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Rural economy notes

B.Com (Bengaluru Central University)

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RURAL ECONOMY
UNIT 1
CHAPTER 1: INTRODUCTION TO RURAL ECONOMY
MEANING OF ECONOMICS:

the state of a country or region in terms of the production and

consumption of goods and services and the supply of money.

MEANING OF RURAL ECONOMY:

it describes the economic activity in which a person living in

rural area gain an income and well being generated with those income.

OBJECTIVES OF RURAL ECONOMY:

1. To improve productivity and wages of rural people

2. To guarantee increased and quick employment possibilities
3. To demolish unemployment and bring a notable decline in underemployment
4. To guarantee an increase in the standard of living of the underprivileged
population
5. To provide the basic needs: elementary education, healthcare, clean drinking
water, rural roads, etc

CHARACTERISTICS OF RURAL ECONOMY:

1. Village is an Institution:
The Village is a primary institution and it satisfies almost
all the needs of the rural community. The rural people have a feeling of
belongingness and a sense of unity towards each other.
2. Dependence on Agriculture:
The rural economy depends much on nature and agricultural
activities. Agriculture and allied activities are the main occupation in rural
areas.
3. Life of Rural People:

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Lifestyles in villages are very simple. Public services like

education, housing, health and sanitation, transport and communication,
banking, roads and markets are limited and unavailable. Rural people rely
much on faith, superstitions and traditional cultural practices. The standards
of living of majority of rural people are poor and pitiable. In terms of
methods of production, social organization and political mobilization, rural
sector is extremely backward and weak. In recent years, the incidence of
alcohol drinking has gone up.
4. Population Density:
Population density, measured by number of persons living per sq.
km is very low and houses are scattered in the entire villages.
5. Employment:
There exists unemployment,seasonalunemployment and
underemployment in rural areas. Unemployment refers to the situation of
people with willingness and ability to work but is not getting employed.
Underemployment also called disguised unemployment is the situation of
people employed in excess, over and above the requirement. Disguised
unemployment is a situation Where people work but no increase in
production. Both the situations are common in rural areas.
6. Poverty:
Poverty is a condition where the basic needs of the people like food,
clothing and shelter are not being met. According to the 2011-12 estimates,
About 22 crores of people in rural areas are poor and live below the poverty
line.
7. Indebtedness:
People in rural areas are highly indebted owing to poverty and
underemployment, lack of farm and non-farm employment opportunities,
low wage employment, seasonality in production, poor marketing network
etc. A famous British writer Sir Malcolm Darling (1925) stated that ‘An
Indian farmer is born in debt, lives in debt, dies in debt and bequeaths debt’.
Since formal loan facilities are not available to the villagers, they depend on
local money lenders who, like a parasite, squeeze the villagers. Hence the
villagers commit suicide frequently.
8. Rural Income:

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The income of the rural people is constrained as the rural economy

is not sufficiently vibrant to provide them with jobs or self – employment
opportunities.Large proportion of labourers and skilled persons are
underemployed and the scope for increasing their income is limited.

9. Dependency:
Rural households are largely dependent on social grants and
remittances from family members working in urban areas and cities.
10. Dualism:
Dualism means the co existence of two exteremely different features like
developed and underdeveloped, organised and unorganised, traditional and
modern, regulated and unregulated, poor and rich, skilled and unskilled and
similar contradicting situations in a region. These characteristics are very
common in rural areas.
11.Inequality:
The distributions of income, wealth and assets are highly skewed
among rural people. There are number of historical, social, economic and
political reasons behind the existence of inequality. Landlords and
landowners dominate the rural activities. Land, livestock and other assets are
owned by a few people.
12.Migration:
Rural people are forced to migrate from villages to urban areas in
order to seek gainful employment for their livelihood. This character of the
development gives rise to the formation of cities. Enmity and Lack of basic
amenities in rural areas also push the people to migrate to urban areas. This
is called’ double poisoning’ by Schumacher, one side villages are empty, on
the other side towns are congested. His book is ‘’ Small is Beautiful
“describes the dangers of the present kind of development.

KEY INDICATORS OF ECONOMICAL DEVELOPMENT:

These indicators help in understanding the level of development,comparisons

with other countries, or different time periods.These indicators help in better
planning towards achieving economic development.

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The indicators of economic development are:

1.Growth rate of National Income:

In this indicator real income is calculated on constant prices If there is rise in

national income, this indicates economic development.When there is high rate of
national income, development rate is high and vice versa

2.Per Capita Income (PCI):

The average income of the people living in the country is the per capita income.A
rise in PCI is an important indicator of economic development.The rise in PCI
indicates economic welfare of the country

3.Per Capita Consumption (PCC):

The increase in consumption of goods and services by the people is measured in

PCC.Example clothing, food, education, health etc.An increase in PCC shows
better quality of life of people and higher economic development of the country.

4. Physical Quality Life Index (PQLI) and Human Development Index (HDI):

PQLI is the overall welfare of the people in life expectancy, infant mortality rate,
standard of living.HDI measures life expectancy, education and standard of
living.A rise in PQLI and HDI shows an improvement in quality of life of people
and therefore economic development.

