so good afternoon everybody

okay some questions are there

okay two one is Abhishek Kumar your question is that in yesterday's gender
analysis you said social factor and Care economy will not be reason for
unemployment because these are two reasons for low lfpr but other reasons given we
were for low lfpr so why they will be considered reason for unemployment
if we take some point of view to in some simple words I told you okay when like
this why actually this social factors and this care economy will not be reason for
this unemployment because these factors reduce lfpr and in general when LF PR will
reduce so an employment will actually you know when labor force participation read
will reduce then unemployment will not you know unemployment rate is expected to
reduce
why let us suppose a hundred people earlier these are workers the same example I
told you and jobs are 90
so how much will be unemployed
unemployed 10 people
now if you reduce lfpr because social factors patriarchal society social factors
care economy reduces the lfpr of women if number of workers May reduce to 95 to
jobson 90 to unemployment will be
5 people to unemployment rate will reduce to reason is that you I said K social
factor is not actually social and as such a care economy as such is not a factor
for unemployment of women reason is that okay these social factors patriarchal
society reduces lfpr of women and when lfpr will reduce means a worker number of
working women will reduce then obviously jobs are limited to unemployment rate will
reduce not increase this is the reason
okay what you mentioned that but other reasons given our also for low lfpr so why
they will be considered reason for unemployment other reasons like I totally
security and convenience to in case of security or convenience is that is reason
for lfpo low lfpr yes it is correct okay you have doubt in this case security and
convenience because you know women will search jobs which are convenient and secure
to what will happen if in a given area where they are living they may not get a
convenient job which is convenient for women to they will withdraw from labor force
so lfpr will reduce by that
and because of convenience reasons unemployment rate will also increase why
because women will become selective in getting jobs so options for job will reduce
for them so that is why an employment rate will be higher
so clear to life for example Social Security and convenience considerations they
will reduce actually lftry because women will if they will not find the jobs which
they like they will draw from labor force so lfp AB will reduce one thing second
thing because of social this security considerations unemployment rate will
increase for women reason is that the job options for them will be limited they
will not be seeking any job there will be seeking only those jobs which are secure
or convenient so that is why unemployment rate of women will also increase although
lfpi will be lesser
you have to think this is very common sense logic
so if we take some point of view so next you mentioned in some in same point you
explain if everything is same then lfp are increases unemployment increases
if lfpr will increase unemployment rate will increase the example is
okay I give you okay you have mentioned this example
but okay now next thing is that but earlier we studied reason for decrease in lfpr
unemployment rate increase yes
okay earlier I said unemployment if you know unemployment rate will increase
lfpr will
also reduce
yes it is also correct reason is that if unemployment rate will increase so there
will be pessimism in the economy and some people will withdraw from labor force
clear
so if they will be pessimism in economy I give you example of this practical
example like in your college earlier 1890 percent people were selected okay and now
this year let's Suppose there is some problem in economy and hardly any companies
coming to your college so this year expected may be hardly 10 15 percent people
will guard job so what will happen everybody will interview will you know appear
for job interview obviously no some people will draw from labor force so when
unemployment rate will be more when they will be pessimism in economy then some
people will draw from labor force to practically just try to analyze this to
because of this and this will reduce but if everything is same if lfpr will reduce
as such it will tend to reduce unemployment
okay reason is that K this example you can see
okay try to correlate with real life examples I give you example like of your
college like in your college earlier 1890 percent people were selected to mostly
people will be appearing in interview but this year if only few companies are
coming to the campus so everybody will not appear interview some people will draw
from labor force
this is the reason
okay and next question is arpit your question okay
you mentioned yesterday increasing per capita income in India resulted in decrease
in lfpr among women
but according to human development report on 20 the per capita income of India has
reduced has reduced by Dollar 200 per year in 19 does it mean that there might be a
possibility of increase in lfpr of women
no in general what happens if when per capita incoming increases it was mentioned
in economic survey
okay so it may be it is maybe possible but not 100% we know we will not seek it
this will always happen but this is one possibility given average income of people
will increase then lfpr
of actually female will reduce
the reason mentioned in economic survey was that when people become well off when
they are earning more so male members will not allow their women to work why
because if if a meal member may think I'm earning enough for my family to why my
wife should be working or why my daughter should be working if I'm earning enough
to since income our level are increasing so lfpr is reducing this is one reason
economic survey okay and then you have mentioned okay this in but according to
human development report 20 the per capita income of India is reduced by around
dollar 200 per year in 19 does it mean that
there might be a possibility of increase in lftr
you know there is no direct one to one relation between this and this may be
possible okay if per capita income of India somewhat reduced so
and one more thing in that actually they have mentioned so their Ruby depreciated
one of the reason for why our per capita income reduce in 2019 because rupee
depreciated not actually so it should be clear in terms of dollar rate reduce but
in terms of rupee I don't think if there is no reduction in actually per capita
income in 2019 why in 2019 growth may be around 4% three or four percent at the
most but population is growing at less than one point five percent so per capita
income actually must have increased in India in real terms also excluding inflation
but per capita income of India reduced in terms of dollars because of repeat
appreciation in 2019 rupees from what depreciated because of that actually per
capita income reduce
and I told you K in 2018 we take over France and UK but in 2019 means you know k a
v actually because rupee depreciated to we actually fall back one rank so UK again
take over India so now into 19 the our rank is six six in the world okay do we
because in 2017 we take over two countries but sorry it in 18 weeks ago these two
countries in 19 again UK is above India
okay so and that is because of rupee depreciation so someone would be depreciated
and the relation between the income level and lfpr is not a direct and immediate so
this is our one probable reason as mentioned economic survey
okay to arbit I think should be clear k first of all in actual actually income has
not reduced did not reduce in 2019 yes income reduce in 2020 because there is
negative growth in 2020 it reduce because of covid but in 2019 in terms of dollar
reduced because of rupee deferation but not actually to probably it will not happen
the same thing will keep on happening most probably but there is no guarantee this
will happen this is one probably will reason which was mentioned in economic survey
now dhananjay your question regarding boom in economy it is a situation when
employment allows decreases yes when they will be boom to unemployment allowance
will decrease yes and hence aggregate demand will also decrease how to justify that
during boom aggregate demand will decrease as during boom period economy growth
will be high and people will have jobs so demand should ideally increase to
normally during boom demand increase and growth increases but to some extent
governments unemployment allowance will automatically decrease so when governments
automatically this unemployment allowance will decrease those two some extent
aggregate demand may marginally reduce but overall eating reasons so during Boom
the ninja so I repeat okay during boom what happens demand overall increases but to
some extent government expenditure May reduce but that is not will not have a major
impact on aggregate demand the government expenditure is one component of aggregate
demand not
total aggregate demand the government expenditure will somewhat reduce because
unemployment allowance or some other welfare payments will reduce so it will help a
slightly reduce demand but during boom there is optimism so demand usually
increases much more because of you know private consumption expenditure investment
expenditure so demand usually increases so demand I told you expenditure is what C
plus I Plus
G plus I will discuss in national income to if you know if an employment allowance
will decrease during boom to this may reduce but this may be increasing this may be
increasing even this may be increasing so overall demand will not reduce in womb
clear overall demand will not reduce in boom but to some extent this may reduce G
May reduce
but during boom these things increases usually
okay net export me also increase but usually consumption expenditure and
investment increases so this may some water reduce but that will not have a
significant impact on demand to overall during boom demand normally increases
okay so we were taking up unemployment and the last Topic in unemployment is a one
more thing in unemployment you know there is lot of data and I have given you
selected data only to remember one thing try to just analyze data sometime there
you may find some discrepancy like in One Source unemployment rate may be much
higher as compared to other two you should remember K if there is some discrepancy
first of all check what is the data like it is UPS or upss or CBS it should be
clear one thing second thing is that some data covers shows unemployment rate on
the base of 15 to 59
15 to 59 years only is covered okay in some data 15 plus is covered 15 years plus
is covered so it covers 15 years and above me 60 years also for example I told you
if you if you see lfpr
so I told you as per that in 1718 lfpr was how much thirty six point nine percent
okay if you see in this age group lfpr and if you see lfpr in this is group it was
how much 49.8% so around close to 50% to lfpr will maybe different so some of you
may have this confusion that there is a lot of variation in data
and this lfpr is based on upss concept this is based on means upss means u p SS
concept upss means PS plus SS
okay to based on this if you see this lfpr on UPS basis it may be slightly lesser
okay if you see on other Factor it may be different to lfpr is based on upss UPS
Etc
so just I wanted to make it clear okay if you see data there may be some
variations to variations maybe because of the this age group to which age groups
data is there one thing second variation in data Maybe due to either it is UPS or
UPS or CWS you have to see this
other variation may be because of the ear may be different or the ministry maybe
different so minor differences maybe there because even if same data is collected
by two agencies so minor differences are possible differences are possible Miss not
possible but bound to be there differences will be there
 okay so but remember one thing don't try to cram any data it is use only for
analysis just try to analyze okay why and what okay don't try to remember much data
just one or two details are sufficient actually you should remember like
unemployment rate and most commonly uses upss so in 17 18 it was 6.1 which was much
in news and in 18 19 it reduced to 5.8 to 6.1 and 5.8 unemployment you should
remember as per u p s the latest official data okay apart from that at the most you
may remember lfpr about 37% okay 36.5 approximately and if you consider on this 50%
of ideas sufficient about lfpr as such data you know I have given you data for just
analysis not for cramming it should be clear
to never try to Crime any data as I told you already try to make meaning why how
it should be why there is a difference to try to think you have to do some means
thinking why try to compare data try to think then you will understand
but never try to claim
okay now next we will take up another topic that is
jobless growth the last Topic in this chapter is jobless growth
now first of all what is meaning of jobless growth
to jobless growth you know there is no specific definition of jobless growth to
jobless growth is a situation when GDP or economic growth rate accelerates but
employment growth rate decreases OK or just mention it is a situation in which
economic
growth rate
economic growth rate accelerates
in an economy but
but
employment growth rate
decreases
but employment growth
decreases
very simple to when economic growth rate will accelerate economy is growing at
fast pace and employment growth is reducing means employment is generated but slow
pace it should be clear I have not mentioned unemployment here I've said employment
growth to employment and I have not said employment Ruth may be negative I said it
growth rate maybe slow is employment may be generated at slow pace and GDP may be
increasing at fast phase this is jobless growth okay or in general other in other
words we can say it is a situation when economy is growing at fast pace and
unemployment may be increasing unemployment rate may be increasing or employment
may be growing at slow pace so we don't have any specific definition of jobless
growth but in general I think this is more appropriate definition okay employee
economic growth economy grow at fast pace and employment grew at growth of
employment reduces and it may be we can say or we can say unemployment may increase
unemployment rate may increase
what we can say this situation which economy is going at Fast Pace despite that
unemployment rate may be increasing so that is also jobless growth or even if
employment is not reducing but employment growth is slow
okay so it should be clear it is employment growth employment is growing but let's
slow pace like GDP may be growing at 7% rate employment may be growing and maybe 1%
paranum to employment is growing at slow pace jobs are created but as low peace
here so here growth rate of employment is reducing it should be clear it is not
that jobs are reducing here okay an unemployment rate me increase
one more thing here okay unemployment rate depends on two things unemployment rate
depends on employment growth so what do you think if employment growth
will increase to what will happen to unemployment rate very simple
to unemployment rate depends on two things one is a employment growth so if jobs
are created at Fast Pace then what will happen the obviously unemployment will
decrease
when more jobs are created to unemployment it will decrease one thing second thing
can anybody can give me answer one thing is directly unemployment rate depends on
two things in economy one is employment growth
okay how employment is growing and second thing
 growth of visiting
can anybody give me answer
second thing it depends on which thing
growth of what
growth of
to try to respond
to answer is
growth of Labor Force
if labor force will grow let us suppose this growth of labor force will increase
then unemployment is expected to increase or decrease Now give me answer very easy
question I have for increased D4 degrees if labor force growth will increase
unemployment everything is same unemployment will increase or decrease already I
have told you this question
yeah some of you have given correct answer like shubham you have given correct
answer labor force
okay Erna also so some of you have been correct answer
to growth of Labor Force labor force will increase then unemployment will increase
to answer should be here increases you are correct to all of you are correct except
few people have given decrease so if everything is same if labor force will
increase more workers will be there then jobs are limited then unemploymented will
increase
clear
now what is meaning of jobless growth I told you already now the question is that
head we experienced jobless growth in general yes or no although unsure should not
be very easy it is close to yes or close to no after economic reforms of 1991 so if
I say Indian X India Indian economy after economic reforms of 1991 by large
experience jobless growth to correct or wrong so what do you think yes or no give
me answer any yes or no
to obviously answer is yes
answer is yes reason is that K after you know economic reforms India became one of
the fastest growing economy in the world so I told you our growth since 1991
economic growth was how much was economic growth it was actually economic growth
rate was more than 7%
to Indian economy grew at more than seven percent and India became one of the
fastest growing economy in the world I told you already World averages about 3.5%
and India's growth was more than double of that so this is correct
and employment growth actually decline I will give you data for this now write
down data the employment growth actually decline
employment growth
okay to employment growth in 1980s
1990s
and 2000s
so you know employment was growing
at
2.5% per annum this data is from nsso but approximate data
because survey was not conducted in 980 and 90 so this is data from 83 to 93 this
data okay this is from 93 to 9 2000 and from 2000 to 2011 12 okay but approximately
sufficient so you can see before economic reforms in 1980s a jobs were created by
2.5 percent and in 1990s it reduced to one point one percent
so you can see
K after economic reforms of 1991 to this is exactly data from 93 to 2000 so from
93 to 2000 job creation was 1.1 percent you can see growth of employment actually
reduced to less than half but remember here again it is employment growth it means
that jobs were created but at slower Pace it should be clearly jobs overall did not
reduce in the economy jobs increase but increase at very slow pace
click then in 2000 the employment growth is 1.4 percent
