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Ef4c HDT Niti PC Fyp Unemployment Pcb11
Ef4c HDT Niti PC Fyp Unemployment Pcb11
Table of Contents
(Batch: PCB11-Prelims ONLY) Mrunal’s Economy Pillar#4C: NITI, PC, FYP, Indicators- Unemployment→ Page 798
47.5 Unemployment → Involuntary → Types............................................................................. .819
47.5.1 🙍♂️ Unemployment Major Types and Reasons: (बेरोजगारी के प्रमुख प्रकार/ कारण)......................819
47.6 Employment related Terms in News........................................................................................... .821
47.6.1 📈 Baumol’s Cost Disease Theory / labour cost rising (1965)........................................... .821
47.6.2 🌙 Moonlighting..................................................................................................................... . 822
47.7 🙍♂️📊 Unemployment → NSO Survey Types............................................................................. .822
🙍♂️📊 UNEMPLYOMENT: Periodic Labour Force Survey (PLFS).................................................. .822
47.7.1 📊 🙍♂️ Indicators → unemployment rate (UR: बेरोज़गारी दर)................................................ .822
47.7.2 📊 DATA-sets from PLFS...................................................................................................... .823
47.7.3 👷/( 👷🙍️) Indicators → Worker Population Ratio (WPR)............................................. .823
47.8 👷/( 👼👷👴) Indicators → Labour Force Participation Rate (LFPR).................................... .823
47.8.1 👷♀️⇩ ⇩ Why FEMALE LFPR Declined between 2004 to 2018?...................................... .824
47.8.2 Augmented Female LFPR (सं वर्धित महिला एलएफपीआर)............................................................. .826
47.9👷♂️🙍♂️ Workers Types by NSO...................................................................................................... .826
47.9.1 👷♂️🙍♂️ Worker Types → Census-2011 classification of workers........................................ .827
47.9.2 👷♂️🧱🛺 Worker Types → Unorganized sector.................................................................. .828
47.9.3 👷⏳ Worker Types → Informal worker (अयथावधि/अनौपचारिक मजदूर)................................ .828
47.9.4 👷♂️ 🖱 Worker Types → Unorganized workers → E-Shram Portal (2021)..................... .829
👷🍕🏍 Worker Types 📔 Gig workers & Two sided market - 📔ES21 ................................. .830
47.10 📜🧑🔧Organised sector Jobs related surveys/numbers............................................................. .831
47.10.1 📜🧑🔧Organised sector Jobs → QES................................................................................... .831
47.10.2 📜🧑🔧Organised sector Jobs → Annual Survey of Industries (ASI)................................ .831
47.10.3 📜🧑🔧Organised sector Jobs → EPFO Registered Workers.............................................. .831
47.11 👷🍕🏍 NITI Report on Gig Workers | 👷🍕🏍 How to create more jobs?......................831
47.12 Mock Questions for Mains → NITI PC Unemployment............................................. .831
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46 👳🏻🧔 E CONOMIC PLANNING & ECONOMIC SYSTEMS
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Economic System Capitalism Mixed Economies Socialism
आर्थिक प्रणाली → पूंजीवाद मिश्रित अर्थव्यवस्थाएँ समाजवाद
govt’s problem. For others → market shops.
-
forces will decide.
Presently, most nations are ‘Mixed Economic System’ including USA and India. While China
officially claims to be ‘Socialist’ but, in practice, they too have become a Mixed Economy. (वर्तमान
समय में ज़्यादातर देश को ‘मिश्र’ अर्थतंत्र ही है- चीन ने भी ख़ुद के समाजवादी होने का दिखावा करता है, किं तु ‘मिश्र’ है।)
- The socialist economic system stopped in most nations after the collapse of USSR, except a
handful of outliers like North Korea, Cuba & Venezuela.
- Communism is a branch of socialism, (usually) run by a totalitarian government made up of one
and only one party. (साम्यवाद- समाजवाद की एक उपशाखा है जहाँ सामान्य रूप से एक तानाशाह सरकार होती है.)
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(Normal) Capitalism 🤑Anarcho-capitalism (अशासनवादी पूंजीवाद)
• We don’t care, if current account increased
for local industry ruined after such action!
Why in news? Ans. Argentina’s new Prez. Javier Milei is advocating Anarcho-capitalism.
FAQ: What's the difference between libertarianism and anarchy? Notimp unless PolSCI optional.
46.1.3 🕹
Capitalism- Great Reset Initiative by W.E.F (विश्व आर्थिक मं च की ग्रेट रीसेट पहल)
by World Economic Forum founder Klaus Schwab
Capitalism & its business models need to be "reset", to build a new social contract that honours
the dignity and equality of every human- in health, finance, energy and education. (पूंजीवाद और
उसके बिजनेस मॉडल को रीसेट/पुनः शुरुआत करना- इस प्रकार के सामाजिक अनुबं ध बने, जहां हर इंसान की गरिमा और समानता का
ख्याल रखा जाए-स्वास्थ्य,वित्त, ऊर्जा, और शिक्षा में। क्योंकि वर्तमान पूंजीवाद भी गरीबों का शोषण बहुत हो रहा है)
Corona’s impact on poor people → has revived this debate again. (कोरोना में इसकी ज़रूरत महसूस हुई)
🔠❓MCQ. Find correct statements about Vietnam: (Prelims-2022)
1) Vietnam has been one of the fastest growing economies in the world in the recent years. (हाल के
वर्षों में तेज़ी से वृद्धि करने वाले अर्थतंत्र में से एक है वियतनाम.)
