Economics
Project
A report on the various poverty
alleviation and employment
generation programmesstarted in
India, with special focus on
MGNREGA.
Name – Vedanshi Gupta
Class – 11 Commerce
Roll no. – 07
Subject – Economics Project 1
School – Loreto Convent
Asansol
Acknowledgement
I take this opportunity to express my heartfelt
gratitude to everyone who supported me in the
successful completion of this project. First and foremost, I
am deeply thankful to my Economics teacher, Mr.S Paul,
for their invaluable guidance, encouragement, and
insightful suggestions throughout the course of this
project. Their expertise and dedication inspired me to
strive for excellence. I extend my sincere thanks to our
principal, Sister Jency, for providing the necessary
resources and a conducive environment for completing
this project. I am also grateful to my friends for their
constructive feedback and constant encouragement,
which motivated me to improve my work further. Finally, I
express my profound gratitude to my family for their
unwavering support and understanding during the entire
process. Their belief in me has been my greatest
strength. This project is the result of collaborative efforts,
and I sincerely appreciate everyone who contributed to
its success.
Thank you.
CONTENT
Sl. Topic Page
No. no.
1. Introduction 1
2. Special programmes 2-10
of poverty alleviation
3. Main poverty 11-15
alleviation
programmes
4. Main features of 16-19
MGNREGA
5. Nature of poverty in 20-28
India
6. Conclusion 29-30
7. Bibliography 31
Introduction
India, as a developing country, has long
grappled with the challenges of poverty and
unemployment, which continue to hinder its socio-
economic progress. Over the years, successive
governments have introduced numerous poverty
alleviation and employment generation programs
to address these critical issues. These initiatives
aim to uplift the underprivileged, provide
sustainable livelihoods, and foster inclusive
development, especially in rural areas where
poverty and unemployment are most acute.
Among these programs, the Mahatma Gandhi
National Rural Employment Guarantee Act
(MGNREGA), launched in 2005, stands out as a
landmark initiative. MGNREGA not only provides a
legal guarantee of employment but also
emphasizes asset creation, rural development, and
social security. It is one of the world's largest social
welfare programs, designed to empower
marginalized communities and reduce income
inequality. This report provides an overview of
various poverty alleviation and employment
generation programs implemented in India, with a
particular focus on MGNREGA. It examines the
objectives, features, achievements, and challenges
of these initiatives and highlights their role in
transforming rural livelihoods and fostering
economic empowerment.
Special Programmes
of Poverty Alleviation
Poverty and unemployment are significant
challenges in India, and the government has
implemented various initiatives over the years
to address these issues. These programs have
evolved in structure, focus, and
implementation to meet the changing socio-
economic needs of the population. Below is an
in-depth analysis of the major poverty
alleviation and employment generation
programs launched in India:
1. Community Development Programme
(1952)
Objective: To promote overall rural
development by improving agriculture,
education, health, and infrastructure.
Significance: It was India’s first major program
aimed at rural development. Though it set the
foundation for later programs, it had limited
success due to poor implementation and lack
of participation from the rural community.
2. Integrated Rural Development
Programme (IRDP) (1978)
Objective: To provide rural households below
the poverty line with productive assets and
skills to enable self-employment.
Features: Focused on farmers, artisans, and
laborers. Provided subsidies and bank loans
for asset creation.
Impact:Helped improve rural livelihoods, but
issues such as corruption, poor targeting, and
asset misuse limited its effectiveness. Merged
with other schemes in later years to form new
programs.
3. National Rural Employment
Programme (NREP) (1980)
Objective: To create wage employment
opportunities in rural areas through public
works projects.
Features: Focused on creating rural
infrastructure, such as roads and irrigation
facilities. Shared funding between the central
and state governments.Impact: Improved
rural infrastructure and generated
employment, but the program was later
merged with RLEGP.
4. Rural Landless Employment Guarantee
Programme (RLEGP) (1983)
Objective: To guarantee employment to
landless laborers in rural areas.
Features: Fully funded by the central
government. Employment was provided
through labor-intensive public works.
Impact: Contributed to asset creation but
failed to meet the employment demands fully.
It became a precursor to MGNREGA.
