Category : Banking
Economics
Economics is a subject matter that studies different economic activities as a directed towards the maximisation of satisfaction or maximisation of profit at the level of an individual and maximisation of social welfare at the level of the country as a whole. Classification of Economics into branches was done by Ragnar Frisch.
Microeconomic
When economic problems or economic issues are studied considering small economic units like an individual consumer or an individual producer is called Microeconomics
Macroeconomics
Macroeconomics is concerned with the economy as a whole or large segments of it. It is that branch of economics which studies economic activities at the level of an economy as a whole. It deals the following—
Market economics
Market economics are those economies in which economic activities are left to the free play of the market forces. Producers are free to produce those goods and services which are high in demand, so that they are able to maximize their profits. While consumers are free to buy goods and services in accordance with their choice and preference, so that they are able to maximize their satisfaction.
Centrally planned economics
Those economies in which the course of economic activities is decided by some central authority or by the government. For example— A central authority decides how much of wheat and how much of rice are to be produced. Only government decides the overall basket of goods and services that the people can consume.
Mixed economics
Mixed economies are those economic activities, which generally left to the free play of the market forces, but simultaneously the government exercises its control with a view to regulating the overall course of production, consumption and investment.
Utility
The term "utility" refers to that quality of a commodity by virtue of which our wants are satisfied. In other words, wants satisfying power of a good is called utility.
Total Utility and Marginal Utility
Total Utility (CTU)
It is the sum total of utility derived from the consumption of all the units of a commodity. For example— If 2 units of a commodity are consumed and 1st unit yields satisfaction of 10 utils while the 2nd unit yields satisfaction of 9 utils, then total utility = 10 utils + 9 utils = 19 untils
Marginal Utility (MU)
It refers to additional utility on account of the consumption of an additional unit of a commodity. For example—If 10 units of a commodity yield satisfaction of 100 units, and 11 units o£a commodity yield satisfaction of 105 utils then additional utility on account of the consumption of llth unit of commodity is 105 - 100 = 5 utils. This is called Marginal Utility.
\[\begin{align}
& {{M}_{nth}}={{M}_{n}}T{{U}_{n-1}} \\
& Then\,MU\,=T{{U}_{11}}-T{{U}_{10}} \\
\end{align}\]
= 105 - 100 = 5 utils
Relation between "total Utility and Marginal Utility
Indifference Curve
Indifference set
Demand
Demand for a commodity refers to the desire to buy a commodity backed with sufficient purchasing power and the -willingness to spend.
Related goods and IJ unrelated goods
Goods are said to be related when demand for one changes in response to change in price of other. For example—Tea and coffee are related Goods.
Goods are unrelated when demand for one is independent of any change in price of the other. Demand of shoes is not affected by change in price of sugar.
Degree of price inelastic of Demand:
(a) Perfectly of elasticity: It is a situation where the slightest rise in the price causes the quantity demanded of the commodity to fall to zero.
(b) Perfectly Inelastic demand - It is-Ay a situation where a change in price causes no change in the quantity demanded. T
(c) Unitary elastic demand: A unitary elastic demand refers to a situation when change in quantity demanded in response to change in price of the commodity is such that total expenditure on the commodity remains constant.
For example: In this fig. when price fall from OP to OP, total expenditure on the commodity remains constant (area OBTP = area OCRP). And elasticity at point T = 1.
Production function: Production function is the relationship between physical inputs and physical output of a commodity. The value of output needs inputs. Land, labor and capital are well known common inputs for the production of goods and good services.
For example: 10 units of capital and 5 units of labour produced 100 units of the commodity.
\[{{Q}_{x}}=f(L,K)\]
Where \[{{Q}_{x}}\] = Production of commodity
L = Labor, K = Capital
For example: The engineers tell us that 10 workers working on machines will yield the maximum output of 100 units of commodity.
Total product (TP): It is the sum total of output of each units of the variable factor used in the process of production. This is also called total return of the variable factor.
TP = 10 + 12 + 15 + 12 + 10 + 6 = 65 units of the commodity.
Marginal product (MP): Marginal product is additional output attributed to an additional unit of the variable factor, other factors remaining constant.
\[M{{P}_{nth}}=T{{P}_{n}}-T{{P}_{n-1}}\]
Substitute Goods
When increase in the price of one good causes increase in demand for the other and decrease in the price of one causes decrease in the demand for the other.
For example: Increase in the price of coffee is expected to cause increase in demand for tea.
Complementary Goods-
Complementary goods are those goods which complete the demand for each other. When a fall in the price of one causes increase in the demand of the other and a rise in the price of one causes decrease in the demand for the other.
For example—(i) when the price of fountain pen rises its demand will fall as a result demand for ink will also fall. (ii) When the price of milk rises its demand will fall as a result demand for sweet will also fall.
Normal goods.
Normal goods are those goods "which there is a positive relationship between income and demand, other things remaining constant, demand increases in response to increase in consumer's income and vice versa. Inferior goods
Inferior goods are those goods which there is negative relationship between income and demand. Other things remaining constant demand decreases in response to increase in income and vice versa.
Income effect
Income effect refers to change a quantity demanded when real income of the buyer changes as a result of change in price of the commodity
Giffen goods
Giffen goods are those goods whose price effect is positive and income effect is negative-positive price effect means that demand falls with a fall in price and rise with a rise in price. The positive relationship between price and demand occurs because of a very high negative income effect.