2) Vietnam is led by a multi-party political system. (बहुपक्षीय राजनीतिक व्यवस्था वियतनाम में है)
3) Vietnam’s economic growth is linked to its integration with global supply chains and focus on
exports. (वैश्विक आपूर्ति शृं खला में एकीकृ त होने के चलते और निर्यात पर ध्यान देने के चलते वियतनाम की आर्थिक वृद्धि हुई है)
4) For a long time Vietnam’s low labour costs and stable exchange rates have attracted global
manufacturers. (सस्ते मज़दूर और स्थिर विनिमय दर के चलते विदेशी उत्पादक वियतनाम में आकर्षित होते हैं)
5) Vietnam has the most productive e-service sector in the Indo-Pacific region. (सबसे ज़्यादा उत्पादक ई
सेवा क्षेत्र पूरे हिन्द प्रशांत इलाक़े में)
Codes: (a) 2 and 4 (b) 3 and 5 (c) 1, 3 and 4 (d) 1 and 2
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46.2 👳🏻🧔 E CONOMIC PLANNING: आर्थिक योजना
Definition? It is the process through which Govt. prepares a list of socio-economic problems e.g.
mass poverty, inequality, low productivity in agriculture, lack of industrial and infrastructural
development etc.; and then Govt. sets goals / targets / plans to fix these problems. यह प्रक्रिया है जिसके
माध्यम से सरकार सामाजिक-आर्थिक समस्याओं की सूची तैयार करता है उदा। बड़े पैमाने पर गरीबी, असमानता, कृ षि में कम उत्पादकता,
औद्योगिक और बुनियादी ढांचागत विकास की कमी आदि; और उसे ठीक करने के लिए लक्ष्य / लक्ष्य / योजना निर्धारित करती है
46.2.1 📚
Types of Economic Planning (आर्थिक योजना के प्रकार)
Totalitarian planning (in USSR, N.Korea) vs Democratic planning (India). सर्वसत्तात्मक vs लोकतांत्रिक
Centralized (in USSR, N.Korea) Vs Decentralized (India- after 73rd and 74th Amendments)
के न्द्रीकृ त vs विकें द्रीकृ त
Planning by Inducement (प्रलोभन द्वारा) by Direction (दिशानिर्देशन)
People are induced to act in a certain way through monetary Central authority gives
policy and fiscal policy predetermined targets
Indicative Planning (सूचक) Imperative (आदेशात्मक)
Started in France by Monnet plan State & Public sector
Found in mixed economies companies have complete
Government prepares an outline of plan after consulting control over resources.
with public and private sector. They are given funds, No private sector involved.
incentives, subsidies, tax breaks to maximize production, No consumer
income & employment sovereignty.
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Planning by Inducement (प्रलोभन द्वारा) by Direction (दिशानिर्देशन)
Government does not force the private sector but just Imperative planning
indicates the areas of cooperation and targets to be procedure is strict and
fulfilled. rigid. E.g. USSR, N Korea
Indicative planning procedure is soft and flexible. E.g.
India, France
Financial planning (वित्तीय आयोजन बनाम भौतिक आयोजन) Physical planning
technique of planning in which resources are allocated in terms allocation of resources in terms
of money (योजना बनाने की ऐसी तकनीक जहाँ सं साधनों का आवंटन मुद्रा के रूप में) of men, materials and
machinery
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46.3 👳🏻 📚 E CONOMY PLANNING → AFTER INDEPENDENCE
1950, Inspired from the USSR / Soviet Model, PM Nehru established a Planning Commission
Mar. (सोवियत सं घ से प्रभावित होकर प्रधानमं त्री नेहरू ने योजना आयोग की स्थापना की थी)
1951 From 1st April, the first FYP starts. (पहली पंचवर्षीय योजना शुरू होती है)
1952 National Development Council (NDC: राष्ट्रीय विकास परिषद) of PM, CM etc. to approve the
Five-Year Plans: पंचवर्षीय योजनाएँ drafted by Planning Commission.
2014 Modi shuts down Planning Commission. (प्रधानमं त्री मोदी ने योजना आयोग को बं द करवा दिया)
2015, Modi notified the formation of Niti Aayog: National Institution for Transforming India,
Jan to replace the Planning Commission. (और उसकी जगह नीति आयोग की स्थापना की)
PC, NDC and NITI were / are neither Constitutional nor Statutory bodies. (सं वैधानिक/वैधानिक सं स्था नहीं)
✋Following table is more relevant for CDS, SSC & StatePCS than for UPSC-CSE.
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Plan Period Theme/Model/Target
1st 51-56 ➢ Harrod Domar Model
➢ Main focus: Agriculture, irrigation and power.
➢ Successful: Got more GDP growth than its original target.
2nd 56-61 ➢ P.C. Mahalanobis model. He was Chief Statistician of India.
➢ Socialist pattern/model of society,
➢ Rapid industrialization, heavy industries.
➢ Successful: Achieved the GDP growth target.
3rd 61-66 ➢ Sukhmoy Chakraborty and John Sandy Model
➢ Also called “Gadgil Yojana”: to make the economy independent
➢ #EPICFAIL due to droughts and wars with Pak-China
Holidays 66-69 Plan Holiday declared thanks to #EPICFAIL of 3rd FYP.
During this period, annual plans were made.
