Economic Problems and Challenges: Poverty and Unemployment Class 10 GSEB Notes

→ Indian economy experience many serious problems such as poverty, unemployment, price rise,
population increase.

→ A large number of people are deprived of satisfying their basic and essential requirements of the
life such as food, clothes, shelter, education and health services. Such a situation is known as
‘comprehensive poverty’ and people living in such a condition in the society are called ‘poor’.

→ First propounded by the Director of WHO, for calculating poverty line certain factors are
considered which includes expenditure on food, clothing, accommodation, education, health, clean
drinking water, electricity, sanitation facilities, transportation facilities arid income as well as the
intake of calories. On the basis of these factors, a particular standard of living is fixed which is known
as poverty line.

→ There are two ways of finding out the number of people living below poverty line:

 On the basis of expenditure behind various commodities or services by a family

 On the basis of total income of the family.

(a) Absolute poverty refers to the people who are not able to purchase the basic necessities even at
the lowest market price.

(b) Relative poverty refers to the people whose standard of living is inferior in comparison to the
other classes in the society.

→ The World Bank has decided per capita income US $ 1.90 in 2012 at the rate of 2008, which is
considered as the poverty line scale. According to one report of World Bank, India’s total population
was approximately 121 crore in 2010, out of which 32,7% people were living in below poverty line,
which makes about 45.6 crore.

→ As per the report of UNDP-2015, ratio of poverty in India in 2011-12 was 21.92% of the total
population. Out of these 25.7% were the rural poor and 13.7% were the urban poor.

→ In Gujarat, the proportion of poverty is 16.63%. Chhattisgarh, Assam, Uttar Pradesh, Manipur,
Bihar, Arunachal Pradesh, Jharkhand, Odisha, etc. have more than 30% proportion of poverty in
India.

→ Temporary labours, labours on daily wages, domestic workers, rikshawalas or mountainous

regions, tribals temporary craftsmen etc. are called rural poor.

→ Urban poor: In cities and towns, temporary labourers, labourers on daily wages, domestic
workers, rikshawalas, workers in tea stalls or hotels, or dhabas, workers working in garages, beggers
or who are not able to satisfy their minimum and basic necessities and live in poverty are considered
to be urban poor.

→ Villages are the heart of Indian economy. So in order to keep them alive and prosperous, a large
part of budget should have been spent after them.

→ Thus, through the programme ‘Gramoday se Bharat Uday’, the government has implemented the
basic idea that the progress of the country is possible only through the upliftment of villages.

→ The Central Government and the state governments have emphasized on implementation of new
plans and programmes for removal of poverty.
→ Due to improper distribution of the income rich become more richer and the poor remained
where they were.

→ In order to remove disparity of income, the government has started Fair Price Shops under public
distribution system.

→ Many programmes were implemented to improve agriculture sector.

→ In order to make people self-reliant, government has stressed on labour intensive industries.

→ The government has improved the structure of education, health, residence, employment, family
planning, communication, etc.

→ Many programmes for women empowerment have been started to make women self-reliant
economically.

Poverty alleviation programmes or schemes may be divided into five sections:

 Wage based employment programme

 Self-employment programme

 Programmes related to food security

 Programmes related to social safety

 Programmes of elimination of poverty in urban areas.

→ Major objectives of these schemes of the government is to provide employment in the field of
agriculture and irrigation, read, food security, organic farming and selling of agricultural products . so
that direct income is earned which will improve the financial condition of the poor.

→ In agricultural sector number of programmes have been implemented by the government.

These includes

 Prime Minister Krishi Sinchai Yojana

 Prime Minister Farm Safety Insurance Plan

 National Drinking Water Programme

 Reward Programme.

→ Both Central and State governments have tried to save farmers from debt by helping them
through ‘Gramoday se Bharat Uday Scheme’.

→ Under ‘Deendayal Upadhyay Gramjyoti Yojana’, electricity is supplied in rural areas without any
hindrance.

→ By encouraging organic farming they tried to reduce the expenditure in agricultural sector.

→ Under ‘Chief Minister Village Road Scheme’ planning is done regarding road related work.

→ Under ‘Maa Annapurna Yojana’ 35 kg of foodgrains are provided free of cost to the BPL family.

→ Objective of ‘Sansad Adarsh Gram Yojana’ is to stop migration of the people from the villages to
cities. Members of the Parliament have to set up ideal villages.
→ Under.’MANREGA’ the Government of India provides employment with wages to at least one
member of rural families for 100 days in a financial year.

→ Through ‘Mission Mangalam’, the state government has united women from families living below
poverty line in ‘Sakhi Mandal’ or ‘self-helping groups for skill-based training so that they may
generate employment for themselves.

→ Through ‘Dattopant Thegdi Vyaj Shay Yojana, the government provides loan to artisans.

→ Objective of ‘Jyoti Gramodyog Vikas Yojana’ is to provide self-employment opportunities to the

unemployed in the rural areas to increase income and set up industry.

→ Under ‘Vajpayee Bankable Yojana’ urban and rural unemployed of age group of 18 to 65, who are
educated till 4th standard are given training. They are also given finance of fixed amount, so that
they may generate self-employment.

→ An adult under the age of 15-60 years, who is ready to work at the prevalent market rate of
wages, has energy and qualification to work, who is in search of work but is not getting work such a
person is said to be unemployed. Such type of a condition is group is called unemployment.

→ India has basically six types of unemployment:

 Seasonal unemployment

 Frictional unemployment

 Structural unemployment

 Disguised unemployment

 lndustrial unemployment, and

 Educated unemployment.

→ According to Census 2011, about 116 million people were in search of employment. 32 million
people were uneducated unemployed and 84 million were educated unemployed. Approximately
4.70 crore people of 15-24 age group were unemployed.

→ The maximum number of unemployed persons in India are in Sikkim, Kerala, West Bengal, Uttar
Pradesh, Chhattisgarh, Jammu and Kashmir, and Tripura.

→ Main reasons responsible for increasing unemployment in India are population explosion, having
theoretical knowledge only and lack of practical knowledge, lack of technical knowledge or skill,
failure in providing complete employment, irregularity in rainfall in agriculture,’losing interest in
agriculture sector, improper irrigation facilities, lack of alternative employment, weak condition of
cottage industries, caste system, joint family system, lack of courage to set up new business, etc.

→ Some of the steps have been taken by the government to remove unemployment.

→ In order to increase employment the government has started giving economic help, education,
opened training centers through different schemes.

→ Labour Ministry of the Government of India and the Government of Gujarat have launched ‘Make
in India’, ‘Skill India’ and ‘Digital India’ to provide skill training to educated unemployed young
persons.
→ Under the ‘Start-up India’ programme, loans are provided at concessional rates to enterprising
persons to start their industries.

→ Employment exchange centers serve as a link between unemployed persons and employers,
seeking employees.

→ Ministry of Labour publishes ‘Employment News’ and other such publications for the benefit of
the unemployed persons.

→ When change of labours is there among nations of the world, it is known as world labour market.
Walkout of brain power for educational knowledge, higher technical knowledge and skill
development, in search of more income, more facility, better job is brain drain or migration at the
international level.

→ As a result of migration to other counties or due to permanent settlement of intelligent and

talented people, facing a great flaw of personalities having talent and intelligence, technical
knowledge and scientific attitude.

→ Countries receives foreign exchange as a part of income due to migration of people to foreign
countries for job. In this way, problem of foreign exchange is solved to certain extent.