➢ INTRODUCTION TO INDIAN ECONOMY:

The Indian economy was in distress at the brink of the country’s independence. Being a colony,
she was fulfilling the development needs not of herself, but of a foreign land. The state, that should
have been responsible for breakthroughs in agriculture and industry, refused to play even a minor
role in this regard. On the other hand, during the half century before India’s independence, the
world was seeing accelerated development and expansion in agriculture and industry - on the
behest of an active role being played by the states. British rulers never made any significant
changes for the benefit of the social sector, and this hampered the productive capacity of the
economy. During independence, India’s literacy was only 17 percent, with a life expectancy of
32.5 years. Therefore, once India became independent, systematic organisation of the economy
was a real challenge for the government of that time. The need for delivering growth and
development was in huge demand in front of the political leadership - as the country was riding on
the promises and vibes of national fervour. Today India is ranked the seventh largest economy, and
third largest in terms of Purchasing Power Parity (PPP). The Indian economy’s GDP is pegged at $
2.9 tn. At a press conference, Finance Minister Arun Jaitley commented, ‘We keep oscillating
between the fifth and the sixth largest economy, depending on the dollar rate. As we look at the
years ahead, we will be $ 5 tn by 2024 and $ 10 tn by 2030 or 2031.’ The GDP per capita in India
was $ 1963.55 in 2017. The GDP per Capita in India is equivalent to 16% of the world's average,
and averaged $ 693.96 from 1960 until 2017. It reached an all - time high of $ 1963.55 in 2017. As
per a recent WEF report titled 'Future of Consumption in Fast-Growth Consumer Market – India',
India’s market size is pegged to grow at a thriving $ 6 tn in the coming years. India has emerged as
the fastest growing major economy in the world and is expected to be one of the top three
economic powers in the world over the next 10-15 years, backed by its robust democracy and
strong partnerships.

TOP PERFORMING SECTORS OF INDIAN ECONOMY:

The adoption of the New Economic Policy in 1991 saw a landmark shift in the Indian economy,
as it ended the mixed economy model and license raj system - and opened the Indian economy to
the world. An overview of the top performing sectors of the Indian economy is given below:
 • Agricultural Sector: One of the most important sectors of the Indian economy remains
Agriculture. Its share in the GDP of the country has declined and is currently at 14%. However,
more than 50% of the total population of the country is still dependent on agriculture. Keeping this
in mind, the Union Budget 2017 - 18 gave high priority to the agricultural sector and aimed to
double farmers’ incomes by 2022. Government subsidies to agriculture are at an all - time high.
Further, cropping patterns have shifted in favour of cash crops such as sugarcane and rubber.
Introduction of cooperative farming like – e - choupal etc. Rise of SHGs such as Lijjat Papad.
Agricultural land is being brought under industrial and commercial use, thereby straining the
remaining agricultural land. Many export sectors have been opened for agricultural goods.

• Industry Sector: Another important part of the Indian economy is the Industry sector. Changes
such as the end of the ‘Permit Raj’ and opening up of the economy were welcomed in the country
with great enthusiasm and optimism. As a result of these changes, the industrial potential of the
economy has increased since 1991. Proliferation of industries, from traditional iron and steel to
jute and automobiles. Autonomy in production, marketing and distribution. Reduced red - tapism.
Encouragement to private investments, both domestic as well as FDI. Transfer of technology and
benefits of research and development to the advantage of the economy. Arrival of investment
models such as joint ventures, public-private partnerships, MNCs. Private players got an
opportunity to enter new sectors, which were earlier under government monopoly.

 Services Sector: The sector that benefited most from the New Economic Policy was the
services sector. Banking, Finance, Business Process Outsourcing - and most importantly
Information Technology services - have seen double - digit growth. Indian IT giants such as
Infosys, WIPRO and TCS have made their mark on the global platform. 60 percent of the GDP
contribution comes from the services sector. India, with its huge demographic dividend potential,
has emerged as the IT hub of the world. New employment opportunities are being created in this
sector. Opening of transportation, tourism and medical sectors have led to the growth of service
sector competencies. RBI has transitioned from being a regulator to a facilitator. Product diversity
of financial investments. • Food Processing: Food processing has emerged as a high - growth, high
- profit sector and is one of the focus sectors of the ‘Make in
India’ initiative. The vast availability of raw materials, resources, favourable policy measures
and numerous incentives have led India to be considered as a key attractive market for the sector.
With a population of 1.3 bn and an average age of 29, as well as a rapidly growing middle - class
population that spends a high proportion of their disposable income on food, India boasts of a large
consumer base. The total consumption of the food and beverage segment in India is expected to
increase from $ 369 bn to $ 1.14 tn by 2025.

• Manufacturing Sector: The manufacturing sector is the second largest contributor to India’s
GDP after the Services sector. Various government initiatives like Make in India, MUDRA,
Sagarmala, Startup India, Freight Corridors, along with a whole - hearted contribution from states,
will raise the share of the manufacturing sector in the foreseeable future. However, if India aims to
raise its share of manufacturing in GDP to around 25%, the industry will have to significantly step
up its research and development expenditure. The quantum of value addition has to be increased at
all levels and the government needs to offer attractive remuneration to motivate people to join the
manufacturing sector.