5.Industrial progress:

Industrial progress is an important indicator of the economic development of a

country. It helps to increase per capita income and the national output of the
country.

6.Capital formation:

It means investing in transport, irrigation, roads, electricity, technology etc. higher

capital formation will lead to higher economic development.The indicators under

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economic development are more towards the qualitative improvement of people in

the country.A higher rate of these indicators shows a higher level of economic
development.

INCLUSIVE AND SUSTAINABLE DEVELOPMENT

The conditions must be created to allow people to have quality

jobs that stimulate the economy while not harming the environment.

Elements of inclusive growth:

1. Poverty Reduction
2. Employment generation and Increase in quantity & quality of employment.
3. Agriculture Development
4. Industrial Development
5. Social Sector Development
6. Reduction in regional disparities
7. Protecting the environment.
8. Equal distribution of income
9. Major elements of Inclusive Growth
10. Agriculture Development
11. Industrial Development
12. Environment
13. Protection
14. Poverty Reduction
15. Employment Generation

SUSTAINABLE DEVELOPMENT GOALS

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CHAPTER 2: APPROACHES TO RURAL DEVELOPMENT

GANDHIAN MODEL:

is a partnership model that significantly believes in

inclusion as well as the development with dignity.

FEATURES OF GANDHIAN MODEL:

1.Gandhian theory of an economy is related to the development of society, people

etc that are from the rural background.

2.It was depending on the combination of truth and nonviolence, corporations’

sacrifices and the selfless services.

3.The principle of Gandhian economy is based on the Trusteeship. The Gandhian

model is a partnership model that significantly believes in inclusion as well as the
development with dignity.

4.In this respect everyone should be treated equally and everyone should get
benefits from it

5.Trusteeship is one of the features of the Gandhian principle means in this all the
business model is based on the trust basis.

OBJECTIVES OF GANDHIAN MODEL:

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1.The Gandhian Model's main goal is to enhance the masses' material and cultural
levels to provide a basic standard of living.

2.It placed a strong emphasis on agricultural research and development, as well as

the rapid growth of cottage and village businesses.

Which Five-Year Plan is Known as the Gandhian Model?

The Third Five-Year Plan can be referred to as the Gandhian Model. It commenced
from 1961-1966 under the leadership of Pandit Jawaharlal Nehru. The major
objectives of the Third five-year plan were the establishment of an independent
economy. Such an economy was based on the idea of establishing a self-reliant and
self-generating economy, enhancement of agriculture and improvement in the
production of wheat. This plan was also known as the Gadgil Yojana. D.R. Gadgil
was the Deputy Chairman of the Planning commission during the tenure of this
five-year plan.

OBJECTIVES OF THIRD FIVE YEAR PLAN:

1. Establishment of larger equality of opportunity

2. A yearly rise in national income of more than 5%.
3. The established investment strategy must be able to maintain this growth
rate over the coming years.
4. Expansion of basic industries.
5. Maximising the nation’s human capital.
6. Reduction in disparities observed in terms of income as well as a wealth
7. Better distribution of economic resources.
8. Achieving self-sufficiency in terms of food grains.
9. To increase agricultural production
10.Fully utilising the manpower resources for better economic opportunities.

VARIOUS APPROACHES OF COMMUNITY DEVELOPMENT

1.The needs-based approach:

focuses on the community's needs, deficiencies and problems. It focuses on

identifying needs in a deteriorating community and creating external inputs to meet

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those needs. as a traditional approach, is generally understood as a deficit model

which focuses on the community's needs, deficiencies and problems.

2.The problem solving approach :

focuses on different methods approaches that can be used in creating

different solution for the problems that are faced by communities.

3.Participatory approach:

focuses on ensuring that people are educated and encouraged to

participate in the development process. People should participate in every
step from initiation to evaluation on every development project and programme.

4.The asset Based Community Development:

is an approach to sustainable community-driven

development. Asset Based Community Development's basis is that communities
can drive the development process themselves by identifying and mobilizing
existing, but often unrecognized assets.

5.The power conflict approach:

concentrates on creating a peaceful community. The process deals

with solution that will deal with conflicts that slow the progress and
hamper development process

6. Welfare approach:

Is an approach that deals with working communities to build their

capacity that improves their wellbeing, happiness and eventually their prosperity

7.Right based approach:

focused on ensuring that people human rights are by themselves and the
leaders. The process deals with human rights abuses which especially have kept
people in suffering and poverty.

MINIMUM NEED APPROACH

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The Minimum Needs Programme was introduces in the fifth Five-Year Plan (FYP)
to provide certain basic minimum needs to people and imporve the standard of
living. India was among the pioneers who recognised that through public
expenditures on social consumption needs, (foodgrains at subsidised rates,
education, health, water supply and sanitation) people's living standards should be
improved. Three major programmes that aim at improving the food and nutritional
status of poor are:-

(i) Public Distribution System

(ii) Integrated Child Development Scheme

(iii) Midday Meal Scheme

AIM: to improve the living condition of poor also promote their education and health

INTEGRATED RURAL DEVELOPMENT PROGRAMME{IRDP}

The Integrated Rural Development Program (IRDP) was launched by the

Government of India during 1978 and implemented in 1980 and continued till
1999. After that, IRDP, along with 5 other schemes, was rebranded as the
Swarnjayanti Gram Swarozgar Yojana. It is aimed at the self-employment of the
rural poor.