5. Jawahar Rozgar Yojana (JRY) (1989)
Objective: To provide wage employment to
the rural poor and create durable community
assets.
Features: Implemented by village panchayats,
with a focus on women and Scheduled
Castes/Tribes. Employment opportunities
were created through construction projects.
Impact: Empowered local governance.
However, the quality of assets created was
often subpar, and the program faced
implementation delays.
6. Employment Assurance Scheme (EAS)
(1993)
Objective: To provide assured employment to
rural unskilled workers during lean
agricultural seasons.
Features: Targeted drought-prone, desert, and
backward areas. Created community
infrastructure like roads, schools, and
irrigation canals.
Impact: Reduced seasonal unemployment but
suffered from inadequate funding and
corruption.
7. Swarnjayanti Gram Swarozgar Yojana
(SGSY) (1999)
Objective: To promote self-employment in
rural areas by organizing the rural poor into
Self-Help Groups (SHGs).
Features: Focused on training, capacity
building, and providing financial support
through credit linkages. Emphasized women’s
empowerment and the creation of micro-
enterprises.
Impact: Enhanced rural incomes and
livelihoods but had issues with targeting and
lack of coordination between stakeholders.
8. Sampoorna Grameen Rozgar Yojana
(SGRY) (2001)
Objective: To provide wage employment and
food security in rural areas.
Features: Provided food grains as part of
wages. Focused on infrastructure
development.
Impact: Improved rural infrastructure and
reduced hunger but was criticized for
inefficient fund utilization.
9. Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA)
(2005)
Objective: To provide at least 100 days of
guaranteed wage employment annually to
rural households willing to do unskilled
manual labor.
Features: Legal entitlement to employment
for rural households. Focus on creating
sustainable rural assets like water
conservation structures, irrigation facilities,
and roads. Social inclusion with special
provisions for women and marginalized
communities. Payment transparency through
direct bank transfers.
Impact: Provided employment to millions,
reduced rural migration, and empowered
women. Improved environmental
sustainability through resource conservation.
Challenges: Delayed wage payments,
inadequate funds, and regional disparities in
implementation.
10. National Rural Livelihoods Mission
(NRLM) (2011)
Objective: To alleviate rural poverty through
the promotion of sustainable livelihoods.
Features: Focused on mobilizing the rural poor
into SHGs and providing them with training,
financial services, and market linkages.
Renamed Deen Dayal Antyodaya Yojana (DAY-
NRLM) in 2015.
Impact: Enhanced household incomes and
empowered women but needed stronger
market linkages.
11. Pradhan Mantri Employment
Generation Programme (PMEGP) (2008)
Objective: To create self-employment
opportunities in rural and urban areas.
Features: Financial support to micro and small
enterprises. Focused on youth and
marginalized groups.
Impact: Generated entrepreneurship but
required better monitoring and follow-up
mechanisms.
12. Pradhan Mantri Kaushal Vikas Yojana
(PMKVY) (2015)
Objective: To provide short-term skill training
and certification to unemployed youth.
Features: Industry-relevant skill development.
Financial incentives for trainees.
Impact: Improved employability of the rural
workforce but faced challenges with job
placements.
13.Deen Dayal Upadhyaya Grameen
Kaushalya Yojana (DDU-GKY) (2014)
Objective: To enhance the employability of
rural youth by providing skill training and job
placements.
Features: Targeted youth between 15-35
years from below the poverty line households.
Emphasized job-oriented training.
Impact: Improved rural livelihoods but
required better implementation strategies.
14. Start-Up India and Stand-Up India
(2016)
Objective: To promote entrepreneurship
among women, Scheduled Castes, and
Scheduled Tribes.
Features: Easy access to loans and
mentorship for startups. Focused on fostering
innovation and enterprise.
Impact: Boosted entrepreneurial activity but
needed greater outreach in rural areas.
15. Skill India Mission (2015)
Objective: To equip the workforce with
industry-relevant skills for better employment
opportunities.
Features: Integrates multiple skill
development initiatives. Partnerships with
private sector and international organizations.
Impact: Helped address the skills gap but
required better quality training programs.
Main Poverty
Alleviation
Programmes.
