Introduction:
India's population is predominantly rural, with more than 70% of the population living in rural areas. The majority of the population is dependent on agriculture for their livelihood and is therefore vulnerable to fluctuations in food prices. The poor and underprivileged sections of society are the most affected by inflation and unemployment, as they have limited resources to cope with rising prices and limited access to employment opportunities.
Welfare Schemes:
The government has implemented several welfare schemes to alleviate poverty and provide basic necessities to the poor and underprivileged sections of society.
These include the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which aims to provide at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work;
The Public Distribution System (PDS), which provides food grains and other essential commodities to the poor at subsidised prices; and
The National Rural Livelihoods Mission (NRLM), which aims to reduce poverty and vulnerability of rural households by promoting self-employment and wage employment opportunities through the formation of self-help groups and their federation.
While implementing welfare schemes such as subsidies, cash transfers, and food security programs, the government also needs to ensure that these schemes reach the intended beneficiaries and are not misused. They also need to ensure that these schemes are sustainable in the long-term and do not lead to a burden on the economy.
In order to serve the poor and underprivileged sections of society, India needs to not only implement welfare schemes but also effectively manage inflation and unemployment :
Inflation:
Inflation, defined as the sustained increase in the general price level, affects the poor and underprivileged sections of society the most as they spend a larger proportion of their income on food and other essential goods.
High inflation can lead to an increase in the cost of living, making it difficult for low-income households to afford basic necessities.
This can lead to poverty and social unrest.
The government needs to implement policies to control inflation, such as monetary policies and price controls, to keep the cost of living in check.
The Reserve Bank of India (RBI) uses monetary policy measures, such as changing the repo rate and cash reserve ratio, to control inflation.
The government also uses fiscal measures, such as reducing subsidies and increasing excise duties, to control inflation.
Unemployment:
Unemployment, defined as the state of being without work for an individual who is willing to work, is a major concern in India, especially among the poor and underprivileged sections of society.
High unemployment rates can lead to poverty and social unrest. The government needs to implement policies to create jobs, such as investment in infrastructure and industry, to reduce unemployment rates.
They also need to implement policies that support small businesses, which are the biggest employers in the country.
The government has implemented several schemes to address this issue, such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) which aims to provide skill training to youth and make them employable, and the Make in India initiative which aims to create jobs by promoting the manufacturing sector.
Overall, the government needs to strike a balance between implementing welfare schemes, controlling inflation and reducing unemployment to effectively serve the poor and underprivileged sections of society.
Example: The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government scheme aimed at providing financial inclusion to the poor and underprivileged sections of society. However, the scheme's success also depends on the government's ability to control inflation and reduce unemployment to ensure that the benefits of the scheme reach the intended beneficiaries and are not negated by high living costs.
Conclusion:
Welfare schemes alone are not sufficient to serve the poor and underprivileged sections of society. Inflation and unemployment are major concerns that need to be addressed through a combination of monetary, fiscal and structural measures. The government needs to effectively implement policies and schemes to control inflation and increase employment opportunities for the poor and underprivileged sections of society.