as a wide accelerated especially I told you after 2004 when UPA government means
led by Congress it actually that government increased social sector expenditure
like mondayga started and Rural developmental expenditure increase on Education
Health also expenditure increase some what so because of that job creation from
what improved
okay this data is still 2011 12 only from 2000 to 2012 so this
so you can see K employment growth has declined or not
earlier in Pre reform era I am talking about since economic reforms okay to
employment growth decline after economic reforms of 1991 okay now one more term I
will discuss here elasticity of employment
elasticity of employment
now first of all what is meaning of elasticity of employment to elasticity simply
means K how much anything is flexible to elastic news anything which can be
actually you know you can actually mold that that is lasting elastic means how much
think and respond can change to elasticity of employment shows okay how much
employment can respond or employment me actually respond to this thing can you
guess to it shows care responsiveness of employment to which variable in the
economy
how much jobs are created in response to what
in response to obviously economic growth if economy is growing how much jobs are
creating the relation between economic growth and job creation is shown by
elasticity of employment to write it down separately what is this elasticity of
employment
elasticity
of
employment Dimension that it is
it is the responsiveness of
it is the responsiveness of
employment
it is the responsiveness responsiveness of employment to economic growth
responsiveness of employment to economic growth okay so how much economic
employment is responsive to economic growth it means that given growth will
increase how much employment will increase and write down the formula of this
formula of this is
you know employment growth here this thing employment growth
divide by
economic growth
employment growth divided by economic growth
that is elasticity of employment
okay Employment Group divided by economic growth
now how what was in 1980s what was elasticity of employment
okay so I'll I will write this formula I'm writing here blue this to what was
employment growth
employment rule was 2.5
okay to elasticity of employment I'm calculating
to 2.5 employment growth and what was economic growth in 80s
economic growth was about 5.5 approximately
so it should be how much
to it maybe five only then it will be 0.5 so it is slightly less than 0.5 so
approximately 0.47
okay zero point is close to 0.5
okay this the formula I told you economic growth upon these employment growth upon
economic growth to employment growth was 2.5 and economic growth rate in 1980s was
5.5 percent okay now I'll calculate for 90s what was employment growth in 1990s
I have given you this number 1.1
1.1 percent this is in percentage
as a percentage will cancel out and what was economic growth rate in 1990s it was
about six percent
to you'll get how much
0.18 percent 0.1 it means approximately 0.2
and here employment growth is how much 1.4 percent
you can see 1.4 and economic growth
 in 2000s or close to 7
okay 1.4% divided by 7 percent to it will be about zero point two percent
to employment elasticity you can see it's calculated in this manner this is
employment growth and this is economic growth GDP growth in 80s 90s
Okay so
this you can see it was close to 0.5 then reduced to less than 0.2 and now Point 2
to employment growth decline so can we say okay this it means that can we say k the
relation between economic growth and employment generation has become weak now
yes or no
to obviously yes can we say decline in employment elasticity itself shows jobless
growth yes or no if I say in a country if employment elasticity is declining the
value of this declining does it reflect jobless growth give me answer yes or no
to decline in employment elasticity if this employment elasticity decreases can we
say does it reflect jobless growth as such yes or no
okay to rishav you are correct yes to answer is obviously yes to jobless growth is
reflected by this decline in this why because you can see it will decline when
employment generation will decline or growth will accelerate okay which happened in
India to there was actually jobless growth
to as I told you in Miss there was a question directly on jobless growth okay had
we experienced a job RV experiencing jobless growth in India
to answer obviously is yes to some extent yes and this is the mean reason why our
economic growth very high growth is not converted to inclusive growth because jobs
are not created at Fast Pace jobs are being created but at slow pace to buy and
large we can say k we are experiencing jobless growth by and large from 91 till now
by and large
okay to but remember one thing here I am not saying the jobs are reducing it
should be clear I am saying if jobs are created at slow pace
okay to employment growth rate is declining employment is not declining employment
growth is the decline okay there may be some instances where employment decline
like in some like after covid before covid also their like somewhat in the past few
years like after demonetization some voting employment decline so but overall
employment is not declining overall it is increasing but at slow pace so this is
jobless growth okay now what are reasons for jobless growth so this question was
there was their jobless growth to how do you show through this data you can show
the data what is meaning of jobless growth and Define meaning like in simple words
and then you can give this data okay employ on GDP growth accelerated and
Employment Group Decline and as a result employment elasticity Decline and it shows
that the relation between employment generation and economic growth became very
weak
now what are causes of jobless growth
to write down causes of jobless growth
why jobless growth happened can anybody tell me the causes of jobless growth can
you give causes of jobless work now give me some suggestions
causes of
jobless growth
on what what may be the causes of jobless or some of the causes I have told you
earlier
okay please respond
okay what are causes of jobless growth
I just
remember one thing I am here analyzing since
1991 since economic reforms
technological unemployment you have given answer technological unemployment
and occurs automation yes
and I see she was given growth in service sector
yes
so okay so growth in service sector yes it is correct and Shivam to all of you are
correct rather here and high competition Shivam you mentioned High competition to
competition affected mainly this sector
 to less infrastructure no infrastructure was less earlier also
Capital intensive technology yes it is correct Abhishek apart from that less labor
and absorption by manufacturing sector yes it is also correct
and demand of community with fast pace okay now write down a few points so first
point you know I told UK service sector actually grew at the fastest space in India
to economic growth was led by service sector and service sector you know fail to
create my job so write down first point okay economic growth
was led by
service sector
which failed to create
which fail to create proportionate jobs
which failed to create proportionate jobs
okay radhika Bajaj you are given less focus on MSM is yes that is very important
reason msme adverse impact on messy so you know first point is that case service
sector you know economic growth was led by service sector because service sector
create the fastest space and service sector field to create proportionate jobs I
already give you data right now service sector is contributing to about 55% of our
GDP 55 to 56 percent of GDP and despite that in job creation it share is about 20 8
29% hardly not even 30 percent so if it is contributing to more than half of the
total GDP it must be contributing to close to half of the jobs so it is it is
creating only how much slightly more than one fourth of that total jobs so service
sector as such is not labor intensive this is the reason
okay the one reason is this
second very important reason for jobless growth is that okay you know after
economic reforms of 1991 when mncs came in India mnc's came and imported items were
import duties reduce so competition increase for Ms Ames so lot of msme shut down
and majority of jobs are in a small companies msmees so when they shut down some of
them shut down some of them actually finally difficult to compete so they have to
reduce jobs so jobs reduce because of that all so mention especially this happened
in 90s although situations from what improved after 2000 so those small companies
which were less efficient they actually were gone out of business in 19 days to
mention this next point is that okay adverse impact
of economic reforms
adverse impact of economic reforms on msme's
okay to msme's
were advisory affected by because after reform that is after economic reforms
domestic industries were exposed to Too Much competition
okay that is just mentioned after economic reforms domestic industries were
exposed to Too Much competition
too much competition from mncs and imported products
mncs and imported products
to msmes were adversely affected this was the mean reason
other
just shorty you Surya Shivan you have us how is employment growth and growth in
labor force different as both depicts number of people working the employment
growth to how is employment growth and growth in labor force different as both
depicts number of people working no employment growth is different and labor force
is different so you know employment growth means how much more jobs are created in
economy and labor force growth means how many people are there who can work
they may be working on me or not be working to live employment growth means key
how much jobs are created in the economy and labor force growth means how many
workers are there the people in working age group and who are willing and able to
work so those people are in labor force as it will be both hard and entirely
different
okay so msmies were advisory affected this was very important reason
apart from that you know okay Capital intensive investment was one very important
reason Capital intensive investment Capital intensive investment especially by
private sector and foreign foreigners
to you know means for Miss foreign investment and private sectors investment was
largely Capital intensive in nature so next point you mentioned Capital intensive
investment
Capital intensive investment by
private
private sector
and foreign firms
Capital intensive investment by private sector and foreign firms foreign function
that is mncs to by and large the investment by private sector and foreign firms was
by and large Capital intensive so what happened that investment increased economic
growth much but job creation did not increase much so this was one important reason
K and one reason as a why one of the reason why investment was Capital intensive so
it was there were two reasons for this to it was because of rigid label laws and
lack of skilled labor in the country okay so mention this thing one it was due to
it was due to rigid labor laws it was due to rigid labor laws and lack of skill
labor
in the country
Okay so
this you know k y actually capital investment was made to one reason is that rigid
labor laws so foreign investors they thought if we invest in labor intensity thing
then we have to improve more labor we will be have to comply with more labor laws
there will be more trouble so it is better to invest in capital interesting
Industries one thing second thing is that case since skill labor is less in India
so this is one constraint here so if they would have invested in you know labor
intensive Industries then more skill labor will be needed so because of that
actually they thought it is better to invest in capital intensive technology do
some extent these were the reasons
but in private sector it is hardly it is labor intensive or Capital intensive they
think where they cannot more profit
okay other is even automation is there but not a major reason so next point you
mentioned automation
automation to automation means the in existing companies also automation also
happened but that is not a large scale in few and the reason for automation is also
same because two reduce labor to get more flexibility in operations okay because of
rigid labor laws and lack of scale labor automation it will encourage automation
okay
apart from that
in that jadev you have Jay Dev Pathak you have mentioned key was policies of UPA
government why there was jobless growth to your mentioned verse policies of this
UPA government one three points you have mentioned because sluggish process of
education so it should be clear you know okay expenditure on education was
increased mainly by up government it is right now it is almost stagnant since then
it is same okay apart from that educational system was never actually government no
government actually till now has given due here to education so expenditure and
education is much less actually in India if you compare with other countries like
develop countries if you compare it's too low to rather in up regime expenditure
education increase education says was imposed by the government
apart from that all the recently government has taken one step initiative this
government that is a new education policy has been introduced which will under
which education expendition education will be increase but that is certainly a
desirable step second you mentioned low power women participation
to participation of women was always low in India although any decline not only up
regime overall actually decline okay apart from that not focus on msmees so it
should be clear msme is never adversely effected in especially 90s so first they
were affected in 90s then Congress government was there and second actually in the
last few years especially after demonetization and the way of implementation of GST
the hawkish implementation of GST the MSM is where affected in 90s first and second
after demonetization the two instances were there when there was the adverse impact
once Congress government other bgp government recently
okay though here I'm not focusing on any political party SS here it is the from 91
onwards whichever government was there so you should not actually go by you know
personal likings dislikings it should be based on rational analysis okay what
happened especially whichever government was there from 91 onwards I'm talking
about that in general
pankaj Mishra you have mentioned an organized sector no an organized sector is
always there in India and after economic reforms you know there was some adverse
impact on msme is mainly which are in an organized sector that is we have counted
included that point here
to JD you also mentioned import oriented attitude of policy formulators input no
and we cannot say KV were import oriented but certainly as a part of economic
reforms variable is import duties we realize import and we try to promote exports
also so to integrate our economy with the world economy to we cannot say as such
important policies where there are important was promoted as such so not as such
apart from that what are the reasons
other reason was that K you know government was investing in public sector psus
and jobs were created there so after 1991 government stopped actually investment in
public sector rather started selling their shares this announcement also started
and why government reduce expenditure and public sector public sector means in
simple words public sector undertaking psus because actually the IMF we adopted
reforms not on our own but under compulsion of IMF so IMF as the government to you
should adopt LPG policy to Congress government did not adopted reforms on its own
it was under compulsion because in 1991 we Face balance of payment crisis balance
of payment crisis means shortage of Forex we did not have Forex to make payment of
our import or to pay our debt to we came on verge of default on for an exchange
payment like we did not have dollar euro Etc and so we borrowed from IMF so IMF
impose a condition we will give you loan we will actually save you from default
only if you
of our condition and their condition was you have to adopt LPG
although at that time Congress was very you know apprehensive all particle parties
were apprehensive and every political party was opposing and even the government at
that time had no option but to Adobe reforms so we were very apprehensive but
anyhow fortunately that prove to be very useful for us to because we were
apprehensive without any doubt and but anyhow that proved to be very useful because
economic growth accelerated after 1991
okay the next point you may mentioned k
reduction in
public investment reduction in investment reduction in
investment in public sector
public sector in bracket psus
by the government
by the government
to reduction in investment in public sector by the government
or by the government is government of India
due to the
due to
the
conditions
due to the conditions of reducing due to the condition of due to the condition of
reducing
budgetary deficits
due to the condition of reducing budgetary deficit
due to condition of reducing budget deficits
imposed by the IMF
imposed by the IMF
okay to reduction in investment in public sector means that is PSU by the
government of India due to condition of reducing budgetary deficit okay impose by
imf2 IMF impose one condition okay government of India will not incur huge deficit
they said key you should you don't spend Beyond Your Capacity to spend whatever are
your revenues you should not borrow much to spend more so if you don't have money
to don't make much investment don't spend much on even welfare activities the
government expenditure has to be was reduced because of the constraint imposed by
IMF okay and this happened only especially you know means in 90s to government was
constant to reduce the facility and you earlier before that government was printing
money also significant money was printed so I have said you you should not print
money because if you bring money there are negative aspects like inflation and
other things you should not print money the government of India or gradually
a stop printing currency also so obviously When government stopped Printing and
started borrowing less than obviously less money could be spent on anything to
overall public sector investment reduced so job creation which was there that
actually reduced
related to this is like government started disinvestment
disinvestment of psus
okay psus means public sector undertakings or units
to disinvestment of psus also somewhat reduced jobs some what not much because
