Unit 3: Growth Development and Structural changes

Q. What do you mean by structural change? Discuss the structural changes in different phases of growth in India. 2022

Q. What are the characteristics of agrarian structure of India?

Q. Why land reforms needed in India? Explain various components of land reform in India?

Q. Discuss the effect of land reforms on farm size and agricultural productivity in India.

Q. What is poverty? What are its various causes? What are the various steps taken to alleviate poverty?      2022

Q. What is unemployment? What are its causes? Explain various measures taken by government to remove unemployment.     2022

Q. What is underemployment? Explain the major employment programmes in India.

Q. Write a brief note about the relationship between the growth of population and economic development in Indian context.        2022

Q. Do you think population of our country blocking the rode of economic development of our country. (How population growth adversely affects the economic development in India)

*********

Structural change refers to the transformation of an economy from one state to another, often involving shifts in the distribution of economic activity across different sectors of the economy. It can also involve changes in the technological makeup of an economy, such as the adoption of new technologies or the shift towards more capital-intensive production methods.

In the early stages of economic development, many countries experience structural change as they shift from being primarily agrarian societies to more industrialized ones. This process of structural transformation often involves a decline in the share of the population engaged in agriculture, and a corresponding increase in the share of the population working in industry and services.

In India, the process of structural change has occurred in several phases:

Phase 1: Pre-Independence (before 1947)

During this period, India’s economy was primarily agrarian, with the majority of the population engaged in agriculture and related activities. The country was largely isolated from the global economy, and there was little industrialization or technological development.

Phase 2: Early Post-Independence (1947-1991)

After independence, India’s government pursued a policy of import substitution industrialization, which involved the development of domestic industries to replace imports. This policy led to the growth of a number of heavy industries, such as steel, cement, and heavy machinery. However, this growth was largely concentrated in a few sectors, and there was little development in other areas of the economy. Additionally, the economy remained relatively closed to foreign investment and trade, which limited the country’s access to new technologies and markets.

Phase 3: Liberalization and Globalization (1991-present)

In 1991, India began a process of economic liberalization and globalization, which involved opening up the economy to foreign investment, trade, and technology. This process has led to the growth of a number of new industries, such as information technology and business process outsourcing, which have become important drivers of economic growth in India. The service sector has also grown significantly, and there has been a shift towards more capital-intensive production methods in a number of industries.

These structural changes have involved a shift from a primarily agrarian economy to a more diversified one, with a larger share of the population working in industry and services. There has also been a shift towards the adoption of new technologies and more capital-intensive production methods, which has helped to increase the competitiveness of the Indian economy on the global stage

Here are some characteristics of the agrarian structure of India:

1. High percentage of population dependent on agriculture: In India, a large proportion of the population is dependent on agriculture for their livelihoods. According to the latest Census of India, about 41% of the working population was engaged in agriculture.

2. Small and fragmented landholdings: In India, the majority of farmers operate small landholdings, with the average size of a farm being less than 2 hectares. This fragmentation of land can make it difficult for farmers to adopt modern technologies and techniques, which can limit productivity.

3. Poor infrastructure: In many parts of India, the infrastructure for agriculture, such as roads, irrigation systems, and storage facilities, is inadequate or in poor condition. This can make it difficult for farmers to access markets and transport their products.

4. Dependence on monsoon: India’s agriculture is largely dependent on the monsoon, as a significant proportion of the country’s agricultural land is irrigated through rainfall. Droughts or floods caused by the monsoon can have a significant impact on agricultural production.

5. High levels of poverty: Many farmers in India live in poverty, as low productivity and low prices for agricultural products can make it difficult for them to earn a decent income.

6. Limited access to credit: Many farmers in India have limited access to credit, which can make it difficult for them to invest in inputs such as seeds and fertilizers or to expand their operations.

7. Limited access to technology: Many farmers in India lack access to modern technologies and techniques, which can limit productivity and efficiency.

Land reforms refer to changes to the laws and policies governing land ownership and use, with the goal of improving the distribution and productivity of land.

