CHAPTER 1: STATE OF THE ECONOMY – GETTING BACK INTO

THE FAST LANE

1. What is the global economic growth outlook for 2024 and 2025?

●​ The IMF projected global growth of 3.2% in 2024 and 3.3% in

2025.
●​ The Global Composite PMI stayed in the expansion zone for
14 consecutive months till Dec 2024.

2. How is India’s GDP expected to perform in FY25?

●​ The real GDP growth for FY25 is estimated at 6.4% by the

National Statistical Office.

3. What are the major components driving demand-side growth in

India?

●​ Private Final Consumption Expenditure (PFCE) is estimated to

grow by 7.3%.
●​ PFCE as % of GDP will increase to 61.8% in FY25, highest
since FY03.

4. What is the supply-side outlook for FY25?

●​ Gross Fixed Capital Formation (GFCF) and Gross Value

Added (GVA) are both estimated to grow by 6.4%.
●​ Agriculture sector is expected to grow at 3.8%; Kharif food
grain production is 1647.05 LMT, up 5.7% YoY.

5. What is the growth rate for the industry and services sectors?

●​ Industry: Estimated growth of 6.2%.

●​ Services: Expected to grow at 7.2%, driven by finance, real
estate, public admin, defence, etc.

6. What are the key highlights regarding India’s fiscal discipline and
inclusivity?

●​ Capital expenditure as % of total Union expenditure has

consistently improved since FY21.
 ●​ State revenue expenditure grew by 12% YoY, but capex
declined by 5.6% overall.

7. What is the status of inflation in India in FY25?

●​ Retail inflation (CPI) declined from 5.4% in FY24 to 4.9%

(Apr–Dec 2024).
●​ Food inflation increased to 8.4%, driven by vegetables and
pulses.

8. How did India perform in terms of trade and remittances?

●​ Merchandise exports grew by 1.6% YoY, and imports rose

5.2%.
●​ Trade deficit widened.
●​ India has the 7th largest share in global services exports.
●​ India remained top remittance recipient globally.

9. What are the highlights regarding FDI and forex reserves?

●​ FDI inflows increased by 17.9% YoY (Apr–Nov 2024).

●​ Forex reserves touched USD 704.9 billion before moderating
to USD 634.6 billion (Jan 2025).
●​ Reserves cover 90% of external debt and 10+ months of
imports.

10. What is the banking and employment scenario?

●​ Gross NPAs dropped to a 12-year low of 2.6%.

●​ CRAR for Scheduled Commercial Banks stands at 16.7% (Sept
2024).
●​ Unemployment rate declined to 3.2% in 2023-24, from 6% in
2017-18.

CHAPTER 2: MONETARY AND FINANCIAL SECTOR

DEVELOPMENTS – THE CART AND THE HORSE

1. What is the recent trend in the performance of Scheduled

Commercial Banks (SCBs)?
 ●​ Gross NPA (GNPA) of SCBs declined to 2.6% by September
2024, a 12-year low.
●​ Indicates major improvement in asset quality.

2. How are Regional Rural Banks (RRBs) performing?

●​ As of March 2024: 43 RRBs, 22,069 branches, 31.3 crore

deposit and 3 crore loan accounts.
●​ Profit-making RRBs increased from 37 in FY23 to 40 in FY24.
●​ GNPA ratio improved from 7.3% in FY23 to 6.1% in FY24,
lowest in a decade.
●​ All RRBs met Priority Sector Lending (PSL) targets in FY24.

3. What are the key developments in capital markets?

●​ Number of IPOs rose by 32.1% (April–Dec 2024) – from 196 to

259.
●​ Corporate bond market remains small – only 18% of GDP vs.
80% in Korea and 36% in China.
●​ Demat accounts increased 33% YoY to 18.5 crore.
●​ NSE investor base crossed 10.9 crore in August 2024.

4. What are the developments in the insurance and pension

sectors?

●​ Insurance premium grew 7.7% in FY24 to ₹11.2 lakh crore.

●​ Insurance penetration fell from 4% to 3.7%, below global
average of 7%.
●​ NPS and APY subscribers rose to 783.4 lakh, a 16% YoY
increase.