once companies private privatized so what will happen private companies usually
they don't bear extra employees in public sector over Staffing is very common now
and private company why it will pay for the extra staff so usually after a decision
some what jobs reduce but not at Large Scale but some what okay so job creation
reviews in public sector and some in public sector PSU job number of jobs some what
reduce that is one reason why actually you know the workers in PSU they oppose this
investment of privatization what is meaning of disinvestment means I told you
earlier also I think the distance means selling shares of PS used to private sector
so selling shares of psus to private sector
okay so job creation reduced and almost stopped here in public sector and after
disinvestment number of jobs in public sector companies started reducing
another reason why because the displacement is started in 91 only and going on
since then apart from that other reason is that k When government has to reduce
expenditure has to keep budget deficits within control so government has to reduce
obviously developmental expendition
okay to mention this thing reduction in
developmental expenditure
by the government
reduction in developmental expenditure by the government
due to
due to austerity measures due to austerity measures imposed by the IMF
austerity measures means what to same thing austerity measures imposed by the IMF
austerity means key government should spend less spending less is Charity you
should not spend beyond your Revenue it means that in simple words kid miss this
the reason for this point and this point is same why a government reduce Public
Access expenditure because deficits have to be reduced budget deficits and
austrating images simply means to reduce budget deficit okay so IMF said kid don't
spend over spend okay if you overspend you have to borrow more budget deficit will
increase to keep your deficit within limit because increase in budget deficits
increases vulnerability of economy I will discuss in government budgeting to
because of that actually but one more thing it should be clear okay what you have
mentioned here this happened in 1990s only mention this kid reduction in
developmental explanation by the government due to austerity measures
by the imposed by the IMF in 1990s to mention that in 1990s
to not always in 1990s
okay so this is not now it is now developmental expenditure bile large has been
restored by government it is not high but at least it has been increased as a white
increase because you know by when we are operated reforms in 1991 by 1990s or 2000
you know it became almost clear there was jobless growth because employment growth
decline to less than half and GDP growth accelerated so government relies okay
certainly there was pure jobless growth
and by the buyer nine by late 90s you know we were not bound by the conditions of
IMF we did not depend dependent on the the loan of IMF anymore by 99,000 by almost
two thousand so then government actually when up government came to power in 2004
you know by that time it was well established okay there was jobless growth and
we've we fail to convert our economic growth into inclusive growth so it was
decided give we have to increase expenditure on social sector like Education Health
rural development employment generation Etc so then Monday right surprise started
then after that situation from what improved in in terms of impoverty elevation and
employment generation Etc as you can see here also data somewhat employment growth
situation improved and after that 2004 also poverty reduction of poverty the pace
of poverty reduction accelerated poverty reduce it much faster pace
because I give you data from multinational poverty index from 2005 to 15 in 10
years poverty reduced to half
from 55% to 27.9% I give you 10 MPI
okay so this was in 1990s only so these were the main reasons for jobless growth
other such what other reasons you have mentioned okay Abdul you have mentioned
okay transition from socialism to Chronic capitalism
do you know chronic capitalism is a derogatory term so The Chronic capitalism
means K capitalism in which government is giving for you know priority to some big
corporates only
and this is you know critics always sacral chronic capitalism because earlier you
know in UPA government there were some corruption cases were there like cool gate
scam 2G scam so it was said okay chronic capitalism was there even in economic
survey it was mentioned okay earlier in the Congress regime there was chronic
capitalism but still now you know in this regime also again critics say kid now
this government is also leading to critical because it is mainly promoting Reliance
and adani though actually it is a derivative term and so critics will always say
chronic capitalism so and it should be clear we never had capitalism as such we
actually adopted a mixed economy we are tilting towards capitalism only tilt and
that was beneficial without any doubt but certainly giving this the word crony is
not actually is undesirable term but giving fever to any corporate by any
government actually is obviously not desirable thing okay which may happen in any
government any regime to we cannot say yes such weird capitalism
and
okay these are the your
other is the rishabh what you mentioned to places originated oriented
industrialization places orientalization like Industries are in southern parts of
the country yes one more thing industrialization increase but not much
manufacturing sector did not grow at much faster Pace but growth was not low in
manufacturing sector we cannot see growth was low but certainly growth was much
higher in service sector as compared to manufacturing sector I will discuss
separately in making India I will discuss what is justification for making India so
these are the reasons for jobless growth
pratika you have asked this question is it easy to actually create jobs no
certainly it is not easy why because government actually is focusing on job
creation and practically lot of constraints are there faced by the government is
phase in economy to create jobs but anyhow if policies may be relatively better if
Better Business environment will be there an overall means support to small msme's
support to for entrepreneurship development like cleaning skill development
vocational education I think it will help in creating jobs but it is not
practically easy certainly constraints surface that is why we are not able to
eliminate this problem okay so these are reasons for jobless growth so as I told
you there was a direct question in means key there has been jobless growth in
Indian economy in recent years do you agree with this view obviously by and large
actually since 191 I'm talking about by and large yes and this data is showing that
there was by and large jobless growth and reasons for we have discussed directly
reasons now finally we will discuss the causes of unemployment
now if I say these are also causes of unemployment yes or no
so can you give me answer now write down causes of unemployment
in general can we say these are also causes of unemployment yes or no
these are also causes of unemployment the cause of jobless growth yes or no
what do you think
 to do you think service sector
is growing and it is it not creating much jobs so to some extent yes or no
to answer obviously is yes to some extent
to okay so of you have given correct answer all of you have given correct answer
yes by and large to some extent too we can say this is a cause yes to some extent
this is yes certainly very important cause msme's Capital intensive investment is
also one reason automation also one reason investment in PSU also one reason one
minor reason
but reduction in developmental expenditure yes or no
to answer is no right now expand developmental expenditure has been restored by
government I told you
so this is not the reason right now we cannot seek a developmental expenditure has
been reduced by government no it is not very high but actually it is not reduced by
government earlier reduce but from 2004 as I told you that expenditure Rest Road
and this government did not reduce the expenditure has almost maintained same so we
cannot say developmental expenditure reduced although it is less if you compare
with other countries to expenditure on social sector is much lesser in India as
compared to other countries
okay though causes of unemployment to six are same now seventh will be different
okay seventh this is not the Cause right now as such but we can say 7 point we can
say means in educate expenditure we cannot say reduction but still we can say in
educate expenditure on social sector yes we can say that to in educate
expenditure on
social sector social sector example Education Health
Etc
including infrastructure so this is one reason of this because people will be more
educated healthy then scope of job would have been better
okay we cannot say reduction here I have just changed the word here there it is
written key reduction in developmental expenditure here I am seeing here
developmental expendition like mainly the this expenditure social sector mainly
which is developmental is not advocate in India it is relatively less or we can say
relatively less expenditure in India on social sector which create more jobs
other reasons you know are very common which we discuss in inequalities also like
in developing countries the main reason of unemployment is scarcity of capital
because we don't have Machinery Factory to give job to everybody to scarcity of
capital
A scarcity of capital is a very common reason in developing countries and even
related to that is in educate infrastructure
in educate
infrastructure because infrastructure increases scope of jobs if infrastructure
will be inadequate like in rural areas if roads are not good electricity is not
available for much time period so overall you know scope of economic activities
will reduce
okay and educate infrastructure
other even we can say blame even the government policy so we can say inappropriate
even educational system to inappropriate
educational system
now what is main problem in our education system that is lack of emphasis on
that is lack of emphasis
on vocational education
lack of enforce emphasis on vocational education
comma skill development
training Etc
so in India are focus on general education we are not focusing much on skill
development not much focusing on you know vocational education professional
education okay or training to our focus on general education so this is one flow in
our educational system so because I will I have shared in notes with you so you
know not even 13% labor force got is a skilled in India so less than 13% labor is
scaled in developed countries almost 70 to 80% labor is scaled in India not even 13
percent and out of 13 percent you you will see most of those people who are skill
they got skill from their own from from you know non-institutional sources like
from their parents or from their you know Masters Etc so and how many people got a
training from institutional sources from training centers not even three percent so
not even three percent of the total labor received skills from institutional
sources like we have some
is still training institutions are there like ITI means industrial training
institutes are there to less than 3% people got skilled from institutional sources
so inappropriate education system so you know if people are skilled and if there is
more vocational education professional education training then scope of jobs and
even self-employment increases so this is one flow
apart from that we can even blame our planning employment planning to mention this
we can say Okay inappropriate employment planning
inappropriate
employment
planning
to inappropriate employment planning
to employment planning was actually not appropriate that is what what is the flaw
in this employment planning that is mentioned in educate focus in educate sorry
another sorry sorry this thing mention this inappropriate planning is key over
Reliance that is over Reliance on trickle down
that is over
reliance
on
trickle down
so there is one problem Ki government over relied on trickle down how I will give
you illustration you know in Pre reform era are policy the mean you know structure
of Economic Policy was decided in the second five year plan in 1956 that was based
on mahalamus model to strategy of development in Pre reform era was in Mahal and
miss model and mahalin is model focus on industrialization to promote growth and do
you think there was anything directly to create jobs
as such nothing they thought given Industries will be set up jobs will
automatically be created growth will increase in job will be created automatically
to actually they that Harrow domain and sorry this Mahal University model of second
fire plan so that was based on trickle down approach
and did it happen in it happened in India I told you already it has not happened
because after 20 years of planning when in 19 mid 70s when poverty is data was
released okay and it showed k5% people were poor at that time it means that after
you know 50 years he's after 20 years of economic planning more than 50% people
were poor so then Planning Commission accepted failure of trickle down there
Planning Commission admitted okay this it was our mistake to over rely on trickle
down so this is one illustration second illustration is in post reform era in 1990s
you know government adopted LPG policy so it means that woman thought he grows will
increase and jobs will be created but that happened no And by you know in 2000 or
early 2000 government realize that actually there's jobless growth so we can not
rely on Market we have to spend more on social sector that is why social
expenditure increased from by and from mid 2000 so we overall I don't
in Pre reform era as well as in positive formula
so what the point here
to we did we actually give less emphasis to job creation overall
because government thought automatically jobs may be created when growth will
increase but there's no guarantee like in India you know growth is very high we are
one of the fastest growing economy in the world but still situation of employment
is not satisfactory
and that is mean reason why we are not able to convert our economic growth into
inclusive growth this is the main problem
okay so this is one flaw in our planning process
other thing is that actually labor force in India by and large grew at relatively
faster pace
 to
relatively
fast growth
of Labor Force
except in the last few years okay in India by and large labor force grew
relatively faster fast growth of Labor Force relatively faster than relatively
faster growth of Labor Force
in India labor force by and large group at relatively faster taste but now
remember one thing I give you data key in the last few years labor force declined
but that is the exception that is rare thing but if you compare in India the growth
of Labor Force has been faster than other countries in general okay and the last
few years there's that is a exception K because of some pessimism about employment
some people will do from labor force okay but that is temporary it means that those
people will not permanently remain outside labor force they have to come to labor
force to labor force growth remain relatively faster okay I am repeating once more
I give you data labor force lfpr decline in last few years but that decline that is
the Exception by and large if you compare from Independence or from 91 until now by
and large labor force is growing at relatively faster peace in India as compared to
other countries that is why I have used the word relatively here really faster now
why
why are labor force was growing at faster pace
you know labor force depends on mainly population growth more people population
more labor force what the point more people more workers so means fast growth of
population
High
growth rate
of population
so one reason high growth of population
but I told you right now this is not the reason this was earlier
this is not now
to earlier this was the reason fast growth of population because earlier means
especially in Pre reform era like in 50 60 70s population growth was very high we
were means in population explosion category so more population growth obviously
labor force will do it faster Pace okay not now earlier I have written already to
high growth rate of population earlier now what is reason now
you should remember labor force decline in the recent years I give you data but it
is not expected to decline it is expected to increase at much faster Pace in future
you can see that how why because of visiting can anybody give me the name of that
term because of this labor force expected to grow at faster Pace in in near future
in India because of this thing can you give me a reason for this
give while labor force is expected to grow at faster Pace in near future also in
future also why because of this thing anybody can give me answer of that
okay to answer is you know demographic dividend
demographic
dividend so because of demographic dividend labor force actually
is expected to increase at much faster pace
okay some of you are answers like pratik you are mentioned youth population so yes
you are correct
and
arunwa chakraborty you have given yes demography Divinity yes you are correct
and Abhishek Kumar also population coming and working age group yes the same yes
correct
to mean you know reason now and near future so now and in near future
because of this you know population labor forces expected to create faster Pace in
India now what is meaning of demographic dividend
to demography means related with characteristics of population and dividend means
a part of profit which is received so okay so here demographic dividend means K you
know when there is Young population will increase in total labor force so what will
happen growth potential increases when more young people will be there in any
country to more you know dependency issue will come down and youth people youth are
more you know prone to adopting new things new technologies and they are more
flexible they can work Miss for longer hours Etc as compared to Egypt population so
because of this young proportion of young population in India is increasing and
expected to increase in for the next almost two decades two to three decades then
because of that India's growth potential will be will increase and that is called
demographic dividend to mention this thing it refers to
increase in growth potential it refers to increase in growth potential
of an economy
increase in growth potential of an economy due to
due to increase in
proportion of
due to increase in proportion of
working age population
due to increase in
