ECONOMICS

PLANNING
Most asked question - Critical Analysis of Planning in India:
It must include:-
o Planning strategy from 1951 to 1991
o Problems it suffered
o Planning strategy after 1991
o Still the Public Sector has a pedestal role
o Conclusion
!" PLANNING
For the possible remedies of the countrys economic stagnation po!erty and bac"#ardness$ state has
to play a "ey role in economic and social spheres% Planning is the instrument to carry out these duties%
It is the systematic and scientific utili&ation of a!ailable resources to achie!e national goals%
O#$EC%I&ES O' PLANNING
'hile the s(ort-ter) o*+ecti,es !aried from plan to plan the long-ter) o*+ecti,es of Indian
planning are based on the principle of (ig( gro-t( rate. social +ustice and econo)ic self-reliance%
S%/A%EG" O' IN0IAN PLANNING
(he strategy for Indian Planning is based on the principles of co)1re(ensi,eness *alanced
de,elo1)ent and accelerated gro-t( to be achie!ed through the instrument of mi)ed economy% (he
199* crisis ho#e!er brought some ma+or changes in our strategy% ,ear 1991 #as the #atershed in
the history of Indian planning% (he "ey components of strategy of planning in India included-
Co)1re(ensi,e de,elo1)ental 1lanning: it included policies for economic de!elopment as
#ell as for institutional change and cultural progress% (he tas" #as not merely to get better results
#ithin the e)isting frame#or" of economic and social institutions but also to remould and refashion
these institutions so that they contribute to the reali&ation of #ider and deeper social !alues%
Mi2ed Econo)y: based on the coe)istence of go!ernment o#ned business enterprise #ith
pri!ate enterprise% (he Pri!ate Sector #as e)pected to obser!e national priorities in de!elopment and
pay attention to not only pri!ate gain but also public good%
Priority de,elo1)ent of Pu*lic Sector: -ecause of strategic importance non-profitability
and high capital intensi!eness of certain areas of social and economic significance pri!ate sector #as
not e)pected to play a leading role% Idea #as to let the public sector occupy commanding heights of
the economy and bring the pri!ate sector effecti!ely #ithin the scope of planned de!elopment%
Accelerated gro-t(: ./uitable distribution of resources by itself couldnt ensure a
reasonable standard of li!ing for masses% (hus an accelerated tempo of de!elopment #as sought after
as a de!elopment strategy%
#alanced de,elo1)ent: Inter-Sectoral Inter-regional and e/uitable de!elopment of all
classes and all sections !i&% #omen and children #as the focus of strategy through plans% 'hile
agriculture industry and ser!ices got a rene#ed thrust attention #as also paid to the de!elopment of
bac"#ard regions%
E)1(asis on E)1loy)ent: For a person #ithout other sources of income right to #or" is in
fact the right to life% 0eali&ing this the plan professed great concern for further employment to utili&e
countrys !ast manpo#er resources and promote national de!elopment and an e/uitable society%
%(e 3445 crisis *roug(t a 1aradig) s(ift in our strategy. fro) a closed to o1en syste). and
fro) inde1endence to greater inter-de1endence 6/ao-Man)o(an Model78 %(e )a+or
co)1onents of t(e )odel included -
Li*erali9ation of econo)y: It freed the economy from ma+or physical controls li"e industrial
licensing import restrictions and foreign e)change controls besides restrictions on in!estments etc so
that de!elopment and operation of economy is guided increasingly by free mar"et forces i%e% by prices
and competition% Synergies of both the public and pri!ate sector #as to be reali&ed in ne# strategy%
A*andon)ent of t(e 1olicy of 1riority de,elo1)ent of Pu*lic Sector: pre-liberali&ation
period sa# o!er-dependence on the public sector% 1a+ority of the budgetary allocations #ere meant
for this sector #hich had become increasingly inefficient and non-performer% 2iberali&ation put an
e/ual emphasis on both the public and pri!ate sectors%
O1ened door to foreign 1ri,ate in,est)ent: remo!ed most of the restrictions% 3 more
!ibrant role of the pri!ate sector #as recogni&ed% 4e!ertheless the go!ernment has not formally gi!en
up the ob+ecti!e of self-reliance loo"ing at the shear si&e of the country and #elfare concerns%
Integration of econo)y -(ic( -orld econo)y: (he protectionist strategy ga!e #ay to
competiti!e policies #ith gradual integration #ith #orld economy% 0emo!al of 5uantati!e
0estrictions partial con!ertibility of rupee and flo# of capital has been increasingly allo#ed%
!" %!IS S!I'% IN S%/A%EG" IN 3445: /EO/IEN%A%ION
(he shift in strategy #as the manifestation of a decade long process of opening up of the economy%
(he crises of 1991 pro!ided the re/uired spar" for this paradigm shift% (he main reasons for this re-
orientation #ere:
1% In order to direct de!elopment and operation of economy in accordance #ith 6acce1ted social
1riorities7 and to ma"e planning effecti!e it #as necessary to control and regulate the "ey points
of the economy% (his resulted in undesira*le distortion in t(e econo)y unduly restricted the
initiati!e and enterprise of the people and led to #idespread corruption delays and inefficiency%
8% Policy to "eep the economy independent enough of the #orld economy to protect it from ups and
do#ns there and to shelter it from une/ual competition from highly indsutrialised and ad!anced
countries resulted in slo#ing do#n of economic progress and created (ig( cost and
unco)1etiti,e econo)y%
9% :ro#ing reali&ation that though la*our -elfare is important but it being at the cost of public
#elfare #ith public money is /uestionable%
;% (he public sector eaten up the ma+or budgetary allocations #hich #ere e)pected to contribute
resources for social de!elopment% O11ortunity cost could ha!e been higher if scare resources
#ere in!ested else#here%
5% (he doubts about the efficacy of centrali9ed 1lanning due to the failure of erst#hile <SS0 and
undergoing #orld#ide mo!ement for liberalisation besides the immediate crises of gulf #ar
political instability and -=P crises in India pro!ided the re/uired impetus for ta"ing drastic steps
for re-orientation of de!elopment planning% State -as seen no- )ore as a 1ro)oter and
