Skilling India

Mains Practice Question

India needs to focus on skilling to reap demographic dividend and pursue high GDP growth. What do you think are the challenges
faced by India in skilling young people? Also, suggest strategies to address these challenges. (15 Marks)
 Need for Skilling
• Reap Demographic Dividend to create more jobs.
• Shift Workers from Agriculture to Manufacturing and reduce disguised employment in Agriculture
• Boost Manufacturing Sector and address “Pre-mature De-Industrialisation”
• Prevent Middle Income by increasing Labour Productivity
• Promote Inclusive growth by shifting workers from Informal sector to Formal sector.
Initiatives
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): (a) Short-term Training at training centers (b) Recognition of Prior learning
Pradhan Mantri Kaushal Kendras: Establish state-of-art Model District training centres in every district of India.
National Skill Development Corporation: Financing of schemes -Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Pradhan Mantri Kaushal Kendra (PMKK)
National Skill Development Agency: Evaluate existing schemes to improve their efficacy and suggest improvements.
Udaan: Special skill development scheme for Youths in Jammu and Kashmir. Financed by Ministry of Home affairs.
Apprentices Act of 1961: Facilitate On the-job training.
PM Vishwakarma Scheme to provide end-to-end holistic support to traditional artisans and craftspeople.
Challenges Strategies needed
Only 4% of India’s workforce is formally trained as against 47% (China) and 96% (Korea) Encouraging people to opt for Skills Training
Lower demand among the people to get skilled due to the negative perception about • Awareness campaigns at the school level
vocational education and dominance of the informal sector • Integration of Vocal Education with School/College Education Ex: Maharashtra
Problems related to Quantity: India’s training capacity comprising of Educational Institutions, • Flexible Modes of Study such as Part-time learning modules to encourage people to get
ITIs, polytechnic colleges etc. is around 8 million. However, India needs to train 12 million skilled without any loss of livelihood.
people every year. Addressing the Gap in Training Infrastructure:
Problems related to Quality of Training • Leverage existing school and college infrastructure after school hours for Training.
• Lack of collaboration between Industry and Training Institutes • Encourage setting up of ATIs and Multi-skill Institutes Ex: Reliance Foundation Skill
• Lack of Training in line with Industry Demands Development Institutes (RFSI) , Bosch India adopted 25 ITIs
• Outdated Training Curriculum • Movable Training Institutes Ex: Rajasthan's Mobile Training Vans.
• Poor placements • Setting up of dedicated Vocational Training schools and Colleges Ex: Tata
• Low salaries Improving Training Outcomes
Poor uptake of Vocational Education due to lack of integration of Vocational Education with • Strengthen Labour Market Information System (LMIS) to address the demand-supply gap
School/ College Education and poor perception. • Design the Training Curriculum after consultation with Sector Skills council.
Limited involvement of private sector in estimation of future skill requirements, designing of • Identification of state-specific skill requirements for better placements
curriculum, providing mentorship support to training institutes. Ex: Infosys in Karnataka • Performance based ranking system to rank the training institutes and the trainers.
Low employability of graduates as only 51% of graduates are employable (India Skills Report, Addressing Problem of Unemployability of Graduates
2024) • Replicate Germany's dual model wherein students can attend colleges to get theoretical
Limited Success of Apprenticeship programs as India has only around 3 lakh apprentices knowledge along with apprenticeship in Industries to get practical learning experience.
compared to labour force of 500 million people. • Imparting computer literacy and soft skills
 Inclusive Growth: Analysis of the Previous Year Mains Questions
Previous Year Questions Important Dimensions
Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into • Inclusive growth: Meaning,
monetized economy through women empowerment? (Mains 2023, 15 Marks) Elements, Achievements,
Challenges and Strategies
Is inclusive growth possible under market economy ? State the significance of financial inclusion in
• Debate about Exclusive Growth
achieving economic growth in India . (Mains 2022, 10 Marks)
• Inequality in India
Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth • GDP Vs Inequality
and sustainable development. (Mains 2020, 10 Marks) • Gender Dividend
• SHG Model
It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and • MPI
sustainability together. Comment on this statement. (Mains 2019, 15 Marks) • New Welfarism
• Silver Economy
“Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable
• Energy Poverty
Development Goals (SDGs)”.Comment on the progress made in India in this regard (Mains 2018, 10 Marks)
• Structural Transformation in
What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Rural India
Analyze and suggest measures for inclusive growth. (Mains 2017, 15 Marks)
Comment on the challenges for inclusive growth which include careless and useless manpower in the
Indian context. Suggest measures to be taken for facing these challenges. (Mains 2016, 12.5 Marks)
Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages short-
sightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to
believe and adopt capitalism for bringing inclusive growth in India? Discuss.(Mains 2014, 12.5 Marks)
The measure of success should be the pattern of economic growth, which matters to citizens more than
the amount of growth. Elucidate. (Mains 2013, 12.5 Marks)
 Important Dimensions of Inclusive Growth for Mains 2024