5. What major trends are shaping the financial sector currently?

●​ Consumer credit share in total bank credit increased from

18.3% (FY14) to 32.4% (FY24).
●​ Bank share in total credit declined from 77% in FY11 to 58% in
FY22.
●​ Rise in NBFCs and bond market financing.
●​ IPO listings grew 6x from FY13 to FY24, making India #1
globally in IPO listings in FY24.
CHAPTER 3: EXTERNAL SECTOR – GETTING FDI RIGHT

1. What are the global trade dynamics as of 2024?

●​ WTO reports 3.5% growth in exports and 3% in imports in Q3

2024.
●​ UNCTAD projects global trade to reach USD 33 trillion in 2024,
surpassing 2022 levels.
●​ Number of Regional Trade Agreements (RTAs) increased from
22 (1990) to 369 (Aug 2024).

2. How has India performed in external trade during FY25?

●​ Total exports (merchandise + services): USD 602.6 billion, a

6% YoY growth.
●​ Total imports: USD 682.2 billion, up 6.9% YoY.
●​ Resulted in a higher trade deficit: from USD 69.7 billion
(Apr–Dec 2023) to USD 79.5 billion (FY25).

3. What is India’s position in global services exports?

●​ Services exports share increased to 4.3% in 2023 from 1.9% in

2005.
●​ India is #2 globally in Telecommunications, Computer, &
Information Services exports with a 10.2% share.

4. What is the status of India’s current account?

●​ Current Account Deficit (CAD) was 1.2% of GDP in Q2 FY25,

slightly down from 1.3% in Q2 FY24.
●​ The increase in merchandise trade deficit (USD 75.3 bn vs.
64.5 bn) is the key reason for CAD.

5. What are the trends in FDI and capital flows?

●​ Gross FDI inflows rose from USD 47.2 billion to USD 55.6
billion (Apr–Nov FY25) – 17.9% YoY increase.
●​ Net FDI, however, fell sharply to USD 0.48 billion from USD 8.5
billion, due to higher repatriation.
6. How are other external capital flows performing?

●​ External Commercial Borrowings (ECBs): Net inflows

increased to USD 9.2 billion (Apr–Oct FY25) vs. USD 2.8 billion
last year.
●​ NRI deposits surged to USD 10.2 billion, almost double from
USD 5.4 billion last year.

7. What is the status of India’s foreign exchange reserves?

●​ Peaked at USD 704.9 billion (Sept 2024), moderated to USD

640 billion (Dec 2024).
●​ India ranks 4th globally in forex reserves after China, Japan,
and Switzerland.

8. What is the external debt profile of India?

●​ External debt-to-GDP ratio rose slightly from 18.8% to 19.4%

(June to Sept 2024).
●​ Short-term debt fell to 18.8% of total external debt.
●​ Debt denomination: 53.4% in USD, 31.2% INR, followed by
SDR and Euro.

CHAPTER 4: PRICES AND INFLATION – UNDERSTANDING THE

DYNAMICS

1. What is the global inflation trend as of 2024?

●​ Global inflation peaked at 8.7% in 2022, declined to 5.7% in

2024.
●​ The fall is due to easing supply chain disruptions and
geopolitical tensions.

2. What are the recent trends in India’s retail inflation (CPI)?

●​ CPI inflation declined from 5.4% in FY24 to 4.9% during

April–December FY25.
●​ Drop driven by reduction in core inflation by 0.9 percentage
points, now at a 10-year low.
3. What is the major contributor to inflation in India?

●​ Food items form two-fifths (40%) of the CPI basket.

●​ Food inflation rose to 8.4% in FY25 (Apr–Dec), mainly due to
vegetables and pulses.

4. How significant are vegetables and pulses in inflation dynamics?

●​ Though they hold only 8.42% weight in CPI, they contributed

32.3% to overall inflation in FY25.
●​ Excluding TOP (tomato, onion, potato), food inflation drops to
6.5%, which is 1.9% lower than headline food inflation.

5. Which specific items triggered food inflation?

●​ Tomato, onion, potato (TOP) and tur dal were the major
contributors.
●​ Deficient tur dal production in 2022-23 and 2023-24 led to high
price pressures.