RECENT DEVELOPMENTS IN THE ECONOMY OF INDIA:

Besides these developments and reforms, it is imperative to bear in mind that in order to tap the
highest potential of the economy and ensure good governance, an optimal level of synergy is
required between the central and state government. This will not only add strength to our
cooperative federal structure but will also strengthen India’s economy. Initiatives such as Goods
and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), Startup India and Digital India.
These, among others, have helped the Indian economy jump 65 ranks (in the last four years) in the
World Bank’s Ease of Doing Business Report. These measures cemented India’s reputation as one
of the few bright spots in an otherwise grim global economy. India is among the fastest growing
major economies, underpinned by a stable macro - economy with declining inflation and
improving fiscal and external balances.
 FUTURE OF INDIAN ECONOMY:

To make India a $ 5 tn economy by 2030, and to achieve consistent 8% growth, NITI Aayog has
released a comprehensive document titled ‘Strategy for New India @75’. Its main objectives are
Doubling farmers’ incomes. Creating an all India talent pool for the entre and States together -
such as the All India Services. Providing a major boost to the ‘Make in India’ campaign.
Achieving 22% tax to GDP ratio by 2023 - up from the current 17%. Achieving 36% of investment
rate by 2023 - up from the current 29%.

➢ MARKET SIZE:

India’s gross domestic product (GDP) at current prices stood at Rs. 51.23 lakh crore (US$ 694.93
billion) in the first quarter of FY22, as per the provisional estimates of gross domestic product for
the first quarter of 2021-22. India is the fourth-largest unicorn base in the world with over 21
unicorns collectively valued at US$ 73.2 billion, as per the Hurun Global Unicorn List. By 2025,
India is expected to have ~100 unicorns by 2025 and will create ~1.1 million direct jobs according
to the Nasscom-Zinnov report ‘Indian Tech Startup’. India needs to increase its rate of
employment growth and create 90 million non-farm jobs between 2023 and 2030's, for
productivity and economic growth according to McKinsey Global Institute.
 RECENT DEVELOPMENTS:

With an improvement in the economic scenario, there have been investments across various
sectors of the economy. The private equity - venture capital (PE-VC) sector recorded investments
worth US$ 10.7 billion across 137 deals in August 2021, registering a 5x YoY growth. Some of
the important recent developments in Indian economy are as follows:

• India’s merchandise exports between April 2021 and August 2021 were estimated at US$
164.10 billion (a 67.33% YoY increase). Merchandise imports between April 2021 and August
2021 were estimated at US$ 219.63 billion (an 80.89% YoY growth).

• In August 2021, the Manufacturing Purchasing Managers' Index (PMI) in India stood at 52.3.

• The gross GST (Goods and Services Tax) revenue collection stood at Rs. 112,020 crore (US$
15.21 billion) in August 2021.

• According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity
inflow in India stood at US$ 547.2 billion between April 2000 and June 2021.

• India’s Index of Industrial Production (IIP) for July 2021 stood at 131.4 against 122.6 for June
2021.

• Consumer Food Price Index (CFPI) – Combined inflation was 3.11 in August 2021 against
3.96 in July 2021.

• Foreign portfolio investors (FPIs) invested US$ 2.5 billion in India in August 2021.
 ➢ GOVERNMENT INITIATIVES:

The first Union Budget of the third decade of 21st century was presented by Minister for
Finance & Corporate Affairs, Ms. Nirmala Sitharaman in the Parliament on February 1, 2020. The
budget aimed at energising the Indian economy through a combination of shortterm, medium-term
and long-term measures. In the Union Budget 2021-22, capital expenditure for FY22 is likely to
increase to increase by 34.5% at Rs. 5.5 lakh crore (US$ 75.81 billion) over FY21 (BE) to boost
the economy.

Increased government expenditure is expected to attract private investments, with production-

linked incentive scheme providing excellent opportunities. Consistently proactive, graded and
measured policy support is anticipated to boost the Indian economy. In September 2021, Prime
Minister Mr. Narendra Modi approved the production-linked incentive (PLI) scheme in the textiles
sector—for man-made fibre (MMF) apparel, MMF fabrics and 10 segments/products of technical
textiles—at an estimated outlay of Rs. 10,683 crore (US$ 1.45 billion).

In September 2021, the government approved a production-linked incentive (PLI) scheme for
automobile and drone industries with an outlay of Rs. 26,058 crore (US$ 3.54 billion) to boost the
country’s manufacturing capabilities.

In September 2021, Union Cabinet approved major reforms in the telecom sector, which is
expected to boost employment, growth, competition and consumer interests. Key reforms include
rationalisation of adjusted gross revenue, rationalisation of bank guarantees (BGs) and
encouragement to spectrum sharing. In September 2021, the government announced plans to
release Rs. 56,027 crore (US$ 7.62 billion) under various export promotion schemes to boost
exports.

In August 2021, the Indian government approved Deep Ocean Mission (DOM) with a budget
outlay of Rs. 4,077 crore (US$ 553.82 million) over the next five years. In May 2021, the
government approved the production linked incentive (PLI) scheme for manufacturing advanced
chemistry cell (ACC) batteries at an estimated outlay of Rs. 18,100 crore (US$ 2.44 billion); this
move is expected to attract domestic and foreign investments worth Rs. 45,000 crore (US$ 6.07
billion). The Union Cabinet approved the production linked incentive (PLI) scheme for white
goods (air conditioners and LED lights) with a budgetary outlay of Rs. 6,238 crore (US$ 848.96
million) and the 'National Programme on High Efficiency Solar PV (Photo Voltic) Modules' with
an outlay of Rs. 4,500 crore US$ 612.43 million).
 In June 2021, the RBI (Reserve Bank of India) announced that the investment limit for FPI
(foreign portfolio investors) in the State Development Loans (SDLs) and government securities
(G-secs) would persist unaffected at 2% and 6%, respectively, in FY22. To boost the overall audit
quality, transparency and add value to businesses, in April 2021, the RBI issued a notice on new
norms to appoint statutory and central auditors for commercial banks, large urban co-operatives
and large non-banks and housing finance firms.