The beneficiaries of IRDP are:

1. Rural poor
2. Artisans
3. Marginal farmers
4. Schedule castes
5. Schedule tribes
6. Backward classes with an average income of less than Rs. 11,000.

Elements of the IRDP Programme

1. A 5-year development program was drawn up for each district.

2. Eradicate poverty, hunger, and unemployment from rural India.
3. Provide self-employment opportunities.
4. Take up measures for poultry and livestock development.

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5. Promote cottage industries in the villages.

Problems with IRDP

1. The resources provided were inadequate.

2. There was large number of over dues.
3. Poor quality of assets provided to the beneficiaries.
4. The follow up of the beneficiaries was inadequate.
5. Lack of training facilities to s-mall and marginal farmers.

SUBSIDARIES OF IRDP:

1. Financial institutions provide a 25% subsidy to the first target category of

small farmers.
2. The second target category, rural craftsmen, marginal farmers, and
agricultural laborers, receives a subsidy of 33.5 percent.
3. Finally, these financial institutions subsidize the SC/ST and physically
handicapped groups by 50%.
4. The ceiling for SC/ST and differently-abled group subsidies has been set at
Rs.6000. For now, DPAP and non-DDP localities will be charged Rs.4000,
while DPAP and DDP localities will be charged Rs.5000.
5. Guaranteed subsidies of 50%, 40%, and 3% are available to SC/ST, women,
and differently-abled people, respectively. Priority is always given to groups
with a limit excess, as well as Green Card holders, under free bonded worker
and family assistance programs.

OBJECTIVES OF IRDP:

The main objectives are creating assets, employment, increased income

removal of poverty and minimizing in equality

IMPLEMENTATION OF IRDP:

1. The district rural development agency (DRDA) was created to function at

the district level as a single agency for the implementation of IRDP, DPAP,
DPP etc., to implement integrated rural development.
2. Funds for the programme are released to DRDA’s on the stipulation that
expenditure should be equally shared by the centre and the state.

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INCLUSIVE GROWTH APPROACHES

Inclusive growth approaches recognise that high levels of inequality

weaken economic performance.

FEATURES OF INCLUSIVE GROWTH:

1. Address the constraints of the excluded and marginalised.

2. Participation from all sections of society
3. Reduction in disparities among per capita incomes between:
i. Different sectors of economy
ii. Different Sections of society
iii. Rural And Urban Areas
iv. Different genders
4. Non – discriminatory
5. Higher potential of poverty reduction
6. Ensure access of people to basic infrastructure and basic services/capabilities
such as basic health and education. This access should include not only the
quantity, but also quality of these basic services.
7. Include poor, lagging socio – economic groups and lagging regions as well
as they are partners in this growth.

ELEMENTS OF INCLUSIVE GROWTH:

1.Skill Development:

Harnessing the demographic dividend will depend upon the

employability of the working age population, their health, education, vocational
training and skills. Skill development plays a key role here. India is facing a
dual challenge in skill development:

There is a paucity of highly trained workforce

There is non-employment of conventionally trained youths

According to the Economic Survey 2017, over 30% of youth in India are NEET
(Not in education, employment or training).

2.Financial Inclusion:

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Financial Inclusion is the process of ensuring access to financial services

to vulnerable groups at affordable costs.Financial inclusion is necessary for
inclusive growth as it leads to the culture of saving, which initiates a virtuous
cycle of economic development.

3.Technological Advancement:

The world is moving towards an era of Industrial Revolution

4.0. These technological advancements have capabilities to either decrease or
increase the inequality depending on the way these are being used. Several
initiatives have been taken by the government, e.g. Digital India Mission, so
that a digitally literate population can leverage technology for endless
possibilities. Technology can help to combat other challenges too.

4.Economic Growth:

India is among the fastest-growing major economies in the world.

However, currently Indian economy is facing slowdown due to both cyclic and
structural challenges. However, the target of becoming a $ 5 trillion economy
by 2024-25 can allow India to reduce inequality, increase social expenditure
and provide employment to all.

5.Social Development:

It means the empowerment of all marginalised sections of the

population like SC/ST/OBC/Minorities, women and transgender. Empowerment
can be done by improving institutions of the social structure i.e. hospitals
especially primary care in the rural areas, schools, universities, etc. Investment
in social structures will not only boost growth (by fiscal stimulus) but will also
create a healthy and capable generation to handle future work.

CHALLENGES OF INCLUSIVE GROWTH

1. Poverty

According to the 2018 Multidimensional Poverty Index (MPI), India moved

271 million people out of poverty between 2005-06 and 2015-16, with the poorest

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regions, groups, and children experiencing the most rapid reduction in poverty. At
the subnational level, India has the most obvious pro-poor tendency.

