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Essay on Poverty and Unemployment on the Case of India
During the first decade of independence, it believed that the economic growth of the nation would automatically reduce poverty and unemployment. But it realized that along with the growth the policies and programed need effective state intervention. In order to achieve the planned objectives, it needs to cooperate with various projects, including public-private partnership. In the present scenario it is important to give prominence for the quality of policies rather than giving emphasis to numbers and financial allocation. According to the Center for Economic Monitoring of India (CMIE), the unemployment rate in the country is still high at 24% as of May 17, 2020. Based on this report the unemployment rate in the urban area is high compared to the rural. The continuing uncertainty in present Covid-19 scenario will again worsen the situation. It needs a multi-dimensional approach and planning to tackle poverty and to generate employment.
The issue of poverty and employment generation is an important matter of concern since the independence. To attain the concept of sustainable economic growth of the country it should focus its intentions on eradication of poverty, malnutrition, unemployment, illiteracy and inequality. Since the industrial revolution poverty has reduced in developed countries. Depending on the context, there are several definitions on poverty. Basically, it is the inability to obtain basic needs which are necessary for the survival. It includes poor access to clean water, proper sanitation, education, health and other goods and services. In the case of India, according to NITI AYOG report, most of the states failed to crane poverty and the performance of 2019-2020 was bad compared to 2018. Also, poverty has increased in majority of the states. Despite variety of approaches, policies and programs in India, the issue seems to be a common feature of the states. On the other hand, government of India has implemented several programs and policies to tackle unemployment and poverty. One of the latest examples for that is make in India, an ambitious mission to generate employment in the county by inviting global companies to initiate their base in the county. According to the national manufacturing policy, by the year 2022 it will create additional 100 million employment. Presently poverty is a humanitarian issue which needs immediate measures. Another major central sponsored employment generation program with an aim to alleviate poverty is Mahatma Gandhi National Rural Employment Guarantee Scheme with an aim to increase the range of development of the poor. Rural development and employment generation is an area of study which need equitable growth and inclusive approach.
Due to the impact of Covid-19 on Indian economy led to demand depression and increase in unemployment. Especially in the unrecognized sector in which the employment generation range in this sector is falling down in an alarming rate. According to the United Nations Development Program, before 2050 India have to create 28 crore jobs to rivet all the new job seekers into the work force. Due to the containment measures the current pandemic can push 40 crore informal sector workers into poverty.
In India Government spending will have direct and indirect impact on poverty. The direct effects include the benefit received by the poor from welfare employment program like integrated rural development program (IRDP) and such other schemes. Indirect effects include the investments of the government in agriculture, health and education sector of the rural people and rural infrastructure can lead to employment and income earning opportunities can generate quality of life. This article is giving emphasis on the critical analysis of various programs and schemes of the government which gave it prominence for eradication of poverty and unemployment through employment generation programs.
To transform the nation to a well-developed one the uncertainty which is prevailing in the economy should be dealt with certain methods which can provide sustainable prosperity. The major issue is unequal distribution of wealth which has created millions of people poor. According to the study conducted by UK based Charity in 2015, India’s richest 1% hold about 58%of the total wealth of the nation. Also, a large number of work force in informal sector works for low wage again increases the gap. There are several programs of the government such as Integrated Rural Development Program (IRDP), Public Distribution System (PDS), Mid-Meal Scheme (MDMS), National Family Benefit Scheme (NFBS), National Old Age Pension Scheme (NOAPS), Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), Pradhan Mandri Jan Dhan Yojana (PMJDY) and Pradhan Mantra Grameen Avaas Yojana, which addresses the needs of the poor by policy. Most of the rural poverty alleviation programs seeks to access employment, food and such other basic needs. The program of Prime Ministers Employment Generation Program creates self-employment ventures in the rural as well as urban areas can help the traditional as well as prospective artisans and unemployed youth. By encouraging the private sector of the county, and also to increase the public expenditure program such as Prime Minister’s Employment Generation Program (PMEGP) and Pradan Mandri Kaushal Vikas Yojana under Skill India mission are generating employment for the rural poor. On the other hand, following the outbreak of Covid-19 in India the economic strata of the nation witnessed disruption. To manage the crisis government has announced relief package to help the poor, but the initiative has failed to provide financial assistance to the unemployed migrant workers and daily wage labors who have been hit hard by the pandemic. According to V. Sivakumar, General Secretary of the Construction Workers Federation of India (CWFI) in total there are 6 crore construction workers in the country and among them only 3.5 crore were registered under welfare board, so the rest will be ignored by this policy which will sink them to poverty. On the other side sue to the increasing central – state political rivalry the scheme of PM kisan have been prevented spreading nationwide, in that case no farmers of that state will receive the assistance. Experts argued that most of the announced package may not reach all poor and the issue of poverty will be continued. Till the end of the pandemic.
Even after the post-coronavirus era, the nation has to give farsighted and long-term measures to tackle poverty and unemployment.
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