GS-3, Indian Economy, Uncategorized

Consumption Conundrum of Indian Economy

According to NITI Aayog, the current economic slowdown is the worst economic slowdown that India has faced since independence. Moreover, the slowdown has been witnessed in consumption in the Indian economy. From many decades, consumption has been the major driver of growth in the Indian economy. Income stagnation has been the cause of consumption slowdown. Reasons for Income Stagnation Unemployment Crisis… Continue reading Consumption Conundrum of Indian Economy

Agriculture, GS-3, Uncategorized

Focus on Small Towns to Generate Rural Jobs

Context Union Budget 2019-20 included several initiatives to diversify India’s stagnating rural economy, such as: Setting up of 100 new rural artisanal clusters 80 livelihood incubators and 20 technology business incubators to train 75,0000 entrepreneurs in agribusiness skills Formation of 10,000 new farmer producer organisations Thrust to improve connectivity by upgrading 1,25,000 km new roads, under the Pradhan Mantri Gram Sadak Yojana… Continue reading Focus on Small Towns to Generate Rural Jobs

GS-3, Uncategorized

The Problem of Skilling India

Context According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate reached 34% among the 20-24 year-olds in the first quarter of 2019 — it was 37.9% among the urban lot. At least eight million new job seekers enter the job market every year. In 2017, only 5.5 million jobs had been created, and the situation… Continue reading The Problem of Skilling India

GS-3, Indian Economy, Uncategorized

Jobs For Locals

Context Nativism, the cry for job protection of locals, is rearing its head again in India. The Andhra Pradesh Assembly recently passed a legislation that reserves 75% of industrial jobs in the state for locals Recently Madhya Pradesh Chief Minister also said that the state government is mulling a law to ensure 70 per cent… Continue reading Jobs For Locals

GS-3, Uncategorized

Skill India Mission

According to government estimates, more than 1.04 Crore youth have been trained under the Skill India Mission in the year 2015-16 which is 36.8% higher than the previous year’s recorded data. Key facts: In the current arrangement, 60% of the trainings are directly under Ministry of Skill Development and Entrepreneurship while 40% are across other… Continue reading Skill India Mission

Editorials, GS-3, Uncategorized

The MGNREGA index

The Hindu The Mahatma Gandhi National Rural Employment Guarantee Act of 2005 (MGNREGA) aims at: Enhancing the livelihood security of people in rural areas by guaranteeing 100 days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. In the financial year 2015-16, Rs.42,084 crore was spent… Continue reading The MGNREGA index

Editorials, GS-3, Indian Economy, Uncategorized

Measuring Mudra’s success

Article Link Summary: Prime Minister Modi, in a recent interview, indicated that his focus was to create a third sector—the personal sector—other than farms and factories wherein a person turns into a job provider through entrepreneurship rather than a job-seeker in the other two sectors. This statement assumes significance as it has many policy implications… Continue reading Measuring Mudra’s success

GS-3, Indian Economy, Uncategorized

Jobs & Economic Growth

Asia-Pacific Human Development Report just released by UNDP says that by 2050 more than 280 million people will enter the jobs market in India, a 33 per cent increase from current levels—but let us have a look at the numbers: 5 million New non-agricultural jobs were created annually between 1999-2000 and 2004-2005 An additional 7.5… Continue reading Jobs & Economic Growth

GS-3, Indian Economy, Uncategorized

Pradhan Mantri Mudra Yojana: Funding the unfunded

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to enable a small enterprise come into the formal financial system and get affordable credit to run his/ her business. Who? Any Indian Citizen who has a business plan for a non-farm sector income generating activity Credit need? Less than Rs 10 lakh Possible Creditors? Banks,… Continue reading Pradhan Mantri Mudra Yojana: Funding the unfunded