4th 69-74 ➢ Ashok Rudra and Alon Manney Model.
➢ growth with stability and self-reliance.
➢ Indira gave ‘Garibi Hatao’ slogan in 1971 election campaign
➢ #EPICFAIL due to Bangladeshi refugee problem and drought.
5th 74-79 ➢ C.Subramaniam and later redrafting by D.P.Dhar
➢ Focus: agriculture > Industry & Mines
➢ Originally it was a 10 year long term perspective plan with focus on
poverty removal and self-reliance
➢ While it achieved the targets but terminated in 1978 as Morarji Desai
became PM.
Rolling 78-80 Morarji Desai’s Janta government: “we’ll measure progress every year and
Plan make new plans accordingly for next year.”
6th 80-85 ➢ Poverty removal, IRDP, NREM, TRYSEM schemes etc.
7th 85-90 ➢ Pranab Mukherjee Model Focus on employment.
➢ For the first time, due to the pressure from private sector the private
sector got the priority over public sector
2 annual 90-92 Political instability at Centre. So, only 2 annual plans:
plans (i) 1990-91 & (ii) 1991-92.
8th 92-97 ➢ John W.Miller Model.
➢ PM PV Narasimha Rao- LPG reforms, New Economic Policy
➢ Top priority to human resources i.e. employment, education and
public health.
➢ Successful: Got more GDP growth than its original target.
➢ Fiscal deficit also ⇩ but that was done by manipulation, using extra
budgetary resources (EBR) which we saw in Pillar#2
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Plan Period Theme/Model/Target
9th 97-02 ➢ Growth with social justice and equity. Mostly “indicative” planning.
➢ identified 7 Basic Minimum Services (BMS) like health, education,
nutrition, roads & gave more ₹₹ for that.
➢ #EPICFAIL due to global slowdown after Asian Financial Crisis
(which we learned in Pillar#3 currency convertibility).
10th 02-07 Target 8% GDP growth rate, double per capita income in 10 years, reduce
poverty to 15% etc. But failed to achieve targets.
11th 07-12 ➢ Theme: “Towards Fast and more Inclusive Growth”
➢ C.Rangarajan framed it with targets: GDP 9% growth rate, 70 million
new jobs, lower IMR, CMR, TFR etc.
➢ But due to US-subprime crisis, failed to achieve targets.
12th 12-17 ➢ Theme: Faster, More Inclusive & Sustainable Growth
Ended on ➢ Target growth: 9% GDP, 4% Agriculture, 10% Mfg. but due to
31/3/201 continued global economic slowdown, most targets not achieved.
7
➢ 10% reduction in poverty, create 50 million new jobs.
➢ Get IMR:26, MMR:1000,Child Sex ratio: 950, TFR: 2.1
➢ Increase mean school years, forest cover, infrastructure investment,
rural tele-density.
🔠❓ MCQ. The focus of the Second Five Year Plan was : (CAPF-2023)
(a) establishment of a self-reliant and self-generating economy with emphasis on agriculture.
(b) rapid industrialization with emphasis on the development of basic and heavy industries.
(c) removal of poverty and attainment of self-reliance.
(d) acceleration of food-grain production and increase in employment and overall productivity.
🔠❓ MCQ. Which of the following Five Year Plans emphasized the need for establishing a
“Socialist Pattern of Society” in India? (UPSC-Geologist-2020)
A) 2nd Five year Plan B) 3rd Five Year Plan C) 4th Five Year Plan D) 5th Five Year Plan
🔠❓MCQ. The main objective of the 12th Five-Year Plan is (Asked in UPSC-Pre-2014)
(a) inclusive growth and poverty reduction (b) inclusive growth and sustainable growth
(c) sustainable and inclusive growth to reduce unemployment
(d) faster, sustainable and more inclusive growth
🔠❓MCQ. Arrange the following events in sequential order as they happened in India:
1. Mahalanobis Model 2. Plan Holiday 3. Rolling Plan. (Asked in CDS-II-2017)
Answer Codes: (a) 1, 2, 3 (b) 3, 2, 1 (c) 2, 3, 1 (d) 1, 3, 2
🔠❓MCQ. Find correct statement(s) about India’s Five Year Plans (Pre-2019):
1. From the 2nd Five-Year Plan, there was a determined thrust towards substitution of basic and
capital good industries.
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2. The 4th Five-Year Plan adopted the objective of correcting the earlier trend of increased
concentration of wealth and economic power.
3. In the 5th FYP, for the first time, the financial sector was included as an integral part of the Plan.
Codes: (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1,2 and 3
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Position 👳🏻Planning Commission 🧔 NITI Aayog
2. Dr. Ramesh Chand (Economist)
3. Dr. V.K. Saraswat (Technocrat, missile scientist
(पूर्णकालिक and Ex-DRDO chief.)
State” rank.
सदस्य) 4. Dr. Vinod Kumar Paul (Pediatrician, Public
(कें द्र के राज्य कक्षा के मं त्री का पद)
Health Expert)
They enjoy Minister of State rank in warrant of
precedence, but salary = Secretary rank (IAS)
- Union ministers for Transport, Social Justice,
Special MSME, Textiles, Women-Child, HRD,
Invitees commerce, statistics, planning.(these ministers
N/A
(विशेषरूप से are sometimes added/removed. List keeps
आमं त्रित व्यक्ति) changing dynamically)
- PM can invite other experts as and when needed.
