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What are the interventions by GOI to promote Rural Employment?
 “Kushal Bharat Programme” of the Ministry of Skill Development and Entrepreneurship, more than one crore youth are being imparted training in various skills every year so as to enhance their access to better and lucrative livelihood.
 The Apprentices Act was amended in December 2014 with a view to expand the service sector, integrate training courses with apprenticeship and its promotion.
 National Apprenticeship Promotion Scheme (NAPS) was launched in August 2016 with an objective to encouraging employers to engage as many apprentices as possible.
 The Ministry of Skill Development and Entrepreneurship is implementing Pradhan Mantri Kaushal Vikas Yojana through National Skill Development Corporation with the aim of involving 24 lakh youth of the country.
 It has been launched to enable a large number of Indian youth to gain better employment through industry-compatible skill training for better livelihood.
 All the existing labour laws are to be amalgamated in only 4 labour codes and they have been simplified and rationalised according to the need of the present time.
 Two large pension schemes have also been introduced to provide the workers in the unorganised sector, benefits of social security as well as old age protection.
 Pradhan Mantri Shram Yogi Maan Dhan Yojana is a voluntary and contributory pension scheme launched in February 2019 for the welfare of workers in the unorganised sector.
 Voluntary and Contributory National Pension Scheme has also been launched for businessmen, shopkeepers and persons engaged in self employment on September 12, 2019.
 Ministry of Labour and Employment is implementing National Career Service as a mission mode project to provide various employment-related services such as career counselling, vocational guidance, nformation related to skill development courses, apprenticeship and internship.
 Under the administrative control of the Directorate General of Employment, 21 National Livelihood Services Centres are also being run for the differently-abled.
 To promote employment generation in the country, the government is providing special:-
 assistance to new employers for a period up to 3 years from the start of business under the Prime Minister Rojgar Protsahan Yojana (PMRPY).
 Mahatma Gandhi National Rural Employment Guarantee Act- MGNREGA has become a powerful medium to ensure inclusive development in rural India in line with its fundamental objectives of social protection and livelihood security.
 Pradhan Mantri Awaas Yojana-Gramin is a housing programme creating employment both directly and indirectly.
 Deendayal Antyodaya Yojana – National Rural Livelihoods Mission aims to reduce poverty through promotion of diversified and gainful self-employment and skilled wage employment opportunities resulting in
appreciable increase in incomes of the rural poor on sustainable basis.
 Under Deen Dayal Upadhyay Grameen Kaushalya Yojana programme, rural youth from poor families in the age group of 15 to 25 years are provided skill training which is certification-based and in conformity with the National Skill Qualifications Framework (NSQF).

Significance of these Interventions:- According to an estimate of the annual Periodic Labour Force Survey (PLFS), the share of regular wages/salaries has increased by 5 per cent i.e., from 18 per cent in 2011–12 to 23 per cent in 2017–18.
According to a report by the National Statistical Office (NSO), a total of 1.49 crore new employees/workers were enrolled in Employees‟ State Insurance Corporation during FY 2018–19.


New Definition of MSME after Covid-19

Scenario about MSME :

MSME employs over 100 million people and accounts for 45 per cent of manufacturing output as well as more than 40 per cent of the country‟s exports. The MSME sector currently contributes 29 per cent of the country‟s GDP. As per a Survey released by the Confederation of Indian Industry in 2019, MSMEs have been the largest job creators over the last 4 years.

Govt.s’ initiatives for the MSME Sector:- Government procurement has also been digitised through the Government e-Marketplace (GeM) which is revolutionising procurement processes.

Recent initiatives such as the Bharat Interface for Money (BHIM) application are giving a massive boost to digital money transactions.

The government has allowed 100 per cent FDI under the automatic route for many sectors, including job creating sectors such as single brand retail trading and construction development, which will have a positive impact on the MSME sector as well.

Government launched the Trade Receivable electronic Discounting System (TReDS) to address the working capital requirements of MSMEs as well as the Samadhaan Portal for tackling the problem of delayed payments.

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) has also seen a higher allocation in the budget.


What are the intended benefits of Cluster Development?:-

In effect, countries across the world in recent times have been relying on a cluster approach which increasingly stresses on ensuring networks among small firms and in their external environment, with the support institutions and policy framework.
Cluster is not only a means to improve the competitiveness but also for alleviation of poverty, generation of sustainable employment, fostering innovation, infusing technology, enabling better credit flow and sustenance of environmental issues more effectively and sustainably.

Cluster Development Initiatives taken by GOI?:-
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) – The selection of clusters will be based on their geographical concentration which should be around 500 beneficiary families of artisans/micro enterprises, suppliers of raw materials, traders, service providers, etc., located within one or two revenue subdivisions in a district (or in contiguous districts).

Solar Charkha Clusters – The President of India, Ram Nath Kovind launched the Solar Charkha Mission.

Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) – The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the Cluster Development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.

Agro Processing Cluster Scheme -The scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/farmers to the processors and markets through well-equipped supply chain with modern infrastructure.

