Raashid Shah

Indira Awas Yojna    Introduction Housing is one of the basic requirements for human survival. For a normal citizen owning a house provides significant economic and social security and status in society. For a shelterless person, a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu. A housing programme for the rehabilitation of refugees was taken up immediately after partition by the Ministry of Refugee Rehabilitation and this lasted till around 1960. Approximately 5 lakh families were housed in various centres mainly located in Northern lndia. A Village Housing Scheme was also launched as part of the Community Development Movement in 1957, in which loans to individuals and cooperatives were provided up to a maximum of Rs. 5000/- per house. However, only 67000 houses were built under this scheme by the end of the Fifth Plan (1980). In 1972-73, the Estimate Committee of the Lok Sabha in its 37th Report pointed out that ‘‘the Committee is distressed to note that although 83% of India’s population lives in villages and about 73% of the rural population reside in unsatisfactory kutcha structures, the problem of rural housing has not received the close attention of the Government’’. Following this, certain initiatives were undertaken by Government including the launching of the House Sites cum Construction Assistance Scheme which began as a Central Scheme in the 4th Plan and was transferred to the State Sector with effect from 1.04.1974 on the recommendation of the National Development Council (NDC).The genesis of the Indira Awaas Yojana (IAY) can be traced to the programmes of rural employment, which began in the early 1980s. Construction of houses was one of the major activities under the National Rural Employment Programme (NREP), which began in 1980, and the Rural Landless Employment Guarantee Programme (RLEGP), which began in 1983. There was, however, no uniform policy for rural housing in the States. For instance, some States permitted only part of the construction cost to be borne from NREP/ RLEGP funds and the balance was to be met by beneficiaries from their savings or loans obtained by them. On the other hand, others permitted the entire expenditure to be borne from NREP. RLEGP funds. Further, while some states allowed construction of only new dwellings, others permitted renovation of existing houses of beneficiaries. As per announcement made by the Government of India in June 1985, a part of the RLEGP fund was earmarked for the construction of houses for SCs/STs and freed bonded labourers. As a result, Indira Awaas Yojana (lAY) was launched during 1985-86 as a sub-scheme of RLEGP. IAY, thereafter, continued as a sub-scheme of Jawahar Rozgar Yojana (JRY) since its launching in April, 1989. 6% of the total JRY funds were allocated for implementation of lAY. From the year 1993-94, the scope of lAY was extended to cover below the poverty line Non-Scheduled Castes/ Scheduled Tribes families in the rural areas. Simultaneously, the allocation of funds for implementing the scheme was raised from 6% to 10% of the total resources available under JRY at the national level, subject to the condition that the benefits to Non-Scheduled Castes/ Scheduled Tribes poor should not exceed 4% of the total JRY allocation. IAY was de-linked from JRY and made an independent scheme with effect from 1st January 1996. Since 1999-2000, a number of initiatives have been taken to improve the Rural Housing (RH) Programme by making provision for upgradation of unserviceable kutcha houses and by providing credit with subsidy for certain sections of the poor. Emphasis has also been laid on use of cost affective, disaster resistant and environment friendly technologies in rural housing. Objectives : Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development to provide houses to the poor in the rural areas.The objective of the Indira Awaas Yojana is primarily to help construction/upgradation of dwelling units of members of ScheduledCastes/Scheduled Tribes, freed bonded labourers, minorities in the below poverty line category1 and other below poverty line non-SC/ST rural households by providing them a lump sum financial assistance.Indira Awaas Yojana is a Centrally Sponsored Scheme funded on cost-sharing basis between the Government of India and the State Governments in the ratio of 75:25. However, in the case of North-Eastern States and Sikkim, funding will be shared between the Government of India and these States in the ratio of 90:10 respectively2 . In the case of Union Territories, the entire funds under this Scheme are provided by the Government of India.Target Group:The target groups for houses under the IAY are below poverty line households living in the rural areas, belonging to Scheduled Castes/Scheduled tribes, freed bonded labourees, minorities in the BPL category and non-SC/ST BPL rural households, widows and next-of-kin to defence personnel/paramilitary forces killed in action residing in rural areas (irrespective of their income criteria), ex-servicemen and retired members of paramilitary forces fulfilling the other conditions. Earmarking of Funds for SC/ST/Minority Beneficiaries:The available resources under the Scheme in a district are earmarked for various categories as under:(i) At least 60% of the total lAY funds and physical targets should be utilized for construction/upgradation of dwelling units for SC/ST BPL households.(ii) A maximum 40% for non-SC/ST BPL rural households.(iii) IAY funds and physical targets will be earmarked for BPL minorities in each State as indicated by the Ministry.1(iv) 3% of the above categories are for physically and mentally challenged persons.If any particular category is exhausted or not available in a district, allocation can be utilized for other categories as per priorities given in the Guidelines after it has been certified to this effect by the Zilla Parishad/DRDA concerned. NB: Eligible minorities are those notified under section 2 (c) of the National Commission for Minorities Act, 1992 – Muslims, Christians, Sikhs, Budhists and Parsis. However, in the States where minorities are in a majority, only other minority population is treated as minority. Muslims in J&K, Sikhs in Punjab, and Christians in Meghalaya, Mizoram and Nagaland