Part-time Tech experts from research institutes. Currently
(अंशकालिक सदस्य) N/A
members none declared as of 2020-Jan.
Chairman: Prime minister
CM of all states incl. Delhi, Puducherry
National Development
Governing Lieutenant governors of UT.
Council
Council (NDC: राष्ट्रीय विकास
परिषद) with PM, CM etc.
😰Although cooperative federalism spirit
missing, West Bengal, Telangana and Punjab
boycotted meeting in June 2019
Ad hoc
CMs & Lt.Govs of states/UTs that fall in the region.
(तदर्थ)
N/A They’ll be dealing with specific issue affected them
Regional
e.g. irrigation, Naxal-problem, infrastructure etc.
Councils
** Nominated ministers keeps on changing. Earlier, Railway minister and Minister of state for
planning, were in it. Now only 1) Defense 2) Home 3) Finance 4) Agri
** There is discrepancy between the theory given in Govt’s India 2020 (yearbook) which says ‘Full
time and part-time members will be maximum of 2” vs real life composition from
niti.gov.in/content/overview where fulltime members = 3. I’ve kept NITI webpage as reference.
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👳♂️Planning Commission 🧔 NITI Aayog
✓ Fifteen Year Vision Document (2017-32).
2018: drafted Strategy for New India @ 75 covering
the period 2017 to 2022-23.##
1. How much money should union give to NITI doesn’t decide how much money should be
each state for implementation of given to each state. That component is decided by
centrally sponsored schemes (CSS)? the Finance Commission (tax devolution and
2. How much money should union give to grants) and Finance Ministry (Allocations for
the five year plans of the state schemes).
governments? 1. NITI primarily serves as the think tank, helps
Darpan 2017 onwards: NGO (Non-Governmental Organization) register here, get unique
Portal id → apply for grants under various govt schemes. नीति आयोग के इस वेब पोर्टल पर
पंजीकरण करने के बाद ही ग़ैर सरकारी सं गठन सरकारी योजनाओं में जुड़ सकते हैं
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Aspirational - 2018 onwards: to rapidly transform 115 backward districts on 49 key
District performance indicators (KPIs :मुख्य निष्पादन सं के तक) related to Health, Nutrition,
Programme Education, Agriculture, Water Resources, Financial Inclusion, Skill
Development, Infrastructure etc.
आकांक्षात्मक जिला
- progress monitored in NITI online portal called ‘Champions of Change’
कार्यक्रम
Strategic - NITI Aayog suggested strategic disinvestment of 30+ sick / loss making
disinvestment CPSEs such as Air India, Pawan Hans Helicopter, Scooters India etc.
रणनीतिकविनिवेश (PC wouldn’t have done this because of their Nehruvian mindset.)
POSHAN - Ministry of Women and Child Development (MWCD) is implementing
Abhiyaan POSHAN Abhiyaan to make India malnutrition free India by 2022 with focus
कु पोषण निवारण के on pregnant women, mothers and children. (More in Pillar#6)
लिए - NITI Vice-Chairman is the head of POSHAN Abhiyaan’s National Council.
(Planning Commission’s focus would had been Food-calorie security through
cheap wheat /grain only, whereas Nutritional Security is bigger.)
Bills and Since its inception Niti Aayog has
policies - Helped framing various policies on Energy, Mineral etc.
कानूनों के निर्माण में - Helped framing various bills, Model Acts on Agricultural Land Leasing,
सलाह Livestock Selling etc.
🌽 NITI helped revamping the MSP by suggesting price deficiency payments (under
Agriculture PM-AASHA), & revamping fertilizer subsidies through DBT mechanism to
कृ षि क्षेत्र fertilizer companies. (Ref: Pill#4: Agro Handout)
SDG For Sustainable Development Goals (सतत विकास लक्ष्य)
(More in 📑 - NITI developed SDG India Index to monitor our progress in 17 SDG goals
Pillar#6) - NITI suggested Govt. to focus on methanol / biofuel based economy for
reducing the fuel bill by around 30% by 2030.
GIRG Niti Aayog Global Indices to Drive Reforms and Growth (GIRG) dashboard to
Dashboard monitor India’s performance on various global socio-economic parameters in
(सामाजिक आर्थिक such as Multidimensional poverty index of United Nations Development
📑
विकास के आंकड़े) Program (UNDP-सं युक्त राष्ट्र विकास कार्यक्रम का बहुआयामी गरीबी सूचकांक). ( Ref: Pill#6)
📯 CSS NITI helped developing Output Outcome Monitoring Framework to monitor the
कें द्र द्वारा प्रायोजित implementation of Govt schemes. PC simply launched schemes after schemes,
योजनाएं without much attention to performance monitoring.
Seminars NITI regularly organizes seminars, workshops, conferences for idea exchange
with industries and academicians. PC was ‘closed / introvert body’ (अंतर्मुखी) in
terms of interaction with others.
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Startups - NITI runs Atal Innovation Mission (AIM) →grant of upto ₹ 10 crores to
setup Atal Incubation Centres incubators. → AIM also started “Mentor
India” program, wherein experts from industry provide mentorship to
students in Atal incubator labs.
- SETU to help startups.(More in 📑Pillar#4B: Startup)
Digital Age NITI developing National Program on Artificial Intelligence.
✍🏻 Conclusion? From above aspects, it is evident that NITI’s approach is more modernised, forward-
looking, less bureaucratic and less status-quo oriented than the erstwhile Planning Commission.