facilitator rat(er t(an 1ro,ider of goods8
!" NO% %!E LI#E/ALISA%ION 6P/I&A%E SEC%O/7 IN %!E #EGINNING I%SEL'
6A% %!E %IME O' IN0EPEN0ENCE7
1% Industrial de,elo1)ent at the time of independence #as slo- and stunted )arred *y an o,er-
de1endence on t(e foreign ca1ital #ith complete absence of hea!y capital goods industries and
technological research% (his encouraged the public sector to play a "ey role in economy%
8% (he colonial e21erience and consequent sus1icion against foreign in,est)ent further
restricted an important role of pri!ate sector%
9% (he 1(iloso1(y of socialis) and a 1lanned de,elo1)ent to bring about -alanced 0egional
>e!elopment through optimum utili&ation of scare resources could only be possible though state
instrument%
;% .ducation health and housing for the lo- inco)e )asses may not be ade/uately de!eloped as it
is unprofitable to in!est in these areas%
5% State #as e)pected to play the role of a )odel e)1loyer through generating gainful employ
opportunities and better conditions for employees thus needing concentrated efforts by public
sector%
?% In a poor country li"e India #here the !ast ma+ority ha!e lo# incomes left to themsel!es most
people may li"e to spend #hole or greater part of their incomes on consumption rather than sa!e
an ade/uate proportion for in!estment% (his may result in a !ery inade/uate gro#th rate of
economy that may condemn the country to continued 1o,erty and *ack-ardness%
@% 1ar"ets might neglect *asic long ter) de,elo1)ent li"e multipurpose hydel pro+ects etc% #hich
in!ol!e huge in!estments #ith long gestation periods and hence a ris"y affair to underta"e% (his
could se!erely affect the sustainability economic de!elopment%
!A% IS %!E NEE0 'O/ P;#LIC SEC%O/ NO

1% (he goals of socialis) and esta*lis()ent of a -elfare state are still to be achie!ed totally%
Public sector has still to play a !ital role if not the commanding role in their achie!ement%
8% Markets are not -ell-de,elo1ed. regulated and 1ro)oted in de,elo1ing countries due to slo#
pace of reforms and !olatile political scenarios%
9% 1ar"et failures in the fragile econo)ic en,iron)ents of de!eloping countries may cause se!ere
conse/uences as e)perienced in South .ast 3sian countries%
;% (he dependence o!er mar"et could lo1 side t(e 1roduction of goods and ser,ices in fa!our of
inessential needs of rich #hile depri!ing e!en the !ery essential needs of the poor%
5% Protection of en,iron)ent is the most important ecological concern of humanity today% (his may
be neglected on part of mar"et for economic gains%
CONCL;SION
%(e ne- strategy )ust ensure social +ustice -(ic( equity ingrained in t(e 1rinci1les of
efficiency and effecti,eness of go,ern)ent 1olicies8 (at is needed is t(e synergy of 1u*lic
and 1ri,ate sectors to 1ro)ote *alanced regional de,elo1)ent8 %(e (ig(er 1edestal role of
1u*lic sector needs to *e strengt(ened t(roug( econo)ic. )anagerial and institutional
refor)s< -(ile t(e 1ri,ate sector needs regulation. )onitoring and facilitation8
A LOO= A% %!E PLANS IN IN0IA
PLAN PE/IO0 MO0EL O#$EC%I&ES G/O%! /A%E 6>7 SPECIAL
'EA%;/ES %A/GE% AC%;AL
I 1951-5? Aarrod >omar >e!elopment of
agriculture
8%1 9%? Community
>e!elopment
Programme
II 195?-?1 1ahalanobis 0apid
industriali&ation
;%5 ;%?
III 19?1-?? Bohn Sandy C
Cha"ra!arty
Self reliance C
self sustained
economy
5%? 8%@
19??-?9 Plan Aoliday - :reen 0e!olution
I& 19?9-@; 3llen 1anne C
3sho" 0udra
Self reliance C
gro#th stability
5%@ 9%9 19@1 #ar shooting
oil prices
& 19@;-@9 Planning
Commission
Stress #as laid on
employment
po!erty remo!al
and +ustice
;%; ;%D 8*-point
programme
19@9-D* Plan Aoliday -
&I 19D1-D5 Planning
Commission
Stress on !illage
and cottage
industries and
natural
mobili&ation of
resources to
increase
employment
5%8 5%5 .conomy started
opening up
&II 19D5-9* Planning
Commission
2iberali&ation
moderni&ation
5 ?
199*-98 Plan Aoliday - 1991 policy
&III 1998-9@ Bohn 1iller-
liberali&ed
economy
Auman
0esource
>e!elopment
5%? ?%@
I? 199@-8**8 Planning
Commission
:ro#th #ith
social e/uity
?%5 5%; Po"hran Eargil
#ar South-.ast
3sia crisis
? 8**8-*@ Planning
Commission
5uality of life
reduce
imbalances
employment
generation
D
?I 8**@-18 Planning
Commission
1* -
PO&E/%"
!" A/E E S%;0"ING
>e!elopment promises to all its citi&ens the e/uality of opportunities choices and changes% Po!erty is
the greatest hurdle to de!elopment thereby needing certain structural institutional and attitudinal
changes to ensure a sustainable de!elopment%
@;N !ig( Le,el Panel on t(reats. c(allenges and c(angeA identified e2tre)e 1o,erty and
infectious diseases as t(reats in t(e)sel,es and also )ake e)ergence of ot(er t(reats including
ci,il -ars and en,iron)ent degradation8
!A% IS PO&E/%"
Po!erty can be defined as a social phenomenon in #hich a section of society is unable to fulfill e!en
its basic necessities of life% A>0 F199@G defines po!erty as denial of opportunity to lead a long
healthy and creati!e life and to en+oy a descent standard of li!ing freedom dignity self-respect and
respect of others%
A*solute and /elati,e Po,erty: 3bsolute po!erty is measured in terms of certain fi)ed criteria e%g%
calorie consumption in India% 0elati!e po!erty is measured by estimating income distribution of
population in different groups and then a comparison is made bet#een top 5-1*H #ith bottom 5-1*H%
!O PO&E/%" LINE IN IN0IA IS MEAS;/E0
It is defined as the le!el of pri!ate consumption e)penditure #hich ensures a food bas"et that #ould
supply the re/uired amount of calories% Per capita daily calorific minimum is defined as 8;** Ecal for
rural areas and 81** Ecal for urban areas%
1inimum physical /uantities of cereals pulses mil" etc% are determined for a subsistence le!el and
then price /uotations of the physical /uantities are con!erted into monetary terms% 3ggregating all
/uantities included a figure e)pressing per capita consumer e)penditure%
INCI0ENCE O' PO&E/%" IN IN0IA
(otal po!erty ratio in India is 8?%1H F8?*%9 1n absoluteG% 0ural po!erty ratio is 8@%1H #hile <rban
po!erty is 89%?H% (he po!erty gap is relati!ely greater in rural areas #hich reflect the high intensity