6. What is the inflation outlook for the near future?

●​ RBI (Dec 2024) revised inflation forecast for FY25 from 4.5% to
4.8%.
●​ RBI projects headline inflation at 4.2% in FY26, assuming a
normal monsoon and no external shocks.
●​ IMF forecast: 4.4% for FY25, 4.1% for FY26.

CHAPTER 5: MEDIUM-TERM OUTLOOK – DEREGULATION DRIVES

GROWTH

1. What is India’s growth vision under Viksit Bharat@2047?

●​ India must grow at ~8% (constant prices) annually for 2

decades to achieve developed nation status by 2047.
●​ The IMF projects India to become a USD 5 trillion economy by
FY28 and USD 6.3 trillion by FY30, needing 10.2% annual
nominal growth (USD terms).
2. What has been India’s historical growth in USD terms?

●​ From FY94–FY24, India’s GDP in USD grew at 8.9% CAGR.

●​ IMF now expects a higher rate of 10.2% CAGR for FY25–FY30.

3. How has global trade and investment evolved over time?

●​ Global trade was 39% of world GDP in 1980, rose to 60% by

2012.
●​ Global FDI inflows rose from USD 54 billion (1980) to over
USD 1.5 trillion (2019).
●​ World GDP rose from USD 11 trillion (1980) to USD 100+
trillion (2022).

4. What is China’s role in global industrial dominance?

●​ In 2000, China had 6% share in global industrial output.

●​ By 2030s, UNIDO projects China’s share at 45% – dominating
manufacturing, batteries, solar, and rare earths.

5. What is the status of India’s green technology supply chains?

●​ India imports:
○​ 75% of lithium-ion batteries from China.
○​ Has near-zero domestic capacity in polysilicon, ingots,
wafers.
●​ Chinese firms dominate battery, solar PV, and rare earth
processing globally.

6. What are the required investment levels to sustain high growth?

●​ Investment rate must increase from 31% to ~35% of GDP.

●​ Needed to support infrastructure and capital formation for
sustained 8% growth.

7. How is deregulation expected to support growth?

●​ First phase of reforms:

○​ Focused on reducing compliance burden, digitising
systems, and providing sector-specific incentives.
 ●​ These deregulations aim to improve ease of doing business
and attract private sector investments.

CHAPTER 6: INVESTMENT AND INFRASTRUCTURE – KEEPING IT

GOING

1. What is the trend in India’s capital expenditure?

●​ Union government capex on major infrastructure sectors grew

at a CAGR of 38.8% from FY20 to FY24.
●​ This reflects strong intent to support long-term development
goals.

2. What are the key infrastructure pipelines?

●​ National Infrastructure Pipeline (NIP): Targets ₹111 lakh crore

investments (FY20–FY25).
●​ National Monetisation Pipeline (NMP): Aims to monetise ₹6.0
lakh crore worth of assets (FY22–FY25).

PHYSICAL CONNECTIVITY

3. What are the major rail infrastructure initiatives?

●​ Gati Shakti Cargo Terminals (GCTs): 91 commissioned, 234

approved (by Oct 2024).
●​ Net Zero Emissions target: Indian Railways aims for 30 GW
renewable capacity by 2029–30.

4. What are the plans for major economic corridors?

●​ 434 projects, worth ₹11.17 lakh crore, under three railway

corridors listed on PM GatiShakti portal.

5. What is the status of India's road infrastructure?

●​ India has 63.4 lakh km road network; NHs form only 2% but
carry 40% of freight traffic.
 ●​ National Industrial Corridor Programme aims to create smart
industrial cities as hubs of manufacturing and investment.

POWER SECTOR

6. How is India’s power capacity evolving?

●​ Installed power capacity reached 456.7 GW (Nov 2024),

growing 7.2% YoY.
●​ Renewable energy capacity rose 15.8% YoY to 209.4 GW, now
47% of total installed capacity.

DIGITAL CONNECTIVITY

7. How is digital connectivity being strengthened?

●​ 5G services launched in all states/UTs, available in 779 of 783

districts (as of Oct 2024).
●​ MeghRaj (GI Cloud) provides cloud services to government
departments across India.

RURAL INFRASTRUCTURE

8. What is the progress of the Jal Jeevan Mission?

●​ Tap water connections increased from 3.23 crore (2019) to

15.3 crore (79.1%) rural households (as of Nov 2024).