Inclusive Growth
Meaning
Welfare Vs Inclusive Growth
Why Inclusive Growth?
Challenges & Strategies Inequality in India
Why Inequality matters?
New Welfare Approach (Eco
Survey 2023-24)
Relationship between
Inequality and GDP
Pillars of New Welfare
Approach
Strategies needed
Has New Welfare approach
paid off?
Inclusive Growth
Poverty in India
Balanced Regional
Development MPI: Why is it a right
Indicator to measure
Structural Transformation Poverty?
in Rural India and Strategies Vulnerable Sections
needed Women-led Development India’s Progress in MPI

SHG Model: Critical

Analysis

Senior Citizens: Silver

Economy
 Practice Questions Important Dimensions
What do you mean by Inclusive growth? How is it different from welfare approach? Also, examine the Inclusive Growth: Meaning, Reasons
reasons for lack of inclusive growth in India. (15 Marks) of lack of Inclusive Growth

Do you agree with the view that India is facing Exclusive growth? Give arguments in support of your Exclusive Growth: Arguments in
answer. (15 Marks) Favour and Against

Reducing Income Inequality is a key to promote higher GDP Growth rate. Explain the statement. Also, Relationship between Inequality &
highlight the strategies must be adopted to reduce income Inequality (15 marks) GDP; Strategies to reduce inequality

Discuss nature of relationship between GDP and Inequality. Given its stage of Development, India must Growth or Inequality: Conflict Vs
focus on expanding the size of the pie. Discuss (10 Marks) Convergence

India is transitioning from women’s development to women-led development. Evaluate India’s progress Gender Dividend in India
in this direction. (10 Marks)
Critically evaluate the role of SHGs in promoting women-led development. (10 Marks) Critical Evaluation of SHG Model

