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70 BPSC Mains Notes: English Medium

The document outlines the policies and goals of economic planning in India, emphasizing poverty alleviation, infrastructure development, and industrial growth. It discusses the successes and criticisms of economic planning, including bureaucratic delays and regional disparities, while proposing strategies for improvement such as data-driven decision-making and decentralized planning. Additionally, it introduces NITI Aayog as a key institution for policy formulation and cooperative federalism, highlighting its objectives and functions in promoting sustainable development and innovation.

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12 views62 pages

70 BPSC Mains Notes: English Medium

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70 BPSC Mains Notes

MAINS CLASS MAINS ANSWER
PROGRAMME WRITING PROGRAMME

English Medium
Policies of Socio Economic Development
Economic Planning
Impact of liberalization ,privatization and
globalization on Indian economy
Unemployment and skill shortage in India and Bihar
Youth and Women Employment and Periodic Labour Force Survey (PLFS)
AI and the challenge of long-term sustainability
and Employment Generation
Care Economy and Employment Generation
Improving Multi-Dimensional Poverty and
Addressing Poverty Issues in India and Bihar
Demographic dividend , population control and
issues related to Bihar
Food security and related issues
Decentralized planning
Steps to Increase Farmers' Income
Rural Economy as a Growth Strategy
Strengthening and Modernizing the Safety Net of MGNREGA
1 BPSC MAINS NOTES (Economy)

Economic Planning
Economic planning in India refers to the systematic approach adopted by the government to allocate and
manage resources efficiently for the overall development of the country. It involves setting goals, formulating
policies, and implementing strategies to achieve sustainable growth, reduce poverty, and enhance the standard of
living.
The foundation of economic planning in India was laid with the initiation of the first Five-Year Plan in 1951.
These plans, spanning five-year periods, were crafted to address specific socio-economic challenges and propel the
nation towards progress. Each plan focused on key sectors like agriculture, industry, education, and healthcare,
aiming to achieve balanced and inclusive growth.

Goals of Economic Planning in India

1. Poverty Alleviation :- The main goal of economic planning is to reduce poverty by providing necessary
resources and opportunities to the underprivileged. The government implements various programs to
improve living conditions and uplift weaker sections of society.
2. Infrastructure Development :- Economic planning focuses on building strong infrastructure, such as roads,
railways, electricity, and communication networks. These developments help in boosting industrial growth
and improving the overall economy.
3. Industrial Growth :- Encouraging industries is a key part of economic planning. By promoting
industrialization, the government aims to create jobs, increase production, and strengthen the country’s
economy.
4. Agricultural Development :- Since agriculture is a major part of India's economy, planning includes
modernizing farming techniques, improving irrigation, and promoting crop diversification. These steps help
in increasing productivity and ensuring food security.
5. Decentralized Planning :- To reduce regional differences, there is a shift towards decentralized planning.
This means giving more decision-making power to local authorities so they can address the specific needs of
different regions, ensuring balanced growth between rural and urban areas.
In the bustling mosaic of India’s diverse landscapes and cultures, the concept of planning isn’t just a bureaucratic
term; it’s a compass guiding the nation toward a better future. Let’s delve into the rationale behind planning in
India, exploring why it’s not just a roadmap but a necessity for the country’s growth and prosperity.

Successes of Economic Planning in India

• Reduction in Poverty :– Economic planning has significantly reduced poverty levels through welfare schemes
like MGNREGA, PDS, and Direct Benefit Transfers (DBT), improving the standard of living for millions.
• Infrastructure Development :– Expansion of roads, railways, airports, and power generation has boosted
industrial growth and improved connectivity across the country.
• Growth in Industrial Sector :– Policies like Make in India, Industrial Corridors, and MSME support have led
to increased manufacturing and employment opportunities.
• Agricultural Growth – The Green Revolution and various agricultural reforms have helped India achieve self-
sufficiency in food production, reducing dependence on imports.
• Increase in Literacy & Education :– Investments in education through schemes like Sarva Shiksha Abhiyan,
Mid-Day Meal Scheme, and National Education Policy (NEP) have improved literacy rates.
• Rise in GDP & Economic Growth :– Planned economic policies have contributed to high GDP growth rates,
making India one of the fastest-growing economies in the world.
• Expansion of Financial Inclusion :– Initiatives like Jan Dhan Yojana, Digital Payments, and UPI have
brought banking and financial services to millions of people, especially in rural areas.
• Technological & Space Advancements :– Investment in ISRO, IT sector, and Startups has strengthened
India's position in space research, software development, and innovation.
• Decentralized Development :– More power to local governments through Panchayati Raj System has helped
in region-specific economic development and better governance.
• Improvement in Healthcare & Social Security :– Programs like Ayushman Bharat, National Health Mission,
and Rural Health Initiatives have improved healthcare accessibility and life expectancy.
While economic planning has undeniably contributed to India’s progress, it has not been without its challenges.

Criticism of Economic Planning in India

• Bureaucratic Delays & Red Tape :– Excessive government control and slow decision-making have often
delayed projects. Example: License Raj (pre-1991) restricted private sector growth due to excessive regulations.

Key strategies to improve economic planning efficiency:

 Data-driven decision making:
•Utilize comprehensive and reliable data to identify critical areas of focus and prioritize projects based on
evidence-based analysis.
• Leverage advanced analytics and modeling techniques to predict potential impacts of policies and
interventions.
 Decentralized planning:
•Empower state and local governments to develop region-specific plans that cater to unique needs and
challenges.
• Encourage participatory planning by involving stakeholders at the grassroots level to ensure ownership
and effective implementation.
 Robust monitoring and evaluation:
•Establish clear performance indicators to track progress towards plan objectives and identify areas
needing course correction.
• Regularly review and evaluate the effectiveness of policies and programs to optimize resource allocation.
 Promoting private sector participation:
• Foster a conducive business environment to attract private investment and expertise in key sectors.
Utilize public-private partnerships (PPPs) to leverage private sector capabilities for infrastructure
development and service delivery.

NITI Aayog and Finance Commission

Niti Aayog
Introduction to NITI Aayog
NITI Aayog (National Institution for Transforming India) is a policy think tank of the Government of India,
established on January 1, 2015, replacing the Planning Commission. It aims to provide a strategic and directional
framework for India’s development, focusing on cooperative federalism, innovation, and evidence-based
policymaking.
Composition of NITI Aayog
NITI Aayog is structured with key leadership roles to drive policy-making and strategic governance. Its
composition includes:
• Chairperson :- Prime Minister of India (Ex-officio Head)
• Vice-Chairperson :- Appointed by the Prime Minister, serves as the executive head of NITI Aayog.
• Full-Time Members :- Experts from various fields like economics, finance, science, and governance.
• Ex-Officio Members :- Union Ministers nominated by the Prime Minister (from key ministries like Finance,
Agriculture, and Home Affairs).
• Chief Executive Officer (CEO) :- Appointed by the Prime Minister, responsible for the day-to-day
administration of NITI Aayog.
• Special Invitees :- Subject matter experts and distinguished professionals invited by the Prime Minister for
advice.
• Governing Council :- Includes Chief Ministers of all States and Union Territories with Legislatures, along
with Lieutenant Governors of Union Territories.

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Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
5 BPSC MAINS NOTES (Economy)
• Regional Councils :- Formed as needed to address regional issues, chaired by a Chief Minister from the
concerned region.
Key Objectives:
• Promote Cooperative Federalism :– Encourages collaboration between the Centre & States for balanced
development.
• Foster Innovation & Technology :– Supports startups, digital transformation, and new-age industries.
Sustainable Development Goals (SDGs) Implementation – Monitors progress on health, education, gender
equality, and environment.
• Policy Research & Advisory :– Provides data-driven insights for economic and social planning.
Functions of NITI Aayog
• Work with state governments to set national development priorities and strategies.
• Promote coordination between the central and state governments for effective policy-making.
• Implement and support rural development programs.
• Ensure that economic policies align with national security interests.
• Build partnerships with key stakeholders, research institutions, and think tanks at national and
international levels.
• Develop a system for knowledge sharing, innovation, and entrepreneurship with experts and practitioners.
• Act as a resource center for research on good governance and sustainable development.
• Monitor and evaluate government programs, focusing on technology improvements and skill development.
• Oversee the National Labor Economics Research and Development Institute.
• Function as the successor to the Planning Commission, continuing its role in policy planning.
Major initiatives undertaken by NITI Aayog
1. SDG India Index :- Launched to monitor and rank states and union territories on their progress toward
the Sustainable Development Goals (SDGs), promoting competitive federalism and encouraging states to
achieve the 2030 Agenda.
2. Composite Water Management Index :- Developed to assess and rank states on water management and
conservation practices, aiming to foster efficient water resource management across the country.
3. Atal Innovation Mission (AIM) :- Established to promote a culture of innovation and entrepreneurship,
AIM has set up Atal Tinkering Labs in schools and Atal Incubation Centers to support startups and
innovators.
4. SATH Project (Sustainable Action for Transforming Human Capital) :- A collaborative initiative with
states to identify and implement strategies for improving education and health outcomes, enhancing
human capital development.
5. Aspirational Districts Programme :- Launched to rapidly transform 112 underdeveloped districts by
focusing on key sectors like health, education, agriculture, and basic infrastructure, aiming to raise living
standards.
6. School Education Quality Index :- Designed to evaluate the performance of states and union territories
in the school education sector, encouraging them to improve learning outcomes and educational quality.
7. District Hospital Index :- Created to assess the performance of district hospitals across India, focusing on
parameters like infrastructure, service delivery, and patient satisfaction to enhance healthcare services.
8. Health Index :- Developed to rank states and union territories based on health outcomes, governance,
and processes, promoting healthy competition and improvements in the public health system.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
6 BPSC MAINS NOTES (Economy)
9. Agriculture Marketing and Farmer Friendly Reforms Index :- Introduced to assess states on the
implementation of agricultural marketing reforms, aiming to enhance market access and benefits for
farmers.
10. India Innovation Index :- Measures the innovation capabilities of states and union territories,
encouraging them to foster innovation-driven development.
11. Women Transforming India Awards :- An initiative to recognize and celebrate exceptional women
entrepreneurs, leaders, and change-makers across various sectors in India.
12. Good Governance Index :- Developed to assess the state of governance across states and union territories,
promoting transparency, accountability, and effective administration.
13. Women Entrepreneurship Platform (WEP) :- A unified platform to support and encourage women
entrepreneurs by providing access to information, mentorship, and financial assistance.
14. Strategy for New India @ 75 :- A comprehensive document outlining strategies across various sectors to
achieve rapid and inclusive growth by 2022, the 75th year of India's independence.
15. 'Methanol Economy' Programme :- Initiated to promote the use of methanol as an alternative fuel,
aiming to reduce oil imports, curb pollution, and utilize coal reserves effectively.
16. e-AMRIT Portal :- E-Amrit is a one-stop destination for all information on electric vehicles—busting
myths around the adoption of EVs, their purchase, investment opportunities, policies, subsidies, etc. The
portal has been developed and hosted by NITI Aayog under a collaborative knowledge exchange
programme with the UK government and as part of the UK–India Joint Roadmap 2030, signed by the
Prime Ministers of the two countries.
These initiatives reflect NITI Aayog's commitment to fostering sustainable development, innovation, and good
governance across India.
Here is a comparison table between NITI Aayog and the Planning Commission with simplified wording:
Aspect NITI Aayog Planning Commission
Nature Advisory think tank providing policy Extra-constitutional body controlling economic
guidance. planning.
Expertise Includes experts from various fields. Had limited expertise in decision-making.
Federalism Works with states as equal partners in States had a minimal role and were only consulted
Approach Cooperative Federalism. in annual meetings.
Leadership CEO appointed by the Prime Minister. Secretaries were appointed through standard
(Current CEO: BVR Subrahmanyam) bureaucratic procedures.
Planning Follows a "Bottom-Up" approach, Followed a "Top-Down" approach, imposing central
Approach encouraging local participation. decisions.
Policy Acts as an advisory body and does not Had the authority to impose policies and link
Enforcement impose policies. funding to approved projects.
Fund Allocation Does not allocate funds; Finance Had the power to allocate funds to ministries and
Ministry manages financial decisions. state governments.

Limitations and Concerns of NITI Aayog

• Limited Authority – NITI Aayog only plays an advisory role and lacks the power to allocate funds,
reducing its direct influence on policy execution.

Finance Commission
The Finance Commission of India is a constitutional body established under Article 280 of the Indian
Constitution. It is responsible for recommending the distribution of financial resources between the central
government and the states, ensuring fair allocation of revenue.
❖ Key Functions:
• Determines the distribution of taxes between the Centre and States.
• Recommends grants-in-aid to states for improving their financial health.
• Suggests measures to increase revenue generation and improve fiscal stability.
• Reviews state finances and suggests ways to strengthen their economic position.
❖ Composition:
• Chairman (usually an expert in finance, economics, or public administration).
• Four other members with expertise in finance, economics, or governance.
❖ 13th Finance Commission (2009-2014) [Chairman: Dr. Vijay L. Kelkar]
Key Recommendations:
• 32% share of central taxes to states (an increase from 30.5%).
• Introduction of Goods and Services Tax (GST) for a unified tax system.
• Grants for local bodies, covering rural and urban governance.
• Incentives for fiscal discipline and deficit reduction.
• Special focus on disaster relief funds and environment protection.
❖ 14th Finance Commission (2015-2020) [Chairman: Dr. Y.V. Reddy]
Key Recommendations:
• Increased state share in central taxes to 42% (from 32% in the 13th Commission).
• Special funds for disaster management and sector-specific grants.