With such initiatives, NITI Ayog is playing a pivotal role for economic growth, human development
and good governance in India. नीति आयोग का दृष्टिकोण अधिक आधुनिक, दूरंदेशी, कम नौकरशाही और कम 'यथास्थिति'
वाला है- जिससे वह आर्थिक वृद्धि, मानव विकास, और सुशासन में मदद करेगा
MCQ. Which among the following is/are the objective/objectives of the NITI Aayog? (CDS-2023-I)
1. Imposing policies on the States/UTS
2. Allocation of funds at National and State levels
3. Design strategies and long-term policies and programme frame- works
Codes: (a) 1 and 2 only (b) 2 and 3 only (c) 1, 2 and 3 (d) 3 only
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- Composition? Economist Bibek Debroy (as Chairman) & other notable full time and part time
members= Total 7 persons. NITI provides administrative / secretarial support to PM-EAC.
PMEAC has suggested to government to:
- 1) Set up a GST Council like body on public expenditure(More in 📑Pillar#2)
- 2) ⇩ the number of GST slabs.(More in 📑Pillar#2)
- 3) ⇩ the Direct Taxes to boost the demand & economy.
46.9.1 🤳
Economy Planning → PRAGATI?
2015: Pro-Active Governance and Timely Implementation (PRAGATI) is a web platform under
Prime Minister's Office (PMO) for
1. Monitoring scheme implementation (योजनाओं के अमल की निगरानी)
2. Addressing common man’s grievances related to tax refunds, EPFO claims etc. (आम आदमी की
शिकायतों का निवारण)
PM uses this digital platform for monthly video conferencing with ministries & departments
@Union, and Chief Secretaries(IAS) @States.
Table 2: Some Other related Organizations
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[Yearbook] Following don’t fall under any ‘Ministry or Dept’
Misc. APEX/ INDEPENDENT OFFICES/Dept
1) President’s Secretariat (राष्ट्रपति सचिवालय)
2) Cabinet Secretariat (मं त्रीमंडल सचिवालय) → Research & Analysis Wing
3) Prime Minister’s Office (प्रधान मंत्री कार्यालय) → National Security Advisor (NSA:
राष्ट्रीय सुरक्षा सलाहकार)
4) NITI Aayog (National Institution for Transforming India)
5) Department of Atomic Energy (परमाणु ऊर्जा विभाग)
6) Department of Space (अंतरिक्ष विभाग)
7) National Security Council Secretariat (राष्ट्रीय सुरक्षा परिषद सचिवालय)
🔠❓MCQ Which of following is correct chronology sequence of formation of the Commissions? (UPSC-
CDS-i-2020)
A. Finance Commission (FC), Planning Commission, Investment Commission, Election
Commission (वित् आयोग, योजना आयोग, निवेश आयोग, चुनाव आयोग)
B. Election Commission, Planning Commission, FC, Investment Commission
C. Planning Commission, Election Commission, FC, Investment Commission
D. Investment Commission, FC, Planning Commission, Election Commission
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a. Member of Parliament Local Area Development Scheme (MPLADS-1993: सांसद स्थानीय
क्षेत्र विकास योजना) → each MP can suggest development works worth ₹ 5 crore per year in
📑
his constituency. ( More in Pillar#5: Rural infra)
b. Twenty Point Programme (2006: बीस सूत्री कार्यक्रम) to measure performance of various
schemes related to poverty alleviation, employment, housing, education, health, etc.
c. Infrastructure Monitoring and Project Monitoring.
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international organisations will lose confidence in India's data collection methodologies. They
will not believe fully, even if the Indian economy is growing really. (हमारे आंकड़ों की विश्वसनीयता कम)
Large sized economy has to contribute more money to IMF & in return gets more voting rights
in IMF board (e.g. USA). But, if IMF loses confidence in our data collection methodologies, they
may not ↑ our quota, even if we become an economic superpower.
International credit rating agencies such as Standard & Poor's (S&P), Moody's, and Fitch Group
will give poor ratings to Indian G-Sec and corporate bonds → Foreign investors will feel shy
about investing in India or they will demand higher interest rates.
🕵️
46.11.1 Pronab sen Standing Committee on Statistics (SCoS)-2023
• 2019: MoSPI setup Standing Committee on Economic Statistics (SCES).
• 2023: SCES renamed into Standing Committee on Statistics.(SCoS)
• Committee will advise on the subject/results/methodology, etc related to all surveys.
• Chairman is Pronab Sen
46.11.2 ➗📊🏆 Mahalanobis National Award for Statistics
P. C. Mahalanobis= Father of Indian Statistics. Architect of 2nd Five Year Plan (FYP)
MoSPI gives P. C. Mahalanobis National Award for outstanding work in statistics.
2020: Given to C. Rangarajan (ex-RBI governor). He's the 1st person to win it.
46.11.3 ➗📊⚖️ ️Collection of Statistics Act, 2008
It regulates the collection of statistics related to social, economic, demographic, scientific and
environmental aspects, by central, state and local governments.
Penalty if companies, individuals and households doesn’t give information / give false
information to the data collectors. सरकारी सर्वेक्षणों को आंकड़े नहीं देने पर व्यक्ति को सजा के प्रावधान।
Sidenote: Data collection / classification is done as per the System of National Accounts 2008 (SNA
2008) by United Nations Statistical Commission (UNSC).