Elasticity of demand:
The elasticity of demand measures the responsiveness of the quantity demanded of a good, to change in its price, price of other goods an change in consumer's income.
(a) Price elasticity of demand
(b) Income elasticity of demand
(c) Cross elasticity of demand
Price elasticity of demand
Price elasticity of a demand is a measurement of percentage change in demand due to percentage change in own price of the commodity.
(a) Percentage method: Under this method, elasticity of demand is measured by the ratio of proportionate change in quantity demanded to the proportionate change in price
\[{{E}_{p}}=\frac{\operatorname{Prortionate}\,change\,in\,quantity\,demand}{\operatorname{Prortionate}\,change\,in\,\operatorname{Price}}\]
(b) Total expenditure or Total outlay method: In this method one finds out that how much and in what direction total expenditure changes as a result of the change in price of a commodity. Total expenditure = Price x Demand situation
(c) Point Method: It measures elasticity of demand at different points on the demand curve. It is also called geometric method of elasticity of demand.
For example; When 40 units of commodity produced to using 5 unit of labor and 4 units of capital
\[40=f\left( {{5}_{L}},\text{ }4K \right)\]where L = labor, K = capital when output is increases from 40 to 45 units of commodity when use of labor increases from 5 to 6 units and k remains constant.
\[45=f\left( {{6}_{L}},\text{ }4K \right)\]
Here, addition output is caused by an additional unit of labor.
Average product (AP): Average product is physical output per unit of the variable factor used in the process of production. It can be calculated
\[AP=\frac{TP}{Labour}\]
For example: 40 units of commodity are produced when 5 units of the variable factor (Labor) are used.
\[\begin{align}
& 40=({{5}_{L,}}4k) \\
& AP=\frac{TP}{L}=\frac{40}{5}=8\,\,Units \\
\end{align}\]
Relation between AP and MP
AP and MP relation are as follows:
(a) AP increases so long as MP > AP
(b) AP decreases when MP < AP
(c) AP is at its maximum when AP = MP
(d) MP may be zero or negative but AP continues to be positive.
|
Economics Concepts |
|
|
Dada Bhai Naoroji |
Drain Theory and Poverty |
|
V. S. Minnas |
Planning and the Poor |
|
Gunnar Myrdal |
An Enquiry into the Poverty of Nations |
|
Leibensteins |
Critical Minimum Effort Theory |
|
A. K. Sen. |
Social Welfare and Collective Choice |
|
Arthur Lewis |
Unlimited Supplies of Labor Theory |
|
W. W. Rostow |
The Stages of Economic Growth |
|
Alfred o.Hirschman |
Theory of Unbalanced Growth |
|
Ragnar Nurkse |
Balanced Growth theory. Concept of Vicious Circle of Poverty, Theory of Disguised Unemployment
|
|
Adam Smith |
BenefitApproach, Ability to Pay Approach
|
|
Arthur Laffer |
Supply Side Economics, Optimal Capital Income Taxation
|
|
James Tobbin |
Tobbin Tax |
|
N. Keldar |
Expenditure Tax |
|
Peter Pyhrr |
Zero Base Budgeting |
|
Adolf Wagnor |
Theory of Expension of State Expenditure |
|
Dalton-Pigou |
Optimal Social Welfare Concept |
|
A. P. Lerner |
Functional Finance |
|
Clarke |
Tax Algorithm |
Relation between MP and TP
MP and TP relation are as follows:
(a) When MP starts diminishing, TP increases only at a diminishing rate.
(b) When MP is increasing so long then TP is increasing at increasing rate.
(c) When MP = 0 there is no addition to TP. i.e. TP is maximum.
(d) When MP is negative TP starts declining.
Cost of production: Cost of production refers to expenditure incurred by a firm on the factor inputs (land, labor, capital and entrepreneurship as well as non-factor inputs (raw material) for the production of a commodity.
\[C=f\left( Q \right),\]Here C = Cost of production
Q = Quantum of output
Selling cost and production cost: Selling costs refer to the expenditure incurred by the producer in order to promote sale of the commodity expenditure on advertisement is example of selling costs Production costs refer to the expenditure incurred on the production of a commodity production costs include expenditure on factor input as well as non-factor inputs (raw material) used for the production of a commodity.
Fixed costs: Fixed costs are the sum total of expenditure incurred by the producer on the purchase or hiring of fixed factors of production. These are also called supplementary costs or overhead costs or indirect costs. These costs do not change with the change in output when out-put is zero fixed costs remain the same components of fixed costs—
Variable costs: Variable costs are the expenditure incurred by the producer on the use of variable factors of production.
Variable costs includes following components:
Average cost: Cost per unit of output is called Average cost.
\[AC=\frac{TC}{Q}\] Where TC = Total cost
Q = Quantity of output
Relation between Average and Marginal cost
Revenue: The revenue of a firm is its sales receipts or money receipt from the sale of a product.
For example: Akash has a soap produce factory and 1000 soap produce daily. By selling these soap Akash get 2000 daily. The amount of 2000 is revenue
|
Revenue = Cost + Profit |
.