Swarnjayanti Gram Swarozgar Yojana (SGSY)    The objective of the Swarnjayanti Gram Swarozgar Yojana (SGSY) is to bring the assisted poor families (Swarozgaries) above the Poverty Line by ensuring appreciable sustained level of income over a period of time. This objective is to be achieved by inter alia organising the rural poor into Self Help Groups(SHGs) through the process of social mobilization, their training and capacity building and provision of income generating assets. The SHG approach helps the poor to build their self-confidence through community action. Interactions in group meetings and collective decision making enables them in identification and prioritization of their needs and resources. This process would ultimately lead to the strengthening and socio-economic empowerment of the rural poor as well as improve their collective bargaining power. The poverty line varies from State to State. As per the latest (1999-2000) estimates of the Planning Commission, the poverty line in terms of per capita consumption expenditure per month in the rural areas varies from Rs.262.94 in Andhra Pradesh to Rs.367.45 in Himachal Pradesh. SGSY lays stress on the cluster approach. What this means is that instead of funding diverse activities, each block should concentrate on a few select activities (key activities) and attend to all aspects of these activities, so that the Swarozgaris can draw sustainable incomes from their investments. These key activities should preferably be taken up in clusters so that the backward and forward linkages can be effectively established. This would facilitate not only monitoring but more importantly provision of various services required by the Swarozgaris. Clusters : The key activities may be taken up for implementation preferably in clusters. It must be noted that the clusters are not mere geographic agglomerations but units where the backward and forward linkages can be effectively established. This will facilitate greater control of the progress of the programme, including setting up of infrastructure, raw-material distribution, technology transfer as well as quality control. It is not essential that SGSY should be implemented in each and every village of the Block. Advantage may be taken of the infrastructure already built up so that the results may be more definite. At the same time, care must be taken to see that maximum number of villages are covered under one or the other of the activity clusters. the clusters will be taken up for each activity separately. The idea is to select a few villages every year under a key activity and concentrate the effort so that necessary linkages are available and also the monitoring becomes easy. It is not necessary that if a cluster of villages is taken up in a year, it should be given up the next year. More swarozgaris can be brought each year under the key activity in the identified clusters. However, in doing so, care must be taken to see that there is no undue concentration of a programme in only a few villages.    

Bharat Nirman    The President of India, in his address to Parliament on 25th February,2005, announced a major business plan for rebuilding rural India calledBharat Nirman. The Finance Minister, in his Budget Speech of 28th February,2005, identified Rural Roads as one of the six components of Bharat Nirmanand has set a goal to provide connectivity to all habitations with a populationof 1000 persons and above (500 persons and above in the case of hilly ortribal areas) with an all-weather road. A total of 59564 habitations areproposed to be provided new connectivity under Bharat Nirman. This wouldinvolve construction of 1,46,185 Kms of rural roads. In addition to newconnectivity, Bharat Nirman envisages upgradation/renewal of 1,94,130 Kmsof existing rural roads. This comprises 60% upgradation from Government ofIndia and 40% renewal by the State Governments.    

Pradhan Mantri Gram Sadak Yojana (PMGSY)    Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25th December 2000 as a fully funded Centrally Sponsored Scheme to provide all weather road connectivity in rural areas of the country. The programme envisages connecting all habitations with a population of 500 persons and above in the plain areas and 250 persons and above in hill States, the tribal and the desert areas. 2. According to latest figures made available by the State Governments under a survey to identify Core Network as part of the PMGSY programme, about 1.67 lakh Unconnected Habitations are eligible for coverage under the programme. This involves construction of about 3.71 lakh km. of roads for New Connectivity and 3.68 lakh km. under upgradation.  