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Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
8 BPSC MAINS NOTES (Economy)
• Higher financial devolution to states, promoting cooperative federalism.
• Suggested performance-based incentives for fiscal responsibility.
• Encouraged local governance reforms and financial autonomy for panchayats.
Comparison & Impact:
• The 14th Finance Commission provided greater financial autonomy to states, enhancing decentralization
compared to the 13th Finance Commission.
• Both commissions emphasized fiscal responsibility, tax reforms, and local governance improvements, but
the 14th Commission significantly increased state funding, strengthening federalism.
❖ Latest Finance Commission:
The 15th Finance Commission (2020-25) was chaired by N.K. Singh and recommended:
• 41% share of divisible tax pool to states.
• Special funds for disaster management and health sector improvements.
• Focus on fiscal discipline and economic growth.
• The 16th Finance Commission, commencing April 1, 2026, is chaired by Dr Arvind Panagariya and
addresses vital responsibilities such as equitable resource distribution, grants-in-aid principles, and
strengthening local governance.
❖ Limitations of the Finance Commission:
• Limited Enforcement Power :– The recommendations are only advisory, and the government is not
legally bound to implement them.
• Fixed Timeframe :– The commission is formed every five years, which limits its ability to make
adjustments in response to dynamic economic changes.
• Political Influence :– The devolution of funds can be influenced by political considerations, affecting
impartial distribution.
• No Control Over Borrowing Policies :– The Finance Commission does not have the authority to regulate
the borrowing and fiscal deficits of states.
• Overlapping Roles with Other Institutions :– NITI Aayog and the Finance Ministry also influence
financial distribution, sometimes leading to confusion or conflicts.
• Lack of Sector-Specific Planning :– While it allocates funds, the Finance Commission does not actively
monitor how states utilize them.
The Finance Commission of India plays a crucial role in ensuring fair and transparent distribution of financial
resources between the Centre and States, promoting fiscal federalism and economic stability. Over the years, it
has introduced progressive changes, such as increasing state shares in central taxes and strengthening local
governance funding..
The Finance Commission remains a vital institution for maintaining fiscal balance and financial
devolution in India. Strengthening its authority, ensuring greater accountability, and making recommendations
more adaptable to real-time economic needs can further enhance its impact on India's financial governance.

❑ ❑ ❑

Impact of liberalization ,privatization and

globalization on Indian economy
India's economic landscape underwent a transformative shift with the adoption of Liberalizations, Privatization,
and Globalization (LPG) reforms, moving away from centralized planning to a market-driven approach. These
reforms aimed to integrate India into the global economy, unlocking new opportunities for growth and
development across various sectors. By embracing globalization, India positioned itself for enhanced trade,
investment, and economic expansion, marking a pivotal moment in its economic evolution.
LPG Policy Introduction in India
The LPG (Liberalization, Privatization, and Globalization) reforms in India were introduced due to various
economic challenges and global influences. The pre-LPG era was characterized by a state-controlled economy
with limited private participation. The key factors that led to these reforms include:
Domestic Economic Factors:
• Balance of Payments Crisis :– India faced low foreign exchange reserves and rising external debt, leading
to an economic crisis.
• Underperforming PSUs :– Many public sector undertakings (PSUs) were running at losses, becoming a
financial burden on the government.
• High Fiscal Deficit & Public Debt :– The government struggled with increasing fiscal deficit and a
growing debt crisis.
• Soaring Inflation :– Rising inflation rates created economic instability, requiring urgent measures.
• License Raj & Bureaucratic Hurdles :– Excessive government control and restrictions hampered business
growth and discouraged private investment.
Global Influences:
• Lessons from the fall of the Soviet Union – The collapse of the USSR exposed the flaws of a socialist
economy, pushing India to reassess its economic policies.
• 1990-91 Iraq War & Financial Crunch – The war disrupted foreign currency inflows, worsening India's
financial situation and increasing the need for economic reforms.
Liberalization Privatization Globalization
Deregulation Transfer of PSU ownership Trade liberalization
Tariff reduction Disinvestment of PSUs Foreign direct investment
Market-oriented policies Public-private partnerships Integration into global markets
Financial sector reforms Asset monetization Technology transfer
Competition Promotion Market competition Cross-border trade
Easing of licensing norms Private sector participation Access to global capital
Removal of trade barriers Strategic sales Economic diplomacy
FDI promotion Commercialization of assets International collaborations
Exchange rate reforms Capital market reforms Export-oriented policies
Intellectual property rights VRS and employee buyouts Global supply chain integration

Liberalization and its impacts

Liberalization refers to the relaxation of government controls to promote economic openness, competition, and
private sector participation.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
10 BPSC MAINS NOTES (Economy)
Key Objectives:
• Reduce regulations to ease business operations.
• Encourage private and foreign investments for growth.
• Enhance efficiency, productivity, and innovation.
• Allow market forces to drive resource allocation.
Liberalization boosts economic growth by fostering a business-friendly and globally integrated economy.
❖ Impacts of Liberalization
Liberalization in India, introduced in 1991, brought significant economic changes, transforming various
sectors. Below are its key impacts with examples:
1. Economic Growth Acceleration
• Higher GDP growth due to increased private sector participation and foreign investments.
• Example: India’s GDP grew from 1.06% in 1991 to over 6% in the following decades.
2. Boost in Foreign Direct Investment (FDI)
• Eased restrictions on foreign investments attracted global companies.
• Example: Companies like Google, Amazon, and Walmart have invested billions in India.
3. Expansion of Private Sector
• Reduced government monopoly, allowing private players in telecom, banking, and aviation.
• Example: Jio revolutionized India’s telecom industry, leading to cheaper internet access.
4. Growth of IT & Service Sector
• IT and BPO industries flourished, making India a global outsourcing hub.
• Example: Infosys, TCS, and Wipro became global leaders in IT services.
5. Improved Infrastructure Development
• Liberalization encouraged PPP (Public-Private Partnerships) in roads, airports, and railways.
• Example: Delhi and Mumbai airports are now operated by private firms.
6. Expansion of Banking & Financial Sector
• Entry of private banks improved customer services and competition.
• Example: HDFC, ICICI, and Axis Bank grew rapidly post-liberalization.
7. Increased Consumer Choices & Market Competition
• Entry of global brands led to better-quality products at competitive prices.
• Example: Brands like Apple, Samsung, and Toyota expanded in India.
8. Agricultural Sector Reforms
• Increased private participation in agriculture improved productivity and exports.
• Example: Growth of agribusiness companies like ITC and BigBasket.
9. Reduction in Bureaucratic Hurdles
• Simplified business regulations encouraged entrepreneurship and startups.
• Example: Rise of startups like Flipkart, Zomato, and Paytm.
10. Increased Global Trade & Integration
• Liberalization boosted exports and imports, integrating India with global markets.
• Example: India became a major exporter of software, pharmaceuticals, and textiles.
Liberalization transformed India’s economy, driving growth, investments, and job creation while making India a
global economic player.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
11 BPSC MAINS NOTES (Economy)
Privatization and its impacts
Privatization refers to the process of transferring ownership, control, or management of government-owned
services, assets, or enterprises to the private sector. This can be achieved through the sale of public assets to
private entities or by removing restrictions that limit competition between government and private businesses.
❖ Impact of Privatization
1. Improved Efficiency & Productivity
•Private companies operate with a profit-driven approach, ensuring better management and efficiency.
•Example: Privatization of Air India improved operations and reduced financial losses under Tata
Group.
2. Reduction in Government Burden
• Loss-making Public Sector Undertakings (PSUs) transferred to private entities reduce financial strain
on the government.
• Example: BPCL and VSNL privatization helped reduce government liabilities.
3. Increased Foreign & Domestic Investment
• Privatization encourages FDI and domestic investments, leading to economic growth.
• Example: FDI inflows in telecom (Vodafone-Idea) and retail (Walmart-Flipkart deal).
4. Better Quality of Services
• Increased competition improves service quality and customer satisfaction.
• Example: Privatization of telecom sector (Airtel, Jio) led to better network services at lower costs.
5. Job Creation & Employment Growth
•Private sector expansion generates more employment opportunities.
• Example: IT sector growth due to privatization created millions of jobs (TCS, Infosys, Wipro).
6. Growth of Private Banking Sector
• Privatization of banks enhanced efficiency, customer services, and financial stability.
• Example: Entry of private banks (HDFC, ICICI) improved banking services and credit availability.
7. Expansion of Infrastructure Development
• Private investment in roads, railways, and airports led to better infrastructure.
• Example: Privatization of Delhi & Mumbai airports modernized aviation services.
Privatization has boosted India’s economic growth, improved service quality, reduced government debt, and
increased private sector participation, making the economy more competitive and efficient.
Globalization and its impacts
Globalization, a phenomenon characterized by the increasing interconnectedness and interdependence of
countries, has had profound effects on economies worldwide. The Indian economy, with its diverse geography and
socio-economic landscape, has been significantly influenced by globalization.
❖ Impacts of Globalization
1. Increased Foreign Direct Investment (FDI)
•Higher capital inflows have boosted industrial growth and employment opportunities.
• Example: FDI in sectors like IT, e-commerce (Amazon, Walmart-Flipkart), and manufacturing (Tesla,
Apple production in India).
2. Expansion of Export Markets
• Indian businesses have gained access to global markets, increasing revenues and trade opportunities.
• Example: Pharmaceutical exports (Sun Pharma, Dr. Reddy’s), IT services (Infosys, TCS) have grown
globally.

❑ ❑ ❑

Unemployment and skill

shortage in India and Bihar
Unemployment occurs when individuals actively seeking jobs cannot find employment, serving as a key economic
indicator. The National Statistical Office (NSO) classifies people into:
• Employed: Engaged in economic activities.
• Unemployed: Seeking or available for work but without a job.
• Not in Labor Force: Neither seeking nor available for work.
The labor force includes both employed and unemployed individuals, and the unemployment rate is calculated
as:
Unemployment Rate = (Unemployed Workers / Total Labor Force) × 100

Types of Unemployment in India

Type Description Example in India
Disguised More workers are employed than Common in agriculture, where multiple family
Unemployment necessary, leading to inefficiency. members work on the same small farm without
increasing productivity.

Technological Job displacement due to Rise of automation in banking and self-checkout

Unemployment automation and AI-driven kiosks reducing the need for manual jobs.
processes.

Causes of Unemployment in India and Bihar

Unemployment in India is driven by structural and cyclical factors, including:
• Population Growth: The rising workforce surpasses job availability, increasing unemployment.
→ Example: India adds millions of job seekers annually, but job creation remains slow.
• Skill Gap: Mismatch between industry demands and workforce skills, especially among youth.
→ Example: Many engineering graduates lack industry-relevant skills, leading to joblessness.
• Slow Industrial Growth: Limited investment in industries restricts job creation.
→ Example: The manufacturing sector struggles to generate enough employment opportunities.
• Agricultural Dependence: Over-reliance on agriculture with minimal diversification into other sectors.
→ Example: Many rural workers remain underemployed due to seasonal farming jobs.
• Technological Advancements: Automation replaces manual labor, leading to job losses.
→ Example: AI in banking and automated production lines reduce workforce demand.
• Economic Disparities: Unequal development leads to job shortages in certain regions.
→ Example: Rural and backward areas lack industrial hubs, limiting employment options.
• Inadequate Education System: Lack of practical, job-oriented training widens the employability gap.
→ Example: Many graduates are theoretically skilled but lack hands-on experience.
• Informal Sector Dominance: A large workforce in the unorganized sector faces job instability.
→ Example: Daily wage workers in construction and retail suffer from inconsistent employment.

Government Policies to Address Unemployment in India

 Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA)
• Provides 100 days of guaranteed employment per year.
• Initially launched in 200 districts, now expanded to 644 districts.
•
Daily wages of MGNREGA workers varies from state to state like in Bihar it is 245 rupees per day.
 Diversification Beyond Agriculture
• Focus on shifting surplus labor from agriculture to small-scale industries & service sectors.
• Growth in biotechnology & IT sectors creates new employment opportunities.
 National Career Service (NCS) Scheme
• Includes National Career Service Portal for job-seekers & employers.
• Offers listings for private, government, and contractual jobs.
 National Rural Employment Programme (NREP)
• Aims to create jobs in rural areas to reduce urban migration.
• Helps balance income levels between rural & urban populations.

The Government of Bihar has too implemented several policies to combat unemployment and promote
economic development:
1. Mukhyamantri Nishchay Swayam Sahayata Bhatta Yojana (MNSSBY):
• Objective: Provide financial assistance to educated unemployed youth.
• Benefits: Eligible individuals aged 20-25 receive ₹1,000 per month for up to two years.
• Additional Support: Beneficiaries must enroll in training programs covering language, communication,
basic computer, and soft skills.
2. Bihar Unemployment Allowance Scheme:
• Objective: Offer financial aid to educated unemployed residents.
• Benefits: Qualified individuals receive ₹1,000 monthly from the state government.
3. Bihar Unemployment Allowance Rules 2024:
• Objective: Support job seekers unable to secure employment promptly.
• Provisions: Applicants not employed within 15 days of application are entitled to a daily unemployment
allowance. It is on the line of MGNREGA at central level.
4. Garib Kalyan Rojgar Abhiyaan (GKRA):
• Objective: Generate employment for migrant workers affected by the COVID-19 pandemic.
• Scope: Launched in June 2020, covering 32 districts in Bihar.
• Features: Provides 125 days of employment through 25 types of public works, involving 12 central
government ministries.
5. Jeevika (Bihar Rural Livelihoods Project):
• Objective: Empower rural poor by creating self-managed community institutions.
• Focus: Enhance incomes through sustainable livelihoods, targeting approximately 500,000 poor families.
6. Reservation Policies and Saat Nischay Yojana:
• Objective: Ensure representation of historically disadvantaged groups in education and employment.
These initiatives reflect Bihar's commitment to reducing unemployment and fostering inclusive economic
growth.
A skill shortage occurs when there aren’t enough qualified individuals to fill job vacancies, impacting
industries globally. Companies struggle to hire for key roles, leading to project delays and higher costs, while job
seekers miss opportunities due to lacking essential skills. With the global talent shortage at a 16-year high, experts
predict an 85 million worker deficit by 2030, worsening the situation. Unlike a skills gap, where workers exist but
lack the right skills, a shortage means too few skilled workers are available.