Still, despite the huge gains, 373 million Indians continue to face terrible
deprivations. In addition, 8.8 percent of the population lives in severe
multidimensional poverty and 19.3 percent are at risk of multidimensional poverty.

2. Unemployment

According to the NSSO’s Periodic Labour Force Survey (PLFS), the urban
unemployment rate was 7.8 percent, while the rural unemployment rate was 5.3
percent, bringing the total unemployment rate to 6.1 percent.Due to illiteracy and
an excessive reliance on agriculture, the quality and quantity of employment in
India are low.As more than 80 percent of people labour in the informal economy
without social protection, employment quality is problematic.

3. Agriculture Backwardness

Around 44 percent of Indians are employed in agriculture, yet agriculture’s

contribution to India’s GDP is just 16.5 percent, resulting in widespread poverty.

The following are agriculture-related issues:

i. Declining per capita land availability

ii. A gradual decline in the employment rate
iii. Low labour efficiency
iv. Decrease in agricultural output due to climate change, soil degradation, and
water scarcity
v. Disparities in regional and crop growth

4. Problems in Social Development

Social development is one of the most important aspects of inclusive

growth. However, it faces obstacles such as:

i. Significant geographical, social and gender differences

ii. Low level and sluggish growth of public expenditures, especially in the
health and education sectors
iii. The substandard delivery system

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iv. Social factors are significantly less favourable for OBC, SC, ST, and
Muslims
v. Child malnutrition — India ranks 102nd on the Global Hunger Index

5. Regional Disparities

Regional imbalances are a serious concern for India. Regional inequalities are
created by factors such as the caste system, the divide between affluent and poor,
etc., which lead to a system in which certain groups have greater privileges than
others.

CHAPTER 3:POVERTY AND UNEMPLOYMENT IN RURAL

INDIA

POVERTY:

Poverty is about not having enough money to meet basic needs

including food, clothing and shelter.

MEASUREMENT OF POVERTY:

1.Literacy level:

The proportion of the adult population aged 15 years and over which
is literate, expressed as a percentage of the corresponding population, total or for a
given sex, in a given country, territory, or geographic area, at a specific point in
time, usually mid-year.

2.Lack of general ressistance due to malnutrition:

When there is less nutrients in diet it leads to malnutrition. This

condition of malnutrition reduces the power of general resistance as the body gets
less vitamin, iron and iodine which makes one physically weak and unhealthy.

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3.Lack of access to healthcare:

Lack of health insurance coverage may negatively affect health.

Uninsured adults are less likely to receive preventive services for chronic
conditions such as diabetes, cancer, and cardiovascular disease.

4.Lack of opportunities:

Lack of opportunity often means insufficient time, which translates into an

apparent lack of demand.

5.Lack of access to safe drinking water:

Contaminated water and poor sanitation are linked to transmission

of diseases such as cholera, diarrhoea, dysentery, hepatitis A, typhoid and polio.
Absent, inadequate, or inappropriately managed water and sanitation services
expose individuals to preventable health risks.

6.Lack of access to safe sanitization measure:

Poor sanitation reduces human well-being, social and

economic development due to impacts such as anxiety, risk of sexual assault.

CAUSES OF POVERTY

1. INEQUALITY AND MARGINALIZATION:

“Inequality” is an easy, but sometimes misleading term used to
describe the systemic barriers leaving groups of people without a voice or
representation within their communities. For a population to escape poverty,
all groups must be involved in the decision-making process — especially
when it comes to having a say in the things that determine your place in
society. Some of these may be obvious, but in other situations, it can be
subtle.Gender inequality, caste systems, marginalization based on race or
tribal affiliations are all economic and social inequalities that mean the same
thing: Little to no access to the resources needed to live a full, productive
life. When combined with different combinations of vulnerability and
hazards which comprise the rest of this list — a marginalized community
may become even more vulnerable to the cycle of poverty.

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2. CONFLICT:

Conflict is one of the most common forms of risk driving poverty today.
Large-scale, protracted violence that we’ve seen in areas like Syria can grind
society to a halt, destroying infrastructure and causing people to flee (often with
nothing but the clothes on their backs). In its tenth year of conflict, Syria’s middle
class has been all but destroyed, and over 80% of the population now lives below
the poverty line.But even small bouts of violence can have huge impacts on
communities that are already struggling. For example, if farmers are worried about
their crops being stolen, they won’t invest in planting. Women also bear the brunt
of conflict, which adds a layer of inequality to all conflict: During periods of
violence, female-headed households become very common. And because women
often have difficulty getting well-paying work and are typically excluded from
community decision-making, their families are particularly vulnerable.

3. HUNGER, MALNUTRITION, AND STUNTING:

You might think that poverty causes hunger (and you would be right!), but hunger
is also a cause — and maintainer — of poverty. If a person doesn’t get enough
food, they’ll lack the strength and energy needed to work (or their immune system
will weaken from malnutrition and leave them more susceptible to illness that
prevents them from getting to work).The first 1,000 days of a child’s life (from
womb to world) are key to ensuring their future health and likelihood of staying
out of poverty. If a mother is malnourished during pregnancy, that can be passed on
to her children, leading to wasting (low weight for height) or stunting (low height
for age). Child stunting, both physical and cognitive, can lead to a lifetime of
impacts: Adults who were stunted as children earn, on average, 22% less than those
who weren’t stunted. In Ethiopia, stunting contributes to GDP losses as high as
16%.