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🔠❓ MCQ. National Statistical Commission was established on the basis of the recommendations
of which one of the following commissions/committees? (UPSC-Geologist-2020)
A) Rangarajan B)Lodha C) Santhanam D) M.G.K. Menon Committee
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47.2 💰👷♂️ WAGE T HEORY (वेतन थियरी)
IF then
If wages rose above then → more workers will join that sector → labour supply increased
subsistence level → wages will decrease back to subsistence level.
If wages fell below then → number of workers would decrease and push the wage rates up
subsistence-level to the subsistence level.
47.3.1 💰👷♂️
Wage → Natural wage theory of David Ricardo
• also called “Iron law of wages.”
• It says real wages always move toward the minimum wage necessary to sustain the life of the
worker. (वास्तविक वेतन जीवन निर्वाह के लिए जरूरी न्यूनतम वेतन की दिशा में जाते है )
🚩👶🏻 FAQ: Aren’t Ricardo and Smith saying almost similar things? Ans. There are some
sophisticated differences between their theories, but we will not PhD.
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How much salary will owner pay to the worker? depends on how much
Marginal
value, the worker is adding to the company. (एक मजदूर कं पनी की कमाई में कितना
productivity theory
योगदान दे रहा है? उसेहिसाब से उसे वेतन मिलेगा)
47.5.1 🙍
♂️Unemployment Major Types and Reasons: (बेरोजगारी के प्रमुख प्रकार/ कारण)
Slow Economic Growth vs Rapid Population Growth. आबादी की वृद्धि के सामने आर्थिक वृद्धि कम
Defective Educational System, Lack of skill / employability.[शिक्षा प्रणाली, कौशल्य की कमी]
Lack of Banking/Transport/Communication Infrastructure in some areas → people unable to
pursue educational and economic goals [बैंकिं ग, सं चार, परिवहन कि बुनियादी अवसं रचना की कमी- इसलिए कु छ
गरीब लोग शिक्षा और आर्थिक अवसर ढूँढ नहीं पाते]
Social Factors- discrimination against SC/ST/Women/PH. [कमजोर वर्ग के खिलाफ़ भेदभाव]
(More in 📑Pillar#6: HRD- Education, Skill, Poverty)
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Types Features
Cyclical (चक्रीय बेरोजगारी ) Economy goes through boom-bust cycles. [आर्थिक तेज़ी/मं दी]
during bust / recession / depression when workers are laid off on
mass scale.
E.g. Maruti removed 3000 workers in 2019 because car sales ⇩ .
Frictional When a person is out of one job and is searching for another job.
(प्रतिरोधात्मक) During this transition time, he’s deemed frictionally
unemployed.[एक नौकरी छोड़ के दूसरी ढूँढ रहा है]
Disguised Unemployment which is not visible because person seems visibly
🍒 Unemployment working but his marginal productivity / contribution is zero.
(प्रच्छन्न) E.g. Farming family of 4 persons produces 200 kgs of grapes, but
even if you remove 3 persons still production remains at 200 kgs.
ऐसी बेरोज़गारी जो दृश्यमान तो नहीं किन्तु मज़दूर का सीमांत उत्पादन शून्य हैं।
☔️Seasonal (मौसमी) Labourers in Agriculture, Salt-pans, Sugar Mills, Ice-factory,
Tourist spots, Marriage Catering-Orchestra etc.
Underemployment Person is employed but not in a befitting position or salary
(अल्परोज़गार) or Educated corresponding to his qualification.
unemployment e.g. M.Com working as Swiggy delivery boy, M. Tech working as
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Types Features
Bank clerk etc.
🤖 Technological When men are replaced with machines e.g. Handloom workers
Unemployment vs Textile Machines, Horse carriage vs Automobile.
(प्रौद्योगिकी / मशीनीकरण/ रोबोट- 2018-Sept: World Economic Forum released “Future of Jobs
यं त्रमानव के उपयोग से मज़दूरों की Report”. It says, by 2025, machines will do more work than
बेरोज़गारी) humans. As a result, 75 million worker jobs may be lost, but 133
million new jobs may emerge in robot repair/robot software
design etc. Hence urgently workers need to be reskilled.
Open / Structural Lack of jobs when person’s skill/qualification is insufficient for
(सं रचनात्मक) [आदमी का the jobs available in the market
कौशल्य, बाज़ार की ज़रूरतों के e.g. An IT Graduate knows C++ language but demand is for
अनुकू ल नहीं] software developers of Python/JAVA computer language.
Natural rate of sum of frictional unemployment and structural unemployment is
unemployment. (NROU) referred as the natural rate of unemployment. (NIOS Textbook)
बेरोजगारी का प्राकृ तिक दर
Non-accelerating Refer to pillar4E: Inflation and Phillips Curve.
Inflation rate of
unemployment (NAIRU)
MCQ. The unemployment that occurs due to changes in the technology or in the demand for
particular products is called _ _ (CDS-2023-I)
(a) frictional unemployment (b) structural unemployment
(c) cyclical unemployment (d) disguised unemployment
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47.6.2 🌙 Moonlighting
Moonlighting means taking up a second job or multiple other work assignments apart from
one’s full-time job. (मुख्य नौकरी के अलावा और भी दूसरी नौकरी करना, ताकि ज़्यादा पैसा कमाने के लिए।)
Wipro, Infosys, etc. have removed workers for this because such worker may disclose parent
company’s trade secrets / software codes / client list to other rival companies.