Key Causes of Skill Shortage in India

 Education-Industry Mismatch
• India's education system often focuses on theoretical knowledge rather than practical, job-ready skills.
Example: Many engineering graduates lack hands-on experience in AI, data science, or automation,
making them unemployable in tech-driven industries.
 Lack of Vocational Training & Upskilling

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15 BPSC MAINS NOTES (Economy)
• Limited focus on skill-based education and training programs leads to a shortage of industry-ready
workers.
Example: Despite the rise in demand for electric vehicle (EV) technicians, few professionals have formal
training in EV maintenance and battery technology.
 Brain Drain (Talent Migration)
• Skilled professionals move abroad for better job opportunities, higher salaries, and improved work
conditions.
Example: Indian IT and healthcare professionals often migrate to the US, Canada, or Europe, leaving
domestic industries struggling with a talent deficit.
 Low Female Workforce Participation
• Cultural and societal barriers limit women’s participation in several high-skilled job sectors.
Example: Despite India’s growing fintech sector, the percentage of women in leadership or technical roles
remains low due to workplace biases and lack of career support.
 Slow Adaptation to Emerging Technologies
• Many businesses and training institutions fail to keep up with rapid technological advancements.
Example: While AI and cybersecurity jobs are booming, a shortage of trained professionals forces
companies to hire from abroad or leave positions vacant.
 Rural-Urban Skill Divide
• Lack of quality education and training facilities in rural areas creates an uneven distribution of skilled
workers.
Example: While cities like Bengaluru and Hyderabad thrive in IT talent, Tier-2 and Tier-3 cities struggle
to provide employable graduates.
Skill Shortage in Bihar: Reasons
 Poor Quality of Education
• Focus on rote learning over practical skills.
• Lack of technical and vocational training institutes.
 Limited Industrial Development
• Few large industries or corporate hubs to provide skilled jobs.
• Dependence on agriculture and small-scale businesses.
 Migration of Skilled Workforce
• Educated youth move to cities like Delhi, Mumbai, and Bengaluru for better opportunities.
• Bihar loses talent, worsening local skill shortages.
 Lack of Government and Private Training Centers
• Few skill development programs aligned with industry needs.
• Mismatch between job market demands and workforce skills.
 Low Female Workforce Participation
• Social and cultural factors limit women’s access to education and jobs.
• Skilled female workforce remains underutilized.
 Slow Adoption of New Technologies
• Limited awareness and training in AI, IT, and automation.
• Small businesses lack digital transformation skills.
The unemployment rate in India, as per CMIE, rose to 9.2% in June 2024 with 33 million unemployed. India must
emphasize skilling, education, and labor-intensive sectors to lower unemployment
❑ ❑ ❑

Youth and Women Employment and

Periodic Labour Force Survey (PLFS)

Youth Employment in India

What is Youth Employment ?
Youth employment refers to the participation of young people, typically aged 15 to 24, in the labor market. This
concept encompasses various forms of work, including full-time, part-time, seasonal, and temporary employment,
as well as entrepreneurship and self-employment opportunities for young individuals.
Key Concept About Youth
Employment
The age for youth employment is different in each country and organization:
1. United Nations Definition – The UN says that youth are people between 15 and 24 years old for data
collection.
2. Different Country Rules – Some countries allow youth to be older, up to 29 or even 35 years, based on social
and economic reasons.
3. Legal Working Age – The youngest age for work is usually between 14 and 16 years, depending on the laws of
each country.
Types of Youth Employment
1. Formal Jobs – These are full-time or part-time jobs in big companies or offices. They usually come with
contracts and benefits.
2. Informal Jobs – These jobs are not officially registered and do not have legal protections. But they help young
people get work experience.
3. Apprenticeships & Internships – These are training programs where young people learn skills on the job
while also studying. They often help in getting better jobs later.
4. Seasonal & Temporary Work – These are short-term jobs that happen in certain times of the year, like in
farming, shops, or hotels.
5. Starting a Business – Some young people open their own businesses or work independently instead of doing a
regular job.
6. Gig Jobs – These are short-term or flexible jobs done through online platforms or apps, like delivery services
or freelance work.
Why Youth Employment is Important
 Economic Benefits
1. Helps the Economy Grow – When young people work, it makes the country richer and more productive.
2. Reduces Poverty – Jobs for young people help them earn money and improve their lives.
3. Encourages New Ideas – Young workers bring new skills and creative ideas to businesses.
 Social Benefits
1. Creates a Sense of Belonging – Having a job makes young people feel part of society.
2. Teaches Important Skills – Work helps young people learn skills for their career and life.

Youth employment status in India

➢ The Worker Population Ratio (WPR) for youth indicating employment has increased from 31.4% in 2017-18 to
41.7% in 2023-24 according to the Union Minister of State for Labour and Employment. This is lower than the
global average.
➢ Trends
1. The Worker Population Ratio (WPR) for youth aged 15–29 increased from 36.1% in 2020–2021 to 40.1% in
2022–2023.
2. The youth unemployment rate in India has been around 10.2% which is lower than global average of
13.3% by ILO of world employment and social outlook Trends by ILO 2024 in the past decade.
➢ The Institute for Human Development (IHD) and the International Labour Organisation (ILO) have released
a new report called 'India Employment Report 2024'. This report says that many young people in India are
still struggling to find jobs.
➢ The Institute for Human Development (IHD) started in 1998. It works under the Indian Society of Labour
Economics (ISLE). It is a non-profit organization. Its goal is to help create a better society where everyone has
equal opportunities in social, economic, and political life. It wants to remove poverty and suffering from
people’s lives.
➢ India was expected to benefit from having many young people, but instead, it is facing a big problem. There
are not enough jobs for young people, even those with good education. This has led to very high
unemployment, especially in cities and among young women.
➢ A new report from the Periodic Labour Force Survey shows that fewer young people have jobs. The number
of young people working is 40% lower than expected. The unemployment rate for youth is three times
higher than for older people.
➢ The problem is getting worse because there is a gap between education and jobs. Many educated people,
especially women, cannot find work. To solve this issue, serious research and action are needed.

Challenges Young People Face in Finding Jobs

1. Skills Gap – Young people may not have the exact skills that companies want.
2. No Work Experience – Many jobs need experience, but young people have never worked before, making it
hard to get hired.
3. Economic Problems – When the economy is bad, young people lose jobs more easily.
4. Low-Paying or Wrong Jobs – Some young people get jobs that don’t match their skills or don’t pay well.
5. Struggle Moving from School to Work – It is hard for some students to adjust from studying to working
in a company.
6. Discrimination – Some young workers face age-related bias or people thinking they are not serious about
work.

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18 BPSC MAINS NOTES (Economy)
Strategies for promoting youth employment
 Hiring and Recruitment
1. Special Hiring for Youth – Companies should focus on hiring young people with special job programs.
2. Work with Schools and Colleges – Businesses should partner with schools and universities to find young
talent.
3. Internships and Training Programs – Companies should offer internships so young people can learn
skills and get experience.
 Training and Learning
1. Helping New Employees – Companies should make the first job experience easy for young workers.
2. Mentorship Programs – Young employees should be guided by experienced workers for support and
learning.
3. Ongoing Training – Companies should keep training young workers so they learn new skills.
 Keep Young Employees Happy
1. Career Growth Planning – Help young workers plan their future in the company.
2. Work-Life Balance – Give flexible work options so young workers can manage work and personal life.
3. Recognition and Feedback – Appreciate young employees and give feedback to keep them motivated.
 Rules and Laws for Hiring Young Workers
1. No Age Discrimination – Follow laws that stop companies from treating young workers unfairly due to
age.
2. Work Rules for Young People – Follow laws about how long young workers can work and keep them safe.
3. Equal Opportunities – Make sure all young workers get fair chances in hiring and promotions.
 Best Ways to Help Young Employees Fit into the Workplace
1. Create a Friendly Workplace – Make sure young employees feel included and their ideas are valued.
2. Use Technology – Let young workers use digital tools because they are good with technology.
3. Balance Work and Life – Help young workers manage their job and personal life in a healthy way.
4. Encourage New Ideas – Give young employees a chance to share their ideas and help the company grow.
5. Communicate Clearly – Make sure young workers understand company rules, their work expectations,
and growth opportunities.
Government initiatives
 Skill development programs
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Offers short-term skill training
• Pradhan Mantri Kaushal Kendras (PMKK): Standardizes training quality across India
• Jan Shikshan Sansthan (JSS): Targets non-literate and rural populations
• Craftsman Training Scheme (CTS): Through Industrial Training Institutes (ITIs)
 Employment generation programs
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Skills rural youth for jobs with regular
wages
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): A program to provide
employment in rural areas

Women's employment in India

 Rise in Workforce Participation
•
The participation of women in employment-related activities has increased from 21.8% in 2019 to 25% in
2024.
• For men, the figure has risen from 70.9% to 75%.
• This data reflects an expanding economic role for women, although the gender gap in labour
participation remains substantial.
 Decline in Time Spent on Unpaid Domestic Work
•
Women spent 305 minutes per day on unpaid domestic services in 2024, compared to 315 minutes in 2019,
indicating a transition toward paid work.
• Male members spent significantly less time on such tasks, averaging 88 minutes per day.
 Women’s Role in Caregiving
• 41% of women aged 15-59 participated in caregiving activities, compared to only 21.4% of men in the same
age group.
• Women spent 137 minutes per day in caregiving, nearly double the 75 minutes spent by men.
• These figures highlight the continued burden of unpaid caregiving on women despite an increase in their
economic participation.

Key points about women employment in India:

• Increasing trend:- While still low compared to many other countries, the female LFPR in India has been
steadily rising over the past few years.
• Rural vs Urban disparity :- Women in rural areas tend to have a higher labour force participation rate than
those in urban areas.
• Education level impact:- Higher education levels are associated with greater female workforce participation.
• Informal sector dominance:- A significant portion of employed women in India work in the informal
sector.

Effects of Changes in Work Patterns

 Economic Benefits
• When women move from unpaid housework to paid jobs, it helps the economy in many ways:
→ More Money for Families :– When women earn money, families have a better financial situation.
→ Better Work Productivity :– More women working helps businesses and the economy grow.
→ More Formal Jobs :– When women get paid jobs, it increases job security and benefits like pensions
and health care.

Challenges Faced by Women in Employment

1. Gender Discrimination :– Women often face bias in hiring, promotions, and salaries compared to men.
2. Unequal Pay :– Women earn less money than men for doing the same job.
3. Work-Life Balance :– Many women struggle to manage both job and family responsibilities.
4. Limited Job Opportunities :– Some industries prefer hiring men, making it harder for women to find jobs.
5. Lack of Leadership Roles :– Fewer women get promoted to higher positions like managers and executives.
6. Workplace Harassment :– Many women face harassment at work, making them feel unsafe.
7. Maternity Challenges :– Women may lose jobs or miss promotions due to pregnancy or maternity leave.
8. Lack of Support :– There are not enough policies for childcare, maternity leave, and flexible work hours.
9. Cultural and Social Barriers :– In some societies, women are expected to focus on family, limiting their
career growth.
10. Lack of Skill Development :– Women may not get enough training or opportunities to learn new skills for
better jobs

Ways to Solve Problems Faced by Women at Work

• Teach Women About Their Rights :– Women should know their rights at work and the laws that protect
them.
• Encourage Equal Hiring :– Companies should hire and support more women to create a fair workplace.
• Create a Safe Workplace :– Workplaces should be safe and supportive so women can report discrimination
or harassment without fear.
• Train Employees and Managers :– Workers, especially managers, should be trained to stop discrimination
and harassment at work.
• Set Up Complaint Committees :– Workplaces should have special committees to handle complaints about
harassment, as required by the Sexual Harassment of Women at Workplace Act, 2013.

Government initiatives associated with women employment

➢ The Government of India has launched several initiatives to help women find employment, including
schemes to provide training and loans, and to create a safe workplace.
 Training
• Women Industrial Training Institutes,
• National Vocational Training Institutes, Provide training to improve employability of women
• Regional Vocational Training Institutes

Periodic Labour Force Survey

• The PLFS was initiated by the National Statistical Office in 2017 for frequent labour force data.
• The inaugural annual report was published in 2019, utilising data from July 2017 to June 2018.
• PLFS’s objective is to estimate vital employment and unemployment indicators like the Labour Force
Participation Rate every three months in urban areas.
• It also aims to provide yearly estimates for both rural and urban regions.
• It follows a current weekly status approach, where people are considered unemployed if they did not work
for at least one hour during the week but actively sought work.

Key Findings from the Periodic Labour Force Survey

 Labour Force Participation Rate (LFPR)
• Rural areas: Increased from 50.7% in 2017-18 to 63.7% in 2023-24.
• Urban areas: Increased from 47.6% to 52.0%.
• Males: Increased from 75.8% in 2017-18 to 78.8% in 2023-24.
• Female: Increased from 23.3% to 41.7%.
 Worker Population Ratio (WPR)
• Rural areas: Increased from 48.1% in 2017-18 to 62.1% in 2023-24.
• Urban areas: Increased from 43.9% to 49.4%.
• Male: Increased from 71.2% in 2017-18 to 76.3% in 2023-24.
• Female: Increased from 22.0% to 40.3%.
 Unemployment Rate
• No improvement in the unemployment scenario, neither in youth unemployment nor in overall
unemployment. The overall unemployment rate is 3.2%, similar to last year.
• Unpaid family labour has increased. Workers’ participation in agriculture has risen for fourth time.

❑ ❑ ❑

AI and the challenge of long-term

sustainability and Employment Generation

Introduction
Artificial Intelligence (AI) is transforming industries, improving efficiency, and solving complex problems.
However, the sustainability of AI development and deployment presents significant challenges. These challenges
include energy consumption, ethical considerations, environmental impact, and ensuring long-term benefits for
humanity.
❖ Sustainability Challenges in AI
 High Energy Consumption
AI models, particularly deep learning models like GPT-4 and GPT-5, require vast computational power,
leading to high energy consumption.
• Example: Training GPT-4 required thousands of GPUs running for weeks, consuming an estimated 10
GWh of electricity, which is equivalent to the power used by several thousand households annually.
• Current Issue (2024-2025): The demand for AI chips (such as NVIDIA’s H100) is increasing, leading to
higher energy requirements for data centers.
 Environmental Impact
The carbon footprint of AI development is growing due to increased reliance on large-scale data centers.
• Example: A single AI model training can emit as much carbon as five cars over their entire lifetime.
• Latest Development: Companies like Google and Microsoft are investing in carbon-neutral AI
computing.
 Ethical Considerations and Bias
AI systems must be designed to be fair, unbiased, and accountable. However, bias in training data can lead
to ethical issues.