4. POOR HEALTHCARE SYSTEMS — ESPECIALLY FOR MOTHERS

AND CHILDREN:

Extreme poverty and poor health often go hand in hand. In countries where health
systems are weak, easily preventable and treatable illnesses like malaria, diarrhea,
and respiratory infections can be fatal — especially for young children. And when
people must travel far distances to clinics or pay for medicine, it drains already

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vulnerable households of money and assets, and can tip a family from poverty into
extreme poverty.For some women, pregnancy and childbirth can be a death
sentence. In many of the countries where Concern works, access to quality
maternal healthcare is poor. Pregnant and lactating mothers face a multitude of
barriers when seeking care, from not being allowed to go to a clinic without a male
chaperone to receiving poor or even abusive care from a doctor. This is especially
true for adolescent girls aged 18 and under, leaving mothers-to-be and their
children at increased risk for disease and death.

6. LITTLE OR NO ACCESS TO CLEAN WATER, SANITATION, AND

HYGIENE:
Currently, more than 2 billion people don’t have access to clean
water at home. This means that people (which is to say, women and girls)
collectively spend some 200 million hours every day walking long distances
to fetch water. That’s precious time that could be used working, or getting an
education to help secure a job later in life.Contaminated water can also lead
to a host of waterborne diseases, ranging from the chronic to the life-
threatening. Poor water infrastructure — such as sanitation and hygiene
facilities — can compound this, or create other barriers to escaping poverty,
such as keeping girls out of school during menstruation.
7. CLIMATE CHANGE:
Climate change creates hunger, whether through too little water
(drought) or too much (flooding), and its effects contribute to the cycle of
poverty in several other ways including disproportionately affecting women,
creating refugees, and even influencing conflict. One World Bank estimates
that climate change has the power to push more than 100 million people into
poverty over the next decade.Many of the world’s poorest populations rely
on farming or hunting and gathering to eat and earn a living — for example,
Malawi is 80% agrarian. They often have only just enough food and assets
to last through the next season, and not enough reserves to fall back on in the
event of a poor harvest. So when climate change or natural disasters
(including the widespread droughts caused by El Niño) leave millions of
people without food, it pushes them further into poverty, and can make
recovery even more difficult.

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8. LACK OF EDUCATION:

Not every person without an education is living in extreme poverty.

But most of the extremely poor don’t have an education. There are many
barriers to education around the world, including a lack of money for uniforms
and books, a bias against girls’ education, or many of the other causes of
poverty mentioned here.But education is often referred to as the great equalizer,
because it can open the door to jobs and other resources and skills that a family
needs to not just survive, but thrive. UNESCO estimates that 171 million people

could be lifted out of extreme poverty if they left school with basic reading
skills. Poverty threatens education, but education can also help end poverty.

9. POOR PUBLIC WORKS AND INFRASTRUCTURE:

Imagine that you have to go to work, but there are no roads to get
you there. Or heavy rains have flooded your route and made it impossible to
travel. A lack of infrastructure — from roads, bridges, and wells, to cables
for light, cell phones, and internet — can isolate communities living in rural
areas. Living off the grid often means living without the ability to go to
school, work, or the market to buy and sell goods. Traveling further
distances to access basic services not only takes time, it costs money,
keeping families in poverty.Isolation limits opportunity. Without
opportunity, many find it difficult, if not impossible, to escape extreme
poverty.

9. LACK OF GOVERNMENT SUPPORT:

Many people living in the United States are familiar with social
welfare programs that people can access if they need healthcare or food assistance.
But not every government can provide this type of help to its citizens — and
without that safety net, there’s nothing to stop vulnerable families from backsliding
further into extreme poverty. Ineffective governments also contribute to several of
the other causes of extreme poverty mentioned above, as they are unable to provide
necessary infrastructure or healthcare, or ensure the safety and security of their
citizens in the event of conflict.

10.LACK OF JOBS OR LIVELIHOODS:

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This might seem like a no-brainer: Without a job or a

livelihood, people will face poverty. Dwindling access to productive land
(often due to conflict, overpopulation, or climate change) and
overexploitation of resources like fish or minerals puts increasing pressure
on many traditional livelihoods. In the Democratic Republic of Congo
(DRC) for example, most of the population lives in rural communities where
natural resources have been plundered over centuries of colonial rule —
while conflict over land has forced people away from their source of income
and food. Now, more than half of the country lives in extreme poverty.

11. LACK OF RESERVES:

All of the above risk factors — from conflict to climate change or even
a family illness — can be weathered if a family or community has reserves in
place. Cash savings and loans can offset unemployment due to conflict or illness.
Proper food storage systems can help if a drought or natural disaster ruins a
harvest.People living in extreme poverty usually don’t have these means available.
This means that, when a risk turns into a disaster, they turn to negative coping
mechanisms, including pulling children out of school to work (or even marry), and
selling off assets to buy food. That can help a family make it through one bad
season, but not another. For communities constantly facing climate extremes or
prolonged conflict, the repeated shocks can send a family reeling into extreme
poverty and prevent them from ever recovering.