proportion of working age population
in the total population increase in proportion of working is population
in the total population
okay so I repeat what is meaning of demographic dividend demographic dividend
means increase in economic growth potential means expansion in good potential of an
economy due to increase in proportion of working age population in the total
population when more proportion is more percentage of young people will be there in
the total population then what will happen the growth potential will increase and
what are reasons why demography didn't dividend increases growth potential to one
reason is that okay I told you okay dependency ratio will decrease when more young
people will be there to less people will be dependent labor force will be more so
it will increase labor force on the one hand more workers will be there and less
dependence one thing second thing young people are more you know more flexible to
adopting new technologies new ideas okay so young people can work harder to overall
and they are more flexible in adopting new ideas Etc it increases scope of
Entrepreneurship also so these are the benefits why growth potential in India will
increase and this is very important Edge which
we have over other countries in developed countries aging population is
consistently increasing since long and it is going to further increase so young
population is very short much shorter in developed countries almost all developed
countries
and in developing countries in some countries young population is increasing but
not in all countries to in some developed countries also some developing countries
also now proportion of young population is gradually started to shrink especially
in China also in China the Aged population will increase so it means that this is
one most important Edge which we will be having on China and even other developing
countries to only in few developing countries young population is increasing now in
developed countries already young population has already decreased much and for the
decreasing so this is the most important Edge which we have over other countries
especially on China
so this is demographic dividend so because of the young proper population will
increase to certainly labor force cannot X you cannot expect a labor force will
reduce it has to increase and relatively at faster pace
to what the point here and if labor force will increase then obviously jobs are
limited unemployment will increase I have told you already when Labor Force if
everything is same if labor force will be more more workers than jobs are limited
to extra workers become unemployed to this is one reason labor force growth has
been faster
Abdul your question key is government Doling out money to unemployed youth in
developing countries Justified
so actually you know K to some extent why not justified because if government is
giving money for employed people you know so those people who are unemployed maybe
vulnerable maybe hungry also what the point they may be very poor to obviously it
is Justified key government should give money to people who are unemployed but I
think another better than giving money without anything is to let them do some work
like like under money so I think it is better to expand the programs employment
generation programs like manrega so that people who don't have income or any source
of money he's earning they maybe giving jobs rather than giving money without any
work so it is better I think but everybody cannot work also so for vulnerable
people maybe old age people or maybe physically handicap people government may
think of transferring this money in their account without anyone but I think better
thing will be Focus will be more on employment generation program just like Monday
and
some other programs of self-employment I will discuss
okay but I will say again not a wrong as such to unemployment allowance may be
given by government for Social Security but better will be to create jobs
okay so this is these are the reasons for unemployment in the country okay so
these are reasons why there is unemployment now next is so we have discussed causes
the jobless growth causes of jobless growth and now we have discussed causes of
unemployment in the country
at one more thing here K demographic dividend
is very important thing why because demography dividend is the most important Edge
which we have because of this thing over other countries but remember one thing if
we fail to create jobs then demographic dividend will it be useful for us if let us
suppose more young people will be there and jobs we fail to increase jobs in the
economy so what will happen
to unemployment will increase much more and situation become much worse
to it means that K demographic dividend will enhance our growth potential only if
we will we will be successful in creating more jobs and not only more jobs we have
to give them education and basic amenities also like Health Facilities nutrition
Etc so people more people should be educated skilled healthy and there should be
more jobs only then this will be beneficial otherwise
what will happen it will lead to rather more social problems if more Youth and
youth are actually sitting in home unemployed then it will create more social
illness to then it will be it will convert to demographic curse so you know K to
Avail benefit of domain demography dividend we have to take care of social sector
like Education Health scale development and on the other hand we have to create
jobs otherwise this demography we didn't will be will become demographic curse for
us so that is why employment generation has become very very crucial right now
again why I have discussed in detail this chapter because you know lot of
questions were asking means like in the last six years four questions were asked
and you can expect maybe in the next six years four questions more you can expect
at least from this topic why because this chapter is very important like if we what
is main flow of means why we were not able to convert our economic growth into
inclusive growth the main reason is that employment growth was not satisfactory
jobless go to some extent okay so if we want to see social object is or we want to
make India develop country we have to take care of employment we have to take care
of the abilities of people like education healthy skill development is important
apart from that now we don't have a choice okay shall we create more jobs or not
which earlier to some extent we had if we fail to create more jobs then demographic
dividend will convert to demographic curves situation bill will not remain same but
will worsen much actually so it has become indispensable for government to create
jobs so that is why importance of job creation is has become much more important
and Urgent now otherwise situation will not remain normal it will go down
to what the point here that is why this thing also shows K urgency for job
creation so it means that that is the reason government is giving much priority to
job creation
clear now to we have discussed causes of an employment and finally the causes the
government measures to create jobs to measures to
now how jobs could be created
now job causes of unemployment we have discussed now how jobs could be created to
measures
for employment generation
 or we can say government measures
to create jobs
now what government did
so you know lot of schemes are there to create jobs one is that K from where job
will be created mainly from Industries firms will be established to how a form will
be established when investment will be made to one thing is that government is
promoting investment
which is most important policy for promoting investment in the country
the most important policy I have told you already
make in India
to in making India the focus is actually to improve ease of doing business
ease of doing business means to procedural hurdles of doing business will be
reduced
such a jaidev Pathak what you have mentioned having Youth population have programs
like skill India enabling the people to come forward and participate economic
activity otherwise it will end up as disaster you certainly lot of schemes are
there I'm coming to those schemes only so to promote investment one very important
scheme of the government is make in India and we are into ease of doing business
has to be improved and government has taken lot of managers to improve ease of
doing business okay I will discuss in Industry because a long topic okay so our
Rank and ease of doing business report of World Bank has improved substantially
from 142 to 63 out of 19190 countries so I will discuss in detail so our rank has
improved in use of doing business and a lot of measures were taken to make it
easier for people to do business in the country
other major is that K you know if somebody is not employed to one option is that
the person may establish own business a small business unit for example if anybody
uh person is searching job and person may not find job means at home business so
person make become cell employed as well as give job to other people also
so we can say on termination development
contribution development so you know government is promoting entrepreneurship
development through various schemes are there to promote entrepreneurship
what are the schemes for contribution development
the most important scheme is a startup India
startup India to under this scheme mainly Innovative Ventures are promoted to
innovative business and now the scope of this increased to include those business
which have large scale employment potential
to that actually business is also covered initially it was only for Innovative
Ventures and government is providing lot of support to startups startup support
like tax rebates are given to startups apart from that there are business
incubators have been established and this under the scheme in business incubator is
a support system for you know entrepreneurship development so business incubator
let us suppose you want to establish a business you may contact a business
incubator they will provide you information training Etc what kind of business you
can take dma provide you training networking and other mentoring how you can do
business how you can make your business viable okay so start of India I will
discuss in detail later
in Industry I will discuss these points
that is Stand-Up India
it is a financing scheme Bank financing scheme to under this stand up India
every Bank branch
has to provide a finest for establishing two new Ventures one by SC or St and
second by women so it is a scheme for empowerment of scsts and women
to a business every bank branch will finance to new business so contribution will
be developed by because new business will be established
apart from that lot of other schemes like mudra yojana
to in we will discuss separately all of these schemes
to promote entrepreneurship development
okay apart from that okay jayadev you have mentioned these schemes
other yes obviously skill development
 to this also we will take up in Industry you know government of India started when
scheme that is skill India
skill India we will discuss separate Ministry for skill development has been
created
Ministry of means skill development and skill India initiative to various
government you know skill Development Centers have been established various
training programs have been organized under skill India because the skill
development will increase the scope of job creation
okay other is you know this sector create which type of companies period more jobs
a small and large
as I told you already small to support two MSM is
to support to msme's you know from Independence till now government of India is
consistently giving support to small companies msmese
even recently you know when our economy was affected by covid so government
announced various stimulus package like art package to in that if you see about one
third or more than one third of the measures are some related with supporting msmes
so if you see the whatever measures were there to stimulate economic growth and
the reverse the this unemployment situation so Focus was on msme is in our Bharat
also the recent stimulus package so separately we will discuss in msme is in
Industry we will discuss msmees
apart from that
just Shivam you have mentioned Ki attracting foreign investment to a certainly
investment will include foreign investment all so under making India the focus is
also on FDI to government is putting much effort to promote FDI because that is
very useful because we will get the capital along with the technology and lot of
other things so we are promoting investment will include domestic as well as
foreign boat
apart from that you know some sectors have much potential to create jobs like
which sectors to government should support identify those sectors which can create
more jobs and may give support to them so we can say support to labor intensive
sectors
labor intensive sectors
to any example which sectors are a very labor intensive means within industry
which type of industry is create maximum jobs
to one is food processing Industries
food processing Industries
and you know that is mentioned in your syllabus also government has created a
separate Ministry for food processing Industries we will discuss that separately
why government is focusing too much on food processing the most important reason is
that it is highly liberal intensive and other reasons are also their kit is
important for food security supporting agriculture sector Etc apart from that
textile sector
okay textile sector other sector is related with the you know leather and Footwear
Footwear sector
leather Footwear other is construction sector
to these sectors are highly labor intensive
in economic survey around four years back there was a chapter with the name
clothes and shoes name of a chapter was close and shoes what was theme of that
chapter the theme was that key close and shoes like clothes means textile readymade
garments Etc and shoes means like food we are leather sector these sectors are
highly labor intensive and also have export potential so it was mentioned in
economic survey government should give some you know concessions some support
should be given to these food leather sector and this food is this
and textile sector clothing should be given some kind of tax rebate some other
boost also and it is actually not only labor intensive but it has significant
export potential also apart from that women are relatively more in these sectors so
it is also important for women empowerment that is why government should support
this sector then after that government announced some you know stimulus package for
these sectors then there was a question in Mains also one question also was on
Mains on this case support measures for textile and Footwear sector okay that was a
really with current the government is actually supporting these sectors which are
labor intensive so separately I will discuss food processing Industries
apart from that
another is that kid government May directly create jobs to employment generation
and employment generation schemes are not called just employment generation scheme
they are called poverty alleviation and employment generation schemes
poverty
alleviation and employment
generation
schemes
to poverty alleviation and employment generation schemes
to what are these schemes you know these schemes are of two types poverty
alleviation and employment generation schemes
these are of two types
one is wage employment
wage employment schemes
to another itself employment to First write down wage employment schemes
to wage employment scheme to mention that key
under these schemes
government initiates
the government initiates
labor intensive Public Works
Government initiates labor intensive Public Works
example construction of rural roads
construction of rural roots
rural nodes Comet toilets
comma
dwelling units dwelling units means houses
minor irrigation Etc
minor irrigation Etc
Etc and also mentioned this E2
develop infrastructure
this equal to develop
infrastructure
and create
employment for unskilled labor
and create employment for unskilled labor in bracket wage employment
actually like miss you know creating jobs of daily wage job is called actually
wage employment
okay for unskilled uneducated labor
to we may call it in Hindi mazuri to Visage employment
okay so what are benefits of these wage Employment Program so what government does
in this program what I dictated I'm repeating the government start some labor
intensive Public Works program like construction of rural roads or construction of
toilets or construction of actually houses for poor people or construction of any
like minor irrigation like check them Etc or Plantation of trees alongside the road
any workplace started what are benefits here so two benefits are there these
programs will develop infrastructure like roads will be constructed people will get
shelter Etc and second thing is that okay the age employment and skill labor
actually will get a job actually
to the example of this program you must be knowing the most important program is
manrega
mg
nrega
mannega Mahatma Gandhi National rural employment guarantee Act
act and or we can say scheme under this act Mahatma Gandhi National rural
employment guarantee act actor scheme so this is scheme initiated in 2006
to under manrique about government does you know I told you already to understand
government means a village panchayatment take up any work in Village selected
activities could be taken up like construction of Road in Village or any
agricultural development program any soil Improvement program like leveling of
fields or maybe making check dams making toilet constructing toilet any any kind of
work is can be initiated under money so under money you know it guarantees how much
in guarantees job which type of job unskill job wage employment for how many days
hundred days to which person
can we say to all people
to answer is all households yes all households means one member from each
household from which area from rural area so this is only rural area so I remember
I repeat this thing
under money Gaga 100 days of guaranteed employment is provided to at least one
member of family or household for Miss for 100 days of in one year for unskilled
employment so from each rural family one member can be given me is must be given at
least 100 days of guaranteed employment yeah what is meaning of guarantee here
to guarantee means K if Government fail to give job within 15 days of from
application then unemployment allowance has to be paid to the applicant let us
suppose in a village and here in manrega you know there is no target okay we have