of po!erty in !illages%

It has considerable regional disparity !arying from less than @H in Pun+ab to more than ;@H
in =rissa follo#ed by -ihar and 1adhya Pradesh% (hese along #hich <P 'est -engal (amil 4adu
and 1aharashtra contribute to three-fourth of po!erty in India%
/EASONS O' PO&E/%" IN IN0IA

1% =utcome of t-o interrelated 1rocesses FiG the process of de!elopment and FiiG failure of
de!elopment% (he !ery process of de!elopment has led to #ide ranging disparities among the
!arious sections of people% (he section at the poor end ha!e no capital education or s"ills of their
o#n and e!en cannot fully utili&e the potential of the !arious go!ernment programmes thereby
get caught in the ,icious cycle of 1o,erty%
8% 2o# le!el of .conomic de!elopment%
9% Lo- 1roducti,ity in Agriculture: Subsistence based under-employed and lo# per capita
income%
;% Aigh 1o1ulation and high gro-t( rate of it%
5% .)treme inequalities of income and assets: (op 8*H en+oy D*H resources%
?% 2o# le!el of !u)an /esource de,elo1)ent%
GO&E/NMEN% P/OG/AMMES: S%/A%EGIES: B-"EA/ PLANS

PO&E/%"
Aigh
Population
:ro#th 0ate
2o# .conomic
>e!elopment
2o# Income
2o# Auman
0esource
>e!elopment
.rosion of po!erty has been an integrated component of economic de!elopment policies in India% (he
plan-#ise strategies of the go!ernment policies follo#:
'irst C Plans emphasi&ed on econo)ic gro-t( #ithout any direct attac" on po!erty% In additional to
emphasis on gro#th and redistruction measures the go!ernment initiated disad,antage-areas and
sector-s1ecific 1rogra))es li"e SF>3 1F>3 C3>P >P3P etc% in 'ourt( '"P%
>uring Si2t( 'i,e "ear Plan po!erty #as reali&ed 1redo)inately a rural 1(eno)enon #herein
D5H poor li!ed% It pro!ided for t#o types of employment generating programmes
FiG Self-e)1loy)ent 1rogra))es to ac/uire producti!e assets technology and s"ills for raising
their producti!ity and production FI0>PG%
FiiG age e)1loy)ent 1rogra))es to pro!ide supplementary #ages to utili&e the labour to create
and maintain community assets% 40.P for those ha!ing some assets #hile 02.:P e)clusi!ely
for rural landless%
&II '"P recogni&ed that e)1loy)ent generation should be the centre of any po!erty alle!iation
programme therefore introduced B0,% (he ne# strategy also included capability enhancing
programmes li"e I3, 14P etc%
&III Plan adopted an integrated 1rogra))e of local area de!elopment of selecti!e !illages% I?
Plan focused on Igro-t( -it( equityD to reduce ine/ualities%
'ro) 3444-E555 go!ernment merged !arious employment generation schemes into a single all
inclusi!e S-arna $ayanti Gra) S-aro+gar "o+ana FS:S,G% (he ne# approach focused on social
mobili&ation through S!Gs and )icro-enter1rises%
? Plan Policy: Programmes #hich #ere re!amped and refocused during IJ Plan #ill be implemented
#hich greater !igour in J Plan% Initiati!es ta"en #ere: -
FiG SGS" #ould shift to a 1rocess-oriented a11roac( in ; stages !i&% formation of SA:s
sa!ings micro-finance and micro enterprise de!elopment%
FiiG SG/" #ould be the single -age-e)1loy)ent 1rogra))e ha!ing 9 streams !i&% rural
infrastructure guaranteed employment of 1** days in areas of chronic unemployment and
pro!iding relief in natural calamites%
FiiiG Creating a net-ork of institutions including 4:=s go!ernment agencies and financial
agencies to promote a self-help mo!ement%
Fi!G Identifying "ey acti!ities for an area and pro!iding rele,ant training%
F!G Special attention on u1gradation of tec(nology. I% and )arketing in rural areas%
F!iG Land refor)s emphasi&ing tenancy reforms computeri&ation and identification of land rights
of #omen and tribals%
F!iiG #uilding ca1acities at local le!el for planning implementation and monitoring of de!elopment
programmes%
2ater on NA%IONAL /;/AL EMPLO"MEN% G;A/AN%EE AC% #as enacted in Se1te)*er
E55B in E55 )ost *ack-ard districts% (he ob+ecti!e is to pro!ide 355 days of guaranteed unskilled
-age e)1loy)ent to each rural household%
It besto#s a legal rig(t and guarantee to the rural population through an 3ct of Parliament and is not
a scheme li"e the other #age employment programmes%
(he focus of the 3ct is on #or"s relating to #ater conser!ation drought proofing Fincluding
3fforestationK tree plantationG land de!elopment flood controlK protection Fincluding drainage in
#aterlogged areasG and rural connecti!ity in terms of all-#eather roads%
-esides the abo!e employment generation programmes the anti-po!erty deri!e includes
F3G Social Security and
F-G Food Security Programmes%
Social Security Programmes are for those #ho cant participate in economic acti!ities and fall
continuous to e)posure to ris"% 4S3P F4ational Social 3ssistance ProgrammeG started in 1995 to
pro!ide social security to poor households affected by old age death of primary bread earner and
maternity care% 3nnapurna Scheme started in 8*** to pro!ided food security to senior citi&ens not
co!ered by 4ational old age Pension Scheme%
C/I%ICAL ANAL"SIS O' PO&E/%" ALLE&IA%ION P/OG/AMMES
Focus #as on entitle)ent rat(er t(an ca1acity *uilding #hich #as considered as the core to long
term solution to po!erty% (he failure of these programmes to achie!e the desired success #as
primarily due to the follo#ing reasons:-
1% Multi1licity of 1rogra))es agencies and fre/uent changes created problems of o!erlapping
and coordination thereby diluting t(e unity of 1ur1ose itself%
8% Ill-defined and )ulti1le o*+ecti,es%
9% Insufficient assistance to start any meaningful self-employment generating acti!ity%
;% Lery high ad)inistrati,e cost: 3s per a study of P>S D5H of the resources allocated for these
programmes are spent on their administration only%
5% Ad)inistrati,e leakages lac" of accountability and bureaucratic apathy: =nly 85H of
foodgrains under P>S reaches the poorest of the poor%
?% Lack of )onitoring feedbac" and appraisal mechanism therefore hindering timely correction of
anti-po!erty programmes%
@% Local resources both human and natural not properly utili&ed%
D% 2ac" of 1eo1lesD 1artici1ation affected the articulation of felt needs of people and its
sustainability%