URBAN INFRASTRUCTURE

9. What initiatives are taken under Swachh Bharat Mission (Urban)?

●​ Protocols like ODF, ODF+, ODF++, and Water+ are used to rate
Urban Local Bodies (ULBs) on sanitation sustainability.
TOURISM INFRASTRUCTURE

10. What are PRASHAD and Swadesh Darshan schemes?

●​ PRASHAD: Enhances infrastructure at pilgrimage and

heritage sites.
●​ Swadesh Darshan: Develops theme-based tourist circuits.

SPACE INFRASTRUCTURE

11. What is India’s space infrastructure status?

●​ India operates 56 space assets: 19 communication, 9

navigation, 4 scientific, 24 Earth observation satellites.
●​ NSIL launched 72 OneWeb satellites, also launched GSAT-20
via SpaceX.

12. What are India’s upcoming space missions?

●​ Gaganyaan Follow-on, Chandrayaan-4, Venus Orbiter, and

Next Gen Launch Vehicle are part of Space Vision 2047.

CHAPTER 7: INDUSTRY – ALL ABOUT BUSINESS REFORMS

1. How did the industrial sector perform in FY25?

●​ Industrial growth stood at 6.2%, led by electricity and

construction.

2. What is India’s global position in manufacturing?

●​ India contributes 2.8% to global manufacturing, while China

leads with 28.8%.

CORE INPUT INDUSTRIES

3. What are the recent trends in the cement and steel industries?

●​ India is the 2nd largest cement producer globally.

●​ Cement demand driven by housing, railways, and highways.
●​ Crude steel and finished steel production grew by 3.3% and
4.6% respectively (Apr–Nov FY25).
●​ India has been a net importer of steel during the period.

4. What’s the status of the chemical and petrochemical sector?

●​ Contributes 9.5% to manufacturing GVA.

●​ India imports about 45% of petrochemical intermediates.

HIGH-POTENTIAL SECTORS

5. What is the government doing for capital goods and smart

manufacturing?

●​ Promoting Smart Manufacturing and Industry 4.0.

●​ SAMARTH Udyog Centres are being set up in various
institutions.

6. What’s the current scenario in the automobile sector?

●​ FY24 saw 12.5% domestic sales growth.

●​ PLI scheme for auto sector extended by one year.

7. How is the electronics manufacturing sector growing?

●​ Production rose from ₹1.90 lakh crore (FY15) to ₹9.52 lakh

crore (FY24).
●​ 99% of smartphones now made domestically.
●​ India holds 4% of global electronics market, mainly focused
on assembly.

8. What is the state of the textile industry?

●​ Contributes 11% to manufacturing GVA.

●​ India is a top jute producer, 2nd in cotton, silk, and man-made
fibres.
 ●​ 6th largest exporter in global textile trade (4% share).

9. What is India’s global status in pharmaceuticals?

●​ 3rd largest by volume, exports make up 50% of turnover.

●​ Supported by PLI and SPI schemes.
●​ India holds 1.5% share of global medical devices market; 4th
largest in Asia.

INNOVATION AND R&D

10. What are the trends in patents and R&D investment?

●​ India ranks 6th globally in patent filings (WIPO 2022).

●​ Dominant sectors: computer, electronics, mechanical,
biomedical.
●​ R&D funding is mainly from government, unlike global peers
where private sector leads.

11. What’s needed to boost R&D in India?

●​ Enhance industry-academia linkages, private investment, and

focus on applied research.

MSME SECTOR

12. What is the employment and support scenario for MSMEs?

●​ Employs 23.24 crore individuals, 2nd only to agriculture.

●​ Key schemes:
○​ Cluster Development Programme
○​ Self-Reliant India Fund
○​ Credit Guarantee Scheme
○​ MSME Samadhan & CHAMPIONS portals

STATE-WISE INDUSTRIAL PRODUCTION

13. Which states dominate industrial production in India?

●​ Gujarat, Maharashtra, Karnataka, Tamil Nadu contribute ~43%

of industrial GSVA (FY23).
●​ Northeast states (excl. Assam & Sikkim): only 0.7% of
industrial GSVA.