to give job to maybe 100 people or 200 people in a village no no target is there so
it is demand driven in our village if 10 people will demand job then 10 people have
to be given job and other Village 100 people will demand of hundred people has to
be given job so whosoever will demand job and from home this program is implemented
through Village panchayat so in a village if any person want job this unskill labor
wage employment then person can apply to Village panchayat and from the date of
application within 15 days job has to be given by Village man child and if job is
not given within 15 days of application then unemployment allowance has to be given
to that worker
that person okay till job is not given so how Village give job to very simple
Village Manchester may start any work relation May assess okay how many people are
there who want job to according to the number of people who are willing to do job
Village panchayat me decide which work will be more beneficial for Village maybe
constructing Road leveling of anything or any project depending on the expected
people who are willing to work accordingly Village Manchester will start anywhere
in the village so that people may start working on that project and they will get
job
to manrega is out of implemented through Village panchayats okay so Central it is
a schema central government but implemented through a state government it is a
technically Central sector scheme
to some funding is done by a state also but that is not much because as such a
hundred percentages by central government only but unemployment allowances by state
government why because if workers are not given job within 15 days it is a failure
of state to state should be at the unemployment allowance
okay to and in case of material cost and skill labor cost 75% worn by Center 25%
by States for skill labor and material cost
so this is these are some features of manrega and these are there is a reservation
of 33 percent for women although actually more than 50% workers in manrega
consistently are women it is laborer Labor's job okay physical work to more than
50% workers usually 53 54 percent workers usually are women in manrega to overall
is it successful or not
to yes obviously answer is yes manrega has been very successful one of the most
you know successful schemes and which was actually also appreciated by the World
Bank and un agencies also some Uno also lot of reports have suggested because in
some areas Monday has been very successful in reducing hunger in reducing migration
from rural areas to urban areas in some areas manager was very effectively used to
increase agricultural productivity like in madhya Pradesh and some other states
also some Southern States in some states like chhattisgarh it was used very
effectively for water conservation projects to Monday has been very overall useful
scheme but there were some issues of corruption also because you know okay the
village panchayat Pradhan may show on paper kit 20 people are working and actually
maybe five people maybe working so there was a lot of corruption cases but now
because of digitalization so now corruption is gradually reducing so we cannot say
has eliminated now but because of digitalization of process on real time
rating of workers so scope of corruption has reduced in one layer
but anyhow despite corruption it was effective to reduce hunger so lot of you and
reports of by International organizations they have actually mentioned case is very
successful and rather some agencies International organizations have suggested
other countries should actually learn from India and implement this is scheme okay
this is one example I just give you brief information about Monday
okay wait employment scheme
another scheme is
earlier they were lot of schemes were there like food for work scheme earlier
various jawaharosgar usually at sector now those schemes have been restructure of
merge into finally Monday this is the most important scheme in this category
now one is self employment scheme and other type of ischemists sorry wage
employment scheme is one second itself employment scheme
self employment schemes
to wage employment and self-employment to write down what are some employment
schemes to mention that
okay under these schemes
government provides
training
and financial support
government provides training and financial support
to unemployed people
to enable them
to engage in
to enable them
to engage in any viable economic activity to enable them to engage in any viable
economic activity
to enable them to engage
them in any viable economic activity
such a viable economic activity is key where any kind of economic activity which
could be economically viable means where they can earn some profit means that can
be commercially could be taken up so in other words we can say that is to set up
micro Enterprises so training is given finances so that they can set up micro very
small company
micro Enterprise
okay to training is given then finances given so that the image set up there own
business I will give you illustration Azure this training is given maybe to
individuals or to self help groups so who will get the training either individuals
will get
or self
help
groups
called SSG to which is preferred usually in most of the government schemes ssgs
are preferred
so for example a group of 10 20 people 10 to 20 people group is made and that
group is given training
in a particular business activity a particular skill and once they get training
the bank will provide Finance so that they may establish their own business I will
give you one illustration for example group of 20 people was given training in
carpentry work how to make tables and chairs okay so training program is started
now they got they have trained they have to pass us the exam once they got the
certificate then bank will give them loan Finance so that they can buy some
equipment and buy some you know wood Etc and they can actually hire a place and and
then those people will make tables and cheer and we'll start selling that table
since you it means that they will set up a furniture manufacturing company
got the point to First training is given in carpentry and then money was given so
that they can buy equipments and wood Etc and hire a place and they will establish
a funny Furniture Manufacturing Company a small company start selling furniture
other example may be like and some in some scheme women are preferred so some there
is some usually reservation for women in various schemes to let us suppose group of
15 or 20 women is made and they were giving training and swing once they knew how
to sue clothes they may establish a garment manufacturing company they may buy
finances given so that they may buy sewing machine they may buy clothes you clothes
and start selling in in market and that is a government beneficial company so this
is the main set of micro Enterprises this is self employment they will become self-
employed
okay so this is any example of this scheme
I have one more thing here okay a training is given by home training is been given
by either government or even private agencies ngos also to training is given by a
government
or ngos non-governmental non-governmental organizations to government there are
lot of government training centers are there like you know deendayal up at their
Grameen kausal kaushal Kendra and Pradhan mantri kaushal Kendra are there and
various other trainings use of government apart from that end use also conduct
training program okay and government give funding to ngos
okay under skill India also funding is given for this training
second is finance is given to finance is given by a two forms government make Bank
may give Finance
or government may give Finance
such a bank will give in which form
bank will give in the form of loan
bank will give loan you may write down loan bank will give loan and usually at low
rate of interest and government will give Finance in which form
can you suggest name that is in the form of subsidy
to government give grant that is called subsidy to bank will give loan at low rate
of interest and in some scheme government may give subsidy but government don't
give subsidian all schemes some schemes there is subsidy in all scheme subsidies
not there
okay so they will take money and they will set up a business a business unit or
micro Enterprise okay this is self employment scheme any example the example is
this scheme deendayal upaday
National rural
National rural livelihood mission
the deendayal up are National rural livelihood mission to earlier was National
rural livelihood Mission or usually called ajivica livelihood mission
to government has prefix deendayal upada also before this to deendayal upadhya
National rural livelihood mission to under this scheme as I told you get training
is given and then Finance so that people may get job okay a lot of schemes are
there related to this one is even other is in there National Urban livelihood
mission
in urban areas also National Urban livelihood mission
apart from that other scheme is prime ministers pm
employment generation program PM EGP
prime minister's employment generation program it is under Ministry of msme
so this is random Ministry of msme employment generation program
so under employment generation program here loan up to 25 lakh is giving
and earlier means you know there was a skin Pradhan mantri Rose Garden yojana PM r
y
to PM RV was merged into PM EGP Prime Ministers employment generation program so
these are some names of the programs which are in this category self employment
schemes so here in all of these program training is given and then Finance is given
for taking up self-employment so that people may get job and may give employment to
others also
okay though these are poverty elevation and employment generation schemes okay so
whichever program is there you should remember in this category that must be either
way employment or selling employment so whatever employment generation programs are
there they are under two categories one is wage employment other is self employment
okay though these are government measures to create jobs
okay to these are the measures for employment generation now I will show you PPT
of means I have shared the material I'll briefly discuss a few things I'll just
give you overview of of this chapter from the PPT
project if you have any doubt you may ask the doubt
okay though I will give you brief idea about the content I have shared
and because most of the things I have already dictated in the class itself only
few things are there which I have not dictated
and then I will discuss a few questions which were as in means
okay so in this slide I have given you some terms labor force Workforce Employment
okay to periodic labor for survey usual status Etc which I have already dictated
this is a data from periodic labor for survey of 17 18 I have given from the
recent economic survey from the current economic survey I have already given you
six point one percent this data I have given you the only important data is in 16s
and 17 18 6.1 percent and I told you rural 5.3 Urban this here Urban was more but
usually rural is more in general but this time you know rural was more but I
because this I give you data from economic survey but now the latest data is 5.8 I
already give you
5.8 percent this is for 2000
18 19
okay this is for 17 18 and this is for 18 19 so there has been some minor
reduction in unemployment rate in this okay this is for 17 18 6.1 percent but this
data is also important because it was much it was much in news actually once this
data was released
okay rural urban Dimension I have actually discussed similarly lfpr 36.9 rural
Arman I have given you I get wpr is not so important worker population ratio is not
so important total workers divided by total population multiplied by 100 is not so
important
okay this is data or based on current weekly status so I give you already data ke
last last time it was how much 3.7 percent and now in 1718 8.9% data I give you
already to it increase from 3.7 to 8.9
so this is a
fifth annual employment unemployment survey so I already give you data about
unemployment rate
so this is you know this is actually data of this
lfpr
okay labor force participation rate to lfpr you know such a why lfpr is too much
here 50.3% as per ups and 52.4 to lfpr is more here because the criteria is 15 plus
here they have taken 15 years and above this is for 15 years
and above 15 years plus
at earlier I told you okay lfpr I told you about 37 but the criteria in the
previous slide you can see that lfpr
this is lfpr
36.9 this is from 15 to 59 years
what the point and if you see this it is close to 50 percent so if you see lfpr
okay this is lfpr for 15 to 59 years and uses 15 plus means it will include more
than 60 also then it is close to 50 50.3% at in the next slide
Okay so
this is about lfpr
OK 50.3 and as per upss it should be slightly more because UPS has will include
those people who are available for 30 days only so 52.4 so if you see lfpr as per
UPS it is 50.3 as per UPS 52.4
but only rough idea sufficient you need not equal to remember much data
okay this is unemployment rate as per the fifth annual survey of 15 16 data to 5%
as per ups and 3.7% as per UPS
so the data they have given male female transgender and total population
okay the male female transgender total population similarly here male female
transgender also they have covered
to all of this relevant data I have already given you
to classify the classification of workers as per nsso regular casual workers self
employed workers self-employed could be divided in three parts so we have discussed
already
again this diagram shows change in the type of workers to you can see key self
employed people remain same 52.2 50.2 so number of cellphoid people is about 52
percent more than half okay
and other categories regular wage employed and Casual employees so you can see
care regular wage in cell employees increase by about how much from about 18% to 23
percent okay so about 5% Point casual workers reduce from 25 to 30
so from this is yes from sorry this they have reduced from this
a 25 to 30
so this is sorry this is 30 earlier 11 12 and now this 25 so this is reduce casual
workers reduce and regular solid workers increase
to how much how many people are regular workers
22.8 but it should be clear one thing should be clear regular wages or salary
people are not all formal employees it should be clear so those regular workers who
are getting PF or pension they will be formal all of these are not formal it should
be clear it include formal as well as informal because these are regular or solid
workers
adjust similar thing is shown in in this case share of regular weight slash solid
employed has increased by 5% point and Casual category reduce almost similar data
in this presentation
so you can see just data just for broad idea about the trend rural urban Dimension
is given male female Dimension is given okay what change were made the formal
versus informal jobs I give you data of this what is an organized sector
the definitions I have already given you
okay so what you have to do you have to just go through this and whatever
information new or important which is not there in notes just jot down that
information in nodes okay to go through this this for analytical purpose yeah
analyze and see if any information is there you have to add then add in your class
notes okay don't see them again and again but initially you have to study twice and
think what which information is important as from this table I have given you only
selected data so here
this table is showing to organize sector employment in percentage and organized
sector and total and this is in control so it is not important it should be clear
whenever you see data percentage data is important not in terms of Absolute Data
how many Corona people are there
okay so organize an organized and here formal informal total okay this is four
five here this is 11 12 and this is 17 18 so old data is not important so we can we
will see only this year 17 18 data
formal informal now what percentage of total employees were formal I told you
already
formal employment I give you data 9.98 means about 10 percent are formal so
obviously informal will be about 90 percent so I already give you this data and how
many people are working in organized sector I told you 19.2 so in organized sector
19.2 percent
and remaining will be in on an organizer so I give you data from this table
what the point I just to remember one thing I have not given you this data because
in corrosis is not important
okay
and then I said K earlier it was 9 now formal employment is this in 1718 in 11 12
it was how much 8.1 to it has increased to about 10
to formal employment has increased somewhat but still it is not much so it has
increased from about 8 to 10
and this you can see organizing employment increase from 17.3 to 19.2
so I'm just giving you recap I have already
I give you data
 the most important aspect my objective of taking up here this thing is to make you
understand give which data is important how to interpret data to which data is
relevant to just give you an idea you like when you go through data from any other
source you should able to pick up the relevant data from the perspective of exam
got the point why I have taken this data only this and this only not other data to
try to think over this why only this data why not this data why not this data in
Chrome
to steps taken towards formalization of Labor Market to
this I have not dictated this to you may go through this it's very simple to
promote formal jobs what government did
to government launched Universal for portability of Provident fund account epfo
launched EPF home is employees Provident fund organization has launched a universal
account number service for contributing members so you know if any company want to
give PF to its employees that company has to register its employees with the epfo
let us suppose I am I am the owner of a company I am a company to I will register
if I want to give PF to my employees I will register my employees in epfo I have
once employees are registered to whatever is the basic salary basic plus d a 12% of
that I will deduct from the salary of employee and deposit this amount with the
epfo in equal amount I have to deposit in that okay the 12% I will deposit extra
and percent sell from salary of the employer and that money will be will be
deposited with the epfo the epfo will make investment and then we will keep on
growing and when employability tired they will get money in lump sum
so this is actually about Provident fund
now earlier there was a issue K employees did not had much idea how much money is