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23 BPSC MAINS NOTES (Economy)
• Example: Facial recognition AI has shown racial bias, leading to wrongful arrests and discrimination.
• Latest Development: Regulations such as the EU AI Act (expected implementation in 2025) are being
introduced to ensure ethical AI deployment.
 Long-Term Economic Viability
AI-driven automation can displace jobs, leading to concerns about long-term economic sustainability.
• Example: AI chatbots replacing customer service representatives.
• Latest Development: Governments are considering AI taxation to compensate for job losses.
❖ Sustainable AI Practices
 Energy-Efficient AI Models
Developers are working on models that require less computation and energy.
• Example: Meta’s Llama 3 (expected in 2025) aims to be more energy-efficient compared to GPT-4.
 Renewable Energy-Powered Data Centers
Big tech companies are shifting towards green AI by using renewable energy sources.
• Example: Google Cloud and Microsoft Azure plan to operate on 100% renewable energy by 2030.
 Federated Learning and Edge AI
Decentralized AI training techniques can reduce the need for massive centralized data centers.
• Example: Apple’s iPhones use on-device AI (Edge AI) to process data locally instead of sending it to the
cloud, improving efficiency.
 AI for Climate Change Solutions
AI is being used to combat climate change by improving energy grids, optimizing logistics, and monitoring
deforestation.
• Example: IBM’s Green Horizon Project uses AI to reduce pollution levels in cities.
❖ Future Prospects and Challenges
 AI Governance and Regulations
Governments worldwide are working on AI regulations to ensure responsible development.
• Example: The Biden Administration’s AI Executive Order (2024) sets guidelines for ethical AI
development.
 Quantum Computing and AI
Quantum computing could revolutionize AI by significantly reducing energy consumption.
• Example: IBM’s Quantum AI project aims to create energy-efficient AI models.
 Ethical AI and Human Oversight
AI needs human oversight to ensure ethical decision-making.
• Example: The EU AI Act mandates transparency in AI decisions affecting human rights..
Latest Updates (2025)
• NVIDIA announced next-gen AI chips with 30% lower energy consumption.
• Google DeepMind is developing AI models with self-regulating power usage.
• The EU is finalizing AI sustainability guidelines to be implemented by 2026.
Solutions to AI Sustainability Challenges
❖ Solutions to High Energy Consumption
 Development of Energy-Efficient AI Models
• Researchers are designing AI models that consume less power while maintaining performance.
• Example: Meta’s Llama 3 and OpenAI’s GPT-5 (expected in 2025) are optimized for lower energy usage.

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24 BPSC MAINS NOTES (Economy)
 Use of Specialized AI Hardware
• AI-specific chips (TPUs, NPUs, and energy-efficient GPUs) reduce power consumption.
• Example: NVIDIA’s H200 AI Chip consumes 30% less energy compared to previous models.
 Adoption of Quantum Computing
• Quantum computers process data more efficiently, reducing energy demand.
• Example: IBM’s Quantum AI aims to replace traditional AI computations with quantum processing.
❖ Solutions to Environmental Impact
 Transition to Green Data Centers
• Renewable energy-powered data centers help reduce the carbon footprint of AI.
• Example: Microsoft and Google plan to run data centers on 100% renewable energy by 2030.
 AI-Optimized Energy Management
• AI can optimize power usage in data centers to reduce waste.
• Example: DeepMind’s AI-powered cooling system lowered Google’s data center cooling energy by 40%.
 Recycling and Reusing AI Hardware
• Companies are focusing on sustainable AI hardware manufacturing.
• Example: Tesla and Apple use recyclable materials in AI-powered devices.
❖ Solutions to Ethical AI and Bias
 Implementation of Transparent AI Models
• AI decision-making must be explainable and accountable.
• Example: The EU AI Act (2025) mandates AI companies to provide transparency reports.
 Diverse and Bias-Free Training Data
• Companies must ensure AI models are trained on unbiased datasets.
• Example: OpenAI and Google are using multi-cultural and gender-neutral datasets for fairness.
 AI Regulations and Ethical Oversight
• Governments are enforcing strict guidelines for ethical AI development.
• Example: The Biden Administration’s AI Ethics Framework (2024) regulates AI accountability.
❖ Solutions to Economic Displacement
 AI Workforce Reskilling Programs
• Governments and companies are investing in AI reskilling programs to help the workers in adapting
new skills.
• Example: Amazon and Google offer AI training courses for employees at risk of job loss.
 AI Taxation for Social Welfare
• Some countries propose AI taxation policies to support workers affected by automation.
• Example: The UK is considering an AI tax to fund reskilling programs.
 Encouraging Human-AI Collaboration
• Instead of replacing humans, AI can assist workers for better efficiency.
• Example: AI-powered tools like ChatGPT for customer support help employees handle complex queries.
❖ Solutions for Long-Term AI Sustainability
 Federated Learning and Edge AI
• Reducing reliance on centralized data centers by processing AI on local devices.

Care Economy and Employment Generation

The care economy is the work that supports the well-being of people, including paid and unpaid work. It includes
care for children, the elderly, and people with disabilities.
The International Labour Organization (ILO) recently released a pivotal report titled “Care at Work:
Investing in Care Leave and Services for a More Gender-Equal World of Work,” urging governments and
organizations to prioritize policy support for the care economy. The report highlights the critical need for
maternity, paternity, and special care leave to help individuals balance work and family obligations across their
lifetimes.
However, millions of workers globally, especially those with family responsibilities, lack proper protection and
support due to significant gaps in care services and legislation. According to the ILO’s findings:
• 1.9 billion women of reproductive age—roughly 3 out of every 10 women—live in 82 countries that do not
adhere to ILO Convention 183 on maternity leave.
• 46 years is the estimated time for 185 countries to reach the minimum threshold for maternity leave
rights.
This stark data underscores the essential role of the care economy, which refers to the broad network of paid and
unpaid labor necessary for individual and community well-being. This sector includes activities like childcare,
elder care, disability care, and domestic work, carried out both in households and in professional settings such as
daycares, nursing homes, and hospitals.

Challenges of the Care Economy

Despite its importance, the care economy remains undervalued, especially given that caregiving tasks are often
traditionally associated with women, reinforcing gender inequalities in labor participation and income.
As the demand for care work rises due to aging populations and increasing workforce participation by women, the
care economy is crucial not only for economic functionality but also for social cohesion and human
development. Individuals who receive proper care are healthier, more productive, and better able to contribute to
society.
❖ Challenges in India’s Care Economy
While India has made strides in recognizing care work, several challenges persist, limiting the effectiveness of the
care economy.

The Care Economy in India: A Historical Perspective

In India, the origins of the care economy are deeply rooted in socio-cultural norms, where caregiving has
traditionally been seen as a familial and gendered responsibility. Historically, women have borne the burden of
unpaid caregiving—child-rearing, elder care, and domestic work—within households.
❖ Key Historical Influences:
1. Traditional Joint Family System: In the joint family structure, caregiving was seen as a collective
responsibility, with women primarily providing care for children and the elderly.
2. Colonial Era: During British colonial rule, the formal economy industrialized, but care work remained
largely informal. Domestic workers, often from marginalized communities, were employed in upper-class
households.
3. Post-Independence: Post-independence economic policies focused on industrialization and formal sector
employment, but caregiving remained informal and largely unpaid.
4. Economic Liberalization (1990s): With the rise of women joining the workforce, demand for professional
caregiving services grew, highlighting the gendered nature of care work.
❖ Modern Trends:
Today, India’s care economy is transitioning to a more formalized structure, driven by demographic changes
such as an aging population and a growing middle class. However, it still faces significant challenges, with
informal, low-paid, and precarious work dominating the sector. Key issues include:
• Labor rights: Lack of protections for care workers.
• Fair wages: Care workers are often underpaid, contributing to persistent gender inequality.
❖ Economic Context and Contribution to India’s GDP

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27 BPSC MAINS NOTES (Economy)
 Contribution to GDP:
• While difficult to quantify, estimates suggest that unpaid care work could account for up to 7-9% of global
GDP.
• In India, the healthcare sector alone contributes approximately 4.7% of GDP.
 Employment Contribution:
• Paid Care Work: Care-related jobs such as nurses, childcare providers, and domestic workers provide
significant employment, especially for women.
• Informal Care Work: A significant portion of care work in India is unpaid and informal, predominantly
done by women.
Gender Time Spent on Unpaid Care Work (minutes/day)
Women 299
Men 97
 Labor Market Impact:
The care economy provides job opportunities, especially for women, contributing to greater workforce
participation. With the aging population and increasing workforce participation of women, the care
economy is poised for growth.
 Contribution to Employment
The care economy is a major provider of employment in India, particularly for women and marginalized
communities. Despite this, much of the work is informal, leading to low wages and precarious conditions.
Here’s an overview:
1. Unpaid Care Work:
• Women spend 299 minutes per day on unpaid care work (household chores, child-rearing, elder
care) compared to men’s 97 minutes (2019 Time Use Survey).
2. Formal Care Sector Employment:
• Nurses and midwives: Around 3.6 million in India.
• Domestic workers: Estimated (4.2-50) million in India.
• Anganwadi workers: Millions of women are employed as health and nutrition workers under the
Integrated Child Development Services (ICDS).
❖ India’s Initiatives Toward the Care Economy
India has taken some positive steps towards formalizing the care economy:
• 26 weeks of maternity leave are provided for new mothers, exceeding the ILO’s baseline requirement of 14
weeks.
• 15 days of paternity leave are granted to central government employees.
• Domestic workers are now covered by the prevention of Sexual Harassment of Women at Workplace Act
(Prevention prohibition redressal) 2013 (POSH) and minimum wage laws.
• The National Program for Health Care for the Elderly (NPHCE) aims to address the healthcare needs of the
elderly, demonstrating the government’s commitment to the care economy.
❖ Path Forward: Addressing Gaps and Strengthening the Care Economy
1. Identify Care Providers: A formal system for recognizing care workers and issuing job cards can establish
a network to deliver benefits and support.
2. Formal Recognition of Care Workers: Recognizing workers like Anganwadi workers, ASHAs, and domestic
helpers as formal employees will allow their contributions to be accounted for in GDP.

Improving Multi-Dimensional Poverty and

Addressing Poverty Issues in India and Bihar
Introduction:
India, a country of diverse cultures, languages, and traditions, is also home to one of the largest
populations in the world. While economic growth has brought significant progress in various sectors, poverty
remains a persistent issue, affecting millions of lives across the country.
Poverty in India is multi-dimensional, encompassing not only income poverty but also deficiencies in
education, health, living standards, and access to basic services. In recent years, there has been a growing
recognition that poverty cannot be measured simply by income levels; it is important to consider factors such as
access to clean water, sanitation, healthcare, education, and housing.

Understanding Multi-Dimensional Poverty:

Multi-dimensional poverty goes beyond traditional income-based poverty measurements to include a range of
deprivations that prevent individuals from fully participating in society. The Multi-Dimensional Poverty Index
(MPI), developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations
Development Programme (UNDP), is a key tool in measuring poverty. The MPI includes three key dimensions:
education, health, and living standards, each with specific indicators:
1. Education: Years of schooling, child school attendance.
2. Health: Child mortality, nutrition.

Poverty Issues in India:

India faces several poverty-related challenges, with a high percentage of the population living below the
poverty line. Multi dimensional Poverty has declined from 29.17% in 2013-14 to 11.28% in 2022-23. 24.82 crore Indians
has escaped from multidimensional poverty in last 9 years. These issues are particularly severe in rural areas,
where access to basic infrastructure, healthcare, and education remains limited. A combination of factors such as
economic inequality, caste-based discrimination, gender inequality and lack of opportunities continues to
contribute to the persistence of poverty.
The distribution of poverty across different states is highly uneven, with some states facing more
significant challenges. Among the most poverty-stricken regions is Bihar, where socio-economic indicators
consistently lag behind the national average.

Poverty Issues in Bihar:

Bihar, located in eastern India, is one of the poorest states in the country. Despite recent improvements in
some sectors, Bihar continues to struggle with severe poverty due to several systemic challenges. The state’s
poverty rate is significantly higher than the national average, and it continues to face some of the most pressing
poverty-related challenges in India.
Key Indicators of Multi-Dimensional Poverty:
1. Income Poverty:
• Income below a certain threshold (based on per capita income).
• Data: According to the World Bank, around 11.28% of India's population lives in multi-dimensional poverty
(MPI).
• Bihar: Nearly 33.7% of Bihar’s population lives below the poverty line.
2. Education:
• Indicators: Years of schooling, school attendance, literacy rates.
• Data:
→ India: Literacy rate of 74%, but significant gaps remain in rural and marginalized areas.
→ Bihar: Literacy rate of 61.8% (2011 Census), one of the lowest in India.
• Example: Bihar has one of the highest dropout rates in school, especially among girls.
3. Health:
• Indicators: Child mortality, nutrition, access to healthcare services, etc.
• Data:
→ India: Infant Mortality Rate (IMR) of 26.61 per 1,000 live births.
→ Bihar: IMR in Bihar is higher at 27 per 1,000 live births.
• Example: Bihar also has a high rate of undernutrition in children, with 48% of children under five being
stunted (NFHS-4).
4. Living Standards:
• Indicators: Access to clean drinking water, sanitation, housing quality, electricity, and cooking facilities.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
30 BPSC MAINS NOTES (Economy)
• Data:
→ India: 9% of India’s rural population lacks access to electricity. Per capita consumption has increased
to 1395 kwh in 2023-24 from 957 kwh in 2013-14.
→ Bihar: Electricity consumption has trippled in Bihar from 134 kwh in 2012 to 363 kwh in 2024. Peak
demand of electricity has increased by almost 1.4 times during 2017-18 to 2022-23 and power supply
has increased by 1.4 times in the same period.
• Example: Many rural households in Bihar still use traditional stoves (chulhas), leading to respiratory
illnesses.
Key Drivers of Poverty in Bihar:
1. Economic Underdevelopment:
• Limited Industrialization: Bihar is primarily agrarian, with limited industrial and commercial growth.
• Low Income Levels: Per capita income in Bihar is one of the lowest in India, contributing to widespread
poverty.
2. Social and Cultural Inequality:
• Caste-based Discrimination: Dalits, backward classes, and minorities often have limited access to
education, healthcare, and employment.
• Gender Inequality: Low female labor force participation, especially in rural areas, limits income-earning
opportunities for women.
• Example: The female literacy rate in Bihar is 51.5%, far lower than the national average of 65.5% (2011
Census).
3. Weak Infrastructure:
• Rural Development: Poor infrastructure, including road connectivity, electricity, and healthcare facilities,
contributes to poverty in rural Bihar.
• Example: Poor roads in rural areas affect access to markets and employment, limiting economic
opportunities.
4. Natural Disasters:
• Bihar is prone to flooding, which destroys crops, displaces families, and deepens poverty.
• Example: The 2008 Bihar floods displaced over 3 million people and severely impacted agricultural
production.
Causes of Poverty:
1. Economic Inequality
• Wealth Concentration in the Hands of a Few:
→ Economic inequality, where wealth and resources are concentrated in the hands of a small portion of
the population, is a primary cause of poverty. In many countries, including India, the rich get richer
while the poor remain trapped in poverty.
→ This disparity often results in limited access to quality education, healthcare, and jobs for the
disadvantaged, making it harder for them to rise out of poverty.
• Regional Disparities:
→ Regions like Bihar face systemic underdevelopment, while more prosperous areas benefit from a
concentration of industries, better infrastructure, and higher investments, leading to uneven
economic growth and opportunities.
• Example: In Bihar, the lack of industrialization, along with inadequate infrastructure and lower
investments in rural development, contributes to economic disparity and widespread poverty.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
31 BPSC MAINS NOTES (Economy)
2. Lack of Access to Education
• Limited Educational Opportunities:
→ Education is a fundamental tool for escaping poverty. However, in many parts of India, particularly
rural regions like Bihar, children do not have access to quality schools or higher education
institutions.
→ Families living in poverty often cannot afford school fees, books, uniforms, or transportation, leading
to high dropout rates.
• Illiteracy and Skill Gaps:
→ A lack of proper education results in low literacy rates and skill development, which significantly
affects future job prospects. Without the proper education or technical skills, individuals are often
confined to low-paying, unskilled labor jobs that do not provide sufficient income to escape poverty.
• Example: Bihar has one of the lowest literacy rates in India, and the quality of education in rural areas is
often substandard, limiting the children’s opportunities to break the cycle of poverty.
3. Unemployment and Underemployment
• Insufficient Job Opportunities:
→ Unemployment is a critical factor driving poverty. Many impoverished areas in India, including
Bihar, face a lack of job opportunities due to insufficient industrialization, slow economic growth,
and limited investment in infrastructure.
→ Even when jobs are available, the workforce often lacks the necessary skills, making it harder for
individuals to secure employment.
• Underemployment and Informal Sector Work:
→ A large proportion of the workforce in India is underemployed, meaning they work in jobs that do
not fully utilize their skills or provide a sustainable income. Many people work in the informal sector,
where wages are low and job security is minimal.
• Example: In Bihar, where agriculture is the primary occupation, many people are dependent on seasonal,
low-wage labour, which does not provide consistent or sufficient income to meet basic needs.
4. Poor Health and Malnutrition
• Health Problems and Medical Expenses:
→ Poor health, caused by factors like malnutrition, inadequate healthcare, and poor living conditions, is
a significant cause of poverty. Illness can reduce the ability of individuals to work and earn an
income, leading to further economic vulnerability.
→ In many rural areas, access to healthcare is limited or unaffordable, causing people to suffer from
preventable diseases and conditions that worsen their poverty.
• Cycle of Malnutrition:
→ Malnutrition, particularly in children, leads to stunted growth, lower cognitive abilities, and
weakened immune systems, which directly affects an individual's ability to study, work, and
contribute to the economy.
• Example: In Bihar, high levels of malnutrition and a lack of access to clean water and sanitation
contribute to poor health outcomes, further limiting individuals' ability to escape poverty.
5. Social Inequality and Discrimination
• Caste-Based Discrimination:
→ In India, caste-based discrimination continues to affect marginalized groups such as Dalits and
Adivasis, limiting their access to education, healthcare, and economic opportunities. The social
hierarchy traps these groups in a cycle of poverty.

Multidimensional Impact of Poverty

Poverty is not just a lack of income; it is a complex, multifaceted issue that affects individuals and communities
on multiple levels. The multidimensional impact of poverty spans across various aspects of human life, including
education, health, economic opportunities, and social participation. Understanding the various dimensions of
poverty is crucial for designing effective interventions that address not only income but also other underlying
factors contributing to poverty. Below are the key dimensions and their impacts:
1. Educational Impact
• Limited Access to Quality Education:
→ Poor families often cannot afford the costs associated with education (tuition, school supplies,
uniforms), leading to high dropout rates.
→ Lack of quality educational institutions in impoverished areas, particularly in rural settings, limits
children’s educational opportunities.
• Low Literacy Rates:
→ Illiteracy is prevalent in impoverished areas, hindering individuals’ ability to access better-paying
jobs, information, and services.
• Intergenerational Poverty:
→ Without proper education, children of poor families are more likely to remain in poverty, continuing
a cycle of poverty across generations.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
33 BPSC MAINS NOTES (Economy)
• Example: In Bihar, where literacy rates are significantly lower compared to national averages, many
children do not complete secondary education, which limits their employment opportunities in the
future.
2. Health and Well-being
• Poor Health and Malnutrition:
→ People living in poverty often lack access to nutritious food, leading to malnutrition and associated
health issues, including stunted growth in children.
→ Poor living conditions, including inadequate sanitation, clean water, and healthcare, increase
vulnerability to diseases and preventable deaths.
• Limited Access to Healthcare:
→ Healthcare services may be too expensive, or unavailable in rural or impoverished areas, leading to
untreated illnesses, high maternal and child mortality rates, and lower life expectancy.
• Mental Health Struggles:
→ Living in poverty often leads to chronic stress, anxiety, and depression due to financial insecurity,
lack of basic necessities, and uncertainty about the future.
• Example: In Bihar, the high incidence of malnutrition and maternal mortality, compounded by limited
access to healthcare facilities, underscores the deep connection between poverty and poor health
outcomes.
3. Economic Opportunities and Income
• Unemployment and Underemployment:
→ Lack of skills, resources, and access to job opportunities often results in unemployment or
underemployment in poverty-stricken areas.
→ Many people in poverty are engaged in low-wage, insecure, and informal jobs, with limited
opportunities for upward mobility.
• Lack of Assets and Savings:
→ People in poverty typically do not have the means to save or invest in assets such as land, property,
or businesses, limiting their ability to build wealth or secure their future.
• Vulnerable to Economic Shocks:
→ Without savings or social safety nets, people living in poverty are more vulnerable to external shocks,
such as economic downturns, natural disasters, or health crises like the COVID-19 pandemic.
• Example: Despite efforts such as MGNREGA, which provides employment in rural areas, many households
in Bihar still face underemployment, earning insufficient wages for their families’ basic needs.
4. Living Conditions and Housing
• Inadequate Housing:
→ People in poverty often live in poorly constructed houses or informal settlements, lacking basic
amenities like clean water, sanitation, and electricity. This leads to overcrowding and unsafe living
conditions.
• Exposure to Environmental Hazards:
→ Poor living conditions make individuals more vulnerable to environmental hazards such as floods,
air pollution, and unsanitary conditions, which can exacerbate health problems.
• Limited Access to Infrastructure:
→ Access to essential infrastructure like roads, transportation, electricity, and communication networks
is often limited, further isolating impoverished communities from economic opportunities and
essential services.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
34 BPSC MAINS NOTES (Economy)
• Example: In rural Bihar, many families live in makeshift homes without access to clean drinking water or
proper sanitation facilities, exposing them to health risks and making it difficult to improve their living
standards.
5. Social Exclusion and Inequality
• Stigmatization and Marginalization:
→ Poor individuals, especially from marginalized communities, often face discrimination based on their
economic status, caste, gender, or ethnicity, leading to social exclusion.
• Limited Social Mobility:
→ The poor often lack the resources, social networks, or political power to break out of their socio-
economic condition, making social mobility difficult.
• Gender Inequality:
→ Women in poverty face compounded challenges such as gender-based violence, unequal access to
education, and limited opportunities for economic participation, further deepening the impact of
poverty on their lives.
• Example: In Bihar, women, particularly from marginalized castes, face social exclusion, lack of
educational opportunities, and limited economic independence, perpetuating cycles of poverty within
these communities.
6. Political Participation and Governance
• Limited Civic Engagement:
→ Poverty often leads to apathy or disenfranchisement, as marginalized communities may not have
the resources or information to engage in political processes.
• Vulnerability to Exploitation:
→ Impoverished individuals may be more susceptible to exploitation and corruption, as they lack the
means to challenge unfair practices or access justice.
• Weak Access to Public Services:
→ People in poverty often struggle to access essential public services like justice, social security, and
government schemes, due to bureaucratic inefficiencies, lack of information, or political barriers.
• Example: In Bihar, despite the presence of schemes like PMAY and MGNREGA, access and benefit from
these programs are often hindered by corruption and political patronage, preventing many from escaping
poverty.
7. Impact on Future Generations
• Education and Skills Gap:
→ Children from impoverished families are more likely to miss out on quality education, limiting their
ability to improve their economic standing and break the cycle of poverty.
• Health Consequences for Children:
→ Poor health during childhood, including malnutrition, can have long-lasting effects on physical and
cognitive development, reducing future productivity and quality of life.
• Continuing the Cycle of Poverty:
→ Children raised in poverty often face the same barriers as their parents—limited access to education,
poor health, and lack of opportunities—leading to the continuation of poverty through generations.
• Example: In Bihar, the high dropout rates in schools and poor nutritional standards among children
contribute to a cycle of poverty that is passed down, with limited chances for upward mobility.

Government Measures and Schemes to Address

1.Poverty:
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
• Objective: Provide 100 days of wage employment per rural household.
• Impact in Bihar: This scheme has helped provide temporary employment, supporting income during
agricultural off-seasons.
• Example: During the COVID-19 lockdown, MGNREGA provided crucial employment to over 12 million
households in Bihar.
2. Pradhan Mantri Awas Yojana (PMAY):
• Objective: Provide affordable housing to homeless and poor families.
• Impact in Bihar: PMAY has been instrumental in providing ‘pucca’ (cemented) houses to rural families,
improving living standards.
• Example: By 2022, over 700,000 homes were constructed under PMAY in Bihar.
3. National Health Mission (NHM):
• Objective: Improve healthcare access, particularly in rural areas.
• Impact: Strengthened healthcare services in rural Bihar by improving maternal health, child care, and
sanitation.
• Example: Bihar saw a decline in maternal mortality rates by about 30% due to NHM initiatives.
4. Sarva Shiksha Abhiyan (SSA):
• Objective: Achieve universal primary education for all children.
• Impact: Expanded access to education for children, with a focus on reducing dropouts, especially among
girls.
• Example: In 2021, Bihar had one of the highest enrollment rates for girls in government schools.
5. Pradhan Mantri Jan Dhan Yojana (PMJDY):
• Objective: Financial inclusion through the opening of bank accounts for every household.
• Impact: Over 30 million bank accounts opened in Bihar, providing financial security.
• Example: Rural families now have access to direct benefit transfers, social security schemes, and savings
opportunities.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
36 BPSC MAINS NOTES (Economy)
Strategies for Poverty Alleviation:
1. Improvement of Rural Infrastructure:
• Action: Build better roads, improve electricity and water supply, and enhance communication networks.
• Expected Outcome: Improved market access, reduced transportation costs, and enhanced business and
employment opportunities.
2. Skilling and Employment Programs:
• Action: Promote skill development and vocational training, especially for women and youth.
• Example: The Skill India program has been successful in training people for jobs in manufacturing,
construction, and services.
• Expected Outcome: Increased employability and entrepreneurship, especially in non-agricultural sectors.
3. Promotion of Sustainable Agriculture:
• Action: Introduce modern farming techniques and better irrigation practices to increase crop yields.
• Example: The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) aims to improve irrigation coverage,
benefiting farmers in Bihar.
• Expected Outcome: Increased agricultural productivity, reduced vulnerability to floods, and enhanced
food security.
4. Gender Empowerment:
• Action: Implement policies that improve women’s access to education, employment, and healthcare.
• Example: The Beti Bachao Beti Padhao scheme focuses on girl-child education and female empowerment.
• Expected Outcome: Improved literacy, economic participation, and decision-making power among
women.
5. Strengthening Social Safety Nets:
• Action: Expand coverage of food security programs, pension schemes, and other social welfare schemes.
• Example: The Public Distribution System (PDS) provides subsidized food grains to the poor in Bihar.
• Expected Outcome: Improved food security and income stability for vulnerable populations.
6. Access to Digital Platforms and Services:
• Action: Use digital platforms to deliver government services efficiently, such as e-governance and direct
benefit transfers.
• Example: The Digital India initiative has made significant strides in improving internet connectivity and
access to online services.
• Expected Outcome: Increased access to government schemes, banking services, and educational
resources.
The fight against multi-dimensional poverty in India, particularly in Bihar, requires a multifaceted
approach that addresses not only income poverty but also the broader social, educational, healthcare, and
infrastructure challenges. Poverty in these regions is deeply entrenched due to economic inequality, limited
access to quality education, poor healthcare, social discrimination, and inadequate political governance. To break
this cycle, it is essential to focus on inclusive and sustainable development through targeted interventions that
improve living conditions, promote skill development, enhance gender equality, and provide equitable access to
resources. Government initiatives like MGNREGA and PMAY have made significant progress, but the path to
eradicating poverty demands continued investment in rural infrastructure, human capital, and social inclusion.
Bihar, with its unique challenges, needs locally tailored policies and community-driven solutions to empower

Poverty related issues in India

Poverty in India is a complex issue with deep-rooted causes and far-reaching consequences.
❖ Key Contributing Factors:
 Economic Inequality:
• A significant gap exists between the rich and the poor, with wealth concentrated in the hands of a
few.
• This disparity limits opportunities for those in lower socioeconomic strata.
 Population Growth:
• India's large and growing population puts pressure on resources, infrastructure, and employment
opportunities.
• This can exacerbate existing poverty.
 Lack of Education:
• Limited access to quality education and high illiteracy rates hinder upward mobility.
• Without education, individuals struggle to acquire skills needed for better-paying jobs.
• Unemployment and Underemployment:
• A lack of stable employment and widespread underemployment contribute to financial instability.
• Many individuals work in the informal sector, with low wages and no job security.
 Poor Infrastructure:
• Inadequate infrastructure, including roads, sanitation, and access to clean water, affects living
conditions and economic opportunities.
• This is especially true in rural areas.
 Social Issues:
• Caste-based discrimination and other social inequalities can perpetuate poverty.
• Marginalized communities often face systemic barriers to advancement.
 Health Issues:
• Poor nutrition and lack of access to healthcare leads to illness, that in turn keeps people from being
able to work.
• Malnutrition is a major issue, especially among children.
 Corruption:
• Corruption within government systems can divert resources intended for poverty alleviation.
 Consequences of Poverty:
• Malnutrition and Health Problems: Poverty leads to inadequate nutrition, making people
vulnerable to diseases.
• Limited Access to Education: Children from impoverished families often lack access to quality
education, perpetuating the cycle of poverty.
• Social Problems: Poverty can contribute to increased crime rates and social unrest.
• Child Labor: Many impoverished families rely on child labor to supplement their income, depriving
children of education and a healthy childhood.