Land reforms are needed in India to address issues of inequality in land ownership and access to land resources. In the past, the agrarian structure of India was characterized by large landholdings owned by a small number of landlords, with the majority of the population working as tenant farmers or labourers. This led to a situation where a small proportion of the population controlled a large share of the land, while the majority of the population had limited access to land resources.In India, land reforms were seen as necessary for a number of reasons:

1. To address inequality: Before land reform, a small number of landowners owned a large proportion of the land, while the majority of farmers were landless or had small, unproductive plots. Land reform aimed to redistribute land from large landowners to landless or small farmers, with the goal of reducing inequality.

2. To increase productivity: Many of the landholdings in India were small and fragmented, which made it difficult for farmers to adopt modern technologies and techniques. Land reform aimed to consolidate these small holdings into larger and more productive units.

3. To improve access to land: Land reform aimed to provide landless or small farmers with access to land, either through the redistribution of land or through the provision of land to those who did not have any.

4. To promote economic development: Land reform was seen as a way to promote economic development, as it aimed to increase the productivity of agriculture and provide landless or small farmers with a means of earning an income.

5. To address social issues: Land reform was also seen as a way to address social issues, such as the caste system, which often determined an individual’s access to land. Land reform aimed to provide land to those who were traditionally excluded from land ownership due to their caste or social status.

To address this issue, the government of India has implemented a number of land reform measures, including:

1. Land ceiling laws: These laws set limits on the amount of land that an individual or family can own. The excess land being redistributed to landless farmers or used for public purposes.

2. Tenancy reform: These reforms aim to improve the rights of tenant farmers and labourers, including by providing them with greater security of tenure and protecting them from arbitrary evictions.

3. Land registration: These measures aim to improve the documentation and record-keeping of land ownership, with the goal of improving security of tenure and reducing disputes over land.

4. Land distribution: These measures aim to redistribute land from large landholders to landless farmers or those with small landholdings, with the goal of improving equity in land ownership.

5. Land consolidation: Land consolidation aimed to consolidate small, fragmented landholdings into larger, more productive units. This could be achieved through voluntary land pooling or through the use of eminent domain, in which the government could acquire land and redistribute it to farmers.

6. Credit and support for small farmers: Land reform also aimed to provide small farmers with access to credit and other forms of support, such as extension services and infrastructure, which could help them to improve their productivity and income.

7. Land use policies: Land use policies aimed to regulate the use of land in a way that was conducive to agricultural development. This could involve policies such as zoning regulations or land use planning, which aimed to ensure that land was used in a way that was efficient and sustainable.

Impact of Land reforms on agricultural productivity

Land reforms in India have had a number of effects on farm size and agricultural productivity:

1. Consolidation of landholdings: One of the main goals of land reform was to consolidate small, fragmented landholdings into larger, more productive units. This process of land consolidation resulted in an increase in the average size of farms in India.

2. Increase in productivity: The consolidation of landholdings and the adoption of modern technologies and techniques made it possible for farmers to increase their productivity and efficiency. This led to an overall increase in agricultural productivity in India.

3. Reduction in poverty: Land reform aimed to provide landless or small farmers with access to land, which could serve as a source of income and help to reduce poverty.

4. Increased access to credit: Land reform also aimed to provide small farmers with access to credit, which could help them to invest in inputs such as seeds and fertilizers and improve their productivity.

5. Improved security of tenure: Tenancy reform aimed to provide tenants with the right to purchase the land they were farming and to provide them with secure leases, which could help to improve their security of tenure and encourage them to invest in the land.

6. Increased access to extension services: Land reform also aimed to provide small farmers with access to extension services, which could help them to adopt modern technologies and techniques and improve their productivity.

7. Improved infrastructure: Land reform aimed to improve infrastructure in rural areas, such as roads, irrigation systems, and storage facilities, which could help farmers to access markets and transport their products.

8. Increased adoption of modern technologies and techniques: Land reform aimed to provide small farmers with access to modern technologies and techniques, such as improved seeds and fertilizers, which could help them to increase their productivity and efficiency.

Meaning of Unemployment

The population of any country consists of two components (i) Labour Force(ii) Non-Labour Force. Labour force means all persons who are working (i.e. being engaged in the economic activity) as well as those who are not working but are seeking or available for work at the current wage rate. It means the labour force consists of both employed and unemployed people.The component of population which is not a part of the labour force is Non-Labour Force. It includes all those who are not working and are neither seeking nor available for work.