Total Revenue, Average Revenue Marginal Revenue
|
Total revenue = Output \[\times \] Price |
For example: If 100 soap slab are sold at the rate of Rs. 50 per slab total revenue of firm will be
TR = 100 \[\times \] 50 = 5000
\[MR=\frac{Change\text{ }in\text{ }total\text{ }Re\text{ }venue}{Change\text{ }in\text{ }quantity\text{ }Sold}~~~~~\]
Marginal revenue is an additional revenue or sale of an additional unit of output and sum total of Marginal revenue for all the units of output should be equal to total Revenue.
For example When 5 units of output are produced then
\[M{{R}_{1}}^{+}M{{R}_{2}}^{+}M{{R}_{3}}^{+}MR{{4}^{+}}M{{R}_{5}}^{=}TR\]
\[AverageRevenue=\frac{Tatal\,Revenue}{Quantity}\]
Supply: Supply of a commodity refers to a schedule showing various quantities of a commodity that the producers are willing to sell at different possible prices of the commodity at a point of time.
Individual Supply and Market Supply
Individual Supply refers to supply of a Commodity by an individual firm in the market. Market supply refers to supply of a commodity by all the firms in the market.
For example; when a firm is willing to sell 200 units of a commodity at a given price and B firm is willing to sell 300 units if the only A and B firms producing the particular commodity then market supply will be 500 units.
Supply curve: Supply curve is a graphic presentation of supply schedule indicating positive relationship between price of a commodity and its quantity supplied. Supply Curve
(a) Individual Supply Curve: It is a graphic presentation of supply schedule of an individual firm in the market when slope is upward I indicates positive relationship between price of a commodity and its quantity supplied.
(b) Market Supply Curve: Market Supply curve is a horizontal summation of the individual supply curves of the various firm producing a particular commodity in the market.
Law of Supply: The law of supply states that other things remaining constant, quantity supplied of a commodity increases with increase in the price and decreases with a fall in its price
Exception to the law of Supply
(a) The law of supply does not apply strictly to agricultural products whose supply is governed by natural factors.
(b) Supply of goods having social distinction will remain limited even if their price tends to rise.
(c) Sellers may be willing to sell more units of a perishable commodity at a lower price.
Market: Market refers to a mechanism or an arrangement that facilitates contact between the buyers and sellers for the sale and purchase of goods and services.
Perfect competition: Perfect competition is a form of the market where there is a large number of buyers and sellers of a commodity. Homogenous product is sold with no control over price by an individual firm.
Features of perfect competition
(a) Homogenous product
(b) Free entry and exit of firms
(c) Large number of buyers and sellers
(d) Independent decision making
(e) Perfect knowledge
Monopoly: Monopoly is a form of the market in which there is a single seller or producer of a commodity. There are no close Substitutes of the monopoly product and there are legal, technical or natural barriers to the entry of new firms in the monopoly market. A monopolist has complete control over price and can also practice price discrimination.
Features of Monopoly
(a) Restrictions on the entry of new firms
(b) One seller and large number of buyers
(c) Price discrimination
(d) Full control over price
(e) No close substitute
For example: Railways in India are a monopoly industry of the government of India. Since there is only one producer of a product in the market.
Patent rights: Patent rights is the official recognition of the originators innovators of new product or technology. Nobody can copy their product or technology without obtaining a license.
Cartels: Cartel refers to collective decision making by a group of firms of the market competing firms may reach a broad agreement on the pricing and output policy so that competition is avoided and a sort of joint monopoly structure of the market emerges.
Monopolistic competition: It is a form of the market in which there are many sellers of the product, but the product of each seller is somewhat different from that of the other.
Example (a) Firm producing different brands of toothpastes as Colgate, Close-up, Pepsodent etc. (b) When firm producing different brands of soaps as Lux, Pears, Nirma, Lifebuoy etc.
Features of Monopolistic Competition
(a) Freedom of entry and exist of firms
(b) Large number of buyers and sellers
(c) Non-price competition
(d) Product differentiation
(e) Lack of perfect knowledge
(e) Selling costs and less mobility of goods and services.
Oligopoly: It is a form of the market in which there is a few big sellers of a commodity and a large number of buyers.
(b) There are only a few watch producer in the Indian market. Titan, hmt and Maxima are well known brand.
Features of Oligopoly
(a) Large number of buyers and few sellers
(b) Few firms are produce particular product
(c) High degree of interdependence
Price ceiling: Price ceiling means maximum price of a commodity that the sellers can charge from the buyers. Often the government fixes this price much below market price of a commodity so that is become within the reach of the poorer section of the society.
Price floor: Price floor means the minimum price fixed by the government for a commodity in the market. Floor means the lowest limit.
Bilateral monopoly; A market with a single seller and a single buyer is called bilateral monopoly. In this type of market, price is determined by the collective bargaining between the buyer and the seller.
Monopsony: It is a complementary form of monopoly. In this market form there is one buyer and a large number of sellers. Other conditions are the same as under monopoly. If the sellers sell differentiated products the market is called monopolistic competition.
Oligopoly: It is the complementary form of oligopoly. In an oligopoly market there are a few buyers and a large number of seller’s other conditions remaining the same as under oligopoly.