What do you mean by the term “Silver Economy”. Discuss various strategies to be adopted by India to promote
Silver Economy in India
silver economy. (10 Marks)
Discuss as to why Multidimensional Poverty Index (MPI) is a better indicator to measure poverty in Poverty Eradication and MPI
India. Also, highlight India’s progress in eradicating Multidimensional poverty. (10 Marks)
Establish relationship between Energy Poverty and Human Development. Enumerate initiatives taken by Energy Poverty
Government to reduce Energy Poverty in India (10 Marks)
What are the pillars of “New welfare” approach followed by the Government in enhancing effectiveness of
New Welfare Approach
Poverty alleviation schemes? Has the new approach to welfare paid off?
Critically analyse the structural transformation undergoing in Rural India. What steps should be taken to Rural Development
address these challenges.
 Important Factsheet for Inclusive Growth (Important for GS Paper-1, Paper-2 & Essay as well)
Inequality in India World Inequality Lab: Top 1% of the country account for 23% of income and 40% of the wealth. In terms of income distribution, India is most unequal
country. Number of billionaires has increased from 1 in 1991 to 162 in 2022
Gender Inequality: Lower ranking in Gender Inequality Index (108th); Disparity between Male LFLR (78%) and Female LFPR (37%)
India’s progress in Poverty • Multidimensional poverty has reduced from 29% ( 2013-14) to 11% (2022-23). Around 24.82 crore people have escaped poverty during this period
Eradication • Fastest reduction Uttar Pradesh followed by Bihar, MP, and Rajasthan.
• India likely to achieve SDG Target 1.2 (reducing multidimensional poverty by at least half) much ahead of 2030.
Education • Total expenditure: 3% of GDP as against the target of 6% under NEP
• Gross Enrolment Ratio: Primary Education( 100%); Secondary Education (80%); Higher Education (28%).
• GER for females in Higher Education has been higher than male GER for 5 consecutive years.
Health • Total Expenditure: 1.9% of GDP; Out-of-pocket expenditure has reduced from 64% (2013-14) to 47%
• Sex Ratio has improved from 991 (NFHS-4) to 1020 (NFHS-5)
• Sex ratio at birth (SRB) has improved from 918 (2014-15) to 930 (2023-24)
• Total Fertility rate has reduced to below Replacement level fertility at 2.0
• IMR has reduced from 40 to 35
• Percentage of Institutional births improved from 79% to 89%.
Gender Gap • Women constitute 49% of population but contribute only 18% of output in India
• Lower ranking in Gender Inequality Index (108th) and Global Gender Gap (129th)
• Disparity between Male LFLR (77%) and Female LFPR (37%)
• Disproportionate burden of unpaid care work (66 percent of the work done by Indian women is unpaid)
• Gender-Wage gap of 35%
Achievements in women- • Share of Gender Budget to total Budget has increased to 6.5 %, the highest since its introduction in 2006.
led development • Increase in Female LFPR from 23% (2017-18) to 37% (2022-23)
• 1 crore lakhpati didis. Target has been enhanced from 2 crore to 3 crores.
• More than 50% of the Bank accounts are owned by women
• More than 50% of the loans under Mudra and Stand-up India are given to Women
Energy Poverty Even though India accounts for 18% of the world's population, it uses only around 6% of the world's energy. India’s per-capita energy consumption is
one-third of global average.
Silver Economy • Estimated to be worth $ 7bn.
• Share of Senior Citizens set to double from 8% (2011) to 16% (2041)
 Elements (Keep this framework in mind for writing answers) Relationship between GDP and Inclusive Growth
Higher GDP Growth + Poverty Reduction + Enhanced Opportunities (Jobs, Education,
Health, Skills etc. ) + Redistribution of Income + Reduce Disparities (Between Sectors, Increase in GDP
Population, Rural and Urban, Males and Females) + Good Governance +
Environmental Sustainability
Increase in Investment & Higher Mobilization of
Consumption Expenditure Resources
Why Inclusive Growth/Inequality Matters? Higher Labour Productivity
Self-Perpetuating Vicious cycle: Higher Inequality--> Concentration of wealth-->
Increase in Savings and Decrease in Demand--> Lower Investment--> Low Job Creation Provision of Basic Amenities (Food,
and Human Capital Formation--> Higher Inequality. Increase in Income Levels Housing, Electricity, LPG Etc.)
Inverse relationship between the income share of the rich and GDP (IMF): If the share Increase in Savings Higher Investment in Education,
of the top 20% of the population increases by 1 percentage point, GDP growth reduces Higher Standard of Living Skills, Health etc.)
by 0.08 percentage points in next 5 years.
Increases risk of Market Failure: Growth of conglomerates leads to situation of "Too Big
to Fail" as seen in Chaebols in South Korea. Further, such conglomerates owned by Inclusive Growth
wealthy individuals prevent competition and abuse their dominant market position.
Mismanagement of Public Finances: Low-Tax GDP Ratio due to tax evasion by richer
GDP is both a cause as well as effect of Inclusive Growth.
class, Higher debt to fund welfare programs for poor people, poor quality of borrowings
In the short-term, increase in GDP leads to increase in Inequality. (Conflict)
as less money is spent on creation of assets.
Inclusive In the long-term, increase in GDP leads to Decrease in Inequality
Hinders Human Development: Gender disparity at the households lead to poor
Growth (Convergence)
outcomes in terms of Education, Health, Nutrition etc.
Promotes crony-capitalism leading to misallocation of resources Ex: Brazil.
Hurts Investment rates due to Macro-economic and Political Instability: Ex: Argentina Present Status
World Inequality Lab: Top 1% of the country account for 23% of income and
40% of the wealth. In terms of income distribution, India is most unequal
country. Number of billionaires has increased from 1 in 1991 to 162 in 2022.
Gender Inequality: Lower ranking in Gender Inequality Index (108th); Disparity
between Male LFLR (78%) and Female LFPR (37%) etc.

Meaning
OECD- Inclusive growth is economic growth that is distributed fairly across
society and creates opportunities for all.
UNDP- The process and the outcome where all groups of people have
participated in growth and have benefited equitably from it.
 India’s achievements/Progress (Sabka Sath, Sabka Vikas, Sabka Vishwas, Sabka Prayas with focus on GYAN)
1. Poverty: 25 crore people escaped Multi-dimensional poverty. Multi-dimensional poverty has reduced from 29% (2013) to 11% (2022-23)
2. Universal Basic Amenities: PM-Awas Yojana (House), SBM (Toilets), Jal Jeevan Mission (Water), Saubhagya (Electricity), Ujjwala Yojana (LPG) etc.
3. Universal Social Security through Jan Dhan Yojana, Atal Pension Yojana, Shram Yogi Maandhan Yojana, PM Jeevan Jyoti Yojana, PM Suraksha Bima Yojana etc.
4. Improvement in Health Indicators (NFHS-5): Increase in Sex Ratio; Decrease in IMR & MMR; Decrease in out-of-pocket expenditure due to Ayushman Bharat
5. Improvement in Education: 100% GER in Primary Education; Increase in GER in Higher Education (GER for Females higher than Males)