Poverty Alleviation Programs for Rural Areas
1. Integrated Rural Development
Programme (IRDP) (1978)
Objective: Provide asset-based support and
self-employment opportunities to rural
households below the poverty line through
subsidized loans and skills training.
2. Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA)
(2005)
Objective: Provide at least 100 days of
guaranteed wage employment annually to
rural households willing to do unskilled
manual work.
3. Swarnjayanti Gram Swarozgar Yojana
(SGSY) (1999)
Objective: Promote self-employment among
the rural poor by organizing them into Self-
Help Groups (SHGs) and linking them to credit
facilities.
4. National Rural Livelihood Mission
(NRLM) (2011)
Objective: Alleviate poverty by empowering
rural households through skill development,
financial inclusion, and market access.
5.Deen Dayal Upadhyaya Grameen
Kaushalya Yojana (DDU-GKY) (2014)
Objective: Enhance the employability of rural
youth by providing them with job-oriented
skill training.
6. Sampoorna Grameen Rozgar Yojana
(SGRY) (2001)
Objective: Provide wage employment and
food security to rural households while
creating durable community assets.
7. Pradhan Mantri Gram Sadak Yojana
(PMGSY) (2000)
Objective: Improve rural connectivity by
constructing all-weather roads, facilitating
access to markets and services.
8. Indira Awaas Yojana (IAY) (1985) [Now
part of Pradhan Mantri Awaas Yojana-
Gramin (PMAY-G)]
Objective: Provide housing for rural families
below the poverty line.
Poverty Alleviation Programs for Urban Areas
1. Swarn Jayanti Shahari Rozgar Yojana
(SJSRY) (1997) [Replaced by DAY-NULM]
Objective: Generate self-employment and
wage employment opportunities for the urban
poor.
2. DeenDayal Antyodaya Yojana -
National Urban Livelihoods Mission (DAY-
NULM) (2014)
Objective: Reduce urban poverty by
improving access to skill development,
employment, and
entrepreneurship opportunities for the urban
poor.
3. Pradhan MantriAwaasYojana - Urban
(PMAY-U) (2015)
Objective: Provide affordable housing for all
urban poor, especially slum dwellers, by 2022.
4. National Urban Health Mission (NUHM)
(2013)
Objective: Provide affordable and quality
health care services to urban poor
populations, particularly in slums.
5. Smart Cities Mission (2015)
Objective: Transform urban areas by
improving infrastructure and basic services to
enhance the quality of life for residents,
including the urban poor.
6. Street Vendors (Protection of
Livelihood and Regulation of Street
Vending) Act (2014)
Objective: Protect the livelihoods of street
vendors by regulating street vending
activities in urban areas.
7. Urban Employment and Poverty
Alleviation Programmes under JNNURM
(2005)
Objective: Improve basic services to the urban
poor, including water supply, sanitation,
housing, and slum redevelopment.
Main features of MGNREGA
MGNREGA (Mahatma Gandhi National Rural
Employment Guarantee Act) is a flagship rural
development program in India aimed at
improving the livelihoods of rural populations
by providing guaranteed wage employment.
Below are its main features and an analysis of
its success in reducing poverty:
Main Features
of
MGNREGA:
1. Legal Right to Work:
Provides at least 100 days of guaranteed
wage employment per year to every rural
household whose adult members volunteer to
do unskilled manual work.
2. Demand-Driven Program:
Employment is provided on demand, ensuring
that no one is denied work.
3. Focus on Rural Development:
Promotes the creation of durable assets such
as roads, canals, ponds, and wells,
contributing to rural infrastructure.
4. Transparency and Accountability:
Payments are made directly into workers'
bank accounts or post office accounts to
reduce corruption.Social audits are mandatory
to ensure transparency.
5. Inclusivity:
Special focus on marginalized groups like
women (with a mandatory 33% participation),
Scheduled Castes (SCs), and Scheduled Tribes
(STs).
6. Wage Rate:
Wages are set by the state governments and
are periodically revised to ensure fairness.
7. Eco-Friendly Work:
Emphasis on sustainable development
through water conservation, afforestation,
and land development projects.
Success of MGNREGA in Reducing Poverty:
1.Increased Rural Employment:
Millions of rural households have been
provided with additional income through
wageemployment, reducing distress migration
to urban areas.