Break even analysis it is a system of analysis -which determines the probable profits at any level of production. It established the relationship of costs, volume and profits, so this analysis is also known as cost volume profit analysis. This analysis find out the level of activity where the total cost equals total selling price. Breakeven point It is a point where there is no profit and no loss. According to Charles T. Horngerm "Breakeven point is that point of activity where total revenues and total expenses are equal. It is the point of zero profit and zero loss.
\[\begin{align}
& \mathrm{Break}\,\mathrm{Even}\,\mathrm{Point}\,\mathrm{(In}\,\mathrm{Units)=}\frac{\mathrm{Tatal}\,\mathrm{fixed}\,\mathrm{Exepenses}}{\begin{align}
& \mathrm{selling}\,\mathrm{cost}\,\mathrm{per}\,\,\mathrm{Unit-Marginal}\,\mathrm{cost}\,\mathrm{per}\,\mathrm{Unit} \\
& \, \\
\end{align}} \\
& \mathrm{Break}\,\mathrm{Even}\,\mathrm{Point(In}\,\mathrm{sales)= }\frac{\mathrm{Fixed}\,\mathrm{Cost}\,\mathrm{X selling}\,\mathrm{price}}{\mathrm{Selling}\,\mathrm{Price-Verieable}\,\mathrm{cost}} \\
\end{align}\]
Consumption function: The amount of money spent by the people on the purchase of goods and services in order to satisfy their wants directly is called consumption expenditure.
\[\]
Propensity to consume: A schedule showing various amounts of consumption which correspond to different levels of income is known as propensity to consume.
(b) Marginal propensity to consume (MPC)
\[APC=\frac{C}{Y}\]
Marginal propensity to consume is the ratio of a change in consumption to a change in income.
Full employment: Full employment is a situation in which everyone who wants to work is working except for those who are frictionally and structurally unemployed.
Frictional unemployment: Frictional unemployment is the unemployment associated with the changing of jobs in dynamic economy. It creates due to immobility of labor, shortage of raw material, lack of information regarding opportunities of employment, shortage of power, wear and tear of machines search of remunerative job.
Structural Unemployment: Structural unemployment is the unemployment that results from the long term decline of certain industries.
Voluntary Unemploymerit: Voluntary unemployment refers to the situation when a person is unemployed because he is not willing to work at the existing wage rate even when work is available.
For example: If the market wage rate for software engineer's job the hospital is Rs. 10,000 a month but some of the qualified software engineer refuse to accept job at 10000 a month they will be considered as voluntarily unemployed. Involuntary unemployment: Involuntary unemployment is a situation in which people are able to work and willing to work at existing rate of wages but do not get work.
Investment Multiplier: Investment multiplier refers to the factor by which output/income increases because of increase in investment. It is measured as the ratio between increase in output/income and increase in investment.
\[\mathrm{M=}\frac{\mathrm{ }\!\!\Delta\!\!\text{ Y}}{\mathrm{ }\!\!\Delta\!\!\text{ I}}\] Where K == Multiplier
Y = Increase in output / income
Y = Increase in investment
Inflationary Gap: Inflationary gap is excess of aggregate demand over and above its level required to maintain full employment equilibrium in the economy.
Fiscal policy: Fiscal policy refers to budgetary policy of the government to combat the situations of excess and deficient demand in the economy. Components of Fiscal policy are as follows:
(a) Government Expenditure: Government Expenditure is the principal component of fiscal policy. The government of a country incurs various types of expenditure—
* Expenditure on public work programmers, education and welfare Programmed, defense of the country and the maintenance of law, various types of subsidies to the producers etc.
(b) Faxes. Taxes are a compulsory payment made to government by the household and the producing sectors. By increasing the tax burden on the households and the producers the government reduces purchasing power in the economy. And by lowering the tax burden the government increases the purchasing power.
(c) Public Debt when the government borrow from the public that creates public debt. In a situation of deficient demand the government reduces its borrowing from the public and the situation excess demand, the government steps up public borrowing by offering attractive rate of interest.
(d) Deficit Financing Deficit financing means borrowing by the government from the RBI. The RBI lends money to the government by issuing more currency. Additional currency causes additional purchasing power in the economy Wages means the earning of people. It perceived by workers’ wages constitute the core element in income for the majority of active people.
Price mechanism: Price mechanism is a term used to describe the means by which the many millions of decisions taken each day by consumers and businesses interact to determine the allocation of scarce resources between competing users. It is a feature of mixed economy.
Economic Planning
|
Five year plan |
Period |
Target growth rate GDP IN(%age) |
Achievement (in%age |
Model |
|
First Plan |
1951-56 |
2.1 |
3.6 |
Herold domer Model |
|
Second Plan |
1956-61 |
4.5 |
3.6 |
Prof.P.C.mahalnobies |
|
Third Plan |
1961—66 |
5.6 |
2.8 |
Sukhmoy chakerbarti and Prof.saddy |
|
Fourth Plan |
1969-74 |
5.7 |
3.3 |
Ashok Rudra and Alon S.Manney
|
|
Fifth Plan |
1974-79 |
4.4 |
4.8 |
Alike Fourth Five-Year Plan/ Which is called "Investment Model of Planning Commission". |
|
Sixth Plan
|
1980-85 |
5.2 |
5.7 |
Based on Investment Yojana, Infrastructural changing and trend to growth model
|
|
Seventh Plan |
1985-90 |
5.0 |
6.0 |
Alike Sixth Five-Year plan prepared © Pranav Mukherjee) |
|
Eighth Plan
|
1992-97 |
5.6 |
6.8 |
John W. Miller Model |
|
Ninth Plan |
1997-02 |
6.5 |
5.4 |
Created by 'Planning |
|
Tenth Plan |
2002-07 |
8.0 |
7.2 |
—-do— |
|
Eleventh Plan |
2007-12 |
9.0 |
__ |
Prepared by Prof. C Rangarajan |
|
12th Plan |
2012-14 |
8.2 |
__ |
___ |
First Five-Year Plan (1951-1956)
Second Five-Year Plan (1956-1961)
Third Five-Year Plan (1961-1966)
Plan Holiday (From 1966-1967 to 1968-1969)
Fourth Five-'year Plan (1969-74)
Fifth Five Year Plan (1974-79)
Rolling Plan (1978-1980)
Sixth Five-Year Flan. (1980-1985)
Seventh Five-Year Plan (1985-1990)
Annual Plans
The Eighth Five-Year Plan (1990-95) could not take off due to the fast changing political situation at the Centre. The new government, which assumed power at the Centre in June 1991, decided that the Eight Five-Year Plan would commence on April 1, 1992 and that 1990-91 and 1991-92 should be treated as separate Annual Plans. Formulated within the framework of the Approach to the Eighth Five-Year Plan (1990-95), the basic thrust of these Annual Plans was on maximization of employment and social transformation.