Challenges to Inclusive Growth Strategies needed (Disclaimer: Some of points picked up from BJP’s Political Manifesto)
Nature of GDP Growth: LPG reforms have failed to usher in Inclusive growth. Covid-19 has Reduce Disparities between Sectors
further accentuated crisis in form of K-Shaped Recovery. • Agriculture: Focus on Doubling Farmers’ income through reduced input costs, enhance
Poverty Reduction: Significant decline in multidimensional poverty from 29% in 2013-14 to productivity and higher price realisation.
11% in 2022-23. However, India’s ranking in Global MPI is still lower. • Manufacturing: Make India a Global Manufacturing Hub with special focus on inclusive
Jobless Growth: Low employment Elasticity (0.001) in 2022. growth through Labour Intensive Industries, Food Processing Industries One District One
Education and Skills: Low expenditure on Education (3%); Poor learning outcomes at school Product etc.
level; Higher drop-out rate of females at secondary education etc. Only 4% of workforce has • Services: Focus on low-skill intensive sectors such as Retail, Tourism etc.
received formal training. Address problems of Low-skilled Low-wage Informal workers (90%): Universal social security
Health: Low expenditure on Health (1.5%); Higher Out-of-pocket expenditure (47%), Low through APY, PM Shram Yogi Mandhaan; Facilitate transition to formal sector etc.
insurance coverage etc. Boost Job Creation: Secondary agriculture, Promoting Infant Firms rather than Dwarf Firms,
Low Human Capital Formation: India’s ranking in HDI(134th). Child born in India would be enhancing skill sets, autonomous employment zones etc.
able to attain only 49% of his/her potential by age of 18. (World Bank’s HCI) Education: Increase Expenditure to 6% of GDP; 100% GER from Pre-school to Secondary
Disparity between Sectors: Agriculture contributes 17% of GDP but accounts for 45% of level; Improved learning outcomes through PM SHRI Schools; Establish New Higher
workforce. While Service sector accounts for 55% of GDP, yet it contributes for only 30% of Education Institutes; Improve employability etc.
Jobs. Hence, Non-Farmer earns 3 times more income than farmer. Skill Sets: Enhance skill sets through integration of vocational education into school
Disparity between Rural and Urban areas: Urban areas account for just 3% of area but Education; Expansion of Training Infrastructure; Improve Training outcomes; Apprenticeship
contribute 60% to India’s GDP. The per-capita Urban income is more than twice Per-capita Health: Increase Expenditure to 2.5% of GDP; Move towards Universal Health Coverage with
rural income. focus on Senior Citizens; Strengthen Ayushman Arogya Mandirs; Expansion of Jan Aushadhi
Disparity between Males and Females: Women constitute 49% of population but contribute Kendras etc.
only 18% of output; Lower ranking in Gender Inequality Index (108th) and Global Gender Gap Tapping Gender Dividend: Improve nutrition outcomes through POSHAN 2.0; Higher
(129th); Disparity between Male LFLR (77%) and Female LFPR (37%) etc. enrolment of females in Secondary and Higher Education; Improve Female LFPR (37%);
Problems with Poverty Eradication Programmes such as poor identification of beneficiaries, Achieve target of 1 crore Lakhpati Didis etc.
presence of ghost beneficiaries, poor allocation of finances, large scale corruption and lack Senior Citizens: Focus on Silver Economy; Increase in Retirement age; Address healthcare
of transparency and accountability. Ex: 46% food grains diverted under PDS (Shanta Kumar needs of Senior Citizens through Primary Healthcare centres (PHCs) etc.
Committee), Lower MGNREGA employment (Avg: 45 days) Leverage Digital Infrastructure to address inequalities Ex: Tele-education, Telemedicine,
Environmental destruction has higher impact on poor and vulnerable sections such as Bharatnet in Rural Areas, Provision of Credit, ONDC etc.
Women, SCs/STs etc. (UNFCCC) Balanced Regional Development through Aspirational Districts/ Blocks Programme.
What do you mean by Inclusive growth? How is it different from welfare approach? Also, examine the reasons for lack of inclusive growth in India. (15
Marks)

Inclusive growth is defined as “process and outcome where all groups of people have participated in growth and have benefited equitably from it” (UNDP).
Inclusive growth has much wider scope than welfare approach.

The welfare approach focusses on outcomes (Income redistribution) through tax policies and enhanced expenditure for welfare of poor people. However,
Inclusive growth focusses on outcomes (Income redistribution) as well as process (creating opportunities through Job creation, human capital formation
etc.) Hence, inclusive growth incorporates sector-specific, people-specific, gender-specific, region-specific policies to ensure that poor people participate in
the growth and get equitably benefit from it.