The Government of India, under its Make in India initiative, is trying to boost the contribution
made by the manufacturing sector with an aim to take it to 25% of the GDP from the current 17%.
Besides, the Government has also come up with Digital India initiative, which focuses on three
core components: creation of digital infrastructure, delivering services digitally and to increase the
digital literacy. Some of the recent initiatives and developments undertaken by the Government are
listed below:

• By November 1, 2021, India and the United Kingdom hope to begin negotiations on a free
trade agreement. The proposed FTA between these two countries is likely to unlock business
opportunities and generate jobs. Both sides have renewed their commitment to boost trade in a
manner that benefits all.

• In August 2021, NITI Aayog and Cisco collaborated to encourage women's entrepreneurship in
India.

• In August 2021, Prime Minister Mr. Narendra Modi announced an initiative to start a national
mission to reach the US$ 400 billion merchandise export target by FY22.

• In August 2021, Prime Minister Mr. Narendra Modi launched digital payment solution, e-
RUPI, a contactless and cashless instrument for digital payments.

• In June 2021, RBI Governor, Mr. Shaktikanta Das announced the policy repo rate unchanged at
4%. He also announced various measures including Rs. 15,000 crore (US$ 2.05 billion) liquidity
support to contact-intensive sectors such as tourism and hospitality.

• In June 2021, Finance Ministers of G-7 countries, including the US, the UK, Japan, Italy,
Germany, France and Canada, attained a historic contract on taxing multinational firms as per
which the minimum global tax rate would be at least 15%. The move is expected to benefit India to
increase foreign direct investments in the country.
 • In June 2021, the Indian government signed a US$ 32 million loan with World Bank for
improving healthcare services in Mizoram.

• In May 2021, the Government of India (GoI) and European Investment Bank (EIB) signed the
finance contract for second tranche of EUR 150 million (US$ 182.30 million) for Pune Metro Rail
project.

According to an official source, as of September 15, 2021, 52 companies have filed applications
under the Rs. 5,866 crore (US$ 796.19 million) productionlinked incentive scheme for the white
goods (air conditioners and LED lights) sector.

• In May 2021, Union Cabinet has approved the signing of memorandum of understanding
(MoU) on migration and mobility partnership between the Government of India, the United
Kingdom of Great Britain and Northern Ireland.

• In April 2021, Minister for Railways and Commerce & Industry and Consumer Affairs, Food &
Public Distribution, Mr. Piyush Goyal, launched ‘DGFT Trade Facilitation’ app to provide instant
access to exporters/importers anytime and anywhere.

• In April 2021, Dr. Ahmed Abdul Rahman AlBanna, Ambassador of the UAE to India and
Founding Patron of IFIICC, stated that trilateral trade between India, the UAE and Israel is
expected to reach US$ 110 billion by 2030.

• India is expected to attract investment of around US$ 100 billion in developing the oil and gas
infrastructure during 2019-23.

• The Government of India is going to increase public health spending to 2.5% of the GDP by
2025.

• For implementation of Agriculture Export Policy, Government approved an outlay Rs. 2.068
billion (US$ 29.59 million) for 2019, aimed at doubling farmers income by 2022.
 ROAD AHEAD:

As per the data published in a Department of Economic Affairs report, in the first quarter of
FY22, India’s output recorded a 20.1% YoY growth, recovering >90% of the prepandemic output
in the first quarter of FY20. India’s real gross value added (GVA) also recorded an 18.8% YoY
increase in the first quarter of FY22, posting a recovery of >92% of its corresponding pre-
pandemic level (in the first quarter of FY20). Also, in FY21, India recorded a current account
surplus at 0.9% of the GDP. The growth in the economic recovery is due to the government’s
continued efforts to accelerate vaccination coverage among citizens. This also provided an
optimistic outlook to further revive industrial activities.

As per RBI’s revised estimates of July 2021, the real GDP growth of the country is estimated at
21.4% for the first quarter of FY22. The increase in the tax collection, along with government’s
budget support to states, strengthened the overall growth of the Indian economy. India is focusing
on renewable sources to generate energy. It is planning to achieve 40% of its energy from non-
fossil sources by 2030, which is currently 30% and have plans to increase its renewable energy
capacity from to 175 gigawatt (GW) by 2022. In line with this, in May 2021, India, along with the
UK, jointly launched a ‘Roadmap 2030’ to collaborate and combat climate change by 2030. India
is expected to be the third largest consumer economy as its consumption may triple to US$ 4
trillion by 2025, owing to shift in consumer behaviour and expenditure pattern, according to a
Boston Consulting Group (BCG) report.
 GOVERNMENT SCHEMES:

• Pradhan Mantri Jan Dhan Yojana (PMJDY): Hon’ble Prime Minister announced Pradhan
Mantri Jan Dhan Yojana as the National Mission on Financial Inclusion in his Independence Day
address on 15th August 2014, to ensure comprehensive financial inclusion of all the households in
the country by providing universal access to banking facilities with at least one basic bank account
to every household, financial literacy, access to credit, insurance and pension facility. Under this, a
person not having a savings account can open an account without the requirement of any minimum
balance and, in case they self-certify that they do not have any of the officially valid documents
required for opening a savings account, they may open a small account. Further, to expand the
reach of banking services, all of over 6 lakh villages in the country were mapped into 1.59 lakh
Sub Service Areas (SSAs), with each SSA typically comprising of 1,000 to 1,500 households, and
in the 1.26 lakh SSAs that did not have a bank branch, Bank Mitras were deployed for branchless
banking.

• From Jan Dhan to Jan Suraksha: For creating a universal social security system for all Indians,
especially the poor and the under-privileged the Hon’ble Prime Minister launched three Social
Security Schemes in the Insurance and Pension sectors on 9th of May, 2015.