Eighth Five-Year Plan (1992-1997)
Ninth Five-Year Plan (1997-2002)
Tenth Five Year Plan (2002-07)
Some creditable achievements of the 10th Plan:
Eleventh Five Year Flan (2007-2012)
Achievements
Failures
12th Five year plan
Niti Aayog
The Niti Aayog will replace the planning commission will be responsible for formulating what the government described as a Bhartiya approach to development. The new organization Niti stands for National Institution for Transforming India is being seen as a think tank that will foster cooperative federalism' rather than take a top down approach. Niti Aayog will aim to accomplish the following objectives and opportunities—
Types of planning
Imperative Planning in this type of planning the Central Planning authority decides upon every aspect of the economy and the targets set and the processes delineated to achieve them are to be strictly followed. This type of planning is mainly practiced in the socialist economies
Indicative planning in this type of planning the State sets broad parameters and goals for the economy. It is different from centralized planning as unlike in the latter, the State does not see Plan targets to the minutest details, but only broadly indicates the targets to be achieved. It was adopted in our country since the 8th Five-Year Plan, as practiced in many developed countries.
Perspective planning: it is a type of planning for a long period of time, usually 15-20 years. As a highly specialized task, it is operationalized through the Five Year and Annual Plans. In such form of planning, the planners formulate a perspective Plan that broadly defines the direction desired to be taken by the economy.
Rolling Planning: Under the scheme of rolling Plans, there are three different steps. First, a plan for the current year which includes the annual budget Second, a plan for a fixed number of years, say three, four or five. It is revised every year as per the requirements of the economy. Third, a perspective plan for 10, 15 or 20 years.
Core Plan: as per this concept, the Planning Commission asks the states to submit their projected revenue estimates. On the basis of these estimates, Planning Commission determines the expenditure heads for State Annual Plans. This helps in keeping the Plan target to realistic limits and prevents non-plan account. The concept of 'Core Plan' has emerged recently.
Types of Unemployment
(i) Cyclical unemployment: n is the result of depression in an economy.
(ii) Frictional unemployment: This kind of unemployment is temporary. It is the result of a situation when new industries drive out old ones and workers change over to better jobs.
(iii) Open unemployment: It refers to those who have no work to do even though they are able and willing to do work.
(iv) Seasonal unemployment: This occurs at certain period of the work when work load is comparatively less, and hence people are rendered jobless. For example, in the period between past harvest and next sowing, agricultural laborers are unemployed.
(v) Educated unemployed: this is mainly found in urban areas. Those educated persons who are unable to get work come under this category.
(vi) Under—employment (Disguised unemployment): It results when a person contributes to production less than what he or she is capable of, for example, an engineer -working as a clerk is under-employed.
(vii) Compulsory unemployment: It means the labour power which is ready to work on the current rate but does not get the work.
(viii) Seasonal unemployment: It means the unemployment of the farmers and farm labourers during non-crop seasons.
(1) General status of unemployment: In this category, generally, those unemployed for more than one year are included. As such it is a long-term unemployment.
(2) Weekly-unemployment: The persons who have not got work for even one hour in a week are included in this category.
(3) Daily unemployed merit; it is considered the best concept of unemployment.