CHAPTER 8: SERVICES – NEW CHALLENGES FOR THE OLD WAR

HORSE

1. What is the role of the services sector in the global and Indian
economy?

●​ Contributes 62% of global GDP.

●​ In India, it accounted for ~55% of total GVA in FY25, up from
50.6% in FY14.
●​ Employs around 30% of India’s workforce.

2. What is “servicification” in the Indian context?

●​ Servicification refers to the increasing use of services in

manufacturing, especially for value addition in
post-production processes.

3. What is the role of public administration and IT in services GVA?

●​ Public administration: Steady share of 11–12% in services

GVA (FY13–FY23).
●​ Information & Computer services: Increased from 6.3% (FY13)
to 10.9% (FY23).

TRADE IN SERVICES

4. What are India’s key strengths in services exports?

●​ Computer and business services account for ~70% of India’s

services exports.
●​ Services exports grew at a trend rate of 11% (FY14–FY23).
 ●​ India ranks 7th globally with 4.3% share in services exports.

LOGISTICS & CONNECTIVITY-BASED SERVICES

5. What are the performance indicators in logistics-related

services?

●​ Indian Railways:
○​ 4th largest in the world.
○​ Passenger traffic up 8%, freight up 5.2% in FY24.
●​ Road transport: Generated 78% of transport services GVA in
FY23.
●​ Aviation: Fastest-growing global market; Indian airlines
among top aircraft buyers globally.
●​ Ports and Shipping:
○​ Focus on capacity enhancement.
○​ Vision projects: Maritime India Vision 2030 & Amritkaal
Vision 2047.

OTHER SERVICE SUBSECTORS

6. What is the current status of tourism and hospitality?

●​ Tourism GVA regained 5% share in GDP (FY23).

●​ 7.6 crore jobs created in tourism (FY23).
●​ India’s share in international tourist arrivals is 1.45%, and
1.8% in global receipts.
●​ Ranked 14th globally in tourism receipts (2023).

7. How is India performing in real estate services?

●​ After RERA, India ranked 31st out of 89 countries in Global

Real Estate Transparency Index (2024).

BUSINESS SERVICES AND TELECOM

8. What is the status of India’s IT and telecom sectors?

●​ NASSCOM (2024): Tech industry showed strong resilience

amid global challenges.
●​ India has:
○​ 1.18 billion telecom subscribers
○​ 941 million broadband users
○​ World’s most affordable data rates
○​ Fastest 5G rollout globally

STATE-WISE SERVICE SECTOR ANALYSIS

9. Which states lead in the services sector GVA?

●​ Karnataka & Maharashtra: Over 25% of total services GVA.

●​ Along with Tamil Nadu, UP, Gujarat, they account for >50% of
India’s services GVA.
●​ These 5 states also contribute >50% of industrial GVA,
showing a mutually reinforcing relationship.

CHAPTER 9: AGRICULTURE AND FOOD MANAGEMENT – SECTOR

OF THE FUTURE

1. What is the contribution of agriculture to the Indian economy?

●​ Contributes ~16% to GDP (FY24) and supports 46.1% of the

population.
●​ Growth averaged 5% annually (FY17–FY23), showing strong
resilience.

2. What are the key drivers behind agricultural growth?

●​ Favourable weather, tech adoption, and government schemes.

●​ Shift towards high-value sectors like horticulture, livestock,
and fisheries.
CROP PRODUCTION & MSP

3. What are the recent MSP trends for key crops in FY25?

●​ Arhar MSP: +59% over cost of production.

●​ Bajra: +77%, Masur: +89%, Rapeseed: +98%.

FERTILISERS & SEEDS

4. What initiatives are being taken for fertiliser and seed quality?

●​ ICAR produced 1.06 lakh quintals of breeder seeds (2023–24)

across 1,798 varieties.
●​ Urea Gold launched – blends urea + sulphur to reduce
wastage.
●​ PM-PRANAM promotes use of Nano Urea, Nano DAP, and
organic fertilisers.

IRRIGATION & RAINFALL

5. What’s the status of irrigation and water management?

●​ Irrigated area grew from 49.3% (FY16) to 55% (FY21) of gross

cropped area.
●​ Irrigation intensity improved from 144.2% to 154.5%.
●​ Over 2/3rd of land still drought-prone.
●​ Key schemes: Per Drop More Crop, PMKSY, MIF, RAD.