 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): The PMJJBY is available to
people in the age group of 18 to 50 years having a bank account who give their consent to join /
enable auto-debit. Aadhar is the primary KYC for the bank account. The life cover of Rs. 2 lakh is
for the one year period stretching from 1st June to 31st May and is renewable. Risk coverage under
this scheme is for Rs. 2 lakh in case of death of the insured, due to any reason. The premium is Rs.
330 per annum which is to be auto-debited in one installment from the subscriber’s bank account
as per the option given by him on or before 31st May of each annual coverage period under the
scheme. The scheme is being offered by the Life Insurance Corporation and all other life insurers
who are willing to offer the product on similar terms with necessary approvals and tie up with
banks for this purpose. As on 31st March, 2019, cumulative gross enrollment reported by banks
subject to verification of eligibility, etc. is over 5.91 crore under PMJJBY.

• Pradhan Mantri Suraksha Bima Yojana (PMSBY): The Scheme is available to people in the
age group 18 to 70 years with a bank account who give their consent to join / enable auto-debit on
or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis.
Aadhar would be the primary KYC for the bank account. The risk coverage under the scheme is
Rs. 2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability. The premium
of Rs.12 per annum is to be deducted from the account holder’s bank account through ‘auto-debit’
facility in one instalment. The scheme is being offered by Public Sector General Insurance
Companies or any other General Insurance Company who are willing to offer the product on
similar terms with necessary approvals and tie up with banks for this purpose.

• Atal Pension Yojana (APY): APY was launched on 9th May, 2015 by the Prime Minister. APY
is open to all saving bank/post office saving bank account holders in the age group of 18 to 40
years and the contributions differ, based on pension amount chosen. Subscribers would receive the
guaranteed minimum monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs.
5,000 at the age of 60 years.

 Under APY, the monthly pension would be available to the subscriber, and after him to
his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber,
would be returned to the nominee of the subscriber. The minimum pension would be guaranteed
by the Government, i.e., if the accumulated corpus based on contributions earns a lower than
estimated return on investment and is inadequate to provide the minimum guaranteed pension, the
Central Government would fund such inadequacy. Alternatively, if the returns on investment are
higher, the subscribers would get enhanced pensionary benefits.

• Pradhan Mantri Mudra Yojana: The scheme was launched on 8th April 2015. Under the
scheme a loan of upto Rs. 50,000 is given under sub-scheme ‘Shishu’; between Rs. 50,000 to 5.0
Lakhs under subscheme ‘Kishore’; and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme
‘Tarun’. Loans taken do not require collaterals. These measures are aimed at increasing the
confidence of young, educated or skilled workers who would now be able to aspire to become first
generation entrepreneurs; existing small businesses, too, will be able to expand their activates. As
on 31.03.2019, Rs. 3,21,722 crores sanctioned (Rs. 142,345 cr. - Shishu, Rs. 104,386 cr. Kishore
and Rs. 74,991 cr. - Tarun category), in 5.99 crores accounts.

• Stand Up India Scheme: Government of India launched the Stand Up India scheme on 5th
April, 2016. The Scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one
Scheduled Caste/ Scheduled Tribe borrower and at least one Woman borrower per bank branch for
setting up greenfield enterprises. This enterprise may be in manufacturing, services or the trading
sector. The scheme which is being implemented through all Scheduled Commercial Banks is to
benefit at least 2.5 lakh borrowers. The scheme is operational and the loan is being extended
through Scheduled Commercial Banks across the country. Stand Up India scheme caters to
promoting entrepreneurship amongst women, SC & ST category i.e those sections of the
population facing significant hurdles due to lack of advice/mentorship as well as inadequate and
delayed credit. The scheme intends to leverage the institutional credit structure to reach out to
these underserved sectors of the population in starting greenfield enterprises. It caters to both ready
and trainee borrowers.

 Pradhan Mantri Vaya Vandana Yojana: The ‘Pradhan Mantri Vaya Vandana Yojana
(PMVVY) has been launched by the Government to protect elderly persons aged 60 years and
above against a future fall in their interest income due to uncertain market conditions, as also to
provide social security during old age. The scheme is implemented through the Life Insurance
Corporation of India (LIC) and open for subscription upto 31st March, 2023. PMVVY offers an
assured rate of return 7.40% per annum for the financial year 2020-21 for policy duration of 10
years. In subsequent years, while the scheme is in operation, there will be annual reset of assured
rate of return with effect from April 1st of the financial year in line with applicable rate of return of
Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme
on breach of this threshold at any point.
 RURAL ECONOMY:

India is known as an agricultural country, as most of the population of villages depends on

agriculture. Agriculture forms the backbone of the country’s economy. The agricultural sector
contributes most to the overall economic development of the country. For centuries together, the
Indian village has been a self-sufficient and self-contained economy. During the past forty years,
rural reconstruction and development have been the major thrust of economic planning, which has
caused a rapid transformation in the Indian rural economic structure. These changes have taken
place in spheres, such as land reforms, agriculture, animal husbandry, supplies and marketing,
village industries, rural leadership, village administration, etc. With the help of the rural
development programmes, a cultivator is able to take advantage of the modern technological
facilities in his agricultural operations. These cultivators are now using modern agricultural
implements and high-yielding varieties of seeds and fertilizers. Several other welfare services were
introduced, such as opening up of schools, primary healthcare centres, improving the means of
transport and communication, and spread of mass media services to rural areas, etc. These welfare
services have materially affected the rural life.