EMPLOYMENT

employment means the state of having a job or being employed. If one

has to employ someone, they have to pay them. The one who employs is called the
employer, and the one who is getting paid for providing services is the employee.
Employers can be an organization or an individual, etc.

FARM EMPLOYMENT

The notion of agricultural employment includesall persons

who work, full-time or part-time, on an agricultural holding

NON-FARM EMPLOYMENT

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refers to the number of jobs in the private sector and

government agencies. It excludes farm workers, private household employees,
proprietors, non-profit employees, and actively serving military.

TYPES OF EMPLOYMENT

1.Full-Time Employment:

The most typical employment type is full-time work. Employees who are
employed full-time have set hours and full leave privileges. Depending on who you
ask, full-time employment can mean different things. For many employers, full

time employment often entails a workweek of at least 40 hours. Yet, the following,
as relevant to an employer, limit normal working hours to nine hours each day and
a max of 48 hours per week:The state-specific Shops and Establishment Act, which
applies to establishments other than factories,and the Factories Act of 1948, which
pertains to factories.The number of working hours is often decided jointly by the
employer and the employee. Full-time employees are entitled to paid holidays if a
public holiday falls on a typical workday. They are open-ended contracts as
agreements with employees are undefined and only terminate when either the
employee or the company chooses to. Employers anticipate regular attendance at
work from their full-time staff members as well as advance notification of absences
and contract termination. In exchange, companies must provide a warning before
terminating a full-time employee unless a full-time employee violates the terms of
their contract. Employers may provide redundancy compensation or payout notice
periods to dismissed full-time workers.

2.Part-Time Employment

Part-time employees often work for a company for less than

30 hours per week. They share the same rights and obligations as full-time
employees. Additionally, they put in fewer regular hours than full-time workers do.
They might work irregular shifts or consistently on fixed days of the week, like
part-time nurses and shop employees. Parents, students, and anyone with health
issues that make the full-time job difficult should frequently consider part-time
work. According to the total hours they serve, part-time employees earn paid leave

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on a pro-rata basis and are entitled to the same unpaid leave as full-time
workers.Part-time workers are not specifically covered by any laws. Regular
employees normally have the same privileges as part-timers; the only distinction is
that part-timers receive proportionate benefits. The Industrial Disputes Act of 1947
recognises fixed-term contracts for workers as an exception to the definition of
retrenchment (termination in the broad sense), and as such, they are acceptable as
long as they are not used to avoid or deny regular employment.Additionally,
employers anticipate part-time workers to show up to work on time, plan their time
off, and give notice before quitting. In exchange, businesses must provide

information before firing a part-time worker. Part-time workers who have contracts
that are terminated may get comparable amounts.

3.Casual Employment

Casual employees put in irregular hours by the demands of the

company. Students who prefer working around their academic and social
obligations will frequently find this employment type ideal. Checking their rosters,
working their assigned shifts, or exchanging them with another employee are all
responsibilities of casual employees.When the business is crowded, or other
employees are ill, their employers may ask them to fill in for shifts outside of their
rostered job. Casual workers have the option to accept or reject these shifts. Casual
workers may be eligible for long service and parental leave after a year with one
employer. Employees who meet the pay and workload standards additionally
receive pro-rata superannuation based on the number of hours they put in. They do,
however, take unpaid vacations and sick days. To cover up these, casual workers
are also paid a simple loading in addition to their regular hourly wage. They can
also take vacations and terminate their work at any time, without giving notice,
provided their award or contract of employment says otherwise.

4.Contract Employment

Due to the fixed-term contract involved, contract employment, also

called fixed-term employment, refers to individuals who work for an employer for
a predetermined amount of time. These contracts feature dates for both the
beginning and finish. Businesses frequently use contractors to carry out certain
duties or complete specific projects. Additionally, they might engage them to

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increase staff numbers during busy times or to fill in for absent workers. The
employer and contractor may decide to cut ties after the contract expires or agree
to new terms. If the person has shown they are a valued asset, they may receive an
open-ended full-time or part-time contract rather than another fixed-term one.
Contractors can work full-time, part-time, or temporary employees during their
agreement. Employees anticipate that their contractors will complete the entirety of
their agreement. Contractors are allowed to take time off, but many choose to wait
until the conclusion of their contracts to avoid upsetting their employers.

5.Apprenticeship

Apprentices are the newcomers to the trade sectors. While pursuing their
vocational certifications, people might get experience in their chosen trades
through this form of job. Skilled and certified artisans supervise apprentices. Over
time, they frequently assume increasing duties. They are entitled to the same leave
and superannuation as average craftsmen. To ensure that their labour contributes
toward their certifications, businesses must adequately register their apprenticeship
programmes.Apprentices are paid at the rates specified in registered agreements or
awarded by employees. These rates are based on the duration of the apprenticeship.
However, payroll taxes are not deducted from employees' apprentice wages. An
internship is a fixed-term commitment that lasts for the time of obtaining the
apprentice's credentials. After receiving their credentials, the most competent and
dependable apprentices generally sign full-time employment contracts with their
trained businesses.