9% Social Security as1ect neglected #ith financial support being too small to materially change their
condition%
1*% Proper tec(nological su11ort syste) not a!ailable at local implementation le!el%
Po,erty alle,iation 1rogra))es (a,e lagged on integrated and (olistic a11roac( -(ic( s(ould
(a,e included as1ects like 1o1ulation sta*ili9ation. (u)an resources de,elo1)ent and 1o,erty
alle,iation8
S;GGES%IONS: CONS%/;C%ING AN E''EC%I&E PO&E/%" ALLE&IA%ION
P/OG/AMME
1% 3ny strategy of po!erty alle!iation must concentrate on the C-cores of Education. E)1loy)ent
and !ealt( 1ro)otion interlin"ed to each other and pursued simultaneously%

8% 0ecentrali9ation of de,elo1)ent efforts !i&% mobili&ation of resources targeting beneficiaries
and monitoring by in!ol!ing P0Is%
9% Identifying the Gro-t( Centres to act as :enerators of .conomic momentum using local labour
and ra# materials% Core recipe for ending po!erty is massi!e ca1ital infusion%
;% .ncourage production of items of mass consumption especially #age goods in s)all and cotton
industries%
5% 3bo!e all Good Go,ernance is the most important "ey to de!elopment as recogni&ed by J Plan%
32S= See J Plan and Critical analysis for de!eloping a po!erty alle!iation programme%
SEL'-
/ELIANCE
.1P2=,1.4(
.><C3(I=4
A.32(A
CONCL;SION
0ural India is in a deep and continuing stress% (he gro#th #hich is not inclusi!e is not sustainable%
4eed is for constructing an integrated policy of po!erty alle!iation #ith focus on the basic tenets of
human resource de!elopment% Such an approach along#ith an efficient administration can go a long
#ay in po!erty alle!iation%
A LOO= A% %!E PO&E/%" ALLE&IA%ION P/OG/AMMES
P/OG/AMME /EMA/=S
S#arn+ayanti :ram
S#aro&gar ,o+ana
FS:S,G
Started in 1999 #ith @5:85 Centre: State contribution
Co!er all the aspects of self employment suc( as organi&ation of poor into Self
Aelp :roups training credit technology infrastructure and mar"eting%
O*+ecti,e is to *ring e,ery assisted fa)ily a*o,e t(e 1o,erty line in three
years by pro!iding them income generating assets through a mi) of ban" credit
and go!ernment subsidy%
/e1laced I/0P and its allied schemes !i&% (0,S.1 >'C03 SI(03 :E,
and 1'S%
3ims at establishing a large number of )icro enter1rises in the rural areas%
SCs:S%s #ould account for at least B5 per cent of the S#aro&garis #omen for
;* per cent and the disabled for three per cent%
2aunched by 1inistry of 0ural >e!elopment
Implemented by >0>3s through Panc(ayat Sa)ities%
S#arna Bayanti Shahari
0o&gar ,o+ana
Started in 199@ #ith @5:85 centre:state contribution%
In all ur*an and se)i-ur*an to-ns%
(#o sub-schemes #here ban" credit is in!ol!ed namely <rban Self
.mployment Programme F;SEPG and >e!elopment of 'omen and C(ildren in
<rban 3reas F0C;AG%
-eneficiaries identified by the urban local bodies on the basis of house-to-house
sur!ey%
<nder the scheme #omen are to be assisted to the e)tent of not less than 9* per
cent disabled at 9 per cent and SCKS(s at least to the e)tent of the proportion of
their strength%
Prime 1inisters 0o&gar
,o+ana FP10,G
Started in 1999 for urban areas and From 1 3pril 199; e)tended for throughout
the country
=b+ecti!e of the scheme is to 1ro,ide self-e)1loy)ent opportunities to
educated une)1loyed yout( in the age group of 1D to 95 years% In 4orth-
.astern states the eligible age group is from 1D-;*% (here is a 1*-year rela)ation
for SCKS( e)-ser!icemenKphysically handicapped and #omen%
SA:s are considered eligi*le for financing under the Prime 1inisters 0o&gar
,o+ana effecti!e from 8**9 pro!ided all members indi!idually satisfy the
eligibility criteria laid do#n and total membership does not e)ceed 8*%
Sampoorna :rameen
0o&gar ,o+ana FS:0,G
Started in 8**1 #ith @5:85 cetre:state contribution%
1erging the on-going schemes of .3S and the B:S,%
=b+ecti!e of 1ro,iding additional -age e)1loy)ent and food security
alongside creation of durable community assets in rural areas%
S1ecial e)1(asis on -o)en SCs S(s and parents of Children #ithdra#n from
ha&ardous occupations%
(he annual outlay for the programme is 0s% 1**** crore #hich includes 5* la"h
tones on foods grains%
'ood grains are pro!ided free of cost to the StatesK<(s%
1inimum #ages are paid to the #or"ers through a mi) of minimum fi!e "g of
food grains and at least 85 per cent of #ages in cash%
0esources are distributed among 0istrict Panc(ayat. Inter)ediate
Panc(ayats and t(e Gra) Panc(ayats in t(e ratio of E5:C5:B5%
4ational Food For 'or"
Programme
Started in 8**; as 355> centrally sponsored scheme%
Implemented in 15* most bac"#ard districts of the country so that the generation
of supplementary #age employment and pro!iding of food security through
creation of need based economic social and community assets in these districts
is further intensified%
1ost of the bac"#ard district are in the tribal belts%
Pro!ide 355 days of e)1loy)ent at minimum #ages for at least one able-
bodied person from each household in the country%
Not *e i)1le)ented in ;%s%
15* most bac"#ard districts to be identified by the Planning Commission in
consultation #ith the 1inistry of 0ural >e!elopment and the State go!ernments%
Subsumed in 4ational 0ural .mployment :uarantee 3ct%
Indira 3#aas ,o+ana
FI3,G
Started in 19D5 as a sub-scheme of Ba#ahar 0o&gar ,o+ana FB0,G and as an
Independent scheme since 199?%
Pro!iding assistance to rural -P2 S(KS(s for the construction of d#elling units
and upgradation of e)isting unser!iceable "utcha houses%
Selection of *eneficiary by the Gra) Sa*(a is final% 4o appro!al by any
higher body is re/uired%
Allot)ent of the (ouse is done in the na)e of the fe)ale members of the
households or in the +oint names%
Ceiling on assistance for construction of ne# houses is 0s% 85*** per unit for
the plain areas and 0s% 8@5** per unit for the hillyK difficult areas%
Included as one of t(e si2 co)1onents of the I-harat 4irman Programme%
<nder this programme ?* la"h houses are to be constructed for rural -P2
families during a span of four year beginning from 8**5-*?%
National Social
Assistance
Programme
and
Annapurna
(NSAP)
Consists of National Old Age Pension Scheme (NOAPS) and National
Family Benefit Scheme (NFBS).