STATEMENT OF THE PROBLEM:

The statement of the problem is to study the impact of government schemes on rural economy.
India is known as an agricultural country, as most of the population of villages depends on
agriculture. Agriculture forms the backbone of the country’s economy. The agricultural sector
contributes most to the overall economic development of the country. For centuries together, the
Indian village has been a self-sufficient and self-contained economy. During the past forty years,
rural reconstruction and development have been the major thrust of economic planning, which has
caused a rapid transformation in the Indian rural economic structure. These changes have taken
place in spheres, such as land reforms, agriculture, animal husbandry, supplies and marketing,
village industries, rural leadership, village administration, etc. Therefore, an attempt has been
made to study the impact of government schemes on rural economy.
 NEED AND RELEVANCE OF THE STUDY:

The Rural Economy in India is wholly agriculture based and it is of tremendous importance
because it has vital supply and demand links with the other Indian industries. Agriculture is the
main stay of the Indian economy, as it constitutes the backbone of rural India which inhabitants
more than 70% of total Indian population. The fertility of the soil has augmented the success of
agriculture in India. Further, Rural Economy in India has been playing an important role towards
the overall economic growth and social growth of India. India has been predominantly an
agriculture-based country and it was the only source of livelihood in ancient time. During
prehistoric time when there was no currency system the India economy system followed barter
system for trading i.e. the excess of agricultural produce were exchanged against other items. The
agriculture produce and system in India are varied and thus offers a wide agricultural product
portfolio.
 REVIEW OF LITERATURE:

Bina Agarwal (2015) analysed the interrelationships between gender, poverty and the
environment in rural India, focusing especially on regional variations and temporal shifts over
1971-91. Briefly identifying the major factors underlying environmental degradation, the study
traces why and how this degradation and the appropriation of natural resources by the state
(statization) and by some individuals (privatization), tend to have particularly adverse implications
for the female members of poor rural households. She further examined Governmental and
community-initiated attempts at environmental protection and regeneration and computed an
aggregate index GEP (V) to address those issues.

Jodha (2016) defines CPRs as “the resources accessible to the whole community of a village and
to which no individual has exclusive property rights. In the dry regions of India, they include
village pastures, common forests, waste lands, common threshing grounds, waste dumping places,
watershed drainages, village ponds, tanks, rivers / rivulets and river beds, etc.” There are number
of factors attributed for the marginalization of the use of CPRs.

Tony Beck and Madan G Ghosh (2016) estimated roughly that the CPRs currently add some US
$ 5 billion a year to the incomes of poor rural households in India, or about 12 % to household
income of poor rural households. In Pani (water) panchayats (R.S. Deshpande and Ratna Reddy:
1990), every rural household has an equal share in irrigation and water resources. The water rights
are tradable, so that even the landless labourers gain from the irrigation resources generated. Grass
roots democracy is used to integrate environmental regeneration and rural development to alleviate
poverty.

Shenggen Fan and Peter Hazell (2016) have made an empirical analysis of Rural India with
particular reference to less favoured areas. They concluded that the poverty, food security and
environmental problems of many low potential areas are likely to remain serious in the decades
ahead as population continues to grow.

According to a report prepared by the Technical Advisory Committee of the CGIAR, marginal
and sparsely populated arid lands account for 75 % and 85% respectively, of the total agricultural
area in Asia and Sub-Saharan Africa (CGIAR 1998). Their shares in total agricultural production
are lower but still large. Peter Hazell and James Garett (1996) estimated that less favoured lands in
China and India account for about one third and 40% of total agricultural output, respectively.
 Poor farmers put in a tremendous amount of planning and labour into building and maintaining
terraced fields, controlling soil erosion, nurturing tree species for fuel, fodder and soil fixing, and
intricate soil and engineering mechanisms responsible for conserving, harvesting and distributing
irrigation water (Prakash 1997). When the poor appear to degrade the environment, it is basically
because of lack of incentives and appropriate institutions, including lack of clarity on property
rights.

The poor in this view are perceived as having a short time horizon, discounting the future
benefits from conservation rather heavily owing to the urgency to make a livelihood and avoid
hunger. Such a time horizon leads to unsustainable use of natural resources (M.V. Nadkarni 2000).

The relationship between poverty, environment and development is quite complex and not
amenable for easy generalisation. There is a widely held view, particularly in the West; the poverty
is the main cause of environmental deterioration, because the poor are not in a position to use
natural resources sustainably (Duraippah 1996, Prakash 1997). The degradation in turn, it is
believed leads to aggravation of poverty.

Various studies undertaken by distinguished scholars have broadened the understanding of the
related issues. For example, Hanumantha Rao (1994) interrelated the five themes viz., agricultural
growth, rural poverty, environmental degradation, participatory rural development, and economic
reforms in relation to agriculture. Both growth and poverty interact with environment in complex
ways, each affecting the other. The author makes a critical appraisal of the participatory processes
and also of some recent reforms – which have implications both for poverty and environment.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) MGNREGA

continues to be a cornerstone in rural employment. A study by Panda (2016) highlights its role in
enhancing land utilization and providing sustainable employment in backward areas. The scheme
has been instrumental in improving the standard of living of rural poor and alleviating rural
poverty.

Pradhan Mantri Awas Yojana – Gramin (PMAY-G) Launched in 2016, PMAY-G aims to provide
pucca houses with basic amenities to the rural poor. As of recent reports, approximately 1.40 crore
houses have been constructed against a target of 2.2 crore, significantly improving living
conditions in rural areas.
 Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) This skill development
initiative has trained over 11 lakh candidates, with more than 6 lakh placed in jobs. It addresses
rural unemployment by enhancing employability among youth.

Pradhan Mantri Ujjwala Yojana (PMUY) PMUY has significantly increased LPG accessibility
among poor households, reducing reliance on traditional fuels. However, sustaining LPG usage
remains a challenge, with variations observed across regions and social groups

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) Introduced during the COVID-19
pandemic, PMGKAY provided free food grains to over 800 million people, preventing a rise in
extreme poverty levels. The scheme has been pivotal in ensuring food security during crises.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) PMKSY focuses on expanding irrigation
coverage and improving water use efficiency. With an outlay of ₹50,000 crore over five years,
the scheme aims to enhance agricultural productivity through better water resource management.