6.Traineeship

Trainees are unfamiliar with non-trade sectors like the media, finance,
and advertising. While pursuing a qualification, trainees, like apprentices, gain
hands-on experience in the field of their choice. Employers frequently monitor
trainees, especially at the beginning of their internships. Typically, traineeships are
registered.Trainees also receive regular employee benefits, including leave and
award earnings. Businesses frequently convert their top trainees to permanent
employees.

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7.Employment on Commission

People who work on a single task are employed in commission-based

jobs, commonly known as piece rate jobs. For instance, a council might
commission a mural to be painted on a public wall. Instead of receiving an hourly
or weekly income for the time they spent creating it, the artist is paid a
predetermined agreed-upon sum for each work of art they produce. A commission
is a contract with a set duration only valid for the specified project. However, the
person who placed the order may place additional orders if they are pleased with
the work performed. Flexible working circumstances are available to commission-
based employees. They can choose their hours as long as they do the requested

work by the established deadline. Instead of depending on employee contributions,

they fund their superannuation. Also, they take unpaid time off.

8.Probation

People frequently begin their employment with a corporation on probation.

Depending on the employer, probation is a brief period ranging from a few weeks
to a few months. Employees become acquainted with the company and their new
function while on probation. Depending on their chosen job, they might work full-
time, part-time, or occasionally. If the employee is qualified, the employer
additionally covers superannuation.If an employer feels the situation isn't working
out, they have the right to cancel an employee's probationary contract anytime and
without explanation. Although it rarely happens, an employee, in this employment
type, may leave the organisation during this time without giving the notice to
explore other professional opportunities.

EMPLOYMENT GENERATION PROGRAMME

1. Atmanirbhar Bharat Rojgar Yojana (ABRY)

Ministry of Labour and Employment.Aatmanirbhar Bharat Rojgar Yojana

(ABRY) was launched with effect from 1st October, 2020 as part of Atmanirbhar
Bharat package 3.0 to incentivize employers for creation of new employment
along with social security benefits and restoration of loss of employment during
Covid-19 pandemic. The website link for the scheme is
https://labour.gov.in/aatmanirbhar-bharat-rojgar-yojana-abry

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2. Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

Ministry of Labour and Employment.Pradhan Mantri Rojgar Protsahan Yojana

(PMRPY) was launched with effect from 1.4.2016 to incentivise employers for
creation of new employment. The beneficiaries registered upto 31st March, 2019
will continue to receive the benefit for 3 years from the date of registration under
the scheme i.e. upto 31st March, 2022. The website link for the scheme is
https://pmrpy.gov.in/

3. National Career Service (NCS) Project

Ministry of Labour and Employment.Project for transformation of the National

Employment Service to provide a variety of career related services like job
matching, career counselling, vocational guidance, information on skill
development courses, apprenticeship, internships etc. This project consists of three
important components namely - (i) NCS Portal (www.ncs.gov.in); (ii) Model
Career Centres; and (iii) Interlinking of Employment Exchanges. The website is
https://www.ncs.gov.in/

4. Mahatma Gandhi National Rural Employment Guarantee Act

(MGNREGA)

Ministry of Rural Development.MGNREGA is to provide at least 100 days of

guaranteed wage employment in a financial year to every rural household whose
adult members volunteer to do unskilled manual work. The website link for the
scheme is https://nrega.nic.in/Nregahome/MGNREGA_new/Nrega_home.aspx

5. Pradhan Mantri Garib Kalyan Rojgar Abhiyaan (PMGKRA)

Ministry of Rural Development.The Garib Kalyan Rojgar Abhiyaan (GKRA) is a

125-day Abhiyan launched by Hon’ble Prime Minister on 20th June, 2020 with a
mission to address the issues of returnee migrant workers and similarly affected
rural population by Covid-19 pandemic through a multi- pronged strategy of
providing immediate employment & livelihood opportunities to the distressed, to
saturate the villages with public infrastructure and creation of livelihood assets to

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boost the income generation activities and enhance long term livelihood
opportunities by giving focus on 25 works in 116 selected districts across 6 States
with a resource envelope of Rs. 50,000 crore. The website link for the scheme is
https://rural.nic.in/en/press-release/garib-kalyan-rojgar-abhiyan

6. Aajeevika - National Rural Livelihoods Mission (NRLM)

Ministry of Rural Development.Aajeevika - National Rural Livelihoods Mission

(NRLM) was launched by the Ministry of Rural Development (MoRD),
Government of India in June 2011. Aided in part through investment support by the
World Bank, the Mission aims at creating efficient and effective institutional
platforms of the rural poor, enabling them to

increase household income through sustainable livelihood enhancements and

improved access to financial services. The website link for the Mission is
https://aajeevika.gov.in/