Unemployment can be defined as a state of worklessness for a person who is fit and willing to work at the current wage rate. It is a condition of involuntary and not voluntary idleness. Simply stated an unemployed person is the one who is an active member of the labour force and is seeking work, but is unable to find the same.In case of voluntary unemployment, a person is out of job on his own accord or choice, doesn’t work on the prevalent or prescribed wages. Either he wants higher wages or doesn’t want to work at all. The involuntary unemployment on the other hand is the situation when a person is separated from remunerative work and devoid of wages although he is capable of earning his wages and is also anxious to earn them. It is the involuntary idleness that constitutes unemployment.

Types of Unemployment

Involuntary unemployment can be further divided into cyclical unemployment,seasonal unemployment, structural unemployment, frictional unemployment,natural rate of unemployment, disguised unemployment and under employment.

a) Cyclical Unemployment: Cyclical or demand deficient unemployment occurs when the economy is in need of low workforce. When there is an economy-wide decline in aggregate demand for goods and services, employment declines and unemployment correspondingly increases. Cyclical unemployment mainly occurs during recession or depression.This form of unemployment is most commonly known as cyclical unemployment since unemployment moves with the trade cycle. For instance, during the recent global slowdown in late 2008, many workers around the globe lost their jobs.

b) Seasonal Unemployment: This type of unemployment occurs in a particular time of the year or season and thus is known as seasonal unemployment. Seasonal unemployment is most common in industries like agriculture, tourism, hotel, catering etc.

c) Structural Unemployment: Structural unemployment arises when the qualification of a person is not sufficient to meet his job responsibilities. It arises due to long term change in the pattern of demand that changes the basic structure of the economy. The person is not able to learn new technologies used in the new expanding economic sectors and they thus may be rendered permanently unemployed. For instance, when computers were introduced, many workers were dislodged because of a mismatch between the existing skills of the workers and the requirement of the job.

d) Frictional Unemployment: Frictional unemployment occurs when a person is out of one job and is searching for another for different reasons such as seeking a better job, being fired from a current job, or having voluntarily quit a current job. It generally requires some time before a person can get the next job. During this time, he is frictionally unemployed.

e) Disguised Unemployment: The unemployment which is not visible is said to be disguised unemployment. It occurs when a person doesn’t contribute anything to the output even when visibly working. This happens amongst family labour especially in agriculture who are engaged on land but are not contributing to the given level of output. Thus their marginal productivity is zero.

f) Underemployment: When a person is engaged in the economic activity but that fail to provide him fully in accordance to his qualification and efforts. Thus it is a situation in which a person is employed but not in the desired capacity whether in terms of compensation,hours, or level of skill and experience. While not technically unemployed the underemployed often compete for available jobs.

Measurement of Unemployment

Unemployment rate is the percent of the labour force that is without work. It is calculated as below:

Unemployment rate = (Unemployed Workers/Total labour force) × 100

Measurement of unemployment is a difficult task. In India, the most comprehensive and reliable data on employment and unemployment are compiled by the National Sample Survey Organization (NSSO). Based on different reference period (a year,a week, and each day of a week), NSSO provides four different measures of employment and unemployment. The following are some methods of measuring unemployment:

(i) Usual Principal Status Unemployment (UPS): This is measured as the number of persons who remained unemployed for a major part of the year.The persons covered by the survey may be classified into those working and/or available for work in their principal activity, and those working and/or available for work in a subsidiary activity, that is, a sector other than their principal activity. Hence, within the usual status concept, the estimates are now derived on the usual principal status as well as the usual principal and subsidiary status basis. The usual status unemployment rate is a person rate and indicates chronic unemployment, because all those who are found usually unemployed in the reference year are counted as unemployed. This measure is more appropriate to those in search of regular employment, e.g., educated and skilled persons who may not accept casual work. This is also referred to as ‘open unemployment’.

(ii) Usual Principal and Subsidiary Status Unemployment (UPSS): Here person is considered unemployed, if besides UPS, those available but unable to find work on a subsidiary basis during a year.

(iii) Current Weekly Status Unemployment (CWS): This refers to the number of persons who did not find even an hour of work during the survey week.