Reasons for Lack of Inclusive growth:

Problems with Poverty Eradication Programmes such as poor identification of beneficiaries, poor allocation of finances, lack of transparency etc. For
instance, 46% of food grains do not reach beneficiaries under PDS (Shanta Kumar Committee).
Low Employment elasticity (0.1) due to problem of missing middle, regulatory cholesterol due to labour laws etc.
Lower expenditure on human capital formation - Education (3%) and Health (1.5%).
Inequitable Income distribution: Top 10% of population holds 77% of the total national wealth (Oxfam International)
Decline in female LFPR from 45% (1990s) to 25% (2017-18) due to socio-cultural factors.
Inter-state and Intra-state disparities due to Top-down planning, lack of decentralization etc.
Disparity between different sectors:
• Low growth rate of agriculture which employs 45% of workforce
• Stagnation in share of manufacturing to GDP (17%) and Employment (12%) since 1991
• Environmental Destruction has led to higher impact on vulnerable sections.

Hence, the Government should focus on inclusiveness and sustainability together while minimizing downside effects of growth. Ultimately, Gandhi's
philosophy of putting the last man first should be the guiding light for the government’s policies.
Do you agree with the view that India is facing Exclusive growth? Give arguments in support of your answer. (15 Marks)
Is inclusive growth possible under market economy ? State the significance of financial inclusion in achieving economic growth in India. (10
Marks, 150 Marks)

According to UNDP, Inclusive growth refers to the process and the outcome where all groups of people have participated in growth and have
benefited equitably from it.

Inclusive growth may be possible under market economy due to:

Increase in GDP Size due to competition, innovation, and higher efficiency by private sector.
Trickle-down effect in terms of creation of Jobs and increase in income levels.
Increase in Tax-GDP ratio enables Government to fund welfare programmes.
Empirical evidence:
• Decline in BPL population from 37% (2004-05) to 22% (2011-12)
• Liberalisation of Telecom and Aviation sector

However, Inclusive Growth and Market Economy may prove to be contradictory due to
Limited focus of Private sector in delivery of Public Goods and Services such as Education, Health, Sanitation, Housing, Skills etc.
Neglect of Rural and underdeveloped regions by private sector fosters regional disparities.
Exploitation of labour leads to concentration of wealth in hands of richer class.
Absence of subsidised prices affects poor and vulnerable sections.
Limited Government role goes against the social welfare objective.
Empirical evidence:
• US’s Gini Co-efficient higher than India.
• Privatisation of PSBs would hurt inclusive growth (RBI’s Study)
Financial Inclusion refers to universal access to financial services such as Banking, Insurance, Pension at a reasonable cost. Seven of the UN SDGs
view financial inclusion as a key enabler for achieving sustainable development.
Enable shift from consumption-led to Investment-led economy through mobilisation of savings (Eco Survey 2018-19)
Reducing poverty and vulnerabilities Ex: Jan Dhan Yojana, PSL, Atal Pension, PM JAY etc.
Promote gender equality through entrepreneurship Ex: Stand Up India
Multiplier effects: Increase in credit leads to higher investment and consumption expenditure leading to increased demand for Goods and job
creation.
Long term funds mobilised through insurance and pension can be channelised towards infrastructure funding.
Facilitate development of financial sector such as Banks, Insurance and Pension companies.

Going forward, causes of financial exclusion such as lack of Financial Literacy, Dominance of Bank Branches in Urban Areas, Poor quality of
services etc. need to be addressed to improve financial inclusion and promote development.
 Should India Focus on Promoting Growth or Reducing
Inequality?

USA India

GDP Size: $ 3.7 trillion Number of Poor People: Lower Inequality

GDP Size: $ 27 trillion Dollars 270 Million (22%) Gini-Coefficient:0.34
Dollars Number of Poor People: High Inequality
38 Million (12%) Gini-Coefficient:0.39

Why should USA concentrate on reducing Inequality? Why must India focus on GDP and not inequality?
(a) GDP Size is already large (a) Size of GDP is still small
(b) Potential for GDP growth smaller (b) Potential for GDP growth higher
(c) Less number of poor people (c) Higher GDPà Increase in per-capita Incomeà Less number of
(d) Higher Inequalityà Poor Socio-Economic Outcomes poor people
(d) Higher Income Inequality does not impact Socio-economic
Outcomes
 Previous Year Mains Question
Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized
economy through women empowerment? (Mains 2023, 15 Marks)

Mains Practice Questions

1. India is transitioning from women’s development to women-led development. Evaluate India’s progress in this
direction. (10 Marks)
2. Critically evaluate the role of SHGs in promoting women-led development. (10 Marks)
 Previous Year Mains Question
Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment? (Mains 2023, 15 Marks)