7. Pt. Deen Dayal Upadhyaya Grameen Kaushlya Yojana (DDU-GKY)

Ministry of Rural Development.Deen Dayal Upadhyaya Grameen

KaushalyaYojana (DDU-GKY) is a placement linked skill development program
for rural poor youth under National Rural Livelihoods Mission (NRLM) since
September, 2014. Rural Youth in the age group of 15-35 years are covered under
this scheme. Sub component of NRLM which is a placement linked skill
development scheme for rural poor. The website link for the scheme is
http://ddugky.gov.in/

8. Rural Self Employment and Training Institutes (RSETIs)

Ministry of Rural Development.RSETIs are Rural Self Employment Training

Institutes, an initiative of Ministry of Rural Development (MoRD) to have
dedicated infrastructure in each district of the country to impart training and skill
upgradation of rural youth geared towards entrepreneurship development. RSETIs
are managed by banks with active co-operation from the Government of India and
State Governments. The details is at website: http://nirdpr.org.in/rseti/index.aspx

9. PM- SVANidhi Scheme

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M/o Housing & Urban Affairs.Prime Minister Street Vendor's Atma Nirbhar Nidhi
(PM SVANidhi) Scheme since June 01, 2020 to provide collateral free working
capital loan to Street Vendors, vending in urban areas, to resume their businesses
which were adversely affected due to COVID-19 induced lock-down. The details
of the scheme is at the website: https://pmsvanidhi.mohua.gov.in/

10. Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-

NULM)

M/o Housing & Urban Affairs.To reduce poverty and vulnerability of the urban
poor households by enabling them to access gainful self employment and skilled
wage employment opportunities, resulting in an appreciable improvement in their
livelihoods on a sustainable basis,through building strong grassroots level
institutions of the poor. The mission would aim at providing shelters equipped with
essential services to the urban homeless in a phased manner. The website for the
scheme is https://nulm.gov.in/

11. Prime Minister’s Employment Generation Programme (PMEGP)

Ministry of Micro, Small & Medium Enterprises.Prime Minister’s Employment

Generation Programme (PMEGP), which is a major credit-linked subsidy
programme aimed at generating self-employment opportunities through
establishment of micro-enterprises in the non-farm sector by helping traditional
artisans and unemployed youth. The details can be seen from the website:
https://msme.gov.in/1-prime-ministers-employment-generation-programme-pmegp

12. Pradhan Mantri MUDRA Yojana (PMMY)

Ministry of Finance.Pradhan Mantri MUDRA Yojana (PMMY) is a scheme

launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to
10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are
classified as MUDRA loans under PMMY. These loans are given by Commercial
Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can
approach any of the lending institutions mentioned above or can apply online
through this portal www.udyamimitra.in . Under the aegis of PMMY, MUDRA has
created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of
growth / development and funding needs of the beneficiary micro unit /

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entrepreneur and also provide a reference point for the next phase of graduation /
growth. The website for the scheme is https://www.mudra.org.in/

13. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Ministry of Skill Development and Entrepreneurship.Pradhan Mantri Kaushal

Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill
Development and Entrepreneurship (MSDE) implemented by National Skill
Development Corporation (NSDC). The objective of this Skill Certification
scheme is to enable Indian youth to take up industry relevant skill training that will
help them in securing a better livelihood. The details of the scheme is at the
website: https://www.pmkvyofficial.org/home-page

14. National Apprenticeship Promotion Scheme (NAPS)

Ministry of Skill Development and Entrepreneurship.National Apprenticeship

Promotion Scheme (NAPS) was launched in August 2016 by Government of India
to promote the Apprenticeship in the country by providing financial incentives,
technology and advocacy support. The scheme has the following two components,
viz., (i) Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/-
per month per apprentice with the employers and (ii) Sharing of basic training cost
up to a maximum of Rs. 7,500 per apprentice. The details of the scheme is at
website:https://msde.gov.in/en/schemes-initiatives/apprenticeship-training/naps

15. Production-Linked Incentive (PLI) Scheme

13 Ministries.Hon'ble Finance Minister, Smt Nirmala Sitharaman has announced

an outlay of INR 1.97 Lakh Crores for the Production Linked Incentive (PLI)
Schemes across 14 key sectors, to create national manufacturing champions and to
create 60 lakh new jobs, and an additional production of 30 lakh crore during next
5 years. The details of the scheme is at website:
https://www.investindia.gov.in/production-linked-incentives-schemes-india

16. PM GatiShakti - National Master Plan for multi-modal connectivity

At present 21 Ministries/ Departments are involved.PM GatiShakti National

Master Plan (PMGS-NMP) was launched on 13th October 2021 for providing

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multimodal connectivity infrastructure to various economic zones. Cabinet

Committee on Economic Affairs (CCEA) accorded approval for the
implementation of PM GatiShakti National Master Plan on 21st October 2021. PM
GatiShakti is a transformative approach for economic growth and sustainable
development. The approach is driven by 7 engines, namely, Railways, Roads,
Ports, Waterways, Airports, Mass Transport and Logistics Infrastructure. The
details is at website: https://dpiit.gov.in/logistics-division

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