Economics: Challenges of Indian Economy: Introduction, Poverty and Unemployment (For CBSE, ICSE, IAS, NET, NRA 2022)

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Indian Economy is growing rapidly in last few years. Every citizen of the country has a right to lead a decent life and fulfill all their minimum needs of food, clothes and shelter but some people in the country cannot afford to fulfill all these basic needs. This happens due to poverty. Like this there are many more challenges with which Indian economy has to deal which will help the economy to which also a big challenge before the economy.

Challenges of Indian Economy

Tackling Poverty and Unemployment

  • Poverty is a situation where one is not able to fulfill his⧵her basic needs. It is a state of being poor. According to planning commission of the government of India ″ anybody who is not able to get 2400 kilo calories (kcl) from food intake in rural area and 2100 kcl from food intake in urban area is termed as poor. A person need money to purchase food and get energy, but food intake is not only a basic requirements. Other essential items such as clothing, shoes, shelter, etc. also come under basic requirements. According to government of India more than 30 % of Indian population is poor.
  • One major reason of poverty being unemployment among the population who are willing to work. Unemployment is a situation where individuals who are employable and seeking a job but are unable to find a job. On a daily basis about 3 to 4 crores or around 8 % of the labour force do not get any employment.

Employment Generation or Poverty Alleviation Programmes

To tackle the serious problems of poverty and unemployment the Indian government has been making policies and spending a lot of money since the time of independence. Various programmes implemented by the government for employment generation and poverty eradication are as follows:

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

This scheme was launched in 2006 in 200 districts of India and later in 2008 it was notified for the entire country. MGNREGS aims at providing at least one hundred days of guaranteed wage employment in a year to rural population.

Swarnjayanti Gram Swarozgar Yojana (SGSY)

SGSY was launched in April 1999. The aim of this programme is to help the rural poor to increase their income generating capacity through self-employment. Under this scheme poor people are given training, bank loans and other facilities so that they can build up their capabilities to overcome poverty. People who work on their own are called self-employed or Swarozgar.

Swarna Jayanti Sahari Rozgar Yojna (SJSRY)

SJSRY is meant for providing employment to poor families living in urban areas of the country. It was first launched in 1997.

Providing Education

Another challenge before our nation is to educate all the citizens. Following measures are taken by the Indian government to provide education to all:

Right of Children to Free and Compulsory Education Act 2009

Education is basic right of every Indian citizen. The government of Indian has made “free education for all children between 6 to 14 years of age” a fundamental right in 2009. Accordingly, government will open more schools and will appoint teachers to teach.

Schemes for Elementary and Secondary Education

Some of the important schemes to develop elementary and secondary education are given below:

Sarva Siksha Abhiyan (SSA)

SSA has been implemented by the central government in partnership with state government in partnership with state government to give education to children in the age group 6 - 14 years. SSA keeps on modified as per goals and right to education act which was introduced later. To provide education to girl child SSA has an important component called national programme for education for girls at elementary level (NPEGEL) and residential schools for girls called Kasturba Gandhi Balika Vidyalaya՚s (KGBVS) .

National Programme of Mid-Day Meals in Schools

The idea behind this programme is to provide healthy diet to children by providing good food and attract children in school and retain them.

Rashtriya Madhyamika Shiksha Abhiyan (RMSA)

RMSA was launched in 2009 to increase the enrollment ratio in the secondary stage.

Inclusive Education for the Disabled at Secondary Stage (IEDSS)

This programme was launched from 2009 - 10 and aims to provide 100 % central assistance for education of disabled children studying class ix-xii stage.

Saakshar Bharat

The government has recast its national literacy mission as Saakshar bharat to promote education and literacy among the adults above 15 years of age.

Programme for Higher and Technical Education

Higher education starts after passing out from schools. It includes various courses in different disciplines. A country՚s higher and technical education system should be strong and able to compete with other countries at different levels. The Indian government has also taken various steps to improve higher and technical education.

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