(iv) Current Daily Status Unemployment (CDS): This refers to the number of persons who did not find work on a day, or on some days, during the survey week.

Causes of Unemployment in India

a) Slow Economic Growth: During the planning period the trend rate of growth was considerably lower than the targeted rate. Therefore, jobs in adequate number were not created. Further,economic growth by itself does not solve the problem of unemployment. In the recent past there has been deceleration in the growth of employment in spite of the accelerated economic growth. The sectoral composition of growth is also an important determinant of unemployment.Excessive dependence on agriculture and slow growth of non-farm activities limit employment generation.

b) Increase in Labour force: There are two important factors that have caused an increase in the labour force which are as follows:

(i) Rapid Population Growth: Rising population has led to the growth in the labour supply and without corresponding increase in the employment opportunities for the increasing labour force has aggravated the unemployment problem.

(ii) Social Factors: Since Independence, education among women has changed their attitude toward employment. Many of them now compete with men for jobs in the labour market. The economy has however failed to respond to these challenges and the net result is a continuous increase in unemployment backlogs.

c) Rural-Urban Migration: The unemployment in urban area is mainly the result of substantial rural migration to urban areas. Rural areas have failed to provide subsistence living in agriculture and allied activities and so large scale migration is taking place to cities. However,economic development in cities has failed to create enough additional jobs for the new urban entrants to the labour market. Thus only some of the migrants are absorbed in productive activities and the rest join the reserve army of unemployed workers.

d) Inappropriate Technology: In India, though capital is a scarce factor, labour is available in abundant quantity;yet producers are increasingly substituting capital for labour. This policy results in larger unemployment. Despite the abundance of labour, capital intensive technology is adopted in India mainly because of rigid labour laws. It is quite difficult to follow easy hire and fire policy and so right sizing of manpower is difficult for the enterprises. It is difficult to reduce the number of labour-Force. Further, the factors like labour-unrest and lack of work-culture leads to the increased inefficiency of labour and thus provide incentives to follow labour-saving technology by organizations.

e) Defective Educational System: The present educational system has theoretical bias and has limited utility for productive purposes. It lacks the emphasis on the development of aptitude and technical qualifications required for various types of work among job seekers. This has created a mismatch between the need and availability of relevant skills and training, which results in unemployment, especially of youth and educated while shortage of technical and specialized personnel continues.

f) Lack of Infrastructure Development: Lack of investment and infrastructure development limits the growth and productive capacity of different sectors which leads to inadequate generation of employment opportunities in the economy.

g) Lack of employability: India faces poor health and nutrition situation among masses which reduces the capacity of person to be employable and it causes unemployment.

Suggestions/Steps to be taken to control Unemployment problem:

Following are the suggestions to solve unemployment problem in our country:

a) Population control:The first solution for the unemployment is to control the rising population of our country. The growth of population should be checked in order to solve unemployment problem. Government must promote Family planning programme and if possible make hard and fast rule like china to control population.

b) Improvement in Quality of Indian education system:Educational pattern should be completely changed because current education system is not up to the level. Emphasis should be given on technical education. Syllabus must be designed according to the need of the industry. Qualified engineers should be promoted to start their own small units which can improve employ-ability of our country.

c) Change in industrial technique:Production technique should suit the needs and means of the country. It is essential that labour intensive technology should be encouraged in place of capital intensive technology.

d) Increase in Production: Government must take initiative to promote small and cottage industries because these industries are giving maximum employment in our country. To increase employment, it is essential to increase production in agriculture and industrial sectors which is only possible by the growth of small and cottage industries.

e) Development of Agriculture based industry to control migration: Government should promote agriculture based industry in rural areas so that the rural youth don’t migrate to the urban areas. It can reduce unemployment problem to a large extent.

f) Policy regarding seasonal unemployment:Seasonal unemployment is found in agriculture sector and agrobased industries. Adoption of multiple cropping and promotion of Plantations, horticulture, dairying and animal husbandry can help in reducing seasonal unemployment.

g) Promotion of Foreign investment: Government should promote foreign capitalist to open their units in India, so that more employment opportunities will be available to Indian youths. The Make in India concept of Indian Government is a big step in this direction.