deposited because they don't have idea they don't pay from their pocket employers
the form actually or employer deduct the amount of PF 12% from their salary and
employer have to make payment to employees did not had idea how much money is there
how much is the return on that investment how much is the total money so now to
make it clear okay now Universal account number will be shoot to the you know
employees for accessing their PF account online now employees can login to the
portal of this epfo and through Universal account number they will put their
Universal account number and can see how much money is deposited how much interest
so how much money is there in the portal there will be more transparency in the PF
account
second you know government started Pradhan mantri Rose Garden yojana so what is
this yojana
okay government is paying 12% of employer contribution to epfo in respect of new
employees drawing salary of up to 15,000 per month for first three years of their
employment
so what is mean for example if I'm a company so you know I have to pay 12% employ
I have to pay 12 percent to my contribution will be by government means companies
contribution to it means that K if even if I will employ I will register my
employees under PF so they will not be any burden on me so I will be willing to
restore my employees because I will not required to pay anything an employer I have
to contribute to help percent because my contribution of 12% will be by government
okay to benefit is that keep companies will be encouraged to enroll employees in pf
and once our employees getting either PF or pension or Insurance then that
employees is supposed to be formal employee it will promote formal employment
other is code on wages act 2019
to ensure minimum wages to all and timely payment of wages to all employees
irrespective of sector of employment without any we sealing accept money
so actually in case of this government as I told you 44 laws were there now
government has merged into four laws four liver codes one is on wages through to
protect the interest of the workers some minimum wages have been fixed by a
government so that nobody can pay less than that wage and there should be timely
payment and Norms really into overtime Etc have been fixed so that key companies
should not explore in the workers
mudra and start stand up India for creating formal credit to business I as I
totally briefly mudra yojana Bank give loan to companies to existing Ms as well as
for new businesses and stand up India Bank give loan for two new business only for
new business
there is National career service to project launch in 2015 provides a host of
career related services such as Dynamic job matching career counseling job
notifications information on skill development Etc so that actually you know
employers need workers and people they are seeking jobs so this is a kind of
matchmaking between employers and employees to appropriate job should be given to
people and other career counseling skill development Etc
other I told you fixed term employment
to comment actually allowed fixed term employment in 2018
so and the definition they have mentioned fixed term employment workmen as one who
has been engaged on the basis of are written contract for employment for a fixed
term to that is fixed employment means are a person is employed on the piece of
written contract for a fixed term that is fixed term employment earlier it was
applicable for apparel industry now government has extended to all Industries now
now waterpoint the contract can be renewed or terminated according to the
performance of the worker means one term is over the contact may be renewed Miss
employee will continue otherwise maybe terminated terminate me is employee will be
out to what is benefit of this form will have more flexibility in hiring firing
second notification does not permit conversion of permanent post into fixed
employment so government made it very clear key company cannot convert the
permanent workers or formal workers into fixed term employment because it could be
misused
there is under fixed term employment workers will be entitled to benefit available
to permanent workers here this is very important Point okay under this fixed
employment company will miss workers will be entitled to benefits available to
permanent workers it means that company cannot be less salary for the same work if
companies employing worker it has to be same salary and what it is paying to the
permanent workers so the mean incentive of company to higher temporary workers is
that key the company has to be less salary here salary cannot be less so the
incentive to hire you know temporary workers will reduce so it will promote
formalization of the job market
to contract workers if turned into this fixed term employee workers stand gain to
in terms of statutory benefits because if the temporary workers they will be
converted to this they will get actually salary equal to the permanent employees
the mood words fixed term employment will make it easier for companies to lay off
workers thus impacting job creation so because it will be easier for companies in
hiring firing policies they will be willing to hire more employees so here two
things are very important here one thing is that it will make it flexible for firms
to for hiring firing so they will be hiring more now one thing second thing is that
key salary cannot be less so the mean incentive to hire temporary Vehicles will
reduce so fun will die like to hire permanent workers these workers on formal basis
so there was a question in prelims also in 2019 on this
other measures for formalization of job GST but gsts are I told you very long
concept or gsts are very important reform it is not just a tax reform it is a very
important economic reforms it has made a structural changes in the economy all
those some negative impacts were there like MSM is that is a side effect as such I
will discuss how this happened but any how this is a very very important reform GST
and how it is promoting formalization I will discuss separately with illustration
digitalization I will discuss in cashless economy through digitalization will lead
to formalization of economy and obviously formalization of jobs DBT also is
scholarship Etc is given through direct benefit transfer in the account of
beneficiaries Jonathan accounts now because for formalization you have to do
Transition through banking channel to an accounts are open zero balance account and
extended Social Security coverage to more workers so there are some schemes launch
I will discuss in financial inclusion some insurance schemes for workers of an
organized sector pension schemes are there Insurance schemes are there I will
discuss
detail in financial inclusion most of these points I will discuss in separate
sections
so these are measures to promote formal employment
so there has been increase in employment in organized manufacturing sector so this
is some data visual scheme manufacturing sector employment has some what increased
to not very important just you can see rough eye for idea
now other is gender Dimension which we have discussed already in much detail okay
gender Dimension can live lfpr in I give you already this data okay lfp are decline
so on the basis of 15 to 59 UPS up SS basis so you can see here unemployment is
lfpr for women was 33.1% earlier and now it is 25 point this person this data
exactly I give you in class notes I have already dictated this data and exact data
is not important only broad idea because you know there are variations in data also
because if you see this data on it is on UPS basis or
or upss basis which basis and it is of which group 15 to 59 or 15 and above to
because of these things actually there are a lot of variations in data so exact
data is not so important only broad idea anyone data you should have idea and
increase decrease by that is important
to though female lfpr is higher and rural areas as computer I told you already it
is more in rural areas the reasons I told you already
especially in agriculture sector animal husbandry sector
okay this is a female lfpr you can see earlier actually it is much more rural
areas as compared to urban area you can see lfpr actually rural areas is more than
urban area
and lfp are declined some what which is shown in this diagram
okay although I have given you much data factors influencing female lfpr I have
already dictated the points and why unemployment is high why lfpr is actually low
the demand side supply side same points which I have created
now initial initiatives to improve female labor force participation to various
initiatives were taken to safety of women at workplace to government has this to
ensure safety of women at workplace this act has been you know passed by government
apart from there to check harassment Etc please
apart from that you know affordable accommodation for women women helpline scheme
One Stop Center for giving various types of employment related services to women
okay apart from that working women hostels
okay apart from that mahila Shakti Kendra mahila shaktikin this is schemes to
empower rural women through Community participation so various schemes are there
for women empowerment so these are simple just go through to female
entrepreneurship you know Pradhan mantri mudra yishna so I told you already in
mudra you know as well as in stand up India there is reservation for women to every
bank branch has to give one project established new project for one scsd and one
for women under stand up India mahila e heart
so it is actually online marketing platform to support women entrepreneurs to
prove if a company's owned by women then for marketing products this is the online
support
system other is prime ministers employment generation program PM EGP I have
discussed already K on earlier it was Pradhan mantri those are USANA to under this
there is some reservation for women
under the scheme women entrepreneurs are provided 25% and 35% subsidies for the
project set in urban and rural areas in urban area 25% subsidy for women and in our
rural area 35% subsidy because I told you cleaning is given and then finance and
financing include bank loan plus government subsidy so subsidy is there for women
in this project
other is deendayal until the unit this until you know National rural Lively
Admission Day d a y actually deendayal until the yishna nrlm so I have already
discussed briefly there is some organization of Miss there is some reservation of
women and Target is that key from every household one women should be brought under
SSG for seven employment
okay apart from that rashtriya mahila Kosh to various actually you know it is a
microfinance Organization for giving microfinance so that women can borrow and take
up a small business
 which are regarding skill development so I have told you already K according to
this survey pfls only 13.53 percent of the were Force has received cleaning this is
from economic survey directly
2.26% formal vocational training and 11.27 formal training to informal training so
it means that not even three percent of Labor is receive a skill from formal
sources
which I told you already
statewise data is not very important only brief idea you can have
to you know skill India Mission so there is some ideal represent mantri question
because USANA to promote skill development various skill centers have been
Development Centers have been established by government
and reforms under Apprentice apprenticeship act to encourage firms to recruit more
apprentices okay so you can see some basic actually Mis features to which
encourages forms to recruit to a point that trainees
this is on jobless growth to data I have already given you on jobless growth okay
growth of GDP is increasing you can see and growth of employment is too low now
such a demographic dividend the meaning I told you already
India has 62.5% of its population in the age group of 15 to 59
which is ever increasing and will be Peak at 2036
okay so after 16 years it will Peak then it will reach approximately 65 percent so
it's from 62 to 65 and then it will remain at high level and gradually will
decrease now I'll show you that trend
so this is ratio of working age to non-working age population so this is WM is
working age slash non-working is population okay to ratio of working is population
to non-working is population to right now that is in 2020 this is India
so how much is ratio
about 1.7
okay what is meaning of 1.7
for example if 62% people are in this working age to 62 percent OK 62.5 percent
okay and how much will be the ratio of non-working age so if 62 are here I'm make
it short 6 to 2 how much will be non-working age population remaining remaining
will be how much remaining will be you can see 30 it percent
38 to 62 upon 38 to it will be how much it will be about 1.7
whatever is close to 2
this Lively less than 2 so it is in this manner it is calculated working east
divided by non-working age to working age is 62.5 and remaining will be non-working
age so if you divide this you will get about 1.7 okay so in India
if you see right now in India it is this but in Brazil it is higher than India
in Korea it is higher in China also higher right now it is higher but what will
happen after few years you can see K after 5 after within 10 years after 10 years
you can see
this will be highest in India
in Brazil China
Korea it is going down in developed countries already already low
and then you know it is declining at very sharp peace so it means that after few
years after one or two decades although it will reach it vegan 1936 but it will
gradually decrease but in other countries it will decrease much so this is the most
important Edge which we have over other countries but I told you already okay for a
key if we feel to create jobs and provide basic amenities to people like education
is still development then it will not be beneficial rather it may have negative
impact on the economy so that is why job creation and providing basic facilities to
people like health education has become very very important or we can see in
dispensable so this is actually the this diagram shows key what will be percentage
of young population in the total population in the country with the rest of the
world
I think clear I just some doubts are there let me take doubts
Shivam your doubt after a lot of government efforts to create jobs is still there
unemployment rate is high India what can be possible failures of government policy
to you know practically it is difficult first thing is that you know all
governments try to try to create jobs okay every government try to create a job
even this government took a lot of measures to create job but practical constraints
are there okay practical constraints are there apart from that the flow may be what
some economics believe is still expenditure on social sector is not enough
especially on education especially on vocational education training skill
development I think should be more and government should promote I think rather
focus more on self employment so to enable people they should be given technical
assistance which is given under like a startup India so that such scheme should be
further enhanced large scale so I will discuss few shoes in that so practical
constraints are there but only thing that government should be focusing much on the
issues are what suggestions we can give government should focus on labor intensive
sectors apart from that skill level should be even top priority like basic things
like Education Health and basic infrastructure the government should be spending
more on social sector whatever government is spending that should be further
increased
apart from that you are even DBT and Ubi could be effective to in government
budgeting I will discuss some constraints are there in that to Ubi can be effective
because it will eliminate hunger and poverty
okay so constraints are there practical constraints are there it is endeavor of
every government to create job you know so but practical problems are there
apart from that abdull your question is the impact of brain brain theory on Indian
employment significant
to bring is their certainly you know why because in India the quality of jobs is
not comparable with the developed countries so those people who are more qualified
and the more Dynamic may think of getting better you know career opportunities they
migrate outside to do some extent there is drain brain drain but I don't think it
is a major problem yes it is issue it is a problem if those people who are working
in other countries like in America and other developed countries you know those
Indian people might be working in India it would be better okay like our you know
you know business environment would be better or research our ending will be better
so it would be better but practically it is difficult you know we have to provide
more job better quality of jobs better being jobs then we can 100% check that so
this is one minor problem not a major problem why minor I'm seeing in the sense key
not you know although India's Indian people are the maximum in the world Indian
diaspor
maximum in the world so because maximum you know diaspora who is working outside
its own country is is that of India's okay but there are even benefits of that
diaspora benefit is that you know that they are sending remittances here to India
as the country receiving maximum remittance in the world apart from that if Indian
people are there in America Etc so it also in enhances are influence there to some
extent means RC some what increases okay like in US elections you know the
political parties they try to influence Indian people to this was one actually
other benefit of that but anyhow overall there is a loss of brain drain
okay next question is arbit arbit your question can you briefly highlight what all
Dimensions need to be incorporated in this China is one of the biggest examples of
export led economic growth yes critically analyze how sustainable is the model of
export led economic growth in current challenging global economic order
so I told you there are two main pillars of Chinese growth earlier I have only
told you in investment key one is a you know investment was very high in China
second export actually was quite high so export growth land growth model is really
very effective very useful there are a lot of benefits because export land model
actually means make it do or die situation in for enhancing efficiency because if
you are industry is not efficient you cannot export much okay to overall this
create more jobs also GDP growth also increases so that is a very good strategy but
in the recent context so we have discussed I have already discussed this question
but in the recent context you know where there is anti globalization is increasing