AGRICULTURE CREDIT & MECHANISATION

6. How is credit access evolving in agriculture?

●​ Kisan Credit Card (KCC): 7.75 crore active accounts.

●​ Non-institutional credit dropped from 90% (1950) to ~25%
(FY22).
7. What’s the status of farm mechanisation?

●​ High equipment cost is a barrier for small/marginal farmers.

●​ Key schemes:
○​ SMAM
○​ Custom Hiring Centres (CHCs)
○​ Drones for Women SHGs

CLIMATE ACTION IN AGRICULTURE

8. What is the role of NMSA in climate-resilient farming?

●​ Part of National Action Plan on Climate Change (NAPCC).

●​ Focus on:
○​ Water-use efficiency
○​ Soil health, crop insurance
○​ Agro-advisories, organic/natural farming
●​ Schemes: PKVY, MOVCDNER for promoting organic
agriculture.

ALLIED SECTORS

9. How are livestock and fisheries contributing to GVA?

●​ Livestock share in Agri-GVA rose from 24.38% (FY15) to

30.23% (FY23).
●​ Fisheries showed highest growth: CAGR of 8.7%.
●​ Key programs:
○​ Rashtriya Gokul Mission
○​ Livestock Health & Disease Control Program

COOPERATIVES & FOOD PROCESSING

10. What are the recent reforms in cooperatives?

 ●​ Model Bye-laws for Primary Agricultural Credit Societies
(PACS).
●​ Computerisation of PACS.
●​ PACS being transformed into Common Service Centres
(CSCs).

11. How is the food processing industry performing?

●​ Accounts for 12.41% of organised sector employment.

●​ Agri-food exports: 11.7% of total exports (FY24).
●​ Key schemes:
○​ PMKSY – infrastructure development.
○​ PMFME – micro food enterprises support.
●​ Processed food exports share rose from 14.9% (FY18) to
23.4% (FY24).

CHAPTER 10: CLIMATE AND ENVIRONMENT – ADAPTATION

MATTERS

1. What is India’s carbon footprint compared to global standards?

●​ India’s per capita CO₂ emissions are one-third of the global

average, despite being a fast-growing economy.

2. What is the status of global commitments to climate finance?

●​ Developed nations are 38% short of their Nationally

Determined Contributions (NDCs).
●​ Only USD 300 billion climate finance per year agreed at
COP29, vs. required USD 5.1–6.8 trillion by 2030.

ADAPTATION PRIORITY

3. Why is climate adaptation critical for India?

●​ India is the 7th most vulnerable country to climate change.

 ●​ Faces extreme weather, sea-level rise, biodiversity loss, and
water insecurity.

4. How much does India spend on climate adaptation?

●​ Adaptation-related spending rose from 3.7% (FY16) to 5.6% of

GDP (FY22).

5. What is the role of the Ministry of Environment, Forest and

Climate Change (MoEFCC)?

●​ MoEFCC is preparing a National Adaptation Plan, focusing on

decentralised, state-led strategies.

CHAPTER 11: SOCIAL SECTOR – EXTENDING REACH AND

DRIVING EMPOWERMENT

1. How has India improved human development through social

sector spending?

●​ Public social sector spending rose from 6.2% of GDP (FY12)

to 8.3% (FY24 BE).
●​ Key areas include health, education, and social protection.

EDUCATION

2. What progress has been made in school education?

●​ NEP 2020 implementation underway.

●​ Gross Enrolment Ratio (GER) increased:
○​ Upper Primary: 89.3% (2021-22).
○​ Secondary: 79.6%.
○​ Higher Secondary: 57.6%.
●​ Dropout rate in secondary education decreased to 12.6%
(from 14.6%).

3. What’s the status of higher and technical education?

 ●​ National Institutional Ranking Framework (NIRF) and NAAC
accreditation improving quality.
●​ Focus on:
○​ Multidisciplinary education
○​ Digital learning platforms (e.g., SWAYAM)

HEALTH

4. What are the key health indicators and schemes?

●​ IMR declined to 28 per 1000 live births, MMR to 97 per 100,000

live births.
●​ Ayushman Bharat:
○​ Health and Wellness Centres (HWCs) operational: 1.61
lakh.
○​ PM-JAY: Over 5.5 crore hospital admissions authorised.