Care Economy includes invisible unpaid or underpaid activities such as taking care of children, elderly, household work etc. On the other hand, Monetised economy includes
exchange of goods and services at market determined rates.
Criteria Care Economy Monetised Economy
Household work, childcare, Elderly care Agriculture, Manufacturing, Banking,
Activities included
etc. IT/ITeS etc.
Ensures well-being of the society and Ensures production of marketable
Importance
supports Monetised Economy Goods and Services
Effect on Poverty May Lead to Income and Time Poverty Reduces Poverty
Nature Informal Formal
Wages Unpaid or underpaid Market determined wages
Included in GDP No Yes

According to ILO, Care Economy accounts for 9% of global GDP with a size of around $11 trillion. However, due to Feminization of Care Economy, Women spend 8X more time
on care work than men in India. (NSO's Time Use Survey).
ILO’s 5R framework for Decent Care Work which include - Recognise, Reduce, Redistribute, Reward and Representation to empower women and transform the care economy.
Strategies include:

Recognise: Beijing Platform for Action has recommended the implementation of time-use surveys to capture, quantify and value care economy.
Reduce: Adequate Investment in care infrastructure such as Pre-Primary Education, Health, Electricity, drinking water, LPG connection etc.
Redistribute: Support NGOs and Private sector to care for the children and Elderly Ex: Old age homes, Pre-Primary Schools etc.
Reward: Provide for the cash transfer to women so that they can purchase childcare services from domestic workers.
Representation: Ensure equal representation of women in labour market
• Paid maternity leave and Paternity leave to care for the children.
• Reduce Gender Wage Gap
• Enhance skill set through vocational training and retraining to enhance employability.
• Provide Gender-sensitive work environments such as reduced or flexible working hours.
• Facilitate entry of women into Gig Economy
• Nurture and promote women led SHGs.

The above-mentioned strategies can contribute to meeting goals of SDG 1 (end poverty); SDG 3 (ensure healthy lives); SDG 4 (ensure inclusive and equitable quality education);
SDG 5 (achieve gender equality); SDG 6 (ensure availability and sustainable management of water and sanitation) etc.
 Women-led Development
Present Status: Women constitute 49% of population but contribute only 18% of output in India. Hence, women-led development is not just ends but also a means to achieve the vision of
Viksit Bharat by 2047. (Development for, by and of women)
Initiatives Achievements
Economic Empowerment • Gender Budgeting • Share of Gender Budget to total Budget has increased to 6.5 %, the highest since its
• NRLM: Organizing women into SHGs. introduction in 2006.
• PM-Jan Dhan Yojana: Financial Inclusion • Increase in Female LFPR from 23% (2017-18) to 37% (2022-23)
• PM-MUDRA Yojana and Stand-up India • 1 crore lakhpati didis. Target has been enhanced from 2 crore to 3 crores.
• Basic Services: PM-Awas Yojana (House), SBM (Toilets), • More than 50% of the Bank accounts are owned by women
Jal Jeevan Mission (Water), Saubhagya (Electricity), • More than 50% of the loans under Mudra and Stand-up India are given to Women
Ujjwala Yojana (LPG)
Health • Beti Bachao Beti Padhao Results of NFHS 5
• Sukanya Samriddhi Yojana • Sex Ratio has improved from 991 (NFHS-4) to 1020 (NFHS-5)
• Janani Shishu Suraksha Karyakram • Sex ratio at birth (SRB) has improved from 918 (2014-15) to 930 (2023-24)
• PM Matru Vandana Yojana • Total Fertility rate has reduced to below Replacement level fertility at 2.0
• Poshan 2.0 • IMR has reduced from 40 to 35
• Percentage of Institutional births improved from 79% to 89%.
Education and Skills • Right to Education (RTE) • Gender Gap in enrolment in the schools has reduced.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY) • In higher education, the female GER has been greater than male GER for five consecutive
• KIRAN: Promote more women in STEM years
• Under PMKVY, the participation of women among those trained is more than 50%
Concerns and Challenges: Lower ranking in Gender Inequality Index (108th) and Global Gender Gap (129th); Disparity between Male LFLR (78%) and Female LFPR (37%); Disproportionate
burden of unpaid care work
Strategies needed:
SDG 5 focusses on achieving gender equality and empowering all women and girls. According to IMF, India’s GDP would increase by 27 percent if Female LFPR increases to match Male
LFPR.
Monetizing Care Economy: through ILO’s 5R Framework- Recognise, Reduce, Redistribute, Reward and Representation
Reducing Wage Gap: Gender wage gap of 34% needs to be reduced through effective implementation of Code on Wages and Regular audit of Companies (on the lines of Iceland Model)
Promote Asset Ownership through increased awareness about succession laws, tax policies, Government schemes such as Awas Yojana etc.
Promoting Women Entrepreneurship through NITI Aayog’s Women Entrepreneurship Platform (WEP)
Focus on ‘She-conomy’: (a) Treat Women as Assets/Factors of production (b) cater to the needs to women by designing products specific to women.
Leverage Gig Economy to promote women empowerment Ex: Amazon’s Saheli; Myntra’s partnership with Fashion designers
 ET, Feb 2024