❖ Improvement in multidimensional poverty in India

It's clear that India has made significant strides in reducing multidimensional poverty.
 Significant Reduction:
• There has been a notable decline in the percentage of India's population living in multidimensional
poverty. Data indicates that there has been a large reduction of people living in multidimensional
poverty.
• For example, information indicates that India has registered a significant decline in
multidimensional poverty from 29.17% in 2013-14 to 11.28% in 2022-23.
• This has resulted in millions of people escaping multidimensional poverty.
 Key Factors and Indicators:
• The Multidimensional Poverty Index (MPI) considers factors beyond just income, including health,
education, and standard of living.
• Improvements have been seen across various indicators, such as:
• Nutrition
• Child and adolescent mortality
• Maternal health
• Years of schooling
• Access to clean cooking fuel, sanitation, drinking water, electricity, housing, and bank accounts.
 Government Initiatives:
• These positive changes are attributed to various initiatives by the Indian government.
 Rural vs. Urban:
• While disparities remain between rural and urban areas, rural areas have seen a faster reduction in
the MPI value.
 Data Source:
• Much of this data comes from sources like the National Family Health Survey (NFHS) and reports
from organizations like the UNDP and NITI Aayog.
In essence, India's progress in reducing multidimensional poverty reflects a broad improvement in living
conditions across multiple dimensions.

❖ Steps taken by Indian Government for reducing poverty:

The Indian government has implemented a wide range of programs and initiatives aimed at poverty
reduction.
 Employment Generation:
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): This program
guarantees 100 days of wage employment to rural households, providing a safety net and boosting
rural incomes.

❑ ❑ ❑

Demographic dividend , population

control and issues related to Bihar
According to the United Nations Population Fund (UNFPA), India's large young population is a great opportunity
for economic growth. About 62.5% of people in India are between 15 and 59 years old. This makes India one of the
youngest countries in the world, while many other nations have aging populations.

Demographic Dividend
Definition:- Demographic dividend refers to the economic growth potential that results from a shift in a
population’s age structure, mainly when the working-age population (15-64 years) grows larger relative to the
dependent population [Children (below 15 years) and elderly (above 64 years)].

India’s Demographic Status

• Current Population:- As of 2023, India’s population is 1.44 billion, making it the most populated country in
the world. It has now surpassed China, which has a population of 1.42 billion (UNFPA, 2023).
• Fertility Rate:- The number of children born per woman in India has dropped from 5.9 in 1951 to 2.0
currently, according to NFHS-5. This is lower than the 2.1 births per woman needed to maintain a stable
population.
• Future Population Estimates:- By 2050, India’s population is expected to reach 1.67 billion. It will peak at 1.7
billion in 2064 and then decrease to 1.53 billion by 2100 (UN Population Division).
• Young Workforce:- About two-thirds of India's population is between 15 and 64 years old, giving India a great
advantage. If used properly, this young workforce can help the country grow economically.
Significance of Demographic Dividend
• Economic Growth: By 2030, 67% of India's population will be of working age (15-64 years). This will help the
economy grow, increase production, and raise income levels.
• More Savings & Investments: With more people working, families can save and invest more in businesses,
infrastructure, and new ideas. India's savings rate is already above 30%, which helps the economy grow.
• Better Society: A young workforce can improve education and healthcare. This helps in reducing poverty and
increasing literacy.
• More Innovation & Startups: With over 60,000 startups, India's young population is creating new businesses
and technologies, making the economy stronger.
• Stronger Global Position: India's large and skilled workforce makes it an important manufacturing hub.
Foreign companies are investing, with $55.6 billion received in 2023.
• Lower Dependency: More working people mean fewer dependents (children & elderly). This helps in better
use of resources and government funds.
Challenges associated with Demographic dividend
• Low Human Development: India is ranked 134th out of 193 countries in the UN Human Development Index
(2023-24). This shows problems like low life expectancy and poor education quality.
• Hunger & Malnutrition: India is ranked 105th on the Global Hunger Index (2024). Many people, especially
women and children, suffer from poor nutrition, stunted growth, and anemia.
• Lack of Job Skills: More than 70% of young people do not have the right skills for jobs. Only 20-30% of
engineering graduates get good jobs, which shows a big gap between education and employment.
• Few Women in Workforce: Only 41.7% of women in India participate in the workforce (PLFS 2023-24). This
reduces economic growth and productivity.
• Too Many Informal Jobs: 92% of workers in India are in the informal sector. These jobs have low pay, no job
security, and very few opportunities for growth.

Steps to be taken for utilization of Demographic Dividend

• Improve People’s Skills: Invest in good education, healthcare, and training to create a strong workforce.
Follow NEP 2020 properly.
• Better Skill Training: Expand NSDC programs to teach AI, green energy, and digital business skills.
• More Investment in Education: Spend 6% of GDP on education and make digital learning available to
everyone.
• Better Health & Nutrition: Increase spending on public healthcare to 2.5% of GDP and strengthen programs
like Ayushman Bharat and POSHAN Abhiyaan.
• Create More Jobs: Focus on industries like MSMEs (small businesses), simplify labor laws, and make it easier
to do business.
• Encourage Women to Work: Make better policies for women, offer flexible jobs, and ensure safe workplaces.
• Use New Technologies: Invest in research & development (R&D) in fields like quantum computing,
biotechnology, and renewable energy.
• Balance Jobs in Different States: Work together between states to match job needs and create a regional
workforce plan.
• Create a Special Task Force: Set up a team under the Prime Minister to make sure India's young workforce is
used well for national growth.
• Support Small Businesses & Startups: Help new businesses and small companies by giving them easier
access to money and business education programs.

Demographic Dividend and Bihar

Bihar, a state in eastern India, possesses a significant demographic advantage due to its youthful population.
Fertility Rate :- Bihar has the highest fertility rate among Indian states, with an average of 3.8 children per
woman, compared to the national rate of 2.0.
Economic Indicators :- Despite accounting for 9% of India's population, Bihar contributes less than 2.8% to the
nation's GDP. This disparity highlights the need for effective strategies to harness its demographic dividend.
❖ Challenges:
• Bihar has struggled to fully capitalize on its demographic potential. Factors such as inadequate
infrastructure, limited industrialization, and high unemployment have impeded progress.
• Low literacy rates :- Bihar has one of the lowest literacy rates in India, which hinders the potential of
its young workforce.
• Poor infrastructure :- Inadequate infrastructure, including transportation and healthcare facilities, can
limit employment opportunities and economic development.

❑ ❑ ❑

Food security and related issues

Food security, as defined by the United Nations’ Committee on World Food Security, ensures that all individuals,
at all times, have physical, social, and economic access to adequate, safe, and nutritious food that aligns with their
dietary needs and preferences for a healthy and active life.
Food security is built upon three key components:
• Food Availability: Food must be consistently available in sufficient quantities. This involves local
production, stock levels, and the ability to import food through trade or aid.
• Food Access: People should have the means to regularly obtain enough food through various channels
such as purchasing, home production, barter, gifts, borrowing, or food aid.
• Food Utilization: The food consumed should contribute to good nutrition. This includes factors such as
proper cooking, storage, hygiene, individual health, water and sanitation, as well as household feeding and
sharing practices.
Food security is crucial for a nation as it strengthens the agricultural sector, ensuring sustainable food
production. It helps control food prices, making essential food accessible to all. A stable food supply supports
economic growth and job creation, reducing poverty. It also enhances trade opportunities, boosting international
markets. Ensuring food security contributes to global stability and security, preventing conflicts over resources.
Additionally, access to sufficient, nutritious food leads to better health and a stronger healthcare system,
improving overall national well-being.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
43 BPSC MAINS NOTES (Economy)
Poverty reduction
By providing affordable and nutritious food, people can manage expenses better, reducing poverty levels and
improving overall quality of life.
• Improved nutrition:- Access to diverse and balanced food promotes better health outcomes, especially for
vulnerable groups like children and pregnant women.
• Economic stability:- A stable food supply can contribute to economic growth by ensuring a reliable source of
sustenance for the workforce and reducing food price volatility.
• Resilience to crises:- During natural disasters or economic downturns, food security helps mitigate the
impact by providing buffer stocks and distribution systems.
• Social stability:- Ensuring food availability for all can
contribute to social harmony and reduce social unrest.
• Boosting agriculture:- Government initiatives to achieve
food security often incentivize agricultural development,
promoting better farming practices and technology
adoption.
• Government legitimacy:- Effective food distribution
programs can enhance public trust in the government's
ability to address basic needs.
• Empowerment of women:- Programs focused on food
security can empower women by providing them with
greater access to nutritious food and economic
opportunities.
SDG 2
Sustainable Development Goal 2 (SDG 2): Zero Hunger aims to end hunger, achieve food security, improve
nutrition, and promote sustainable agriculture by 2030. It focuses on ensuring access to safe, nutritious, and
sufficient food for all, especially vulnerable populations. SDG 2 also emphasizes supporting small-scale farmers,
improving agricultural productivity, ensuring sustainable food production systems, and maintaining genetic
diversity in food production. Achieving this goal contributes to reducing malnutrition, enhancing rural
economies, and fostering environmental sustainability to build a hunger-free world.
Food Security in India
• Historical Concern (Bengal Famine, 1943):
→ The Bengal Famine of 1943, during British rule, resulted in the starvation deaths of 2 to 3 million people.
• Post-Independence Challenges (1950s-1960s):
→ India initially prioritized industrialization over agriculture.
→ Faced two successive droughts in the mid-1960s.
→ Heavy reliance on food aid from the U.S. exposed India’s food insecurity.
• Green Revolution (Late 1960s - Early 1970s):
→ Helped overcome productivity stagnation and significantly boosted food grain production.
→ Criticized for:
▪ Focus on only two cereals (wheat and rice).
▪ Regional concentration in the northwest and south, mainly benefiting rich farmers.

Concerns Regarding Food Security in India

• High Undernourished Population
→ India has the largest number of undernourished people globally, around 195 million.
• Child Malnutrition
→ Nearly 47 million children suffer from chronic undernutrition or stunting (4 out of 10 children).
• Low Agricultural Productivity
→ India’s cereal yield is 2,992 kg per hectare, significantly lower than 7,318.4 kg per hectare in North America
(World Bank data).
• Shifting Food Basket
→ Consumption patterns are moving away from cereals to high-value foods like fish, eggs, milk, and meat
due to rising incomes.
→ The demand for food from feed (livestock-related food production) is expected to rise rapidly.
• Undernutrition & Health Issues (WB Report)
→ 13.7% of India’s population is undernourished. (2021-23)
→ 57% of women (15-49 years) suffer from anemia. (2019-21)
→ 35.5% of children under five are stunted (too short for age). (2019-21)
→ 19.3% of children under five suffer from wasting (low weight for height). (2019-21)
• Global Food Security Rankings
→ The state of food security and nutrition in the world report (2024): Highlights countries based on
affordability, availability, quality, and safety.
→ Global Hunger Index (2024): India ranked 105 out of 127 countries, highlighting severe hunger concerns.

Food Management
Food management involves the efficient production, storage, distribution, and consumption of food to ensure food
security and reduce waste. It includes:
• Production – Sustainable farming to improve yield.
• Storage – Proper warehousing and preservation to prevent spoilage.
• Distribution – Efficient supply chains to ensure availability.
• Consumption – Promoting balanced diets and nutrition.
• Waste Management – Reducing food loss and encouraging recycling.
• Government Policies – Schemes like PDS, Mid-Day Meal, and NFSA to support food security.

Challenges to Food Security in India

Challenge Description
Climate Change Rising temperatures and erratic rainfall impact farming, livestock, fisheries, and
overall food production, leading to economic and social consequences.
Remote Area Access Tribal communities in difficult terrains face economic backwardness due to
subsistence farming and lack of connectivity.
Rural-to-Urban Unplanned urbanization leads to slums with poor sanitation, housing shortages, and
Migration increased food insecurity.
Overpopulation & High population growth, poverty, illiteracy, and gender inequality contribute to food
Poverty insecurity.
Inefficient PDS Inadequate food distribution through the Public Distribution System (PDS) leads to
exclusion of deserving beneficiaries.
BPL Exclusion Issues Arbitrary Below Poverty Line (BPL) identification criteria result in many deserving
households being left out.
Biofuels Impact Expansion of biofuel farming reduces land available for food crops.
Conflict & War Food supply disruptions occur due to conflicts, destruction of crops, and strategic
blockades.
Weak Nutrition Poor implementation of nutrition schemes reduces their impact on food security.
Programs
Policy & Coordination Lack of a unified food and nutrition policy and weak coordination between
Gaps ministries.
Corruption Diversion of grains to open markets, poor quality food in ration shops, and irregular
shop operations worsen food insecurity.

International Organizations Involved in Food Security

Organization Established Role
Food and Agriculture Organization 1945 UN agency focused on eliminating hunger, food
(FAO) insecurity, and malnutrition.
World Food Programme (WFP) 1961 Lead UN agency responding to food emergencies and
global hunger.
International Fund for Agricultural 1977 Works on rural poverty reduction through agriculture
Development (IFAD) and food security programs.
World Bank 1944 Provides funding and support for food security projects
worldwide.
United Nations Environment 1972 Addresses environmental factors affecting food security.
Programme (UNEP)

Right to Food
The Right to Food is a fundamental human right ensuring that every individual has access to sufficient, safe,
and nutritious food to live a healthy and active life. It is recognized under international law and various
national frameworks.
Key Aspects of the Right to Food
 International Recognition
• Enshrined in Article 25 of the Universal Declaration of Human Rights (1948).
• Recognized in Article 11 of the International Covenant on Economic, Social, and Cultural Rights
(ICESCR), 1966.
• Supported by organizations like FAO, WFP, and IFAD.
 India’s Approach
• National Food Security Act (NFSA), 2013 legally entitles two-thirds of India's population to subsidized
food grains.
• Implemented through PDS, Mid-Day Meal Scheme, and Anganwadi services.
• Supreme Court in PUCL vs. Union of India (2001) recognized the Right to Food as part of the Right to
Life under Article 21 of the Indian Constitution.
❑ ❑ ❑

Decentralized planning
Decentralized planning refers to the distribution of planning activities from the central level to sub-state
levels, including districts, sub-divisions, blocks, and villages. Introduced since the First Five-Year Plan, it aims to
promote grassroots participation in the planning process.
This approach focuses on planning from below, ensuring that district, sub-divisional, and block-level
planning effectively contribute to village-level development. By empowering local governance, decentralized
planning enhances efficiency, inclusivity, and community-driven development.
Post-Independence Era
❖ Historical Evolution of Decentralized Planning in India
Year/Period Key Event Significance
Recognized the importance of decentralized planning for rural
1951-56 First Five-Year Plan
development.
Community Development First major initiative to involve local participation in
1952
Programme development.
Balwant Rai Mehta Recommended a three-tier Panchayati Raj System (Village, Block,
1957
Committee District).
Panchayati Raj System Based on Balwant Rai Mehta Committee recommendations,
1959
Launched introduced grassroots governance.
Proposed a two-tier system (Zila Parishad & Mandal Panchayat)
1977 Ashok Mehta Committee
for stronger grassroots democracy.
Gave constitutional status to Panchayati Raj Institutions (PRIs) &
73rd & 74th Constitutional
1992 Urban Local Bodies (ULBs). Established District Planning
Amendments
Committees (DPCs) for decentralized planning.