Development and employment programmers at a glance
|
SR.no |
Program /plan Institution |
Year of Beginning |
Objective Description |
|
1. |
Community development Program (CDP) |
1952 |
Over all development of rural area with people participation |
|
2. |
Intensive Agriculture Development program (IADP) |
160-61 |
To provide loan seeds fertilizer tools to the former |
|
3. |
Intensive Agriculture Area |
1964-65 |
Develop the special harvests. Programme (IAAP) |
|
4. |
High Yielding Variety Program |
1966-67 |
To increase productivity of food ammo (HYVP) grains by adopting latest varieties of inputs for crops |
|
5. |
Indian Tourism Development Oct |
Oct.1966 |
To arrange for the construction of Corporation (ITDC) Hotels and Guest houses at various Places of the country. |
|
6. |
Green Revolution |
1966-67 |
To increase the food grains, spec tally wheat production (Credit goes to Dr. M.S. Swami Nathan in India and Nobel laureate Dr. Norman Borlaug in the world). |
|
7 |
Nationalization of 14 Banks |
19 July 1969 |
To provide loans for agriculture rural development and other Priority sectors. |
|
8. |
Employment Guarantee |
1972-73 |
To assist the economically weaker Scheme of Maharashtra sections of the rural society. |
|
9. |
Accelerated Rural Water Supply Programed (ARWSP) |
1972-73 |
For providing drinking water in the villages. |
|
10. |
Small Farmer Development |
1974-75 |
For technical and financial assistance Agency (SFDA) to small farmers |
|
11. |
Command Area Development Programme (CADP |
1974-75 |
To ensure better and rapid utilization of irrigation capacities of medium and large projects. |
|
12. |
Twenty Point Programme (TPP) |
12. 1975 |
Poverty eradication and raising the Standard of living. |
|
13. |
National Institution of Rural Development (NIRD) |
13 1977 |
Training, investigation and Advisory organization for rural development. |
|
14. |
Desert Development Programme (DDP) |
1977-78 |
For controlling the desert expansion and maintaining environmental Balance. |
|
15. |
Food for Work Programed(FWP) |
1977-78 |
Providing food grains to labor for The works of development. |
|
16. |
Antyodaya Yojana |
1977-78 |
To make the poorest families of the `Village economically independent (only in Rajasthan State). |
|
17. |
Training Rural Youth for Self Employment (TRYSEM) |
August 151979 |
Programed of training rural youth for self-employment. |
|
18. |
Integrated Rural Development Programed (IRDP) |
OCT.2 1980 |
All-round development of the rural poor through a programmed of asset endowment for elf employment |
|
19. |
National Rural Employ-mint Programed (NREP) |
1980 |
19 To provide profitable employment Opportunities to the rural poor. |
|
20. |
Development of Women and Children in Rural Areas(DWCRA) |
1982 |
To provide suitable opportunities of self-employment to the women belonging to the rural families who Are living below the poverty line. |
|
21. |
Rural Landless Employment Guarantee Programme (RLEGP) |
1993 |
For providing employment to landless farmers and laborers.
|
|
22. |
Self-Employment Educated Unemployed Youth (SEEUY) |
1983-84 |
To provide financial and technical assistance for self-employment. |
|
23. |
Farmer Agriculture Service Centre's (FASCs |
1983-84 |
To popularize the use of improved agricultural instruments and tool kits. |
|
24. |
24 National Fund for Rural Development (NFRD) |
Febauary 1984 |
To grant 100% tax rebate to donors and also to provide financial assistance For rural development projects. |
|
25. |
Industrial Reconstruction Bank of India |
Marh 1985 |
To provide financial assistance to sick and closed industrial units for Their reconstruction. |
|
26. |
Comprehensive Crop Insurance Scheme |
April 1985 |
For insurance of agricultural Crops. |
|
27. |
Council for Advancement Technology (CAPART) (H.Q.- New Delhi) |
Sep 1986 |
To provide assistance for rural of People's Action and Rural 6 prosperity |
|
28. |
Self-Employment Program(SEPUP |
Sep. 1986 |
To provide self-employment for the Urban Poor urban poor through provision of subsidy and bank credit |
|
29. |
Formation of Securities and Exchange Board of India |
April 1988 |
To safeguard the interest of investors in capital market and to regulate Share market. |
|
30 |
Jawaharlal Rozgar Yojana |
1999 |
For providing employment to rural Unemployed. |
|
31. |
Nehru Rozgar Yojana |
October 1989 |
For providing employment to urban unemployed. |
|
32. |
Agriculture and Rural Debt Relief Scheme (AR0RS) |
1990 |
To exempt bank loans upt Rs.10, 000 of rural arasans and To assist the urban33. |
|
33. |
Scheme of Urban micro Enterprise (SUME) |
1990 |
To assist the urban poor people for small Enterprise |
|
34. |
Scheme of Urban Wage Employment (SUWE) |
1990 |
To provide wages employment after arranging the basic facilities for poorpeople in the urban areas where Population is less than one lakh. |
|
35. |
Scheme of Housing and Shelter Up gradation (SHASU) |
1990 |
To provide employment by means Of shelter up gradation in the urn areas where population is between 1 to 20 lakh. |
|
36. |
Supply of Improved Toolkits to Rural Artisans |
July 1992 |
To supply modem toolkits to the rural craftsmen except the weavers, tailors, embroiders and tobacco laborers who are living below the Poverty line. |
|
37. |
Employment Assurance Scheme (EAS) |
Oct.2,1993 |
To provide employment of at least 100 year in villages. |
|
38. |
October Members of Parliament Local Area Development Scheme(MPLADS) |
23 DEC. 1993 |
To sanction Rs. 5 core per year to Member of Parliament for various development works in their respective areas through DM of the District. |
|
39. |
District Rural Development Agency (DRDA) |
1993 |
To provide financial assistance for development. |
|
40. |
Mahila Samridhi Yojana |
OCT.2, 1993 |
To encourage the rural women to deposit in Post Office Savings Account. |
|
41. |
Child Labor Eradication August Scheme |
AUG15.1994 |
To shift child labor from hazardous Industries to schools. |
|
42. |
Prime Minister's Integrated Urban Poverty Eradication Programed (PMIUPEP) |
18,1995 |
November To attack urban poverty in an integrated manner in 345 towns having population between 50,000 To 1 lakh. |
|
43. |
Group Life Insurance Scheme in Rural Areas |
1995-96 |
To provide insurance facilities to rural people on low premium |
|
44. |
National Social Assistance Programme |
1995 |
To assist people living below the poverty line. |
|
45. |
Ganga Kalyan Yojana |
1997-98 |
To provide financial assistance to farmers for exploring and developing ground and surface Water resources.