Previous Year Mains Question

What do you mean by the term “Silver Economy”. Discuss various strategies to be adopted by India to promote silver
economy. (10 Marks, 150 Words)
 Initiatives taken Need
National Policy on Senior Citizens, 2011: Access to Old age pension, healthcare • Boost Investment and Consumption Expenditure, create more jobs and
insurance schemes etc. pursue higher GDP growth model.
Indira Gandhi National Old Age Pension Scheme: Old age pension to cover all senior • Make life easier for senior citizens and enable them to productively
citizens living below the poverty line. contribute to economic growth.
Rashtriya Vayoshri Yojana: Central sector scheme to provide Physical Aids and Assisted- Examples:
living Devices for Senior citizens belonging to BPL category. • Health Care sector: Higher focus on senior citizens will lead to (a) Improve
SAGE ( SENIOR CARE AGEING GROWTH ENGINE INITIATIVE): One stop portal to health care infrastructure (b) creation of more jobs as doctors, nurses,
encourage the start-ups to develop products to take care of the elderly. Examples: pharmacists etc.
Diagnostic kits, personalised wheel chair, Financial services for elderly etc. • Financial Sector: Development of financial institutions to cater to Banking,
Senior Citizens Welfare Fund: insurance and pension. For example, dedicated MFIs to provide small value
• Set up under the Finance Act, 2015 loans to senior citizens.
• unclaimed money lying under Small Savings Schemes, Employees Provident Fund, • Hospitality, Travel and Tourism: Development of religious tourism circuits
Public Provident Fund schemes etc. is transferred into Senior Citizens’ Welfare Fund. for the senior citizens would provide fillip to hospitality industry and
benefit local economy.
Strategies needed
Promote Productive Ageing
• Increase retirement age from 60 to 65 (Eco Survey 2018-19) Present Status
• Promote Silver Entrepreneurship through PSL loans Silver
• Reskill Senior Citizens and provide employment Ex: SACRED portal Economy Decline in Fertility rate accompanied by increase in Life expectancy would lead
Sector-specific focus: to doubling of share of senior citizens from 8% (2011) to 16% (2041)
• Banking: Innovative products for insurance and pension Ex: PMVVY
• Start-ups: Incentives for promoting aged-care products Ex: SAGE Portal.
• IT Sector: Home automation, Telemedicine, Database Management (Ayushman
Digital Bharat Mission) Ex: Google glass.
• Health: Higher focus on geriatric healthcare and products Ex: Rashtriya Vayoshri Meaning
Yojana
Silver Economy (a) caters to needs of senior citizens and (b) realize their
• Hospitality: Religious tourism circuits and old-age homes etc. Ex: PRASAD
Scheme. untapped potential to ensure win-win situation in terms of higher growth and
Governance: Senior citizen Cess, Dedicated Ministry etc. benefit old-age population
 Previous Year Mains Question
What do you mean by the term “Silver Economy”. Discuss various strategies to be adopted by India to promote silver
economy. (10 Marks, 150 Words)

The decrease in fertility rate accompanied by increase in life expectancy is set to double share of senior citizens from 8% (2011) to 16% (2040). This
demographic watershed creates an economic imperative to focus on silver economy.

The Silver Economy (a) caters to needs of senior citizens and (b) realize their untapped potential to ensure win-win situation- higher growth and benefit
old-age population. For example, designing financial products for senior citizens would address their social security needs and also develop financial
sector.

Strategies needed
Promote Productive Ageing
• Increase retirement age from 60 to 65 (Eco Survey 2018-19)
• Promote Silver Entrepreneurship through PSL loans
• Reskill Senior Citizens and provide employment Ex: SACRED portal
Sector-specific focus:
• Banking: Innovative products for insurance and pension Ex: PMVVY
• Start-ups: Incentives for promoting aged-care products Ex: SAGE Portal.
• IT Sector: Home automation, Telemedicine, Database Management (Ayushman Digital Bharat Mission) Ex: Google glass.
• Health: Higher focus on geriatric healthcare and products Ex: Rashtriya Vayoshri Yojana
• Hospitality: Religious tourism circuits and old-age homes etc. Ex: PRASAD Scheme.
• Governance: Senior citizen Cess, Dedicated Ministry etc.