❖ Decentralized planning is crucial for India due to its vast and diverse nature.
• Addressing Local Needs:- India's diverse geography, demographics, and socio-economic conditions mean
that "one-size-fits-all" national plans often fail to address specific local needs. Decentralized planning
allows for tailored solutions that consider regional variations.
• Enhancing Participation:-Decentralization empowers local communities to participate in decision-
making processes that directly affect their lives. This fosters a sense of ownership and accountability,
leading to more effective implementation of development programs.
• Improving Resource Allocation:- Local governments have a better understanding of their resources and
priorities. Decentralized planning enables them to allocate resources more efficiently and effectively.
• Boosting Efficiency and Accountability:-Bringing planning closer to the people increases transparency
and accountability. Local communities can monitor the implementation of projects and hold local
governments responsible for their actions.
• Promoting Inclusive Development:-Decentralized planning can help ensure that marginalized
communities are included in the development process. By giving them a voice, it can help address
inequalities and promote inclusive growth.
• Effective Utilization of Local Resources:-Local knowledge and local resources can be best utilized by
local planning. This allows for more sustainable and appropriate development.
• Strengthening Local Governance:-Decentralized planning strengthens local self-governance institutions,
such as Panchayati Raj Institutions, by giving them greater autonomy and responsibility.
In essence, decentralized planning aims to bring governance closer to the people, ensuring that development
efforts are more responsive, efficient, and equitable.

❖ Functional Factors Driving Decentralized Planning in India

1. Stronger Rural-Urban Linkages :- Enhances connectivity between villages and small towns through
better infrastructure, transport, marketing, and health facilities, tailored to local needs.
2. Realistic and Flexible Planning :- Aligns planning with local resources, manpower, and skills, ensuring
adaptability to changing conditions and effective implementation.
3. Agricultural & Allied Sector Growth :- Supports the development of agriculture, animal husbandry,
fisheries, forestry, and cottage industries, fostering rural economic growth.
4. Enhanced People's Participation :- Encourages community involvement in planning and execution,
leading to greater ownership and accountability.
5. Efficient Resource Utilization :- Minimizes wastage of funds and resources through active local
monitoring and effective project execution.
6. Trickle-Down Effect :- Drives poverty alleviation and employment generation, creating community
assets like roads, schools, and water tanks that uplift rural livelihoods.
7. Improved Social Services :- Strengthens healthcare, education, sanitation, and nutrition programs,
ensuring faster and sustainable service delivery.

❑ ❑ ❑

Steps to Increase Farmers' Income

Introduction
Agriculture is the backbone of India's economy, providing livelihoods to nearly 58% of the population. However,
farmers often struggle with low income due to various challenges such as small landholdings, unpredictable
weather, low productivity, and market fluctuations. The government has set a target to double farmers' income,
and multiple strategies have been suggested to achieve this goal. By adopting modern farming techniques,
improving market access, and ensuring better financial support, farmers can significantly increase their earnings.
The reasons behind the low income of farmers are complex and multifaceted, involving a combination of
economic, environmental, and social factors.
• Small and Fragmented Landholdings:- Many farmers, especially in countries like India, have very small
plots of land. This limits their ability to achieve economies of scale, making it difficult to invest in modern
equipment and technologies.
• Market Price Volatility:- Agricultural commodity prices can fluctuate significantly, leaving farmers
vulnerable to losses. Farmers often lack the bargaining power to secure fair prices for their produce.
• Lack of Access to Technology and Infrastructure:- Limited access to modern farming equipment, irrigation
facilities, and storage infrastructure can hinder productivity and increase post-harvest losses.
• Debt Burden:- Many farmers are burdened by debt, often due to high input costs and crop failures. This can
create a cycle of poverty.
• Climate Change and Weather Variability:- Increasingly unpredictable weather patterns, including droughts,
floods, and extreme temperatures, can significantly impact crop yields and farmer incomes.

❖ Improving Agricultural Productivity

 Use of High-Yield Seeds
• Adoption of high-yield variety (HYV) seeds increases crop production.
• Example: Use of hybrid wheat and rice varieties has increased yield in Punjab and Haryana.
 Efficient Use of Water Resources
• Drip irrigation and sprinkler irrigation reduce water wastage.
• Example: Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) promotes irrigation efficiency.
 Better Soil Health Management
• Regular soil testing helps in balanced use of fertilizers.
• Government scheme Soil Health Card helps farmers understand nutrient needs.
 Crop Diversification
• Shifting from traditional crops (wheat, rice) to high-value crops (fruits, vegetables, pulses, medicinal
plants) increases income.
• Example: Mango farming in Maharashtra and organic farming in Sikkim.

❖ Adopting Modern Technology in Farming

 Mechanization and Farm Equipment
• Use of tractors, harvesters, drones, and AI-based monitoring increases efficiency.
• Example: PM-KISAN Samman Nidhi scheme helps farmers buy modern equipment.
 Precision Farming
• Uses technology such as GPS, remote sensing, and IoT for optimized resource use.
• Example: Smart farming practices in Andhra Pradesh.
 Use of Artificial Intelligence & Drones
• AI helps in weather predictions, pest control, and market forecasting.
• Drones are used for pesticide spraying and monitoring crops.

❖ Strengthening Market Linkages & Supply Chain

 Direct Market Access
• Farmers should sell directly to consumers, eliminating middlemen.
• Example: E-NAM (Electronic National Agriculture Market) connects farmers to buyers online.

❖ Value Addition & Food Processing

 Food Processing Industries
• Processing raw produce into finished goods (e.g., tomato sauce from tomatoes) increases value.
• Example: Amul’s dairy model in Gujarat has transformed milk production.
 Agro-Based Industries
• Establishing small-scale agro-industries boosts rural employment.
• Example: Honey processing, jaggery making, and spice processing units.

❖ Improving Financial Support & Insurance

 Direct Benefit Transfers (DBT)
• Farmers receive direct cash transfers to support their income.
• Example: PM-KISAN (₹6,000 per year for small farmers).
 Crop Insurance Schemes
• Protects against crop loss due to floods, droughts, or pests.
• Example: Pradhan Mantri Fasal Bima Yojana (PMFBY).
 Easy Credit Access
• Providing low-interest loans and Kisan Credit Cards (KCC).
• Example: Interest subvention scheme on crop loans up to ₹3 lakh.

❖ Promoting Allied Activities for Additional Income

 Dairy Farming
• Cattle rearing and milk production provide stable income.
• Example: Amul cooperative supports thousands of dairy farmers.
 Poultry & Fisheries
• Poultry, fisheries, and goat farming have high profit potential.
• Government introduced Blue Revolution & Rashtriya Gokul Mission.
 Beekeeping & Organic Farming
• Beekeeping helps in honey production & pollination for better crops.
• Organic farming fetches higher prices in national and international markets.

❖ Government Policies & Initiatives

 Doubling Farmers' Income Mission
• Focuses on better production, storage, marketing, and financial support.
 Minimum Support Price (MSP) Assurance
• Government buys crops at guaranteed prices to protect farmers from price crashes.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
53 BPSC MAINS NOTES (Economy)
• Example: MSP for wheat in 2025-26 was ₹2425 per quintal.
 Rural Infrastructure Development
• Investment in roads, storage facilities, cold chains, and transport.
• Example: Gramin Agricultural Markets (GrAMs) for rural farmers.
Brief overview of the mentioned scheme
❖ Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
• Overview: Launched in 2019, PM-KISAN is a central sector scheme providing income support of ₹6,000 per
year to all landholding farmer families in India, disbursed in three equal installments of ₹2,000 each.
• Impact: The scheme aims to supplement farmers' financial needs for procuring inputs related to
agriculture and allied activities, as well as domestic needs. A study focusing on Uttar Pradesh indicated
that beneficiaries utilized the funds to purchase seeds, fertilizers, and other essential inputs, leading to
improved crop productivity and income stability.
❖ Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
• Overview: Initiated in 2015, PMKSY is a national mission aimed at improving farm productivity by
ensuring better utilization of water resources. The scheme focuses on expanding cultivable areas under
assured irrigation, improving on-farm water use efficiency, and adopting precision irrigation technologies.
• Impact: By promoting efficient water management practices, PMKSY has contributed to increased
agricultural productivity and sustainability. Farmers adopting micro-irrigation techniques under the
scheme have reported reduced water consumption and enhanced crop yields.
❖ Soil Health Card Scheme
• Overview: Launched in 2015, this scheme provides farmers with soil health cards containing crop-wise
recommendations for fertilizers and nutrients based on soil testing. The objective is to promote balanced
use of fertilizers and enhance soil fertility.
• Impact: Studies have shown that farmers who adopted the recommendations from the soil health cards
experienced improved soil fertility, leading to increased crop yields and reduced input costs. The scheme
has also raised awareness about the importance of soil testing among the farming community.
❖ Electronic National Agriculture Market (e-NAM)
• Overview: e-NAM is an online trading platform launched in 2016 to create a unified national market for
agricultural commodities. It aims to facilitate farmers, traders, and buyers with online trading in
commodities, providing better price discovery through transparent auction processes.
• Impact: The platform has enabled farmers to access a broader market base, reducing the dependency on
local mandis and intermediaries. This has led to better price realization for their produce and increased
transparency in the trading process.
❖ Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Overview: Introduced in 2016, PMFBY is a crop insurance scheme providing comprehensive coverage
against crop failure due to natural calamities, pests, and diseases. It aims to stabilize farmers' incomes and
encourage them to adopt innovative practices.
• Impact: The scheme has provided a safety net for farmers, enabling them to recover from crop losses
without falling into debt. It has also encouraged the adoption of modern agricultural practices by
mitigating the financial risks associated with farming.
❖ Blue Revolution
• Overview: The Blue Revolution scheme focuses on enhancing fish production and productivity in India. It
aims to increase fish production from 95.79 lakh tons in 2013-14 to 175 lakh tons by 2022-23 through various
interventions.

❖ Gramin Agricultural Markets (GrAMs)

• Overview: GrAMs are rural haats (markets) upgraded to function as aggregation and auctioning platforms
for farmers. The initiative aims to enhance farmers' access to markets and enable them to sell their
produce at better prices.
• Impact: The development of GrAMs has improved market infrastructure in rural areas, providing farmers
with better access to buyers and fair price discovery mechanisms. This has reduced post-harvest losses
and increased farmers' income.
Increasing farmers' income is not just about growing more crops but about adopting modern techniques,
better market access, financial security, and diversification. With government support, technology, and proper
planning, Indian farmers can achieve higher earnings and improve their quality of life. Sustainable growth in
agriculture will strengthen the rural economy and ensure food security for the nation.
❑ ❑ ❑

Rural Economy as a Growth Strategy

The rural economy is critical to the economic and social development of India. Comprising a majority of the
population and contributing significantly to agricultural production, rural India holds vast potential to drive
economic growth and improve living standards. By focusing on key sectors such as agriculture, rural industries,
infrastructure, and education, India can create a growth strategy that empowers its rural population, alleviates
poverty, and boosts national GDP.
Key Aspects of Rural Economy as a Growth Strategy
(A) Agriculture: Backbone of Rural Economy
• Contribution to GDP: Agriculture remains the primary source of livelihood for about 60% of the Indian
population and contributes 17-18% to the national GDP.
• Focus Areas:
→ Agricultural Diversification: Promoting non-food crops like fruits, vegetables, floriculture, and
organic farming.
→ Sustainable Practices: Use of water-efficient irrigation techniques (e.g., drip irrigation), organic
farming, and pest-resistant crop varieties.
→ Technology Integration: Precision farming, soil health management, and farm mechanization.