It as administered !y "inistry of #ural $e%elopment till the programme
as transferred to the State Plan along ith the Annapurna Scheme
from &''&(').
Central assistance under NOAPS is #s. 75 per month for pro%iding
pension to a destitute aged *+ years and a!o%e, hile under NFBS #s.
-',''' is !eing pro%ided in the e%ent of death of the primary !read
inner of a family and under Annapurna Scheme 10 kg of food grains
per month per person is provided free of cost to the !eneficiaries.
Since &''*('., increase in pension under NOAPS from #s 75 per
month per !eneficiary to Rs. 200 per month per !eneficiary
/almi0i Am!ed0ar
Aas 1o2ana
3aunched in 2001 to impro%e the condition of urban slum dellers li%ing
BP3
Primary ob+ecti!e is to facilitate construction and upgradation of d-elling units
and pro!ide healthy en!ironment through co))unity toilets 6Nir)al #(arat
A*(iyan7
L31-3, is first sc(e)e of its "ind meant e2clusi,ely for slum d#ellers%
Central :o!ernment pro!ides su*sidy of B5H and rest arranged by State
go!ernments
4o "illion 5ousing
Programme
3aunched in 1!!"#!!
=b+ecti!e to pro!ide I(ousing for allD #ith emphasis on -eaker sections
!;0CO gi!en the responsibility of constructing 1* la"h units e!ery year FF
lak( in rural areas and ; la"h in urban areasG%
POLI%"
G8 0iscuss t(e 1arlia)entary control o,er t(e E2ecuti,e 6EB5 -ords7
>emocracy includes ideals institutions and practices% 'hile ideals and institutions are the heritage of
freedom struggle practice of democracy is ensured through the control of parliament o!er .)ecuti!e%
(he means of this control is e)ercised through 1inisterial 0esponsibility Financial 3ccountability
and 3dministrati!e 3dmissibility%
Article HB6C7 of the constitution places Collecti,e /es1onsi*ility of the .)ecuti!e to 2o"
Sabha% 2o" Sabha can remo!e the go!ernment from office by passing a ,ote of No-Confidence%
>efeating the go!ernment on a ma+or issue of policy or passing an Ad+ourn)ent Motion amount to
4o-Confidence of Aouse% It #as passed against &a+1ayee Go,ern)ent in 1999%
'inancial Accounta*ility of .)ecuti!e is ensured through enact)ent of *udget and audit
re1orts of CAG% .)ecuti!e cannot le!yK collect any ta2 #ithout the authority of la# FArticle EFBG%
Further 3rticle 8?? prohibits .)ecuti!e to deposit #ithdra# or appropriate out of Consolidated
'und of India #ithout the appro!al of Parliament%
PEOPLE
PA/LIAMEN%
E?EC;%I&E
CON%/OL ACCO;N%A#ILI%"
3lso under Article 33E the President lays do#n Annual 'inancial State)ent Fi%e% -udgetG
in both the Aouses% Parliament can reduceK refuse the grants to .)ecuti!e by passing !arious Cut
Motions M .conomy Policy and (o"en Cuts% If passed these tantamount to the remo!al of .)ecuti!e
from office% Further the A11ro1riation and 'inance #ills regarding e)penditure and ta) proposals
need the authority of Parliament%
Ad)inistrati,e Ad)issi*ility of the .)ecuti!e is ensured through legislations questions
discussions and 1inisters concerned% Larious co))ittees li"e Public 3ccounts Committee
.stimates Committee Committee on Public <nderta"ings and 0e1art)entally Standing
Co))ittees ha!e emerged as po#erful institutions to "eep an unremitting !igil on :o!ernment
.)penditure and performance%
Ao#e!er despite all this the Parliamentary Control o!er .)ecuti!e is )ore t(eoretical t(an
1ractical o#ing to ma+ority support en+oyed by :o!ernment% It is mostly s1oradic. general and
1olitical in nature% (he !ery si9e of Parlia)ent lack of e21ertise and frag)ented o11osition in
Parliament further restrict its effecti!eness% 'hat is re/uired is that the control must be )oral et(ical
and internal and must conform to the highest traditions of a Parliamentary >emocracy%
G8 (at -ays in /a+ya Sa*(a e21ected to 1lay a s1ecial role in todayDs c(anging 1olitical
scenario 6EB5 -ords7
I>ynamism is the essence of >emocracy and Ichange is that the essence of >emocratic institutions%
'ith the changing political scenario in India 0a+ya Sabha has ac/uired many ne# roles and functions
to the e)tent of transformation of this institution into the conscience-"eeper of the Parliament%
(he emergence of (ung Parlia)ent and 1olitical insta*ility has resulted into fre/uent
elections and unethical 1olitical (orse I trading and formation of unsta*le coalitions% In such a
scenario 0a+ya Sabha pro!ides Continuity Consistency and Stability as a second chamber of
2egislature%
(he emergence of regional 1arties and the increasing regional as1irations are a hindrance
in the smooth de!elopment of Centre-State relations% 0a+ya Sabha being a Council of States protects
the States interests and turns the confrontations into coo1eration%
3nother aspect of this confrontation is in the form of Imposition of PresidentDs rule in a
State under 3rticle 95?% 0a+ya Sabha chec"s the undue e)ercise of this po#er by <nion .)ecuti!e% In
1999 the resolution for such an .mergency in -ihar failed on this aspect%
(he role of 0a+ya Sabha is further strengthened #hen t-o different 1arties ha!e ma+ority in
t#o chambers of Parliament% It ma"es the enactments through discussions and 1ersuasions M the