h) More assistance to self-employed people: In our country, most of the people are self-employed. They are engaged in agriculture, trade, cottage and small scale industries, service sector, professions etc. Financial assistance should be given to these people so that they can expand their business or profession and give more jobs to the candidates.

i) Decentralisation of industrial activity: Decentralisation of Industrial activity is necessary to reduce unemployment. If industrial activities are centralised at one place, there will be less employment opportunities in the under developed areas. So Govt. should adopt such policies which encourage decentralisation of industrial activity.

j) Industries in co-operative sector:Industries in co-operative sector should be encouraged. This is a novel approach to fight against unemployment. Different State Govt. should take necessary steps in this direction. Government of Gujrat has promoted Amul, the biggest co-operative society of India which has given direct appointment to more than 1000 people.

Government schemes to Generate Employment

Employment generation coupled with improving employability in the country including rural areas and small towns is the priority of the Government. Multi-pronged strategies are being taken by the Government to address issues relating to employment opportunity through Centrally Sponsored Schemes:

1. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

2. Deendayal Antyoday Yojana- National Rural Livelihood Mission (DAY-NRLM),

3. Deendayal Upadhyay- Gramin Kaushalya Yojana (DDU-GKY),

4. Pradhan Mantri Gram Sadak Yojana (PMGSY),

5. Shyama Prasad Mukherjee RURban Mission, National Career Service (NCS) etc.

Further, the Government of India has taken various steps for generating employment in the country. The Government of India has announced Aatmanirbhar Bharat package to provide stimulus to business. This package comprises of various long term schemes/ programmes/policies for making the country self-reliant and to create employment opportunities.

The Government launched the Garib Kalyan Rojgar Abhiyaan (GKRA) of 125 days on 20th June, 2020 to boost employment and livelihood opportunities for returnee migrant workers and similarly affected persons including youth in rural areas, in 116 selected districts across 6 States of Bihar, Jharkhand, Madhya Pradesh,Odisha, Rajasthan and Uttar Pradesh.

Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme has been launched on June 01, 2020 to provide working capital loans to Street Vendors, vending in urban areas, to resume their businesses, which were impacted adversely due to COVID-19.

Pradhan Mantri Mudra Yojana (PMMY) is being implemented by the Government for facilitating self employment.Under PMMY, collateral free loans up to Rs. 10 lakh, are extended to micro/small business enterprises and to individuals to enable them to setup or expand their business activities.

PM Gati Shakti is a transformative approach for economic growth and sustainable development. The approach is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. This approach is powered by Clean Energy and Sabka Prayas leading to huge job and entrepreneurial opportunities for all.

The Government of India is encouraging various projects involving substantial investment and public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP) of the Ministry of Micro, Small & Medium Enterprises, Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission(DAY-NULM) of the Ministry of Housing & Urban Affairs etc. for employment generation.

Besides these initiatives, various flagship programmes of the Government such as Make in India,Digital India, Smart City Mission, Atal Mission for Rejuvenation and Urban Transformation, Housing for All,Infrastructure Development and Industrial Corridors are also oriented towards generating employment opportunities.

Meaning: Poverty is a state of economic disadvantage in which individuals or households have insufficient income or resources to meet their basic needs. This can include a lack of access to essential goods and services such as food, shelter, education, and healthcare. Poverty can have a number of negative impacts on individuals and communities, including poor health, limited access to education and other resources, and reduced economic opportunities. It can also be perpetuated over time, as poverty can make it difficult for individuals to escape the cycle of poverty and improve their circumstances. Poverty is often measured using income or consumption levels, with those living below a certain threshold considered to be in poverty.

Causes of Poverty: There are a number of causes of poverty, including:

1. Lack of education: Education is a key factor in determining an individual’s economic opportunities. Without access to education, individuals may not have the skills or knowledge required to secure well-paying jobs, leading to poverty.

2. Limited economic opportunities: In some areas, there may be a lack of economic opportunities, such as jobs or businesses, which can contribute to poverty.

3. Poor health: Poor health can prevent individuals from being able to work and earn an income, leading to poverty.

4. Lack of access to resources: In some cases, individuals may lack access to resources such as land, credit, or technology, which can limit their economic opportunities and lead to poverty.