|
|
46. |
Kasturba Gandhi Education Scheme |
August 15, 1997 |
To establish girls schools in districts having low female literacy rate |
|
47. |
Swarna Jayanti Shahari Rozgar Yojana (SJSRY) |
December1997 |
To provide gainful employment To urban unemployed and under Employed poor through self-employment or wage employment. |
|
48. |
Bhagya Shree Bal Kalyan Policy |
OCT,19 1998 |
To uplift the girls7 conditions |
|
49. |
Rajrajeshwari Mahila Kalyan Yolanda (RMKY) |
Oct. 19 1998 |
To provide insurance protection to women. |
|
50. |
Annapurna Yolanda Swarna Jayanti Gram |
March 1999 |
To provide 10 kg. fooains to senior Citizens (who do not get pension). |
|
51. |
Swarn jayanti Gram swarojgar Yojan |
1999
|
For eliminating rural poverty and unemployment and promoting self- Employment. |
|
52. |
Jawahar Gram Samridhi Yojana (JGSY) |
April 1999 |
Creation of demand driven community village infrastructure. |
|
53. |
Jan Shree Bima Yojana |
Aug. 10,2000 |
Providing Insurance Security to people living below the poverty line. |
|
54. |
Pradhan Mantri Gramodaya Yojana |
2000 |
To fulfill basic requirements in rural areas. |
|
55. |
Antyodaya Anna Yojana |
Dec. 25, 2000 |
To provide food security to the poor. |
|
56. |
Ashraya Bima Yojana |
June 2001 |
To provide compensation to laborers who have lost their Employment. |
|
57. |
Pradhan Mantri Gram Sadak Yojana (PMGSY) |
Dec. 25 2000 |
To line all villages with pucca road
|
|
58. |
Khetihar Mazdoor Bima Yojana |
2001-2002 |
Insurance of Landless Agricultu workers. |
|
59. |
Shiksha Sahyog Yojana |
2001-2002 |
Deacon for Children below Poverty Line. |
|
60. |
Sampurna Garmin Rojgar Yojana
|
Sept. 25, 2001 |
Providing employment and food security to rural people |
|
61. |
Jai Prakash Narain Rojgar'Guarantee |
|
Proposed Employment Guarantee in most
|
|
62. |
Swajal dhara Yojana |
2002 |
Started in December 2002 for ensuring drinking water Supply to all villege by 2004 |
|
63. |
Hariyali Party ojana |
January 17, 2003 |
Inaugurated on 2003 by the Prime Minister. It aims at tackling the problems of irrigation and drinking water, along with boosting tree plantation programmed and fisheries developments in rural areas |
|
64. |
Social Security Pilot Scheme |
Jan. 23, 2004 |
Scheme for laborers of unorganized sector for providing family pension, Insurance and medical. |
|
65. |
Vande Matram Scheme |
Feb. 92004 |
Major initiative in public-private partnership during pregnancy Check-up. |
|
66. |
National Food for Work Programme |
|
Inaugurated by the Prime Minister on November 14, 2004. This programme is to be implemented initially in 150 Districts of the country. It aims at providing 100 days' employment in a year to all able bodied unemployed Rural folk. |
|
67. |
Janani Suraksha Yojana |
April 12, 2005 |
Takes the place of National Maternity Benefit Scheme. It will be a part of The National Rural Health Mission (NRHM). |
|
68. |
Bharat Nirman Yojana |
Dec. 16 2005 |
Development of Rural infrastructure including six components : Irrigation, Water supply. Housing, Road, Telephone and Electricity. |
|
69. |
National Rural Employment |
Feb. 2, |
2006 69The provisions are the same as for Guarantee Programed food for work programmed. The (NREGP) scheme was enforced in 200 districts Of the country to begin with. To provide at least 100 days wages employment in rural areas in a Year. The scheme is 100% centrally Sponsored.. |
Bharat Nirman Yojana:
Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)
Note: The Govt. of lndia, October! 2009 renamed the NREGA as the Mahatma Gandhi National Rural Employment guarantee Act (MNREGA).
Swachchh Bharat Abhiyan
Swachchh Bharat Abhiyan is a clean India drive and mission launched as a national campaign by the Indian government in order to covering the 4041 statutory towns aiming maintained cleanliness of streets, roads and infrastructure of the country. Prime Minister Narendra Modi has officially launched this mission on 2nd of October (The birth anniversary of Mahatma Gandhi) in 2014 at the Rajghat, while launching the event prime minister himself had cleaned the road.
This Mission aimed to join each and every Indian people from all walks of life by making the structure of branching of a tree. Swachchh Bharat Mission aimed to construct individual sanitary latrines for household purposes for the people living under poverty lines converting dry latrineint low-cost sanitary latrines, providing facility of hand pumping. Safe and Secure bathing. Set up Sanitary marts construct drains, disposal of solid and liquid wastes, enhance health and education awareness about sanitation, facilitating the participation of private sector towards cleanliness facilities.