bedroc" principle of a Parliamentary >emocracy%
0a+ya Sabha also chec"s the tendency of go!ernments to ta"e 1o1ulist )easures under an
unstable political Scenario% It also poses a moral authority o!er a caretaker go,ern)ent% >uring
Eargil 'ar the go!ernment had to see" 0a+ya Sabhas appro!al #hen the 2o" Sabha #as dissol!ed%
Last *ut not least. %(en di,ersity of Indian nation and t(e need for a JCoo1erati,e-'ederalis)D
necessitate /a+ya Sa*(a *e restructured and re-strengt(ened to take u1 t(e ne- c(allenges of
IndiaDs c(anging 1olitical scenario8
!IS%O/"

CI&IL 0ISO#E0IENCE MO&EMEN%
Guestions Asked
'hy did :andhi launch the Salt Satyagraha in 199* and #ith #hat resultsN F15* #ordsG
In #hat #ay did the C>1 affect the different pro!inces of IndiaN Ao# did it foster peasant
mo!ement in IndiaN F85* #ordsG
'hy did 1ahatma :andhi launch C>1N 3nalyse the intensity of mo!ement in different parts of
IndiaN F15* #ordsG
3naly&e 1ahatma :andhis main demands presented to Ir#in% Ao# did salt emerge as the central
issue for launching the SatyagrahaN
'e must be able to ans#er:-
:andhi+is main demands to Ir#in M 3naly&e
'hy C>1
Ao# salt became central issue
Its effect in different pro!inces
Ao# peasants mo!ement #as a result of C>1
'hat results of C>1
!" C0M
#ritis( (eralded a ne- era of @Modern IndiaA. t(e India -(ic( sa- t(e 1rocess of geogra1(ical
unification. nation *uilding and genesis of 1olitical consciousness a)ong )asses8 %(is )ass
consciousness )anifested itself in t(e for) of a s1ontaneous. organi9ed and non-,iolent Ci,il
0iso*edience Mo,e)ent8
(he idea of Ci!il >isobedience #as al#ays there in the mind of :andhi+i the 1989 2ahore 0esolution
of Poorna S#ara+ @full and total inde1endenceA pro!ided the immediate spar"% (he bac"ground
#as prepared by:
1% 3434 refor)s #ere the shortest lasting reforms and had failed to bring any significant change for
the Indians%
8% Failure of Si)on Co))ission to fulfill demand of >ominion status of I4C% 0acial
discrimination in the Simon Commission as no Indian 0epresentati!e #as ta"en%
9% S-ara+ists pro!ed that there #ere no real po#ers delegated to them% (he 1919 reforms #ere a
retrograte step of the go!ernment%
;% >ecember 34EK Calcutta Congress M demand by younger nationalists li"e Pt% 4ehru and S%C%
-ose to adopt Poorna S-ara+ as goal of national mo!ement%
5% :andhi+i tra!eled e)tensi!ely the !illages during 1989 to prepare people for direct political action%
?% 1989 M C'C organi&ed programme of foreign clot( *oycott and its public burning%
@% 0efusal of 2ord Ir#in to Ele,en 0e)ands of 1ahatma :andhi%
D% Spurt generated in the masses by re!olutionary acti!ities of !S/A%
9% (he deteriorating socio-econo)ic condition of t(e )asses especially of the peasants and the
great depression of early 199*s pro!ided the spurt to the mo!ement% 'idespread unemployment
infused anger among the Indian youth%
(he spar" #as more because of the rise of left and induction of ne- *lood in t(e Congress during
this period% (his differentiated C>1 from all earlier mo!ements%
GAN0!I$IDS 0EMAN0S
1ahatma :andhi "ne# that any mo!ement for liberation must necessarily be a mass mo!ement and
for a mo!ement to be a mass mo!ement it must incorporate grie,ances of all t(e sections of society%
(hus
1% (he most prominent demand common to all sections especially the poor #as abolition of salt ta2
and go,ern)entDs )ono1oly on salt%
8% 0eduction in land ta2 so as to reduce burden on Indian peasantry%
9% 0eduction of e21enditure on ar)y and administration to stop the drain of #ealth%
;% %otal 1ro(i*ition$ for emancipation of #omen and children%
5% 0elease of 1olitical 1risoners and
?% Protection and de!elopment of Indian Industry through reduced e)change rate protection to
te)tile industry and e)clusi!e right of coastal shipping for Indians%
!" SAL%
@Salt Marc(A is one of t(e finest e2a)1les of Jt(e 1o-er of sy)*olsD8 It -as not +ust a 1unc( of
salt *ut it re1resented t(e unity and integrity of Indian 1eo1le against a co))on ene)y8
Gand(i+i c(oose salt *ecause:
1% Salt lin"s itself #ith Indian -o)en for #hose emancipation salt #as the most important article%
8% Salt lin"ed itself #ith the ideal of S-ara+ #ith a uni!ersal grie!ance of rural poor%
9% <nli"e in Ino-rent campaign Salt e)cluded the socially di,isi,e i)1lications #ithin the
different sections of Indian society%
;% It offered ur*an ad(erents an opportunity of symbolic identification #ith mass sufferings%
Finally there is no other article li"e salt outside #ater by ta)ing #hich go!ernment can reach
star!ing millions it #as the )ost in(u)an 1oll ta2%
SP/EA0 L IN%ENSI%" O' C0M I MOS% IN%ENSE O' ALL MO&EMEN%S
1% Salt disobedience: In %a)il Nadu C% 0a+a :opalachari led a march from (iruchirapally to
Ledaranniyam and in Mala*ar E%Eelappan held a march from Calicut to Poyannur%
8% >arsana: Saro+ini 4aidu Imam Sahib and 1anilal raided 0(arsana Salt orks and #ere
brutally lathi-charged%
9% N'P - Ehan 3bdul :haffar Ehan organi&ed Pathans as =(udai =(ida)atgars to lead a non-
!iolent mo!ement%