Pradhan Mantri Gram Sadak Yojana (PMGSY) PMGSY has been instrumental in providing
all-weather road connectivity to unconnected villages.
 RESEARCH METHODOLOGY

Research Methodology is the systematic framework within which researchers plan, execute and
analyze their studies. It entails a series of well-defined steps aimed at investigating and
understanding a particular phenomenon or problem. The process typically begins with problem
identification, where researchers pinpoint a specific issue or question worthy of investigation. This
is followed by an extensive literature review, during which existing research and theories relevant
to the topic are examined to gain insights and identify gaps in knowledge. Based on this review,
researchers formulate hypotheses or research questions to guide their study. Subsequently, they
design the research determining the overall approach, methodology and data collection techniques
that will best address their objectives. This may involve selecting appropriate research methods,
such as quantitative, qualitative or mixed methods and designing experiments, surveys, or
interviews as necessary. Throughout the research process, careful attention is paid to ethical
consideration, ensuring that the rights and well-being of participants are protected. Once data is
collected, researchers analyze it using appropriate statistical or qualitative techniques, interpreting
the results in light of their research questions or hypotheses. Finally, they draw conclusion discuss,
implications, and make recommendations based on their findings, contributing to the advancement
of knowledge in their field.

Objective of the Study:

1. To analyse the impact of government employment schemes on the growth of

entrepreneurial ventures in bhiwani.

2. To assess the effectiveness of specific government schemes in encouraging self

employment and startup creation in bhiwani.
 Research Design: -

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In fact,
the research design is the conceptual structure within which research is conducted; it constitute the
blueprint for the collection, measurement and analysis of data.

In this study, Descriptive research studies are used because descriptive studies are those studies
which are concerned with describing the characteristics of particular individuals or a group and
situations etc.

Sources of data can vary depending on the research questions, methodology, and the nature of
the study. Here are some common sources of data:

1. Primary Source.

2. Secondary Source.

In the present study, primary as well as secondary data has been used.

Sampling Method: -

In the present study, Convenience sampling method has been used.

Data collection Method: -

In the present study Primary Data is collected through: -

 Questionnaire.

In the Present Study Secondary Data is collected through:-

 Website.
 Books.

 Internet.

Sample Size: - The sample size of the study is 100

Data analysis

1. Age
Age No. of Respondent Percentage
18-24 37 37
25-30 50 50
30-35 12 12
Above 35 1 1
Total 100 100

Age

18-24
25-30
30-35
above 35

In the above table and figure, it shows The data presents the age distribution of 100
respondents. The majority of participants fall within the 25-30 age groups, making up 50% of
the total, indicating that this age range is the most represented in the survey. The 18-24 age
groups follow with 37 respondents, accounting for 37% of the total. A smaller portion, 12%,
belongs to the 30-35 age groups, while only 1% of respondents are above 35 years old. This
suggests that the survey primarily engaged younger individuals, particularly those aged
between 18 and 30, highlighting a youthful demographic among the participants.
 2. Gender
Gender No. of Respondent Percentage
Male 56 56
Female 44 44
Prefer not to say - -
Total 100 100

Gender

Male
Female
Prefer Not to say

In the above table and figure , the gender distribution of the 100 respondents shows that 56%
are male and 44% are female. This indicates a slight male majority among the participants.
No respondents chose the "Prefer not to say" option, suggesting that all individuals were
comfortable disclosing their gender. Overall, the data reflects a fairly balanced gender
representation, with males being slightly more prominent in the respondent group.

3. Monthly Income
Income No. of Respondent Percentage
Below 15000 7 7
15000-20000 31 31
20000-25000 55 55
 Above 25000 7 7
Total 100 100

Monthly Income

Below 15000
15000-20000
20000-25000
Above 25000

In the above table and figure, the income distribution of the 100 respondents reveals that the
majority, 55%, earn between 20,000 and 25,000, making this the most common income range
among participants. This is followed by 31% who earn between 15,000 and 20,000. A smaller
proportion, 7%, falls into the lowest income bracket (below 15,000), while another 7% earn
above 25,000. This indicates that most respondents have a moderate income, with relatively
few at either the lower or higher ends of the income scale.

4. I am aware of government employment scheme that support

entrepreneurial venture. How much do you agree with this statement .

No. of Respondent Percentage

Strongly Agree 4 4
Agree 29 29
Neutral 65 65
Disagree 2 2
Strongly Disagree - -
Total 100 100
 Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

The data shows that the majority of respondents (65%) remained neutral regarding their awareness of
government employment schemes supporting entrepreneurial ventures, suggesting a significant lack of clear
knowledge or understanding among them. About 33% (combining 4% strongly agree and 29% agree)
indicated some level of awareness, although most were moderate in their agreement, implying their
knowledge might be basic rather than in-depth. Very few respondents (2%) disagreed, and none strongly
disagreed, indicating that outright denial of such awareness is rare. Overall, while a small group is aware,
the high neutral percentage highlights the need for greater communication and education about these
government initiatives.
5. Government employement schemes have helped me financially grow my
business. How much do you agree with this statement.

No. of Respondent Percentage

Strongly Agree 22 22
Agree 67 67
Neutral 8 8
Disagree 3 3
Strongly Disagree - -
Total 100 100
 Percentage

Strongly agree
Agree
Neutal
Disagree
Strongly disagree

I The data reveals that a large majority of respondents (89%), combining 22% who strongly agree and
67% who agree, believe that government employment schemes have helped them financially grow their
business, indicating strong positive impact and satisfaction with these initiatives. Only a small portion (8%)
remained neutral, suggesting that few respondents are unsure about the benefits they received. An even
smaller group (3%) disagreed, and none strongly disagreed, showing that very few had a negative
experience. Overall, the results clearly suggest that government employment schemes have been highly
effective in supporting the financial growth of businesses.

6. What training and resources provided by the schemes that enhance the
skills. How much do you agree with this statement .