so certainly the scope of this model actually will reduce and China is already
facing this problem that is why China is planning to diversify its markets to Asia
because main Market of China is America and Europe
 there are protection is policies there and some tariff Wars now so China is
applying time trying to diversify markets like through rcep and China has set up
its Investment Bank Asian invest infrastructure Investment Bank in this Asian
region to China is playing to diversify its markets because so obviously at Food
LED growth model is very useful because it will create jobs it will increase
employment in the country and it will increase GDP growth it will
in give us more Forex which enhances are you know Forex Reserve which provides us
purchasing power to buy anything from the world to forexes are very important to
external sector improves Global you know competitiveness improves and credibility
improves they are not a benefits of this but there is vulnerability increases the
issues that K why China was affected more than India
China was affected more because China was more connected we are not exporting much
our share in World export of goods is about 1.7% only
1.7 something okay though less than 1.8 percent is our sharing world's merchandise
exports so we are not affected much so right now the scope of export led model is
actually slightly challenging it has become more challenging but anyhow it is
desirable and we must try to focus on export line growth model and we are focusing
on promoting exports I will discuss a lot of measures were there to promote exports
although it has become challenging but we cannot solely rely on that export growth
model just like we have discussed a China has faced problem recently so but anyhow
in the context of Chinese model we cannot say we should abundant that model we
should not promote export no certainly it is not desirable promoting exports is
very important in this economic survey this is economic survey there was a chapter
that means jobs through you know trade
to there was a question Mr chapter kid jobs through trade means if you promote
trade then it can create jobs in the country so they have identified some items
where their we have more potential for export as well as more potential for job
creation like they have used over network products network products are like
Transportation equipments like Vehicles buses car Etc and communication equipment
like Telecom Etc and assembling of things like car mobile phone so in these items
are very labor intensive and we have had a comparative advantage in export so in
this case economic survey it was suggested we should promote export of these items
they will create jobs and will increase for so okay I just give you one
illustration so it means that can now it has become challenging but we cannot
abundant that policy we have to you know promote exports but we cannot slowly rely
on that
okay now next to so this is all in this chapter now some questions finally last
questions actually
so these are I told you in the last six years four questions were asked from this
so in 2016 you know this question was asked
okay how globalization has led to reduction of employment in the formal sector of
the Indian economy what you have to write here
heavy discussed this which thing you have to write can you give me brief answer
how globalization has led to reduction in employment in the formal sector of the
Indian economy can you give me suggestion what should we write here for this first
part of this question have we discussed so if we have discussed which part you have
to write can you mean short answer
such as if you have mentioned K in the previous question us and India always hit
China hard it is not more reliable in case of India no I think promoting export is
not bad so we should promote export but we should not much Reliant too much on
export-led model and scope is not much right now we cannot expect it just like
China when it benefited from export led model earlier now situation is not that
because they are protection is policies
to disinvestment in formal sector so
Shivam you have mentioned K discernment informal sector heavy discussed yes nobody
has me answer to you have to write reasons of jobless growth
okay in this what you have to mention
causes of jobless growth rather we can I have discussed already
causes of
 jobless growth
so you know globalization because we adopted LPG policy in 1991 and L and PNG are
interrelated I told you what is globalization globalization simply means scale
liberalization of external sector policy and liberalization of R economy to has how
globalization has led to reduction in employment in the formal sector of the Indian
economy to reason is that the formalization globalization you know after LPG policy
after globalization of Indian economy but you should not use the word LPG you
should use the word globalization to globalization of Indian economy you know
opened up the doors for foreign companies so what happened an important items MSM
is where adversely affected
what the point globalization benefited more service sector which fail to create
much jobs
got the point that is why formal jobs reduce okay msme is our adversely affected
apart from that after globalization investment was merely in private Capital
intensive sector to all those points
okay just let me complete it and then we'll have break then after that we'll have
next topic
so what the point to causes of jobless growth you have to mention here
this is increased informalization detrimental to the development of the country
to very simple what you have to write is increase informalization detrimental to
development of the country obviously answer is
yes what are the what you have to mention the implications of informalization I
told you k for employees low salary no job security
what the point here no social security no job security
and for firms I told you some advantage and disadvantages so you should mention
mainly to is it obviously detrimental so for employees as well as for the forms
both so we have discussed already the implications of informational directly you
have to write
no second question
comment on the challenges for inclusive growth which includes
comment on the
now we are too late today in break okay let me complete this comment on the
challenges for inclusive growth which include careless and useless Manpower in the
Indian context
to challenges of inclusive growth which include care less and useless what is
meaning of careless and what is meaning of useless can anybody give me some clue
what is meaning of careless
and useless here Manpower
comment on the challenges for inclusive growth which includes care less and
useless Manpower can anybody give me answer what is meant by careless
and useless Manpower
okay just think and give me answer
suggest measures to be taken for facing these challenges
okay so can anybody suggest me what is the meaning of this careless here
because you know for inclusive growth employment is very important so the main
challenge in inclusive growth is which means the main challenge to inclusive growth
is careless and useless now you know careless means here what
anybody can give answer yes I have received some options yes
unescript laborious disgrace and employment and skilled labor careless means
trained in capacity no disguised
occurs you have given careless means 3 train incapacity no that is not care less
that is useless
such arpith you have given answer useless means unskilled yes you are correct
careless means disguise no
Okay so
actually
careless means informal
informal
and useless means unskilled
 whatever useless means kill labor is less useful because it is lacking skills lack
of skill development
okay labor is less the qualifications expertise means so that is actually
unskilled untrained
and in careless means give since labor is informal okay so since informal it is
not attached with the company to it is careless so you have to mention two problems
one is informalization other is actually lack of skills
and both of these things will you know informal they will reduce job security
Social Security informal job so that is why labor is careless useful and it is
having welfare implications I told you already informalization so you have to
mention because of this inclusive growth is being affected
what the point because the one constraint or challenge we are facing inclusive
growth is the informal care less that is informalization of Labor Force so low
salary no job security I told you already
and useless means okay unskilled Manpower you know the salary or remuneration of
any labor or anybody depends on the productivity of that if any factor is less
productive the relation will be less so because of actually you know unskilled
labor there remuneration is less selfies are low income is low productivity is low
and income is low
okay so whatever income will be low standard of living will remain poor and
overall inclusive growth will be affected so in this answer you have to explain
okay how exactly careless means informalization is challenging the means is is a
kind of hurdle in achieving inclusive growth and how this lack of skills okay miss
our challenging in Kosovo why lack of skill means less productivity less income
less income is lowest end of living of people and overall it is challenging
inclusive growth
so this is a slightly tilted language is there in this question other is suggest
measures to be taken for facing these challenges so what you have to take measures
to measures to promote formalization of economy and I just to promote skill
development
improving vocational education skill development training Etc
okay now third question
the nature of economic growth in India
is described it should be is described as jobless growth
do you agree with this View
give arguments in your support in support of your answer
so we have discussed already to jobless growth I give you actual data okay jobless
growth and the causes we have discussed so this direct question we have discussed
in jobless group and now last question while we found India's demographic dividend
we ignore the dropping rates of employability
what is mean meant by employability here
while we found India's demographic dividend we ignore dropping rates of
employability what are we missing while doing so where will the jobs that Indian is
depleted desperately needs come from okay so first of all what is meaning of
employability
actually employability of person means the capability of person to get job so you
know employability of people will increase when people will be more skilled more
healthy more trained more educated to while we found India's demographic dividend
means you know we are happy kvr benefiting from Democrat dividend but we are
ignoring dropping rates of employability it means that key in India's labor is not
well educated it is not well skilled professional education vocational education is
actually not up to the mark okay so this is the problem to until less we improve
this we cannot achieve our objective what the point we cannot benefit from
democrativity dividend
to what are we missing while doing so what we are missing we are missing K we have
to enhance employability and even not only employability we have to create jobs
also to both aspects you have to mention to what we are missing to we are actually
are happy we are actually building upon demographic dividend kvr expected to
benefit but we are missing in that sense if we have to and take care of
employability it means that we have to take care of two things here we have to have
and has human capabilities by providing them Education Health is called development
Etc vocational training and second we have to create jobs for them only then
demographic dividend could be useful
okay to on this where will the jobs that India desperately needs come from to what
you have to write here
where will the jobs that India desperately needs will come from explain to Simply
you have to mention what employment measures to create jobs like promoting
investment promoting msme's entree relationship development employment generation
program from these job will come from what the point here so you have to write
where will the jobs that India desperate needs come from Simply measures to create
jobs which we discuss okay these were the questions which were asked in last six
years in means
okay so this is all in this topic because these are very important topic to that
is why I have gone in much detail of this in the in the step topic so this is all
in this module this topic and this module okay now after break we will after five
minutes we will continue new module that is third module okay we will continue
after five minutes
okay now next is we'll take up the third module that is microeconomic Concepts so
in this module we will discuss basic concepts from microeconomics mainly some basic
terms and then their implications in Indian economy okay so I told you
microeconomics is not as such you know relevant for upsc exam but why I am taking
up this concept from microeconomics there are two reasons why I am taking up this
topic because our entire discussion will pertain to macro
all modules are written with macro only only one chapter is on micro so the two
reasons why I am taking up this topic one is that sometimes some question may be as
in problems relating to basic concept from microeconomics some term may be also one
reason is this okay and second reason is that okay some basic concepts from
microeconomics are important to understand macroeconomics from Indian economy so my
here approach will be I will discuss basic concepts from microeconomics like demand
Supply equilibrium and then I will give you practical application in Indian economy
so with the help of demand and Supply curves I will give you rational of economic
reforms why markets are better just like I told you keep markets are better in
general and government intervention in markets to process and cons of capitalistic
on me I will give you that illustration with the help of demand and Supply curves
okay so I will give you applications in agriculture sector okay what why price are
you know unstable what is justification for MSP to with the help of demand and
Supply curves basic concepts from microeconom
I will analyze some real economic situations means Indian economic situation here
okay the focus will be on application here in this chapter
okay and earlier what we have discussed till now in first module we have discussed
basic concepts of growth and development how we measure development like and what
factors which affect development like investment and second chapter we have
discussed Indian economy in nature of Indian economy and then unemployment in India
poverty and inequalities in India from Indian context economic situation in the
country and socioeconomic shoes and now in third chapter it's a entirely different
it is actually basic concepts and their applications
so I will start with basic terms because we don't have much time we can't take up
any major topic here so I will start with some terms basic terms so first of all I
will start with types of markets
okay to briefly we'll discuss the basic terms like what are types of markets so in
economics you know markets are classified in 4 categories so what are the types of
markets
okay so first basic concepts and then we will discuss applications in the second
next section
so which is best Market best Market is perfect competition
perfect competition
is the best type of Market
okay second exactly opposite of a competition is Monopoly
 okay Monopoly
and there's a mixture of both perfect competition and Monopoly what is that called
that is called monopolistic competition
monopolistic competition
and finally
the fourth is oligopoly Oli g o p o l y oligopoly
to markets are of 4 times broadly
okay to one by one we will discuss the Fair competition Monopoly monopolistic
competition and oligopoly okay so first of all perfect competition do you know
number of forms should be more or less
to since competition is much here so obviously number of form will be more if
number of form will be less than competition may not be much so here one feature is
that very large number of firms
very large
number of fonts
okay but as I told you economics is social science so we don't have rigid
definitions and very large we cannot say more than 1000 or 1 lakh there's no number
essay very large number of functions large number of firms are there and if there
is competition what do you think the what should be nature of product so if I give
you three options which one product will be same or somewhat different or different
or unique product entirely different so first option we seem as for same default
somewhat different and you for Unique so you may give four options keep productive
seems almost similar some what different slightly different means difference me
some more differentiated and other is unique product completely different what do
you think when there will be best perfect competition when all from these things
same products somewhat different products or unique product every form will have
own its entirely different product so please respond to this question
to radhika you are correct same
and Shivam you are wrong different no palak also if you are wrong Pawan also
different so most of you are wrong here
prachi you are correct so most of you have given to answer is same because if
product will be different how perfect competition could be perfect then you know
different forms will say our product is better so that is why those from who can
convince consumers care my product is better they may charge high price so product
should be same
okay because the product may be different then competition will not be perfect to
the condition perfect when product will be same so it is called homogeneous product
same means
homogeneous product
okay homogeneous means same product all funds will be having exactly same product
so this is perfect competition these are the two main features of perfect
competition that type of Market how we Define perfect on this you know any
definition of any of these Market actually these are defined Market is defined on
the base of first two features how many firms are there and what is nature of
product so definition of this is it is a type of Market in which there are very
large number of firms selling a homogeneous product this is a standard definition
okay what is defination that buffer competition is a type of Market in which there
are very large number of firms selling a homogeneous product okay this is a
standard definition
any example of this
any example
to practically do you think it should be common or uncommon