2. Poverty Reduction:
By supplementing rural incomes, MGNREGA
has improved household consumption,
reduced hunger, and lowered the vulnerability
of the poorest.
3. Women Empowerment:
High participation of women has empowered
them economically and socially, giving them
financial independence.
4. Infrastructure Development:
The assets created under MGNREGA have
improved rural infrastructure,
agriculturalproductivity, and water availability,
leading to long-term benefits for rural
communities.
5. Crisis Mitigation:
During times of economic distress (e.g.,
COVID-19 pandemic), MGNREGA acted as a
safety net for rural households by providing
immediate employment and income.
Nature of poverty in
India
Poverty in India manifests differently in
rural and urban sectors due to differences in
access to resources, infrastructure, and
opportunities. Here's an overview of the
nature of poverty in each sector:
1. Rural Poverty in India:
Key Characteristics: High Dependence on
Agriculture: The majority of rural households
depend on agriculture for their livelihood.
However, this sector often faces issues such
as low productivity, land fragmentation,
inadequate irrigation facilities, and fluctuating
market prices.
Unemployment and Underemployment: Many
rural households experience seasonal
unemployment, as agriculture is seasonal,
and employment opportunities outside
farming are limited.
Lack of Access to Basic Services: Rural
areas often face shortages in healthcare,
education, clean water, and sanitation.
Limited infrastructure and connectivity to
urban areas exacerbate these issues.
Vulnerability to Shocks: Rural communities
are more vulnerable to natural disasters,
climate change, and economic downturns.
This contributes to cyclical poverty.
Poverty Indicators: Income Inequality:
Large sections of rural society earn very low
incomes, with significant disparities between
different castes, classes, and regions.
Migration: A substantial portion of rural
populations migrates to urban centers in
search of better economic opportunities,
leading to rural-urban migration, which can
strain urban resources.
2. Urban Poverty in India:
Key Characteristics: Rapid Urbanization:
India has seen a massive influx of people into
cities in recent decades, many of whom are
poor and live in slums or informal
settlements.
Informal Economy: A large proportion of the
urban poor are employed in the informal
sector, with no social security benefits, job
stability, or decent wages. They often work in
construction, domestic help, street vending,
and other low-wage occupations.
Housing Shortages: Many urban poor live in
overcrowded slums with inadequate housing,
lack of basic amenities (like water, sanitation,
and electricity), and poor living conditions.
Health and Education: The urban poor
often lack access to quality healthcare and
education due to high costs, resulting in lower
standards of living and limited opportunities
for social mobility.
Poverty Indicators: Unemployment and Low
Wages: Urban poverty is characterized by low-
paying jobs, unemployment, or
underemployment. This results in income
inequality and growing disparities between
the rich and poor.
Social Exclusion: Marginalized groups (like
migrant workers, the homeless, and people
from lower castes) face social exclusion,
which further compounds their poverty.
Emphasis on Skill Development for
Employment and Entrepreneurship in Recent
Years
Given the nature of poverty in both sectors,
recent policies and initiatives in India have
focused on improving skills for both
employment and entrepreneurship as critical
components of poverty alleviation.
Skill Development for Employment:
1. Pradhan Mantri Kaushal Vikas Yojana
(PMKVY):
This flagship initiative aims to train youth in
various skills to improve employability. The
program focuses on industry-relevant skills
across sectors like construction, retail,
healthcare, IT, and textiles.The objective is to
create a workforce that can meet the needs of
the growing Indian economy, particularly in
sectors that require skilled labor.
2. National Skill Development Mission
(NSDM):
The NSDM focuses on enhancing skills and
promoting vocational education to meet the
demand for skilled labor. It involves
partnerships with the private sector and
training providers to deliver skills training.The
mission addresses skills gaps in sectors like
manufacturing, hospitality, and agriculture.
3. Targeted Programs for Rural Areas:
Deendayal Upadhyaya Grameen Kaushalya
Yojana (DDU-GKY) targets rural youth,
providing training in a variety of fields to
increase employment opportunities in rural
and semi-urban areas. Rural Self-Employment
Training Institutes (RSETIs) are set up in rural
areas to provide training and help rural youth
find jobs or start their own businesses.