Quarter Released in
Q2:Jul-Sept-2020 2021-Aug
Q3:Oct-Dec-2020 2021-Sept
⚾️📻⚾️🎙✋But preparing the quarterly data = poor cost:benefit from exam point of view. . तिमाही
आंकड़ों के पृथक्करण का डेटा तैयार करने में परीक्षा की मेहनत ज्यादा और परीक्षा में फायदा कम है.
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Usual Status - It’s further subdivided into Principal Activity Status (ps) and
(US: सामान्य रूप से) Subsidiary Economic Activity Status (ss) but internal difference
poor cost benefit.
- If person’s usual status (pp+ss) was “Unemployed” for majority
of the year → he’s deemed unemployed.
- In official reports, this figure is given more prominence.
- NSO’s periodic labour force survey for 2017-18 says
unemployment rate = 6.0% as per (US PP+SS: 2017) which is
highest in last 45 years.
- As per 📔📔Eco survey: High % of unemployment: Arunachal, Kerala, Manipur, and Bihar
- Low % of unemployment: Gujarat, Karnataka, West Bengal and Sikkim
- Unemployment %: highest among urban youth (20%) and is lowest among "illiterates" at
1.1% (बेरोज़गारी का प्रतिशत शहरी युवाओं में सबसे ज़्यादा है। अनपढ़ों में बेरोज़गारी सबसे कम)
47.7.2 📊
DATA-sets from PLFS
Note: usual state for 15age & above male female urban rural combined
47.7.3 👷 👷🙍
/( ️) Indicators → Worker Population Ratio (WPR)
It is the percentage of employed persons in the population.
[ 👷👷
👼 👷 👷 🙍 🙍 👴 ] ×100
no of employed persons
WPR=
total population of the country
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- 2017: 37% (male+female in rural+urban combined). It can’t be 100% because there will be
children, elderly outside the ‘15-59’ age group meant for workers.
- 👷♀️LFPR for female: Replace the word ‘person’ with ‘female’ in above formula. It’s lower than
male LFPR.
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Examples of unpaid domestic activities = taking care of children, elderly in the household,
Cooking, cleaning home etc. (जैसे की बच्चे और बुजुर्गों की देखभाल, रसोई, साफ़ सफ़ाई)
Solution? Government should invest in child care / day care facilities, paid parental leave, family-
friendly work environment, and elderly care facilities, Equal pay and career progression for
women, medical and social security benefits for female workers. If these things are not available
then there will be more family pressure on the women not to do the job and take care of the
house. (सरकार ने ऐसी सुविधाएँ प्रदान करनी चाहिए जहाँ नौकरीशुदा महिलाओं के बच्चे और बुजुर्गों की देखभाल की व्यवस्था हो,
महिलाओं के लिए वेतन तथा पदोन्नति में पुरुषों के समान अवसर उपलब्ध हो, अन्यथा परिवार की तरफ़ से महिला पर नौकरी की जगह
घर की देखभाल का बोझ का दबाव ज़्यादा रहेगा)
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47.8.2 Augmented Female LFPR (सं वर्धित महिला एलएफपीआर)
1) PLFS only counts women who’re doing or looking for PAID Work.
2) so, PLFS survey does not count women who are doing (UNPAID) domestic duties including
free collection of goods (vegetable, firewood, cattle feed, etc.), tailoring, etc. for household use” =
PLFS doesn’t count them as ‘workers’
📙
3) so ES23 came up with a new formula
Augmented Female LFPR = (regular) female LFPR PLUS (+) UNPAID women mentioned in above
bullet-point#2.
⛳️FAQ: “numbers given in above chart are not matching with previous table!”
Ans. Yes, because previous table gives LFPR of ALL ages, whereas above chart shows LFPR only for
age 15 and above. I am simply copy pasting the data given in Economic Survey.
47.9 👷♂️🙍♂️W ORKERS TYPES BY NSO
self-employed those who work for themselves & charge 'fees'. They do not sell their
स्व-रोजगारी labour power to anyone else for a "wage", so they are their own 'boss'. सेवा
के बदले फीस लेते है.तनख्वाह/वेतन नही
subcategories: 1) Own Account 2) Partners / Owners / Employers Of
Business Firm 3) Unpaid Family Labourers
wage/salaried They sell their labour to 'boss (employer)', for predetermined wages/salary.
employees Their job continuous round the year. नियत वेतनभोगी कर्मचारी
Their numbers decreased ⇩ as per latest PLFS (it was bound to happen due
to Corona) कोरोना महामारी के चलते वेतनभोगी श्रमिकों / कर्मचारियों की सं ख्या कम हुई
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casual workers They sell labour for 'wage' but 'boss (employer) hires them for very short
अनियत कर्मचारी time period on daily or monthly basis. [बहूत छोटे समय के लिए काम मिलेगा]
As per Latest PLFS: Male = no significant %change (कु छ खास बदलाव नहीं)
Female = Their proportion ⇩ in Corona-2020 (female ragpickers,
construction workers etc removed from job in lockdown)
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47.9.2 👷♂️🧱🛺 Worker Types → Unorganized sector
An unorganized sector (असं गठित क्षेत्र) firm is not registered under any law such as Shop
Establishment Act, Factory Act, Companies Act, Statutory Corporation, Govt org etc.
Unorganized sector consists of individuals / self employed workers engaged in non-trade-
unionized casual / seasonal work with irregular payments & lack of social security like
EPFO/ESIC. (मजदूर सं घ नहीं होता स्थाई/नियमित रूप से काम/आमदनी नहीं, सामाजिक सुरक्षा का अभाव)
Government has enacted Unorganized Sector Workers' Social Security Act, 2008 to provide
them with life and disability cover, health and maternity benefits, old age protection etc.