;% Pes(a-ar: a 1uslim Pro!ince urban cro#d and tribesmen +oined agitation against arrest of
Congressmen% Gar-al /ifles refused to fire on the cro#d%
5% C(ittagong: Surya Sen re!olted and established a pro!isional go!ernment%
?% 1aharashtra Earnata"a and Central Pro!inces: against the forest la-s%
@% Sholapur: Iar Council7 set up and 4ational Flag #as hoisted in the to#n%
D% 3ssam: agitation against ICunning(a) CircularD%
9% Mani1ur and Nagaland: 1o!ement under 19 year old /ani Ganidinliu%
1*% PeasantDs Mo,e)ents: In <%P -ihar -engal and :u+arat%
PEASAN%DS MO&EMEN%S
>uring 19*1 to 1999 the agriculture production per head fell by 1;H #hile the per capita production
of foodgrains by 8;H% Gro-ing ta2ation in a stagnant econo)y in,aria*ly carries -it( it t(e
1enalty of 1o1ular re,olt8 (his #as manifested during C>1 in the states of -ihar -engal <P and
:u+arat% (he great depression of early 199*s added fuel to the fire%
1% <nited Pro!inces: 4on-re!enue campaign by Oamindars against paying re!enue to the
go!ernment and a 4o-0ent Campaign by tenants against Oamindars%
8% <P Eisan Sabha under S#ami Shah+ananda and -ihar Eisan Sabha nucleus for 3ll India Eisan
acti!ities #ere formed%
9% -ihar: 3nti-Cho#"idara ta) campaign%
;% -engal: 3nti-Cho#"idara ta) and anti union board ta) campaigns%
5% :u+arat: 4o-ta) mo!ement #as organi&ed for refusal to pay land re!enue%
O;%COME
0andi Marc( -as a 1ilgri)Ds 1rogress8 It re+u,enated t(e Indian Nationalis) and eroded t(e
#ritis( legiti)acy to t(e core8 C0M is considered as t(e -ar of 1ositions. not a -ar of
)aneu,er8 It -as t(e )ost-organi9ed of all Gand(ian )o,e)ents8
1% o)en Partici1ation: 2eading role in 1icketing s(o1s selling foreign goods or li/uor and
go!ernment institutions courted arrest% -ritish obser!ers #rote that if C>1 hadnt accomplished
anything else it contri*uted greatly to )ass social e)anci1ation of Indian -o)en%
8% Musli)s: (hough 1uslim 2eague called 1uslims not to +oin the mo!ement still 1uslim
participation #as o!er#helming in 4'FP besides their participation in >acca -ihar >elhi and
other parts% (hey *elied t(e go,ern)entDs 1olicy of Jdi,ide and ruleD%
9% %ri*als: Came for#ard in Pesha#ar 4agaland Central Pro!inces 1aharashtra and Earnata"a%
(his #as their first suc( 1artici1ation in a national mo!ement%
;% Peasants: First time organi9ed themsel!es% 1ainly in <P -ihar -engal and :u+arat%
5% -esides the students -orkers and traders played an important role in the mo!ement in different
parts of the country%
?% Signs of cracks in disci1line of Ar)y: Gar(-ali Soldiers refused to fire on cro#d e!en though
it meant facing court martial% It sho#s nationalis) *egun 1enetrating Indian ar)y%
@% Gand(i-Ir-in Pact at one stro"e enhanced the prestige of Congress as t(e equal of
go,ern)ent%
D% Second /ound %a*le Conference placed India on equal footing -it( #ritain%
9% It further strengthened the principle of Satyagra(a
(hroughout the mo!ement :andhi+i urged people to be non-!iolent first because he didnt #ant to
achie!e S#ara+ at the cost of sacred principle of Satyagraha and secondly because (e -as leading an
unar)ed struggle against an ar)ed 1o-er and (e kne- -(o -ould -in if ,iolence -ere let
loose8
CONCL;SION
(hough Subhas% C% -ose and Lithalbhai Patel had declared that 6the 1ahatma as a political leader has
failed7 C>1 succeeded in further politici&ing the people and in further deepening the social roots of
freedom struggle% Indians (ad -on inde1endence in t(eir (earts8 It acco)1lis(ed in -eeks. -(at
t(ree-quarters of a century of social refor) )o,e)ents (ad failed to do for e)anci1ation of
Indian -o)en8
E I MA/=E/S
!IS%O/"
NAME 0ESC/IP%ION
A*ul =ala) A9ad Prominent Nationalist leader%
-ecame youngest President of I4C in 34EC
President of I4C during Guit India Mo,e)ent
Published 'ee"ly IAl-!ilalD
Anand Mo(an #ose Prominent 4ationalist Moderate leader and social refor)er
Founder of Indian National Association of Calcutta in 3KHF
'ounder )e)*er of I4C
Important role in !arious agitations in early nationalist mo!ements
'or"ed for -o)enDs e)anci1ation
Asif Ali 3 prominent la-yer and nationalist leader
:a!e up legal 1ractice during 4on-Cooperation 1o!ement
Participated in INA trials during 19;?
Go,ernor of Orissa after independence
/a*indra Nat(
%agore
0ein!ented Indian Style of Painting and 'ounded Ne- #engal sc(ool of
Painting
Influenced Indian 0enaissance in 3rt during S-ades(i Mo,e)ent
Aonoured #ith No*le Pri9e for Literature in 1919 the first Indian to be
honoured #ith this pri&e
0eturned his knig(t(ood after Balian#ala -agh 1assacre
Ac(arya Narendra
0e,
Prominent socialist and educationist
Founder President of Congress Socialist Party
Lice-Chancellor of =as(i &idya1at( 2uc"no# and -anaras <ni!ersities
A8O8 !u)e 3 retired -ritish ICS officer
Instru)ental in foundation of INC in 1DD5
0emained its secretary till his death
Founded #ritis( Co))ittee of INC in 2ondon
'a9lul !aq Founder member of Musli) League
Founded I=ris(ak Pra+a PartyD in -engal #hich played an important role
later on
Instrumental in Luckno- Pact in 191?