No. of Respondent Percentage

Strongly Agree 58 58
Agree 24 24
Neutral 17 17
Disagree 1 1
Strongly Disagree - -
Total 100 100
 Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

A
majority of 58% strongly agree and 24% agree, making a total of 82% who believe the
infrastructure is supportive. The data indicates that a significant majority of respondents (82%),
with 58% strongly agreeing and 24% agreeing, believe that the training and resources provided by
government schemes have helped enhance their skills. This shows strong approval and suggests
that these initiatives are effectively contributing to skill development among participants. A
smaller group (17%) remained neutral, indicating that while they may have participated, they are
either unsure of the impact or did not experience major improvements. Only 1% disagreed, and
none strongly disagreed, reflecting very minimal dissatisfaction. Overall, the findings suggest that
government schemes are highly effective in providing valuable training and resources for skill
enhancement.
7. My business performance has improved after benefitting from a
government employment scheme. How much do you agree with this statement.

No. of Respondent Percentage

Strongly Agree 34 34
Agree 54 54
Neutral 8 8
Disagree 4 4
Strongly Disagree - -
Total 100 100
 Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

The data shows that a strong majority of respondents (88%), with 34% strongly agreeing and 54%
agreeing, feel that their business performance has improved after benefiting from a government
employment scheme. This indicates a high level of satisfaction and perceived positive impact on business
growth due to the support received. Only a small proportion (8%) remained neutral, suggesting a minor
section is either unsure about the improvements or has experienced minimal changes. A very small
percentage (4%) disagreed, and none strongly disagreed, highlighting that dissatisfaction with the schemes'
impact on business performance is extremely low. Overall, the results clearly suggest that government
employment schemes have been highly effective in enhancing business performance for most participants.

8. I am overall satisfied with the impact of government schemes on my

business growth . How much do you agree with this statement .

No. of Respondent Percentage

Strongly Agree 56 56
Agree 35 35
Neutral 8 8
Disagree 1 1
Strongly Disagree - -
Total 100 100
 Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

The data reveals that an overwhelming majority of respondents (91%), with 56% strongly
agreeing and 35% agreeing, are overall satisfied with the impact of government schemes on their
business growth. This demonstrates a very high level of approval and suggests that the schemes
have been successful in meeting the needs and expectations of most participants. A small portion
(8%) remained neutral, possibly indicating either limited experience or uncertainty about the long-
term effects. Only 1% disagreed, and none strongly disagreed, showing almost no dissatisfaction.
Overall, the findings clearly highlight that government schemes have been highly effective and
well-received in supporting business growth.

9. The government scheme available on linked care has made it easier for
me to start my own business in bhiwani. How much do you agree with this
statement.

No. of Respondent Percentage

Strongly Agree 9 9

Agree 27 27
Neutral 63 63
Disagree 1 1
Strongly Disagree - -
 Total 100 100

Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

IThe data shows that the majority of respondents (63%) remained neutral regarding whether the
government scheme available on Linked Care made it easier for them to start their own business in
Bhiwani, indicating a significant level of uncertainty or lack of direct experience with the scheme. A
smaller portion (36%), combining 9% who strongly agree and 27% who agree, felt that the scheme did
make starting a business easier, reflecting some positive impact but not a strong majority. Only 1%
disagreed, and none strongly disagreed, suggesting very little outright dissatisfaction. Overall, while some
respondents acknowledge the scheme’s helpfulness, the high neutral percentage suggests a need for better
awareness, access, or understanding of the scheme’s benefits among the target audience.

10. The scheme provide sufficient financial and advisory for support to
encourage my self employement journey. How much do you agree with this
statement .

No. of Respondent Percentage

Strongly Agree 20 20
Agree 63 63
Neutral 13 13
 Disagree 4 4
Strongly Disagree - -
Total 100 100

Percentage

strongly agree
Agree
Neutral
Disagree
Strongly disagree

IThe data shows that a strong majority of respondents (83%), with 20% strongly agreeing and 63%
agreeing, believe that the scheme provides sufficient financial and advisory support to encourage their self-
employment journey. This indicates that most participants are satisfied with the level of assistance they
have received. A smaller portion (13%) remained neutral, suggesting some uncertainty or limited
experience with the support offered. Only 4% disagreed, and none strongly disagreed, indicating minimal
dissatisfaction. Overall, the findings suggest that the scheme is largely effective in offering the necessary
financial and advisory help to promote self-employment among the respondents.

11. The application and approval process for the scheme on linked care
were simple and accessible. How much do you agree with the statement .

No. of Respondent Percentage

Strongly Agree 42 42
Agree 41 41
 Neutral 9 9
Disagree 8 8
Strongly Disagree - -
Total 100 100

Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

The data shows that a large majority of respondents (83%), with 42% strongly agreeing and 41%
agreeing, felt that the application and approval process for the scheme on Linked Care was simple
and accessible. This indicates a generally smooth and user-friendly experience for most
participants. A smaller group (9%) remained neutral, possibly suggesting limited engagement or
mixed experiences. Only 8% disagreed, and none strongly disagreed, indicating that dissatisfaction
with the process was quite low. Overall, the findings suggest that the scheme's application and
approval process is well-designed and accessible to most users.

12. The scheme has positively influence the growth and sustainability of my
startup in bhiwani . How much do you agree with this statement.

No. of Respondent Percentage

Strongly Agree 18 18
Agree 67 67
 Neutral 12 12
Disagree 3 3
Strongly Disagree - -
Total 100 100

Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

In the above table and figure , The responses to the statement "My friend/family often talk about
franchises" indicate a strong awareness and discussion of franchise businesses within social circles. A
majority of 67% agree and 18% strongly agree, suggesting that a significant portion of respondents are
frequently exposed to discussions about franchises among their friends and family. Only 12% remain
neutral, and 3% disagree, with no respondents strongly disagreeing. This suggests that the concept of
franchises is a common topic of conversation in the community, reflecting a broad familiarity with the idea.