though very easy answer
answer is obviously uncommon because Perfection is not possible in real world so
you hardly find any example of this practically it is almost non-existent why
because sums always what form want to make same product or different product from
others what do you think the very easy answer if you will do business to you start
producing this pen to would you like to produce the pan Which is similar to all
forms of different than others
 to obviously you will try to make different so that you can show him my product is
better and you can charge high price so what the point from never want same product
why because if the product will be same they cannot charge much higher price to
form one to charge high price to make more profit because price is a part of
Revenue as I told you Revenue Minus cost is profit so firm never want same product
to practically in manufactured items from never want same product so they make
minor differences even so practically you hardly find this Market
this is mainly confined to some natural products where changes cannot be made much
for example maybe like wheat to a market which is close to this is example is wheat
because read of a particular grid although there are grades in weight wheat to
wheat of a particular grade actually is exactly same produced by any farmer in any
part of the country so what the point example may be wheat and some other natural
products like although there could be varieties in other products in wheat
varieties are less relatively so in rice more varieties are there though that is
why I have not give an example of rice so it should be clear practically Perfection
is not possible so this like wheat is somewhat close to perfect competition okay in
case of wheat here who are farms
to forms means here Farmers got the point Farm Miss Farm is producer to producers
are farmers to many farmers grow wheat and wheat is exactly same Veet of a
particular grade is exactly same produced by any farmer in any area so this is
example of perfect competition but practically in manufactured items it is almost
non-existent it is rare because in almost all products firms differentiate product
clear now some more analysis I'll go to some further analysis
that in this you know who will fix the price from or Market
so in this you know price is fixed by market the price of product will not be
fixed actually by the form the overall on the base of demand and Supply so here it
is said keep Market it is said Market is price maker
and it is said the form is price taker
for example take an example of farmers so who decide the price for example in case
of wheat who decide the price farmer or Market means Monday
to prices fixed by farmer or Mandi
so you must have idea keep price of wheat or any agriculture Commodities fixed by
in Mandi on the base of demand and Supply to Farmers will sell they will supply
wheat and the traders in Mandi they buy they create demand so on the base of demand
and Supply prices things in Mandi
okay so I will discuss demand and Supply Acres demand is like this supplies like
this to try this is price and this is quantity so on the base of demand and supply
how much quantity will be sold at which price it is decided to overall on episode
demand and supply
to supply will be created by farmers who will create Supply
by farmers
I will explain the demand Supply curves later okay to just you may just draw for
understanding but I will discuss in detail
how these guys so he this will be great by farmers and demand will be created by
buyers
in Mundi buyers are buyers means here the traders in Mandi
okay on the base of demand in Supply so if you know how prices fix on the way so
overall demand in Supply and if Supply will be more production will increase Supply
will shave right word and price will come down okay so when more production usually
price reduces in Mandy and you know Price farm is called price taker so price taker
means he firm cannot influence price here why from cannot influence price farmer
has to sell weed or anything at a price which is really farmer cannot fix the price
directly it is fixed on the base of overall demand and supply
at a half form influence price for a firm you know influence demand or Supply
firms create Supply so if Supply will be reduced means leverage it then price may
go up so if one farmer may not supply in Mandi to will it affect overall Supply no
to single farmer or few Farmers cannot influence Supply so they cannot influence
price
and if from How firm exploit consumers you know from exploit consumers by charging
high price so can form here exploit consumers can you give me answer because some
exploits consumers by charging high price so can you give me answer key can form
exploit consumers in this market yes or no
to please respond
adjust Shivam you have mentioned Ki mention country which have which Market in our
particular country all types of markets are there
such a rapid you have one question if we have all same products then what
competition that that is their competition okay every company selling same product
that is why this competition k no company can charge high price
what happened overall prices fixed on the base of overall demand and Supply just
like farmers are selling weed lot of farmers are selling same quality of quality of
it that is a price exactly same and no firm can charge high price that is why no
firm can exploit to obviously all of you are correct here so there is no scope of
exploitation
since price cannot be influenced by market so you know how company How firm
exploit consumer buying price since firm is a price taker so fun cannot fix price
so that is why here no scope
of exploitation
exploitation of
consumers
to know a scope of exploration by consumers because How firm exploit consumers
buying high price and firm cannot fix price so that is why firm cannot exploit
consumers
okay to arpit you have mentioned KV have if all forms have same product then what
competition that is why then only then there is competition because a lot of forms
are selling so whatever price fix on the base of market demand Supply you every
form has to sell at that price no firm can charge high price no firm can exploit
consumers and then you are mentioned then there should be at least some uniqueness
in product of same category in profession no no if product will be unique then will
be different than competition will not be perfect because then different from will
charge different prices here mean thing is that keep price remains you know is
decided by the market and here from an only normal profit here High profits are not
possible
to why you can see you know in this market High profits are not possible and high
profit means exploitation of consumer what the point exploitation is high profiter
you can I'll explain so if there is let us suppose if there is high profit
okay High profit means okay pharmace charging much higher price for example firm
is making this pen the cost may be 9 rupee to firmly charge 10 rupee 11 rupee but
for maybe charging 20 rupee 9 rupee cost and charging 20 up earning 11 would be
profit that is very high so what will happen
if and you know since number of companies are large to entry or form will be easy
or difficult in this market to enter to obviously easy otherwise from cannot be
large so what will happen if production of this pen is highly profitable what will
happen more and more fun will enter more and more people start producing this pen
to what will happen it will lead to entry or forms
entry of firms means new forms will enter
because it is highly profitable then more and more firms will try to produce this
item
so when firms will enter what will happen
Supply
will increase means more Supply
and when Supply will increase
what happens in Market you can see when there is lot of fruit or vegetable is
available in Market when Supply increases price increase decreases
price decreases because two cell more they have to reduce price the price will
decrease
okay when price will decrease what will happen
their revenue will reduce price the part of Revenue I told you already and profit
will reduce
 profit will reduce and profit will keep on reducing till profit remains normal so
in this market profit always is normal
so I repeat once more okay why normal profit is their normal means can know is
over exploitation and normal profit must be there yes or no
to obviously firms are doing business to entrepreneurs they have they are taking
risk they have made investment they should get some return but that return should
be reasonable should be normal profit the only normal profit is possible here why
in high high profit is not possible here the high profit maybe there but cannot
sustain in this market if if I repeat was more okay why profit cannot be very high
and high not high profit means no more exploitation now you can see again if profit
is high then entry of new firms will be there new forms will more and more people
will start producing this item when more form will enter Supply will increase and
whenever supply of anything increases price reduces okay I will illustrate Supply
right word and price will come down to supply price will come down in profitable
come down because what is profit Revenue Minus cost and revenue is price into
quantity to when price will come down try Revenue will come down profit will come
down and profit will keep on reducing till profit will become normal
what the point to high profit is not possible here so this is actually the best
type of Market because exploitation of consumers is not possible
and what the point here other is this demand supply curve I will explain later so
don't worry I will take up later because a long topic so I will explain to you
should remember in just concept key Market will fix the price here demand and
Supply overall firm will not fix Miss farmer don't fix the price just think of
farmers if you have idea how price of wheat is determined it is not things by
farmer it is fixed in Mandy and farmer can sell in Mandy whatever price is
prevailing at that price
and here we can say free entry and exit of firms also mentioned free entry
and exit
or forms to Any Time firm can enter and anytime from can exit for example in this
case any farmer can grow weed to entries very easy no restriction is there no
permission needed from government and exit means anytime may not farmer may not
grow it again
so this is best type of Market but do you think it is practically
possible as I told you already Perfection is not possible so this is very rare so
this is best but problem is that it is rare and merely confined to National
products
okay so this is perfect competition the best Market
okay now exactly opposite of this is Monopoly mono means single
to Monopoly means single firm
to single firm means K there is only one producer of one seller of a product
now what do you think product should be here same different or unique
okay can you give me answer product should be same somewhere different or unique
to S U or D give me answer s for same default somewhat different and U for unique
so very simple if only one firm is there to know from this producing that product
then certainly product should be
unique
yes here all of you are correct here unique yes to product should be unique unique
in the sense key you know if let us suppose I am the only company which is
manufacturing marker nobody selling Market in India I'm the only company which is
manufacturing and selling marker so no companies having marker in India Company may
have pan or chalk but this marker will be a unique product
so I think what the point okay and what is definition of monopoly definition is
that it is a type of Market in which there is a single firm selling a unique
product this is the standard definition of monopoly okay type of Market in which
there is a single form selling a unique product
okay now okay what do you think I'll I'm going in some detail here now one
question can I say there is no substitute if I say to is it
correct or wrong now try to think if I see k no
substitute is it correct or wrong just I don't see or w c for correct W for wrong
no substitute to correct or wrong it has the product let's suppose I am the only
company selling marker so can I say they will not be any substitute of this product
no substitute
correct or wrong
to is it correct or wrong
to all of you have given correct answer but your answer is wrong actually it is
wrong
it is wrong
the only few have given wrong on answer wrong to actually majority of you have
given answer C and C is here not correct so it is not correct why if let us suppose
I am the only company producing marker so can he can we say there's no substitute
to it is certainly wrong to say no substitute but certainly nobody's producing
marker but people are producing chalk chalk is not a substitute of marker
yes or no chalk is a substitute of marker yes or no or smart board is also
substitute of Markley yes why not but what we should write no close substitute so
what is mistake here the mistake is that case substitute will be there but close
substitute will not be there so you should mention no close substitute
what the mind to close substitute will not be there but substitutes are always
there
what the point substitutes are always there in general like marker is not they
were chock is a substitute a smart board is a substitute
clip to no close substitute so I have gone in some detail
now here who will any example of this Market
certainly you know it is very rare because hardly any single company is there
every product display lot of companies now so it is very rare Market to example is
a real ways
like Indian railways
because Railways is reserved for government of India to railway Services can be
provided by government only although government is doing partial privatization but
overall owner will be government railway station track will be owned by government
to Railways actually the Monopoly of government such a why it is Monopoly because
government reserved Railways for government public sector to private companies not
allowed in general although there is some minor Outsourcing of minor privatization
but overall Railways is owned by government
okay to deal with the one example of Monopoly so is it common or uncommon
to obviously monopolies are also uncommon because hardly I told you monopolies are
there right now now next question from you people here you know you know who will
fix the price very simple form will fix the price to okito you just mentioned if
Farm is price maker to hear from your farm is price taker here who will fix the
price because if I'm the company selling marker I'm the only producer of marker who
will fix the price I will fix the price
because market supply is same as form Supply so here you mentioned form is price
maker
form is price maker write it down then give me answer of another question
can I see if form has full control over price
is it correct
if I say it means that key form
has full control
correct or wrong
to give me answer correct or wrong if I farm will fix the price if I am the cell
of Mark I will decide at what price I will sell my market so can I see from his
full control over price
form has full control over
price correct or wrong
okay to here answer is mixed some people have said correct some people said wrong
to answer actually it is wrong it is not correct
if I'm the only seller of Marca I will not have full control over price it should
be clear I will fix price but I have to keep the demand in in mind for example if
I'm the seller of Market nobody can sell Market in India I am the only company
having marker can I sell marker in one crore rupees
possible
I can fix price 1 crore rupee on this MRP one crore rupee but problem is that who
will buy nobody will buy
so can I make profit no I have to keep demand in mind I have to see at what price
people will buy and if I will increase price not much people will buy it so I have
to keep in mind demand so firm don't have full control to just change this to
Illustrated off actually full control write down considerable
firm has considerable control over price so write down considerable here to
instead of full
to write down considerable control over
price
to firm has considerable control over
price not full control okay so because full control means because why not full
because firm has to keep in mind the demand in the economy and you know since firm
is having significant control over price and price maker to scope of exploitation
should be there yes or no
those answer is yes so significant scope of exploitation usually form and high
profit okay usually here High profits are there
usually High profits
and do you think entry should be here easy difficult or restricted what do you
think easy difficult or restricted
to obviously answer is
restricted otherwise firm may be more even if it is difficult some from he might
have entered so it is restricted to restricted entry of firms
restricted entry
of forms
some restriction could be there and that restriction may be like in this Railway
what is restriction restriction is a reservation for government private companies
not allowed in general overall
other restriction may be a patent like a company May develop a technology and may
take a patent patent means exclusive right for use so no other company can make
that product so maybe a pay attent or maybe the reservation for government sector
Etc maybe restriction some kind of restriction must be there because if there is no
restriction then company will enter Monopoly will never sustain so this is actually
Monopoly and it is desirable undesirable in general
to obviously it is undesirable why because in Monopoly you know firm has price
control has considerable control over price from charge usually high price and make
huge profit and earning huge profit means exploiting consumers so it is not
desirable or we can say a worst type of Market
but can we see Monopoly of government is also undesirable
so obviously no for government because main objective of government is not to make
profit so governments monopolies are not undesirable okay but private monopolies
are undesirable in general so this is a best type of Market this is worst type of
Market but practically neither this is there in real world nor this is there which
is most common market the most common market is the mixture of both some element of
Monopoly some of competition monopolistic competition so it has features of both
the things Monopoly and competition
the feature of competition is that firms are large but feature of Monopoly is that
if products are different differentiate product okay so we will continue next
lecture now so we will continue this in next election
okay that's all for today