5. Social and cultural factors: Poverty can also be perpetuated by social and cultural factors, such as discrimination and inequality, which can limit an individual’s access to education, employment, and other resources.

6. Natural disasters: Natural disasters such as floods, droughts, and earthquakes can destroy homes, crops, and infrastructure, leading to poverty.

7. Inflation: High levels of inflation, or a sustained increase in the general price level of goods and services, can erode the purchasing power of households, leading to poverty.

8. Unemployment: High levels of unemployment can lead to poverty, as individuals may not have access to a steady income.

9. Low productivity: Low productivity, or the inability to produce goods and services efficiently, can lead to poverty, as it may limit an individual’s ability to earn an income.

10. Political instability: Political instability, such as civil war or conflict, can disrupt economic activity and lead to poverty.

To alleviate poverty, the government of India has implemented a number of measures, including:

1. Providing access to education: The government has implemented programs such as the Right to Education Act, which aims to provide free and compulsory education to children aged 6-14.

2. Providing economic opportunities: The government has implemented programs such as the Mahatma Gandhi National Rural Employment Guarantee Act, which provides employment to rural households on public works projects, and the Pradhan Mantri Jan Dhan Yojana, which provides access to financial services such as bank accounts and insurance to the poor.

3. Providing access to healthcare: The government has implemented programs such as the National Health Mission, which aims to provide universal access to healthcare, and the Ayushman Bharat scheme, which provides health insurance to the poor.

4. Providing direct assistance: The government also provides direct assistance to the poor through programs such as the Public Distribution System, which provides subsidized food and other essential goods to the poor.

5. Providing access to credit: The government has implemented programs such as the Pradhan Mantri Mudra Yojana, which provides loans to small businesses and entrepreneurs, as well as the Pradhan Mantri Awas Yojana, which provides loans for affordable housing.

6. Providing access to technology: The government has implemented programs such as the Digital India initiative, which aims to increase access to the internet and digital technologies for all citizens.

7. Improving infrastructure: The government has implemented programs such as the Pradhan Mantri Gram Sadak Yojana, which aims to improve rural roads and connectivity, as well as the Swachh Bharat Abhiyan, which aims to improve sanitation facilities.

8. Providing social security: The government has implemented programs such as the National Pension Scheme, which provides a pension to the elderly, and the Pradhan Mantri Suraksha Bima Yojana, which provides insurance to the poor.

9. Reducing corruption: The government has implemented measures such as the Jan Dhan Yojana, which aims to improve transparency and accountability in financial transactions, in an effort to reduce corruption and improve the delivery of services to the poor.

10. Promoting economic growth: The government has implemented measures such as the Make in India initiative, which aims to encourage domestic manufacturing and increase economic growth, as well as the Start-up India initiative, which aims to promote entrepreneurship and innovation.

Here are some of the major poverty alleviation programs implemented in India:

1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): This flagship programme of the government aims at enhancing livelihood security of households in rural areas by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work with the stipulation of one-third participation of women.

2. Pradhan Mantri Jan Dhan Yojana (PMJDY): This program provides access to financial services such as bank accounts, insurance, and credit to the poor.

3. National Health Mission (NHM): This program aims to provide universal access to healthcare, including through the expansion of healthcare facilities and the provision of free medical care to the poor.

4. Ayushman Bharat Scheme: This program provides health insurance to the poor, covering hospitalization and other medical expenses.

5. Pradhan Mantri Mudra Yojana (PMMY): This program provides loans to small businesses and entrepreneurs, with a focus on those in the micro and small enterprise sectors.

6. Pradhan Mantri Awas Yojana (PMAY): This program provides loans for affordable housing, with a focus on the urban poor.

7. Digital India Initiative: This program aims to increase access to the internet and digital technologies for all citizens, including through the expansion of broadband connectivity and the development of e-governance services.

8. Pradhan Mantri Gram Sadak Yojana (PMGSY): This program aims to improve rural roads and connectivity, with a focus on connecting villages to major markets and transportation hubs.

9. National Rural Livelihood Mission (NRLM): The Swarnjayanti Gram Swarozgar Yojana (SGSY)/ NRLM a self-employment programme implemented since April 1999 aims at lifting the assisted rural poor families (swarozgaris) above the poverty line by providing them income-generating assets through a mix of bank credit and government subsidy. The rural poors are organized into self-help groups (SHGs) and their capacities are built through training and skill development.