Participated in /%C
As(utos(
C(aud(ary
3n Educationist and La-yer
Played important role in foundation of National Council of Education in
19*?
Propagated for tec(nical education as necessary for industrial de!elopment
As(utos(
Muk(o1ad(ayoy
3n educationist and a +urist
President of Asiatic Society of #engal and Lice-Chancellor of Calcutta
;ni,ersity
.le!ated to the bench of Calcutta !ig( Court
Aruna Asaf Ali Prominent re,olutionary freedom fighter conducted underground acti!ities
during Guit India Mo,e)ent
<nfurled the %ricolour in 3ugust Eranti 1aidan F:oalia tan"G
Participated in Salt Satyagra(a
-ecame Mayor of 0el(i after independence
Ac(yut
Pat-ard(an
3 socialist and national leader
Important role in founding Congress Socialist Party in 199;
Conducted underground acti,ities in 1aharashtra during Guit India
Mo,e)ent
Ac(arya PC /oy Prominent scientist and nationalist leader
Founded #engal C(e)icals and P(ar)aceutical orks
'rote J!istory of !indu C(e)istryD
Played important role in S-ades(i Mo,e)ent by promoting industrial
de!elopment
Lala !aryal 3 great re,olutionary and eminent sc(olar from Pun+ab
.stablished Gadar Mo,e)ent #ith organ IGadarD in <S3
'or"ed under IMi))er)an PlanD of :ermany
Influenced many young re,olutionaries in India
Lok)anya %ilak :reat E2tre)ist leader from Ma(aras(tra
Popularly "no#n as ILok ManayaD
Started S(i,a+i festi,al and Ganes( Gan1ati festi!als to propound 4ational
mo!ement
Started !o)e /ule League (he Marat(a and (he =esari ne#spapers
Na*a Go1al Mitra :reat 1lay -riter and 1oet from -engal
Played an important role in spreading national consciousness
Placed the prefi) Inational before all his institutions e%g% 4ational School
4ational 1ela etc%
3lso "no#n as INational MitraD
Nalini Sen Gu1ta #ritis(er #ho su11orted IndiaDs cause of Independence
President of INC in 34CC
-elie!ed in the ideas of Gand(i+i
N8M8 $os(i Prominent la*our leader
'ounded AI%;C in 198*
'or"ed for upliftment and rights of labour force
3n important 1(ilant(ro1ist
1ember of Ser,ants of India Society
/afi A()ad
=ed-ai
=ne of the greatest 1oet 1(iloso1(er and scholar
Composed 6Saare $a(an Se Acc(a7
1ooted the idea of autono)ous entity for Musli)s of 4orth 'est
1ember of Musli) League
M8/8 $ayakar Important Li*eral leader
Boined S-ara+ Party
Participated in /ound %a*le Conference
1ember of Constituent Asse)*ly
C8 &i+ayrag(a,a
C(ari
Prominent .arly Nationalist Leader
Instrumental in founding Madras Ma(a+an Sa*(a in 1DD;
Founder member of INC
President of I4C in 198* Nag1ur Session #hich adopted 4on-Cooperation
1o!ement 0esolution and 4e# Congress Constitution
ECONOMICS
Purc(asing Po-er
Party
It indicates ho# much a nationDs currency can buy from a bas"et of
internationally re1resentati,e goods and ser,ices as compared to a <S P
can buy in <%S% from the same bas"et%
Introduced by A>0 for )eaningful co)1arison of national and per capita
income%
India fourt( in #orld after <%S% China Bapan%
'i2ed e2c(ange
rate syste)
.)change rate bet#een do)estic and foreign currency fi)ed by monetary
authority
3ll transactions carried o!er at this official rate
India follo#ed this system till 344E
Infle2i*le and put high ad+ustment burden on domestic economy
Managed 'loat 0ate allo#ed to mo!e -it(in a *and
-and may not be made public by 1onetary authority
Central *ank inter,enes #hen it goes beyond the band
India has shifted to this system in 344E-4C
(oo much inter!ention leads to 0irty 'loat e%g% in Bapan
Laffer Cur,e Gra1(ical re1roduction *et-een ta2 rates and ta2 re,enue
States that as rates are lo#ered upto a point ta) re!enues are optimi&ed
Aolds good for indirect ta2es in India e%g% L3( not for direct ta)es
NCL% 6National
Co)1any La-
%ri*unal7
(o loo" into the issue of industrial sickness
0eplaced -IF0 Company 2a# -oard and control of Aigh Courts
Can order -inding u1 of sic" industry
/e(a*ilitation 'und created to assist #or"ers retrenched due to sic"ness
%onnage %a2 3 1resu)1ti,e ta2 introduced in 8**;-*5 -udget
3pplicable on s(i11ing co)1anies at corporate ta) rate
-ased on the no% of days a ship had been in operation and the tonnage
carried by it irres1ecti,e of t(e 1rofit or loss )ade *y t(e co)1any
=ptional for shipping companies
Po,erty Ga1 1ean distance belo# po!erty line
.)pressed as a H of po!erty line
Indicates de1t(. intensity and se,erity of 1o,erty
3dopted in India since I? Plan
P-notes In!estment by foreign !edge 'unds in Indian capital mar"et or stoc"
mar"et
=#ned by !ery -ealt(y indi,iduals abroad
4ot regulated by S.-I
Mutual 'und 1obili&e money from s)all in,estors and in!est in stoc" mar"et
<tili&e e21ertise #hile doing such in!estment
Charge for their ser!ices
2iable to )arket risks
;S-FN #as the first mutual fund
#ook #uilding
Process
<nder this a Company offers its IPOs to in!estors not at fi)ed prices but at
a 1rice *and #ithin #hich an in!estor has to apply for its shares
>epending upon the response of in!estors the company offers the shares at
1rices quoted *y )a+ority
Mero Cou1on
#onds
Capital mar"et tool to )o*ili9e )arket funds
-ear no e21licit rate of interest
=ffered at a discount to face !alue