The 21st century demography demands a new outlook of aging population as drivers of GDP. Hence, appropriate policy reforms can develop silver
economy and create a pathway for India’s growth.
 PIB, Jan 2024 Poverty

Low
Lower GDP
Income

Poverty Trap
Discuss as to why Multidimensional Poverty Index (MPI) is a
better indicator to measure poverty in India. Also, highlight
Poor Lower
India’s progress in eradicating Multidimensional poverty. (10 Human Expenditure
Capital on Basic
Marks) Formation needs
Multiple
Deprivations
- Education,
Health etc.

Present Status and Trends

Why MPI is a good indicator for measuring Poverty? • Multidimensional poverty has reduced from 29% ( 2013-14) to 11% (2022-
MPI
Problems with Income as an Indicator for Poverty 23). Around 24.82 crore people escaping poverty during this period
• Income is necessary condition for Poverty reduction, but it is not a sufficient • Fastest reduction Uttar Pradesh followed by Bihar, MP, and Rajasthan.
condition. • India likely to achieve SDG Target 1.2 (reducing multidimensional poverty
• Income may be spent on Temptation goods such as Alcohol, Tobacco, Gambling etc. by at least half) much ahead of 2030.
• Income Estimates are not available in India
Problems with Expenditure as an Indicator for Poverty
• Expenditure may also be incurred through borrowings. Higher borrowings may Details
lead to Debt Trap Published by: NITI Aayog by using Internationally accepted methodology.
• Household welfare depends not only on Household Expenditure, but also on Scope: Measures both (a) Incidence of Poverty (b) Intensity of Poverty
Government Expenditure. Dimensions used: Deprivation at the household and individual level in
Advantages of MPI health, education and standard of living.
• Measures Poverty in terms of Multiple Deprivations: Uses 12 Indicators Indicators used: 12
• Measures Poverty in terms of outcomes (rather than in terms of inputs) Criteria for classification as Multi-dimensionally poor: Deprivation in at least
• Considers both Incidence and Intensity of Poverty 1/3 of the weighted indicators
• Based on Internationally accepted methodology followed by UNDP Calculation: Product of Incidence and Intensity of Poverty
 Steps Taken
Ujjwala Yojana: Deposit-free LPG Connection.
PAHAL Scheme: DBT for LPG Cylinders
Saubhagya Scheme: Electricity connections to all un-electrified
households.
KUSUM Scheme: Installation of solar pump-sets.
Energy Efficiency measures such as National Mission on Enhanced
Energy Efficiency, Ujala, Standards and Labelling etc.

Strategies needed (Eco Survey 2018-19)

• Increase subsidy amount under Ujjwala Scheme and use Energy
behavioural economics to nudge people to regularly use LPG
cylinders. Poverty
• Address the issue of frequent power cuts under Saubhagya
scheme.
• Promotion of electric induction cookstoves.
• Improve financial health of DISCOMs Present Status
• Energy Poverty is more widespread and deep-rooted in
India in comparison to Income Poverty.
• Even though India accounts for 18% of the world's
population, it uses only around 6% of the world's energy.
India’s per-capita energy consumption is one-third of global
average.
 Business Today, July 2024

What are the pillars of “New welfare” approach followed by the Government in enhancing effectiveness of Poverty alleviation schemes? Has the new
approach to welfare paid off?
The Indian concept of welfare has been significantly transformed into a more long-term-oriented, efficient, and empowering avatar. The approach to
welfare is wholesome and whole-of-society with increasing private sector participation. Focus on last-mile service delivery to truly realise the maxim of
“no person left behind.”
Pillars of New Welfare Approach
Universal access to Basic Services: Housing (PM-AWAS Yojana), Electricity (Saubhagya), Drinking Water (Jal Jeevan Mission), LPG (Ujjwala Yojana), Bank
Account (Jan Dhan Yojana), Toilets (SBM) etc.
Cost-Effective expenditure: Capital expenditure within social services has been increasing rapidly Ex: Houses, Drinking Water, Sanitation, Ayushman
Arogya Mandirs.
Goal-oriented outcome approach for budgetary allocation: Output-Outcome Monitoring Framework has been developed by NITI Aayog for the major
central sector and centrally sponsored schemes
3 C Approach: ‘Convergence’ across levels of Government, ‘Collaboration’ between civil society and Government, and ‘Competition’ among states and
districts Ex: Aspirational Districts Programme, Vibrant Villages Program
Real Time Monitoring: User-friendly dashboards and management information systems (MIS) across major schemes
Effective use of Technology Ex: JAM Trinity, One Nation One Ration Card etc.
Social security schemes for the unorganised sector workers. The Atal Pension Yojana (APY), PM Jeevan Jyoti Yojana (PMJJY), and PM Suraksha Bima
Yojana (PMSBY)
Large Scale push to Infrastructure creation to create more jobs for the poor and vulnerable sections.