10. Swarna Jayanti Shahari Rozgar Yojana (SJSRY): The SJSRY launched on 1 December 1997 aims at providing gainful employment to the urban unemployed and underemployed, by encouraging them to set up self-employment ventures or creating wage employment opportunities.

In India, the relationship between population growth and economic development is complex and multifaceted. On the one hand, a growing population can be a source of economic growth, as it can increase the size of the labour force and the consumer base, which can drive demand for goods and services and stimulate economic activity. On the other hand, rapid population growth can also present challenges for economic development. For example, if the rate of population growth outstrips the rate of economic growth, it can lead to increased pressure on resources such as land, water, and food, which can hinder development. Additionally, if the population grows faster than the government’s ability to provide basic services such as healthcare, education, and infrastructure, it can lead to social and economic instability. Overall, it is important for India to carefully balance the potential benefits and challenges of population growth in order to foster sustainable economic development.

High growth of population has both positive and negative impact on economic development.

Some of the positive impact of high growth of population are:

1. Increased demand for goods and services: A growing population can lead to increased demand for goods and services, which can create more opportunities for businesses to sell their products and grow.

2. Increased labour supply: A larger population can also provide a larger pool of labour, which can be beneficial for businesses and the economy as a whole.

3. Improved standard of living: Due to high growth of economy, the standard of living for citizens will also be improved. High standard of living leads to increased consumer spending, which can drive economic growth.

4. Increased innovation: A growing population can also lead to increased innovation and productivity, as there are more people working and generating ideas.

5. Increased exports: As a country’s economy grows, it may also have the opportunity to increase its exports, which can bring in additional income and boost economic development.

6. Increased tax revenue: A growing population can also lead to increased tax revenue for the government, which can be used to fund public services and invest in economic development initiatives.

7. Increased foreign investment: As a country’s population and economy grow, it may also become more attractive to foreign investors, which can bring in additional capital and help drive economic development.

8. Increased tourism: A growing population can also lead to increased tourism, as more people become interested in visiting the country and spending money on travel and related services. This can provide a boost to the tourism sector.

9. Increased technological development: As a country’s population grows and its economy develops, it may also experience advances in technology and infrastructure, which can improve efficiency and productivity and drive economic growth.

10. Increased domestic investment: As a country’s population and economy grow, businesses and individuals may have more disposable income to invest in the domestic economy, which can help to drive economic development.

Adverse impact: There are several ways in which a rapidly growing population can adversely affect economic development in India:

1. Limited resources: A larger population means there are more people to feed, clothe, and provide housing for, which can put a strain on the country’s natural resources and limit economic growth.

2. Unemployment: Rapid population growth can lead to higher unemployment rates, as there are not enough jobs to go around. This can lead to social and economic instability.

3. Inflation: A growing population can also lead to higher prices for goods and services, as there is more demand for them. This can lead to higher inflation, which can erode people’s purchasing power and hinder economic development.

4. Poor infrastructure: A rapidly growing population can also put a strain on a country’s infrastructure, such as roads, schools, and hospitals, making it difficult to provide basic services.

5. Environmental degradation: A larger population can also contribute to environmental degradation, as there is more demand for resources such as water, land, and energy, which can lead to pollution and other environmental problems. This can have negative effects on economic development.

6. Education: Rapid population growth can lead to overcrowding in schools, which can negatively impact the quality of education. This can limit the number of skilled and educated workers available to the economy, hindering its development.

7. Healthcare: A growing population can also put a strain on a country’s healthcare system, making it difficult to provide adequate medical care to all citizens. This can have negative consequences for public health and overall economic development.

8. Income inequality: Rapid population growth can contribute to income inequality, as there may not be enough jobs and resources to go around. This can lead to social and economic instability, which can hinder economic development.

9. Government spending: A growing population can also require the government to spend more on social services such as education and healthcare, which can limit the resources available for other economic development initiatives.

10. Limited access to credit: A rapidly growing population can also lead to higher demand for credit, which can make it harder for individuals and businesses to access the financing they need to invest in their ventures and grow the economy.

 ***