4. Sector-Specific Initiatives:
Programs in agriculture (like the National
Agriculture Market) and rural development
offerspecific training to improve productivity
and employment in the rural sector. Skill
development in digital literacy, solar energy,
and e-commerce is also increasing to match
the needs of modern employment markets.
Skill Development for Entrepreneurship:
1. Prime Minister's Employment
Generation Programme (PMEGP):
This program provides financial support and
skill training to aspiring entrepreneurs,
particularly in rural and semi-urban areas. It
aims to set up micro-enterprises and create
self-employment opportunities. Through this
program, micro, small, and medium
enterprises (MSMEs) are promoted,
encouraging local entrepreneurship.
2. Startup India Scheme:
The government has created an enabling
environment for startups, including facilitating
easier access to finance, tax exemptions, and
incubators. This scheme is helping foster
innovation and entrepreneurship across
sectors, especially in technology. Skill
development programs under Startup India
provide training in specific areas like business
planning, marketing, and finance, helping
entrepreneurs develop necessary skills.
3. Stand-Up India Scheme:
Focuses on promoting entrepreneurship
among women, Scheduled Castes (SCs), and
Scheduled Tribes (STs) by providing loans for
setting up greenfield enterprises. It also
provides skill training to help entrepreneurs
manage their businesses effectively.
4. Self-Help Groups (SHGs):
SHGs, particularly in rural areas, have
provided a platform for women and
marginalized communities to engage in
entrepreneurship, whether through small-
scale manufacturing or service-based
businesses. These groups are often provided
training in financial management, marketing,
and product development.
5.Skill Development for Digital
Entrepreneurship:
The increasing penetration of the internet has
led to a focus on digital entrepreneurship.
Programs aim to provide skills related to e-
commerce, digital marketing, and tech
entrepreneurship.
Challenges and Impact: While these
initiatives have made a positive impact,
several challenges remain:
Mismatched Skills: There is often a
mismatch between the skills trained and the
available job market, especially in rural areas.
Limited Access to Credit: Despite financial
support schemes, access to credit remains a
challenge for many entrepreneurs, especially
in rural areas.
Infrastructural Issues: Lack of
infrastructure, particularly in remote areas,
can hinder both employment and
entrepreneurship opportunities.
Impact: Overall, skill development initiatives
have contributed to poverty reduction by
providing individuals with the tools for better
employment opportunities and
entrepreneurial ventures. These efforts have
helped create jobs, reduce dependency on
traditional agriculture, and empower
individuals to start their own businesses,
leading to increased economic mobility.
Conclusion
In conclusion, the various poverty
alleviation and employment generation
programs initiated by the Government of
India, with a special focus on MGNREGA, have
played a significant role in addressing the
multifaceted challenges of poverty,
particularly in rural areas. MGNREGA, by
providing guaranteed wage employment, has
not only helped in creating rural infrastructure
but also reduced distress migration,
empowered marginalized communities, and
provided financial security to millions of rural
households. Programs like Pradhan Mantri
Kaushal Vikas Yojana (PMKVY), National Skill
Development Mission (NSDM), and Prime
Minister’s Employment Generation
Programme(PMEGP) have further
complemented MGNREGA by focusing on
enhancing employability through skill
development and promoting
entrepreneurship. These initiatives have been
instrumental in improving livelihoods,
fostering self-reliance, and enhancing
economic opportunities. However, the
effectiveness of these programs has been
influenced by several factors such as delayed
payments, administrative inefficiencies, and
challenges in ensuring quality and
sustainability of the created assets.
Additionally, despite the significant strides
made, there remains a need for further
improvement in infrastructure, financial
access, and capacity building at the
grassroots level. Overall, while these poverty
alleviation programs have contributed
significantly to reducing poverty and
generating employment, their long-term
success will depend on addressing existing
challenges, improving implementation, and
ensuring that the benefits reach the most
vulnerable populations. Strengthening the
integration of employment generation with
skill development and entrepreneurship will
be crucial in fostering sustainable poverty
alleviation and inclusive growth across India.
Bibliography
I have used the following websites for this
project:
www.google.com
www.wikipedia.com
Economic survey of India