(जीवनबीमा, और विकलांगता बीमा, स्वास्थ्य और मातृत्व लाभ, बुढ़ापे की सुरक्षा आदि।)
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सामाजिक सुरक्षा लाभों से वंचित रखा जाता है इसलिए महामारी कि अनिश्चितता के दौरान वे तुरंत वतन वापसी करते हैं. जिससे फ़ै क्ट्री
उत्पादन/ आपूर्ति में गिरावट)
Table 4: Number of workers in Crores each category.
So, basically, 1) workers in unorganized > organized. 2) workers in Informal > Formal.
Formalization of jobs = when proportion of formal workers ↑ , in above table.
47.9.4 👷 🖱
♂️ Worker Types → Unorganized workers → E-Shram Portal (2021)
National Database of Unorganized Workers By Ministry of Labour & Employment
to register approx 38 crore Unorganised Workers of India such as construction workers, migrant
workers, street vendors, domestic workers, milkman, truck drivers, fisherman, agriculture
workers etc. असं गठित क्षेत्र के मज़दूरों के पंजीकरण के लिए श्रम मं त्रालय का एक ऑनलाइन पोर्टल बनाया गया है
There is no registration free. Upon registration the workers shall be issued a e-SHRAM card with
unique Universal Account Number (UAN). पंजीकरण के लिए कोई फीस नहीं लगेंगी
He can use it for various social security schemes through this Card anywhere anytime.
🤩E-Shram Portal registered worker will get Rs 1.0 lakh on partial disability and Rs 2.0 Lakh
Accidental Death. आंशिक विकलांगता और आकस्मिक मृत्यु पर मुआवजा मिलेगा
- 📙📙ES23: So far more than 28 cr registered.
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o Area-wise Highest from: UP (29%) > Bihar (10%) > W.Bengal (9%)
o Sector wise: Highest: Agri (52%) > Domestic Workers (9.8%) > Construction. (9.1%)
👷🍕🏍 Worker Types → Gig workers & Two sided market - 📔📔ES21
Definition: Gig workers are temporary workers who are engaged in livelihoods outside the
traditional employer-employee arrangement. Delivery boys, app-based taxi drivers, service
providers such as cleaners and technicians, and freelance workers are all part of the gig economy.
(गिग-मज़दूर/श्रमिक - अस्थाई मज़दूर है जो किसी ऑनलाइन मोबाइल ऐप के द्वारा एक स्वतंत्र ठेके दार के रूप में अपनी सेवाएँ देता है
जेसे की जोमेटों एप द्वारा ग्राहक को रेस्टोरेंट का खाना पहुँचाना।)
DATA: 7.5 million+ workers were engaged in the gig economy in 2020-21, and this number
could grow to more than 20 million in the next 8 year.
Problem: usually deprived of social security benefits such as maternity leave, EPFO, ESIC,
unemployment allowance, disability allowance etc. (इन्हें सामान्य श्रमिक की तरह कं पनी द्वारा बीमा, पेंशन,
EPFO, बीमारी के दौरान सवेतन छु ट्टी, मातृत्व लाभ इत्यादि सामाजिक सुरक्षा योजनाओं का लाभ नहीं मिलता।)
Digital technology enables such two-sided markets. Its features are: (दो बाज़ूओं वाला बाज़ार)
1) two sets of agents (Buyer and seller) interact through an intermediary or platform or
Aggregator app (Amazon, Ola, Uber etc) (दो एजेंट आपस में एक बिचौलिए के द्वारा आदान प्रदान करते हैं)
2) the decisions of each set of agents affects the outcomes of the other set of agents (e.g.
Customer gives 5-star delivery rating or not → Delivery boy's payment affected etc)
Gig worker- Characteristics/Features: (गीग कर्मी की लाक्षणिकता)
1) He/she works in a digital technology enabled two sided market. In the company's
records/contracts- such workers are usually shown as "independent service
providers/contractor" and not as "employees". So they are usually deprived of the
EPFO/ESIC/And other social security benefits (Ref: #1D3) Although Code on Social Security
2020 aims to fix this problem. (कं पनी के अनुबं ध के हिसाब से यह कर्मी कं पनी का कर्मचारी नहीं किं तु एक स्वतंत्र सेवा देने
वाला ठेके दार है. इसलिए वो प्राय विभिन्न प्रकार की सामाजिक सुरक्षा योजनाओं से वंचित रह जाता है.)
2) work-contract is usually shorter, temporary, Not permanent. (इस लघु अवधि का अस्थायी अनुबं ध)
3) Their payment may include
(Batch: PCB11-Prelims ONLY) Mrunal’s Economy Pillar#4C: NITI, PC, FYP, Indicators- Unemployment→ Page 830
o a) piece rate (e.g. How many deliveries made)
o b) partly reward above a fixed salary (e.g. How many 5 star ratings received on delivery)
(निश्चित तनख़्वाह के अलावा अतिरिक्त ईनाम पुरस्कार)
o c) partly profit (e.g. Taxi owner, Amazon seller) आंशिक मुनाफ़ा
47.11 👷🍕🏍 NITI Report on Gig Workers | 👷🍕🏍 How to create more jobs?
Shifted to Mains Handout. #Prelims-RAFTAAR