Comprehensive Handloom Cluster Development Scheme (CHCDS) – The objective is to develop Mega Handloom Clusters that are located in clearly identifiable geographical locations that specialise in specific products, with close linkages and inter-dependents amongst the key players in the cluster by improving the infrastructure facilities, with better storage facilities, technologyup-gradation in pre-loom/on-loom/post-loom operations, weaving shed, skill upgradation, design inputs, health facilities, etc.

Ambedkar Hastshilp Vikas Yojana (AHVY) – An initiative of Development Commissioner, Handicrafts, Ministry of Textiles, Government of India to showcase different products made by cluster artisans across India.

Shyama Prasad Mukherji Rurban Mission (SPMRM) – The Mission aims to transform these rurban clusters by stimulating local economic development, enhancing basic services, and creating well-planned rurban clusters.


New avenues and opportunities are emerging in seed technology, biotechnology, food processing, cold storage, packaging, supply chain management, insurance and farm credit.

IT-linked services and agri-extension models have created vast scope for cyber-literate rural youth, including girls.

Precision Agriculture: Precision agriculture (PA) is an approach to farm management that uses information technology (IT) to ensure that the crops and soil receive exactly what they need for optimum health and productivity. The goal of PA is to ensure profitability, sustainability and protection of the environment.

A wave of organic farming is set in eyeing domestic and overseas market and generating remunerative employment across value-chain, from production to processing, packaging and marketing.

A large section of farmers are shifting towards high-value horticultural crops that can be processed for value-added products to enhance profitability.

Aptly named ARYA (Attracting and Retaining Youth in Agriculture), this project helps under-employed and unemployed rural youth in establishing agribased enterprises by imparting necessary skills and entrepreneurial training in village setting.

In order to mentor agri-startups and help them connect with potential investors, ICAR-National Academy of Agricultural Research Management in collaboration with IIMAhemedabad has launched a unique Agri-UDAAN programme that guides selected agri-startups to scale up their operations.

National Livestock Mission is an ambitious initiative by the Government of India which through its various sub-components is encouraging entrepreneurship in poultry, goatery and sheep husbandry.

Government has launched a National Beekeeping and Honey Mission that provides financial incentives and support to beekeepers for scientific beekeeping management practices.

Government also proposed to launch Pradhan Mantri Matsya Sampada Yojana in Union Budget (2019–20) to establish a robust fisheries management framework.


  1. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
  2. Deen Dayal Upadhyaya Grameen Kaushalya Yojana – The Ministry of Rural Development DDU-GKY is a part of the National Rural Livelihood Mission, tasked with the dual objectives of adding diversity to the incomes of rural poor families and cater to the career aspirations of rural youth.
  3. Shyama Prasad Mukherji Rurban Mission (SPMRM) – Undertaken by the Union Ministry of Rural Development, the SPMRM focuses on cluster-based integrated development through Spatial Planning.
  4. The government has planned to dovetail MGNREGS to develop fodder farms.
  5. Similarly, on the Blue Economy, raising of fish production to 200 lakh tonnes is proposed by 2022–23.


Schemes for Rural Development:-
Pradhan Mantri Gram Sadak Yojana – The scheme aims at enhancing rural road connectivity. The Pradhan Mantri Gram Sadak Yojana (PMGSY), was launched by the Govt. of India to provide connectivity to unconnected Habitations as part of a poverty reduction strategy. Govt. of India is endeavoring to set high and uniform technical and management standards and facilitating policy development and planning at State level in order to ensure sustainable management of the rural roads network.

Swarnjayanti Gram Swarozgar Yojana (SGSY)/ National Rural Livelihood Mission – Swarnjayanti Gram Swarozgar Yojana which is redesigned as National Rural Livelihood Mission was launched in 2011.
 Also known as Ajeevika, this scheme aims at empowering women self-help model across the country.
 Under this scheme, the government provides a loan of three lakh rupees at an interest rate of seven per cent which can be reduced to four per cent at the time of repayment.

National Rural Employment Programme (NREP) – It was launched to use the unemployed and the underemployed workers to build community assets.

Employment Assurance Scheme (EAS) – It was launched to provide employment during lean agricultural season.

Jawahar Gram Samridhi Yojana (JGSY) – It was launched to create demand-driven community village infrastructure including durable assets at the village level and skills to enable the rural poor to increase the opportunities for sustained employment.

Swarna Jyanti Gram Swarojgar Yojana – It is a holistic package covering all aspects of self employment such as organisation of poor into self-help groups, training, credit, infrastructure and marketing.
 A credit-cum-subsidy programme, the beneficiaries under this scheme are called swarojgaris. This scheme is being implemented by the central and the state government on a 3 – 1 cost ratio.

Rural Self Employment Training Institutes (RSETI) – These institutes are being established in most districts of the state for imparting training to rural BPL youth in collaboration with the leading district banks.
 The state government will provide land free of cost for these institutions to the concerned leading banks.

National Food for Work Programme (NFWP) – It was launched with the exclusive focus on the 150 identified backward districts.
 The aim was to generate additional supplementary wage employment and create assets.

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