13. I would like to recommend the linked care government svheme to

others looking to start a business in bhiwani . How much do you agree with this
statement .

No. of Respondent Percentage

Strongly Agree 40 40
Agree 47 47
 Neutral 7 7
Disagree 6 6
Strongly Disagree - -
Total 100 100

Percentage

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

The data shows that a significant majority of respondents (85%), with 18% strongly agreeing
and 67% agreeing, believe that the scheme has positively influenced the growth and sustainability
of their startup in Bhiwani. This indicates strong approval and suggests that the scheme has had a
substantial impact on the success of most businesses. A smaller group (12%) remained neutral,
which could indicate uncertainty or varied experiences with the scheme’s influence. Only 3%
disagreed, and none strongly disagreed, reflecting minimal dissatisfaction. Overall, the findings
suggest that the scheme has played a positive role in the growth and sustainability of startups in
Bhiwani.
Findings:

65% respondents were neutral about awareness of government schemes, showing lack of clarity.

89% agreed government schemes helped their business grow financially.

82% said training and resources from schemes enhanced their skills.

88% reported improved business performance after benefiting from schemes.

91% expressed overall satisfaction with the impact of government schemes.

83% agreed the schemes provided sufficient financial and advisory support.

83% found the application and approval process simple and accessible.

85% felt schemes positively influenced the growth and sustainability of their startups.
 Suggestions:

Increase awareness campaigns about government schemes in local communities.

Simplify the explanation of benefits and eligibility to make it more understandable.

Strengthen local support centers to guide entrepreneurs at every step.

Ensure timely disbursement of benefits and maintain transparency in scheme implementation.

Conduct regular training workshops and seminars to improve participation and utilization.

Conclusion:

The study clearly shows that government employment schemes have had a positive and
meaningful impact on entrepreneurship and business growth in Bhiwani. A large majority of
respondents reported financial growth, skill development, improved business performance, and
overall satisfaction after benefiting from these schemes. Specifically, 89% acknowledged financial
support, 82% appreciated skill enhancement through training, and 88% observed business growth
— all indicating the success of these initiatives.

However, despite these achievements, awareness remains a critical challenge. About 65% of
respondents remained neutral regarding their knowledge of available schemes, suggesting that
many potential beneficiaries are either unaware of the opportunities or lack clear information about
how to access them. This gap could limit the full potential impact of government initiatives if not
addressed.

Moreover, while the application processes were largely found to be simple and accessible by
most respondents, some still faced issues related to communication, banking access, and timely
information dissemination.

Thus, while the government schemes have undoubtedly fueled entrepreneurship and improved
rural livelihoods, consistent efforts are needed to enhance awareness, improve outreach, and make
the benefits of these schemes more inclusive and accessible across all sections of society.
References

 Jain, A., Tripathi, S., & Mani, S. (2020). Sustainability of LPG adoption: Evidence
from India. Energy Policy, 138, 111220. https://doi.org/10.1016/j.enpol.2019.111220
 Ministry of Agriculture and Farmers' Welfare. (2020). Annual report 2019–2020.
Government of India. https://agricoop.nic.in/
 Ministry of Rural Development. (2018). Annual report 2017–18. Government of
India. https://rural.nic.in/
 Ministry of Rural Development. (2021). Pradhan Mantri Awaas Yojana–Gramin:
Progress report. Government of India. https://pmayg.nic.in/
 NITI Aayog. (2017). Three-year action agenda, 2017–18 to 2019–20. Government of
India. https://www.niti.gov.in/
 Panda, B. (2016). Assessing the effectiveness of MGNREGA: Evidence from rural
Odisha. Economic and Political Weekly, 51(26–27), 83–90. https://www.epw.in/
 Sharma, R. (2018). Skill development in rural India: An impact study of DDU-GKY.
International Journal of Rural Development and Management Studies, 12(1), 1–10.
 World Bank. (2021). Food security and COVID-19. World Bank Group.
https://www.worldbank.org/en/topic/agriculture/brief/food-security-and-covid-19
 ANNEXURE

Questionnaire on " a study on impact of government schemes on

rural economy"

As a part of my MBA coursework, this questionnaire is intended to provide information for a

study . Conducting research on the "a study on impact of government schemes on rural economy ".
The information that you'll provide is only for the purpose of this study and will be treated as
confidential.

Personal Information

1. Age
o 18-24
o 25-30
o 31-35
o Above 35

2. Gender
o Male
o Female
o Prefer not to say

3. Monthly Income
o Below 15000
o 15000-20000
o 20000-25000
o Above 25000
Research Questions

1. To analyse the impact of government employment schemes on the growth

of entrepreneurial ventures in bhiwani.

Here, SD= Strongly Disagree

D= Disagree
N=Neutral
A= Agree
SA= Strongly Agree

SD D N A SA

I am aware of government
employement schemes that supports
entrepreneurial ventures.
Government employment schemes
have helped me financially grow my
business.
The training and resources
provided by these schemes have
enhanced my entrepreneurial skills.
My business performance has
improved after benefitting from a
government employment schemes.
I am overall satisfied with the
impact of government schemes on
my business growth.
 1. To assess the effectiveness of specific government schemes in encouraging
self employment and startup creation in bhiwani.

Here, SD= Strongly Disagree

D= Disagree
N=Neutral
A= Agree
SA= Strongly Agree

SD D N A SA

The government scheme available

on linked care has made it easier for
me to start my own business in
bhiwani.
The scheme provided sufficient
financial and advisory support to
encourage my self employment
journey.
The application and approval
process for the scheme of linked
care was simple and accessible.
The scheme has positively
influenced the growth and
sustainability of my startup in
bhiwani.
I would recommend the linked
care government scheme to others
looking to start a business in
bhiwani.