Make in India
Make in India is campaign launched by Prime Minister Narendra Modi on September 25, 2015 with a view to put India prominently on the global manufacturing map and in turn facilitate the inflow of technology and capital, while creating millions of jobs. The ambitious scheme which puts in place the logistics and systems to address in a timely manner queries of potential investors was unveiled along with a logo, a portal and brochures on 25 identified growth sectors.
Many unemployed Indians have started leaving the country to seek opportunities elsewhere. People have lost faith in Indian manufacturing and themselves. The Prime Minister said, for him the term FDI for the domestic industry did not expand to 'foreign direct investment' but/ first develop India7, to create opportunities of unemployment. If the poor get jobs the purchasing power of families will increase. 'Lion is the logo of Make in India campaign.
The main aim of the scheme is to achieve global competitiveness.
Pradhan Mantri jandhan Yojana (PMJDY)
PMJDY is a scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra Modi on 28 August/ 2014. He had announced this scheme on his independence day 15 August, 2014.
PMJDY run by Department of Financial Services, Ministry of Finance on the inauguration day 1-5 crore (15 million) bank account were opened under this scheme. By 28 January, 2015,12-58 crore accounts were opened with around 10590 crore were deposited under the scheme, which also has an option for opening New Bank accounts with zero balance.
Objective
Saansad Adarsh Gram Yojana
The Saansad Adarsh Gram Yojana was launched for the development of model villages. Under the Yojana, Members of Parliament (MP's) will be responsible for developing the socio-economic and physical infrastructure of three villages each by 2019, and a total of eight villages each by 2024.
Objectives:
Identification of villages
Funding
No new funds have been allocated for the Yojana. Resources may be raised through:
Pradhanmantri suraksha Bima Yojana (PMSBY)
Eligibility: Available to people in age group 18 to 70 years with bank account:
Premium: Rs. 12 per annum.
Payment mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
Risk coverage: For Accidental death and full disability Rs. 2 lakh for partial disability Rs. 1 lakh.
Eligibility: Any person having a bank account and Adhere number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.
Terms of Risk. Coverage: A person has to opt for the scheme every year. He can also prefer to give a long term option of continuing in which case his account will be auto-debited every year by the bank.
Implementation of this scheme; this scheme will be offered by all public sector. General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
Pradhanmantri Jeevan Jvoti Bima Yojana
Eligibility: Available to people in the age group of 18 to 50 and having a bank account people who join the scheme before completing 50 years, however continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
Premium: Rs. 330 per annum. It will be auto debited in one instalment.
Payment mode: The payment of premium will be directly auto debited by the bank from the subscribers account.
Risk Coverage: Rs. 2 lakh in case of death for any reason.
Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long term option of continuing in which case his account will be auto debited every year by the bank.
Implementation of this scheme: The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie up with bank for this purpose.
Atal Pension Yomna (APY): The scheme will be launched on June 1, 2015 and focus is on the unorganised sector. A pension provides people with a monthly income when they are no longer earning. A subscriber receives pension based on accumulated contribution out of his current income under the Atal Pension Yojana Scheme. The subscribers under the age of 40 would receive the fixed monthly pension of Rs. 1,000 to Rs. 5,000 at the age of 60 years, depending on their contributions.
Eligibility of APY: APY is open to all bank accountholders who are not members of any statutory social security scheme.
Age of joining and contribution period the minimum age of Join in APY is 18 years and maximum age is 40 years. One needs to contribute till one attains 60 years of age.
Sukanv'a Saroricihi Yojana (Under Beti Bachao Beti Padao Yojana)
PAHA DBTL (Direct: Benefit Transfer of LPG)
The PAHAL DBTL ambitious scheme was earlier launched on June 1, 2013 by the previous government with the objective of giving cash subsidy on cooking gas and it covered 291 districts. The present government has comprehensively examined the PAHAL scheme and after reviewing the problems faced by the consumers, it modified the prior scheme and re- launched it in 54 districts on 15 November, 2014 to cover 2-5 croc. Households.
The new scheme has made available the LPG subsidy to all consumers under the modified scheme, the consumer who use LPG can now receive subsidy in his bank account under two options—with Adhere and without
Adhere. Such a consumer who join the scheme will be called Cash Transfer Compliant (CTC) and he can receive subsidy in the bank account.
Benefits of PAHAL:
There are three bodies which are going to be benefited by the PAHAL Scheme:
Mudra Bank
The Prime Minister Narendra Modi launched the promised Micro units development and Refinance Agency Ltd. (MUDRA) Bank on 8th April, 2015 with a corpus of Rs. 20,000 crore and a credit guarantee corpus of Rs. 3,000 crore.
Objective of Mudra Bank:
Mudra Bank has launched three loan instruments:
(i) (SISHU): Covers loan up to Rs. 50,000
(ii) KISHOR: Covers loan above Rs. 50,000 and upto Rs. 5 lakh
(iii) TARUN: Cover loan above 5 lakh and upto 10 lakh.
Skill India
Prime Minister Narendra Modi Launched 'Skill India' Programme in March 2015. The main goal of skill India is to create opportunities, space and scope for the development of talents of the Indian youth and to develop more of those sectors which have already been put under skill development for the last so many years and also to identify new sectors for Skill development.
Features of Skill India
Various committee and their focus area
Working Groups and Committees by RBI
You need to login to perform this action.
You will be redirected in
3 sec
