can be seen in income inequality and poverty.
$(5)$ Rise in Human Capital Investment:
Developed nation have achieved the objective of reduction of poverty and unemployment by investing capital in education, health and skill development considering this during planning.
Policy is made to invest money $($capital$)$ in human development.
To provide technical knowledge and entrepreneurship to village youngsters, the $\text{TRYSEM }$Schemes was established in the year $1979.$
After that, in April $1999$ was merged in $\text{SGSY TRYSEM}$ was merged in $\text{SGSY.}$
For self employment to young generation one new schemes Prime Minister Skill Development scheme was organized under the head of Skill India Movement.
$(6)$ Goods and Services at Reasonable Rate:
The root of poverty is price rise.
The major part of poor family‘s income is spent for primary goods "Food". So to reduce poverty it is necessary to provied food at low price under public distribution system.
In India, we have ration shops where rural and urban poor are given basic utility goods at reasonable prices. Government fixes the price of some product which is necessary to live.
During draught and scarcity, the responsibility of public distribution system is more to satisfy the basic needs of the poor.
$(7)$ Employment Programmes:
To reduce poverty, government has given four programmes which are as under.
$(A)$ Self Employment Scheme
$(B)$ Wage Employment Scheme
$(C)$ Prime Minister Rojgar Yojana
$(D)$ National Rural Employment Guarantee Act, $\text{2005 (NREGA).}$
$(A)$ Self Employment Scheme:
According to the population in India rural poverty is $3$ times more than urban poverty.
$80$ that all policies are focused on to reduce poverty of rural area.
Self-employment is the best way to reduce poverty.
At the beginning in planning it was believed that poverty reduced itself and for that no proper actions were taken for that.
Some steps were indirectly taken which are as follows.
In $\text{1973-74 SFDA (}$Small Farmers Development Agency$)$ for marginal farmers and agriculture labour and in $1974. 75$ under $\text{MFAL (}$Marginal Farmers and Agricultural Labours$)$ programmes were created, $\text{SFDA}$ take care of all types of land holders who are poor.
For solution of unemployment two more schemes were entroduced.
On lst April, 1999 IRDP and other programmes integrated with it were merged and named as SGSY.
The main objectives of this scheme was development of small trade.
Self help groups were also provided infrastructural facilities, technology, loan facility and market for final goods to rural poor.
For this scheme, central government has given 75% and state government has given 25% and district village development agency and Taluka Panchayat manage it.
$(B)$ Wage Employment Scheme:
The main objective of these scheme was poverty eradication and has multiple objectives.
This scheme focused on those poor who do not have any other source of income than physical labour.
These schemes do not only provide self employment in the slack season but also provide employment during floods, draught, scarcity and other natural calamities.
They also provide infrastructure service in rural areas.
Wage employment schemes included.
$(I)$ Jawahar Rojgar Yojana $(IRY):$
For creating employment in rural area on $28th$ April $1989.$
central government introduced Jawahar Rojgar Yojana.
Wage employment schemes like rural landless employment guaranttee programmes were merged in $IRY.$
In April $1999\ IRY$ was replaced and merged in $JGSY ($Jawahar Gram Samridhi Yojana$)$
The main objective of this scheme was to provide employment and establish infrastructural facility in the village.
In this scheme schedule tribes labour and handicapped were given employment.
$\text{JRY}$ can not solves the problem of employment in remote and backward areas.
So to improve employment $\text{EAS}$ was establish on $2nd$ October, $1993.$
In this scheme if minimum $20$ people get ready to do then development factor officer starts programmes.
$(C)$ Prime Minister Rojgar Yojana $\text{(PMRY):}$
In the decade of $90's$ employment generation in organised sector was stagnant and in public sector, negative growth was noticed.
On the other hand unemployment rate was rising fast.
On this situation $\text{PMRY}$ was started for self employment with the objective of starting ventures to provide employment to educated unemployed.
$(D)$ National Rural Employment Guarantee Act, $\text{2005 (NREGA):}$
In the year $2005,$ National Employment Guarantee Act was accepted with the objective of creating assets through public construction activities and to provide employment to one person per family for minimum $100$ days to rural and urban poor as well as lower middle class families.
According to this scheme within $5\ KM.$
employment given under $15$ days.
If employment is not provided than unemployment allowances will be given.
This laboures will get employment in public welfare scheme.
There were two reasons behind that
$(a)$ seasonal unemployment reduces
$(b)$ road, irrigation and water allocation facility were increased.
In $\text{2009, NREGA}$ was reformed as Mahatma Gandhi National Rural Employment Guarantee Act $\text{(MGNREGA).}$
$(8)$ Housing schemes:
In India, still a majority of poor people dwell in semi-stable or temporary houses.
To provide dwelling to poor in the year $1985-86,$ Indira Awas Yojana was started for families below poverty line and schedule caste or schedule tribes.
In $2013-14,$ Rajiv Gandhi Yojana was implemented to improve housing of those who reside in huts.
In $25$ June, $2015$ Prime Minister Awas Yojana started to solve the problem of fast increasing problem of dwelling in urban areas. Housing schemes provided two benefits.
$(i)$ Poor people get the house
$(ii)$ Poor people get employment
$(9)$ Social Security Schemes:
As a strategy to reduce poverty in India, various social security schemes were started.
Kisan credit card, low rate food grains, poor elder people get Annapurna Scheme, Janshri Insurance Scheme and education scheme were given to poor or below poverty line people.
For workers of unorganised sector, from $9th$ May $2015,$ Atal Pension Schemes were started in which monthly pension is paid to people above $60$ years.
Under $\text{PMSS (Prime Minister Security Scheme)}$ for people in age group between $18$ to $70$ years are given accident insurance of $2$ Lac with minimum premium of ` $12$ and jivan jyoti Scheme was started with $2$ Laos life insurance policy at ` $330$ yearly premium.
These schemes are very useful to the poor families at a time of accidential death.
At the time of crop failure, to safeguard farmers, Prime Minister Fasal Bima Yojana was started $\text{(PMFBY).}$
In this, farmer gets insurance of Kharif crops at $2\%$ premium and Ravi crops $1.5\%$ premium.
$(10)$ Jan Dhan Yojana:
Through financial inclusion, to hit the root of poverty, an ambitious scheme Prime Minister Jan Dhan Yojana was introduced.
This scheme began on $28th$ August $2014$ and on the very first day of this scheme $1.5$ crore accounts were opened.
Till $8th$ January $2015$ the number increased to $12.58$ crores where investment of f $10,950$ crore was generated.
$(a)$ Objective:
$(i)$ To increase per capita banking service.
$(ii)$ To reduce regional inequalities
$(iii)$ The main purpose was to provide government help directly in their bank accounts.
$(b)$ Features and importance:
$(i)$ The main feature of this scheme is that the bank account is opened with zero balance.
$(ii)$ After $5$ months of opening account, an overdraft of $₹.5000$ is available.
$(iii)$ Those who opened account before $26$ January, also benefited with a life insurance policy.
$(iv)$ Prime minister Ian Dhan Yojana hits directly on poverty by providing micro finance and banking facilities.
$(11)$ Other steps:
Other stratergies like high economic development, population control and the structural changes are implemented.
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