NUTRITION

5. How is the government addressing malnutrition?

●​ Poshan Abhiyaan is the flagship mission.

●​ Anaemia Mukt Bharat, Saksham Anganwadi, and Mid-Day
Meal (PM POSHAN) are key schemes.
●​ Stunting, wasting, underweight prevalence have decreased
(NFHS-5 vs NFHS-4).

SOCIAL WELFARE & EMPOWERMENT

6. What schemes exist for targeted welfare and inclusion?

●​ Direct Benefit Transfer (DBT) reforms improved efficiency.

●​ PM Jan Dhan Yojana (PMJDY): 52.4 crore accounts, with high
women participation.
●​ PM Ujjwala Yojana ensures clean cooking fuel access.
7. What steps are taken for women empowerment?

●​ Maternity Benefit Scheme, One-Stop Centres, Mahila Shakti

Kendra, and Beti Bachao Beti Padhao are key interventions.
●​ Rise in female labour force participation rate (LFPR) and
literacy.

CHAPTER 12: EMPLOYMENT AND SKILL DEVELOPMENT –

EXISTENTIAL PRIORITIES

1. What are the recent employment trends in India?

●​ Unemployment rate (age 15+) fell from 6% (2017–18) to 3.2%

(2023–24) (PLFS Annual).
●​ Labour Force Participation Rate (LFPR) and
Worker-Population Ratio (WPR) both increased.

EMPLOYMENT SCENARIO

2. What are the characteristics of India’s labour market?

●​ Youth unemployment has declined.

●​ Female labour participation is improving, though still below
male participation rates.
●​ Self-employment remains a major source of employment in
India.

3. What is the sectoral distribution of employment?

●​ Agriculture still employs over 40% of the workforce.

●​ Growth in employment seen in construction, manufacturing,
and services sectors.

SKILL DEVELOPMENT INITIATIVES

4. What major skill development programmes are in place?

 ●​ PMKVY (Pradhan Mantri Kaushal Vikas Yojana) trained over
1.4 crore youth since inception.
●​ Skill India Mission, National Apprenticeship Promotion
Scheme, and STRIVE aim to align skills with industry demand.

5. How is vocational and technical education being promoted?

●​ Industrial Training Institutes (ITIs) are being modernised.

●​ More integration between school curriculum and vocational
education under NEP 2020.

OTHER INITIATIVES

6. What is the focus on gig and platform workers?

●​ Policies are being framed for social security and formal

recognition of gig workers.
●​ e-Shram portal launched to register unorganised sector
workers – over 28 crore registrations.

CHAPTER 13: LABOUR IN THE AI ERA – CRISIS OR CATALYST?

1. What is the impact of AI on the labour market?

●​ AI has the potential to both displace and create jobs.

●​ Sectors most at risk: manufacturing, retail, transportation.
●​ Sectors likely to gain: IT services, education, healthcare, AI &
data analytics.

2. What does global research say about AI’s impact on jobs?

●​ OECD: Over 25% of jobs in member countries are highly

automatable.
●​ World Economic Forum (WEF): 69 million jobs may be
created, but 83 million may be displaced globally by 2027.
INDIAN CONTEXT

3. Which sectors in India are vulnerable to AI-driven automation?

●​ Routine-intensive jobs in:

○​ Customer service
○​ Retail operations
○​ Back-end data processing
●​ Low-skill repetitive work is most exposed to automation risk.

4. How is India preparing for AI-led transformation?

●​ Focus on reskilling and upskilling workforce.

●​ Digital India, Skill India, PMKVY, and AI Centres of Excellence
are steps toward an AI-ready workforce.

5. What is the policy recommendation for AI and labour?

●​ Need for:
○​ Lifelong learning frameworks
○​ Curriculum reforms for digital skills
○​ Public-private partnerships for training in AI & emerging
technologies

Conclusion of the Survey

●​ India's economic outlook remains resilient and inclusive, with

strong fundamentals.
●​ However, global uncertainties, climate vulnerabilities, and
technological disruptions like AI demand adaptive and
forward-looking policy responses.