Government Schemes & Initiatives for Rural Growth

(A) Pradhan Mantri Awas Yojana (PMAY)
• Objective: Provide affordable housing to rural households.
• Impact: By ensuring shelter to marginalized sections, PMAY enhances the rural standard of living and
supports economic activities by providing secure housing.
(B) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
• Objective: To provide 100 days of wage employment per year to rural households.
• Impact: MGNREGA has been a significant poverty alleviation program, creating infrastructure in rural
areas while providing employment to the rural poor.
(C) National Rural Livelihood Mission (NRLM)
• Objective: Empower rural women by improving access to financial services and enhancing their decision-
making power.
• Impact: It has empowered millions of women, especially in rural areas, by promoting self-help groups
(SHGs) and improving their economic participation.
(D) Skill Development Initiatives
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Aims to provide training to youth, enhancing
employability and bridging skill gaps.
• Impact: By equipping the rural youth with marketable skills, this scheme fosters entrepreneurship and
increases income levels.
(E) Digital India Campaign
• Objective: Provide internet access and digital services to rural India.
• Impact: Increased access to e-governance, e-education, and digital financial services.
Note:- Total amount allocated for the demand in the Budget Estimate (BE) for 2025-26 for comprehensive rural
development under scheme such as MGNREGA and PMAY (Gramin etc) is ₹1,88,754.53 Cr.
Impact of Rural Economy Development
1. Poverty Alleviation: Rural economic growth helps reduce poverty by creating job opportunities, improving
income levels, and enhancing access to social welfare programs.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
56 BPSC MAINS NOTES (Economy)
2. Educational Upliftment: Improved access to education and vocational training increases literacy and skill
levels, leading to higher employment opportunities and breaking the cycle of poverty.
3. Gender Empowerment: Economic initiatives, particularly targeting women through SHGs and rural
enterprises, ensure gender equity and reduce gender-based discrimination.
4. Health and Well-being: Better infrastructure, healthcare services, and sanitation facilities improve the
quality of life in rural areas.
5. Environmental Sustainability: Adoption of sustainable farming practices reduces environmental
degradation, promoting long-term agricultural productivity.
Causes of Challenges in Rural Economy
1. Poor Infrastructure: Inadequate roads, power supply, and internet connectivity limit economic activity.
2. Low Agricultural Productivity: Limited access to technology, low mechanization, and over-dependence on
traditional farming practices hinder growth.
3. Rural-Urban Migration: The migration of skilled labor from rural to urban areas for better job opportunities
often results in a drain of talent and worsens poverty in rural areas.
4. Access to Finance: Limited access to affordable credit and financial services hampers the growth of rural
businesses and agriculture.
5. Climate Change: Increasingly erratic weather patterns, droughts, and floods damage crops, reducing
agricultural productivity.
Solutions to Rural Economic Challenges
1. Infrastructure Investment: The government should invest in rural roads, bridges, and digital connectivity,
ensuring greater accessibility and trade.
2. Agricultural Reforms: Introducing crop insurance, advanced irrigation systems, soil management practices,
and agricultural diversification.
3. Financial Inclusion: Strengthen access to formal credit through schemes like Pradhan Mantri Jan Dhan
Yojana (PMJDY), microfinance institutions, and digital banking.
4. Technology Integration: Promote the use of AI, IoT (Internet of Things), and blockchain for smart farming
and rural entrepreneurship.
5. Sustainable Practices: Encourage organic farming, water-efficient irrigation, and green energy in rural
sectors.
Latest Trends in Rural Economy
1. Digital Transformation: Growing use of mobile phones and the internet for agriculture, e-commerce, digital
banking, and education.
2. Agri-Tech Startups: Emerging innovations in agritech, like AgriBazaar and CropIn, which are providing
solutions for smart farming and market access.
3. Rural Tourism: The rise in rural and eco-tourism offers a sustainable income source, creating jobs and
preserving cultural heritage.
4. Solar Energy: With increasing concerns about energy access, solar-powered energy solutions are gaining
ground in rural households and farms.
AI Approach to Address Rural Economic Challenges
 AI in Agriculture:
• Precision Farming: AI can optimize farming processes by predicting the best planting and harvesting
times, reducing water usage, and identifying pests and diseases.

The Road Ahead for Rural Economic Growth

The rural economy is a fundamental pillar for India's overall development. By focusing on agriculture, rural
industries, infrastructure, education, and technology, India can realize its full economic potential. Despite
challenges like poor infrastructure, low productivity, and limited access to finance, the government has
introduced various schemes like MGNREGA, PMAY, and PMKVY to empower rural communities. The adoption of
emerging technologies, including AI and digital platforms, offers transformative solutions for rural development.
Looking ahead, integrating rural India into the broader economy through targeted policies, improved
infrastructure, and skill development can propel it to new heights of growth, leading to poverty alleviation, gender
equality, and environmental sustainability.

❑ ❑ ❑

Strengthening and Modernizing the

Safety Net of MGNREGA
Introduction: Understanding MGNREGA
• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), implemented in
2006, stands as one of India’s most significant social security programs aimed at alleviating rural poverty
and fostering employment.
• This demand-driven initiative guarantees 100 days of wage employment annually to rural households.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
58 BPSC MAINS NOTES (Economy)
• The core principle of MGNREGA is simple yet impactful: employment is a legal right for rural families. If a
household requests work, the government is legally bound to provide it within 15 days, offering unskilled
manual labor in the form of local community projects.
MGNREGA has played a pivotal role in empowering rural populations, particularly during times of economic
distress. Its significance was notably underscored during the COVID-19 pandemic when it emerged as a key source
of livelihood for millions of rural families. However, despite its successes, several challenges persist, such as
delayed wage payments, inadequate funding, and unmet work demand, which have hindered the program’s full
potential.
To address these, the Indian government introduced the 2024 MGNREGA reforms. These reforms are designed to
enhance program efficiency, expand the scope of permissible works, improve transparency, and address long-
standing issues such as low wages and administrative delays.
MGNREGA: Challenges and the 2024 Reforms
“Key Insights from the Azim Premji University Survey (2021)”
In a survey conducted by Azim Premji University and various partners across four states—Bihar, Karnataka,
Madhya Pradesh, and Maharashtra—critical insights into MGNREGA’s functioning were gathered. The survey,
which covered 2,000 households, offered valuable data on the program’s performance during the unprecedented
challenges posed by the COVID-19 pandemic.
Key Findings:
• Job Card-Holding Households: 39% of households with job cards did not receive any work during the
financial year 2020-21, even though they sought 77 days of employment on average.
• Unmet Demand: Among households that did work, the unmet demand (i.e., the difference between the
requested and actual work days) averaged 64 days per household.
• Delayed Payments: A mere 36% of households received their wages within the mandated 15-day period,
highlighting a severe delay in wage disbursements.
• Impact on Income: MGNREGA played a critical role in compensating for income lost during the pandemic,
with wages compensating 20-80% of lost income for those who had worked both before and during COVID-19.
For households without pre-pandemic employment, the compensation reached between 20-100%.
• Wage Discrepancies: Despite low wages and delays, MGNREGA provided significant relief to vulnerable
households, acting as a crucial safety net.
• Funding Shortfalls: A conservative estimate of funding shortfalls during FY 2020-21 revealed that the
required labor budget was INR 474.27 crore, whereas only INR 152.68 crore was spent in the surveyed blocks—
highlighting a shortfall of over three times the allocated amount.
The Pandemic and MGNREGA's Role
During the COVID-19 lockdown, MGNREGA emerged as a lifeline for many rural families. Ashwini Kulkarni from
the NREGA Consortium emphasized the importance of MGNREGA in reducing rural vulnerability. More villages
and households than ever before accessed MGNREGA, providing them with much-needed employment during a
time of widespread economic distress.
Key Worker Recommendations:
• 80% of Households: More than 80% of households involved in the survey recommended that MGNREGA
should guarantee 100 days of work per person annually to better address the rural demand for employment.
Recommendations for Improving MGNREGA
In response to the challenges identified, the study outlined several key recommendations for enhancing the
program’s efficiency, reach, and impact:
1. Massive Expansion of the Programme:

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
59 BPSC MAINS NOTES (Economy)
• Increased Budget: Significantly increase the program’s budget to meet high work demands.
• Administrative Personnel: Double the number of administrative staff to ensure efficient and timely
implementation.
2. Expanded Scope of Work:
• Community Works: Expand permissible works to include community-driven projects, such as flood
protection, soil conservation, and environmental conservation.
• Project Diversification: Prioritize projects that cater to community needs and contribute to rural
development.
3. Technological Integration:
• Digital Tracking: Introduce computerized receipts for workers to track employment status.
• Job Card Printing: Equip local panchayats with the necessary technology to print job cards and wage
slips.
• Wage Transparency: Ensure that wage slips are issued promptly after funds transfer orders are
generated.
4. Wage Rate Reforms:
• Increase Wage Rates: Raise the daily wage to at least the state minimum wage or INR 375, as suggested by
the Anoop Satpathy Committee (2019).
5. Timely Compensation for Payment Delays:
• Ensure Compensation: Workers should be fully compensated for any delays in receiving their wages.
6. Enhanced Transparency and Social Audits:
• Social Audits: Strengthen the social audit process by allocating adequate funds and penalties for non-
compliance.
• Comprehensive Audits: Involve all relevant stakeholders, including payment intermediaries like banks
and UIDAI, in audits.
2024 MGNREGA Reforms: Key Features and Strategies
The 2024 MGNREGA reforms are an essential step in transforming rural employment and infrastructure
development. These reforms focus on improving the program’s efficiency, integrating technology, enhancing
transparency, and addressing the evolving needs of rural communities.
1. Legal and Policy Changes
• Strengthened Legal Guarantee: The reforms aim to strengthen the legal guarantee of employment by
ensuring that work is provided within 15 days of a formal request. This guarantees prompt action from
the government in response to rural employment needs.
• Updated List of Permissible Works: The list of permissible works has been revised to include more
community-centric projects like flood protection and soil conservation, catering to local needs.
2. Implementation Strategies
• Digital Platform: A new digital platform will be launched to streamline the work request process, reduce
delays, and increase transparency.
• Local Bodies Involvement: Greater emphasis will be placed on involving local bodies in the identification
and execution of projects that meet community-specific needs.
3. Wage and Payment Reforms
• Wage Inflation Addressed: Wage rates will be enhanced to ensure that workers maintain their
purchasing power in the face of rising costs of living.

Patna Boring Road Chauraha Centre Mob. 9031053260 | Patna Rajiv Nagar Centre Mob. 8252405793 | Patna Dinkar Galamber Centre Mob. 7322004164 |
Patna Musallahpur Hat Mob. 7250740458 | Gaya Center Mob. 8252507118 | Purnia Centre Mob. 8092086324 | Bihar Sharif Centre Mob. 7004382832 | Ara
Center Mob. 7255092722 | Muzaffarpur Centre Mob. 7707093072 | Siwan Center Mob. 7739620596 | Motihari Centre Mob. 9430052874 | Sasaram Centre
Mob. 8084994876 | Bhagalpur Centre Mob. 9431690496 | Delhi Mukherjee Nagar Centre Mob. 8603855800 | Delhi Karol Bagh Centre Mob. 9870288703
60 BPSC MAINS NOTES (Economy)
• Digital Payments: The introduction of digital payment systems will help eliminate delays in wage
transfers, ensuring that workers receive their wages promptly.
4. Training and Skill Development
• Skill Development Initiatives: The reforms focus on promoting skill development programs for rural
workers, enhancing their employability, and providing new opportunities within MGNREGA projects.
Financial Implications of the Reforms
The 2024 reforms come at a critical time when MGNREGA’s funding needs are more significant than ever. The
financial landscape surrounding MGNREGA requires careful planning to ensure the program’s sustainability.
1. Budget Allocation:
• 2025-26 Budget: Rs 86,000 crore has been allocated for MGNREGA, same as Rs. 86,000 crores in 2024-25.
2. Cost-Benefit Analysis:
• Direct Benefits: MGNREGA directly creates jobs and provides income support to millions of rural
households.
• Indirect Benefits: Long-term improvements in rural infrastructure, such as roads, canals, and schools,
will contribute to broader rural development and agricultural productivity.
3. Financial Accountability Measures:
• Regular Audits: Financial and social audits will be conducted regularly to ensure proper fund utilization
and prevent misuse.
• Transparency: Enhanced transparency measures will help identify discrepancies and ensure the integrity
of the program.
Technological Integration in MGNREGA Reforms
Technology plays a crucial role in modernizing MGNREGA and ensuring its smooth implementation. The
integration of digital tools will streamline operations, improve transparency, and empower workers.
1. Digital Payment Systems: The shift to digital payments will ensure direct transfers to workers, eliminating
the risks of leakages and corruption.
2. AI and Data Analytics: Advanced data analytics will be used to optimize resource allocation, predict work
demand, and monitor project progress in real-time.
3. Mobile and Web Platforms: Mobile and web platforms will empower workers by providing them with easy
access to job registration, payment status, and grievance redressal systems.
Social and Economic Benefits of MGNREGA Reforms
1. Poverty Alleviation: By guaranteeing employment for 100 days annually, MGNREGA provides a steady
income for rural households, helping them meet their basic needs such as food, healthcare, and education.
2. Community Development: MGNREGA has created essential infrastructure in rural areas, including roads,
irrigation systems, and schools, contributing to community welfare.
3. Sustainable Livelihoods: Projects focused on natural resource management, such as water conservation and
afforestation, not only generate employment but also promote environmental sustainability.
Challenges in Implementing MGNREGA Reforms
Despite the positive strides made, several challenges remain in implementing the reforms effectively:
1. Administrative Hurdles: Bureaucratic delays and insufficiently trained staff at the local level can hinder
the timely execution of projects.

❑ ❑ ❑

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70 BPSC Mains Notes: English Medium

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70 BPSC Mains Notes

Goals of Economic Planning in India

Successes of Economic Planning in India

Criticism of Economic Planning in India

Key strategies to improve economic planning efficiency:

NITI Aayog and Finance Commission

Limitations and Concerns of NITI Aayog

Impact of liberalization ,privatization and

Liberalization and its impacts

Unemployment and skill

Types of Unemployment in India

Technological Job displacement due to Rise of automation in banking and self-checkout

Causes of Unemployment in India and Bihar

Government Policies to Address Unemployment in India

Key Causes of Skill Shortage in India

Youth and Women Employment and

Youth Employment in India

Youth employment status in India

Challenges Young People Face in Finding Jobs

Women's employment in India

Key points about women employment in India:

Effects of Changes in Work Patterns

Challenges Faced by Women in Employment

Ways to Solve Problems Faced by Women at Work

Government initiatives associated with women employment

Periodic Labour Force Survey

Key Findings from the Periodic Labour Force Survey

AI and the challenge of long-term

Care Economy and Employment Generation

Challenges of the Care Economy

The Care Economy in India: A Historical Perspective

Improving Multi-Dimensional Poverty and

Understanding Multi-Dimensional Poverty:

Poverty Issues in India:

Poverty Issues in Bihar:

Multidimensional Impact of Poverty

Government Measures and Schemes to Address

Poverty related issues in India

❖ Improvement in multidimensional poverty in India

❖ Steps taken by Indian Government for reducing poverty:

Demographic dividend , population

India’s Demographic Status

Steps to be taken for utilization of Demographic Dividend

Demographic Dividend and Bihar

Food security and related issues

Concerns Regarding Food Security in India

Challenges to Food Security in India

International Organizations Involved in Food Security

❖ Functional Factors Driving Decentralized Planning in India

Steps to Increase Farmers' Income

❖ Improving Agricultural Productivity

❖ Adopting Modern Technology in Farming

❖ Strengthening Market Linkages & Supply Chain

❖ Value Addition & Food Processing

❖ Improving Financial Support & Insurance

❖ Promoting Allied Activities for Additional Income

❖ Government Policies & Initiatives

❖ Gramin Agricultural Markets (GrAMs)

Rural Economy as a Growth Strategy

Government Schemes & Initiatives for Rural Growth

The Road Ahead for Rural Economic Growth

Strengthening and Modernizing the

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