The Rural Development Programme (2007-2013)    It contains grant aid support widely known as the LEADER programme – is involved in developing measures to encourage enterprise and employment and improve the quality of life of people in rural areas. It is funded by the EU and the Dept of Environment,Community and Local Government. Local jobs and enterprises are essential to the survival and growth of rural areas.The LEADER grant aid is available to support enterprise under the following priority headings: • Farm diversification into non-agricultural activities;• Enterprise Creation and Development;• Encouragement and development of tourism activities;• Provision of basic services for the economy and rural population;• Village renewal and development;• Conservation and upgrading of the rural heritage with an emphasison the rural environment;• Relevant training, research and information initiatives. The provision of funding to the above priority areas should lead to: • Diversification of the economy of rural areas with increased rural basedemployment opportunities;• Encouragement of tourism based on development of natural resources and development of the cultural and natural heritage;• Enhancement of the viability of farming enterprises through on-farm diversification and off-farm employment;• Enhancement and protection of the natural environment and landscape;• Enhancement of the quality of life of rural dwellers and communities by the provision of basic services. Mayo North East’s vision is of a programme harnessing the potential of the local people, local resources and innovation to create viable sustainable jobs in the area while making Mayo North East an attractive place to live and visit with a high quality of life. Over the course of the Rural Development Programme, over €10.75m has been earmarked for the Mayo North East area. Who is eligible to apply for RDP funding?Individuals or a community group with a business idea that wish to set up a viable rural enterpriseRural Businesses wishing to sustain their activities, expand or diversifyFarm Families wishing to diversify into non-agricultural activities;Community Groups promoting community enterprise, local amenity projects or community services;Voluntary Organisations or special interest groups promoting social, cultural and environmental projects;Partnerships promoting inter territorial, interregional or transnational projects in collaboration with other organisation, this can include Mayo North East. Evaluation Criteria for RDP Projects: The following criteria will be applied in assessing applications for grant aid.1. Eligibility Does the project comply with eligibility criteria as set out in the RDP Operating Rules?2. Innovation Is there something new about the project in terms of the product or idea, the technology/production method, the market, the promoter, or the location?3 . Deadweight Does the project require RDP funding to proceed?4. Displacement/Competition Will the project be in direct competition with an existing local business and could it result in displacement of jobs elsewhere?5. Promoter Background/Skills What is the Promoter’s track record and have they the skills and experience necessary to make a success of the project?6. Market research Has the project been adequately researched? Has the need/market/demand for the project been firmly established?7. Marketing Plan Is there an adequate marketing or promotion plan in place for the project?8. Financial Viability Can the project demonstrate its financial viability in the medium to long term?9. Sustainability Will the project be sustainable in the long term?10. Job Creation Will the project result in job creation – full time, seasonal or part time? Or will existing jobs be sustained/ secured by this new project?11. Impact/Benefits What benefit will the project have for the Promoter, the wider community or the environment?12. Added Value Is there added value from the project for the overall development of the county? Funding limits and grant rates:RDP funding is not intended for large scale projects and in general a ceiling of €150,000 grant-aid per project will apply. Exceptional community projects may qualify for a higher grant but require prior written approval from the Department of Environment, Community and Local Government. The maximum grant amount for Analysis & Development projects is 90% to a maximum of €30,000 and 75% for capital projects for both community and private projects. Training projects may receive 100% funding.Project EligibilityEligible costs for grant applications include; Construction and renovation costs; purchase of machinery & equipment; marketing/Promotion; publications; training; analysis & Development. Please contact Mayo North East to discuss eligibility criteria. Making an Application For Grant Aid: In the first instance it is important to meet with and talk to Mayo North East staff who will advise you on the likely eligibility of your project and the steps to be taken in making an application. Staff will then work with you to develop and finalise your proposal. An official Grant Application Form must be completed and this should be submitted along with all of the support documentation outlined on the accompanying check-list to Mayo North East. Your application will be acknowledged in writing; this acknowledgement should not be taken as an indication that grant-aid will be awarded to your project. All applications will go through an evaluation process with recommendations made to the Board of Mayo North East who then make a decision. Work should not commence on your project until you have been issued a contract and you have signed and returned it contract to Mayo North East. Any work undertaken or equipment purchased prior to formal notification and acceptance of a grant offer is not eligible for grant-aid.APPEALS PROCEDURE RURAL DEVELOPMENT PROGRAMME 2007-2013:If a project promoter is dissatisfied with a decision of the Company, they may lodge an appeal. If a request for a review/appeal is lodged, the LAG must inform the promoter of the appeal proceedings that will apply. The appeals procedure is as follows: 1. The project promoter may seek a review of the decision of Mayo North East LEADER Partnership Company. A request for a review must be made in writing within two months of the date of the letter advising of the Company’s decision, and should address the reasons given in that letter for the Company’s decision. Mayo North East LEADER Partnership Company will advise the project promoter in writing of the outcome of that review within two months of

Poverty in India   India is one of the poor countries in the world. Many of the Indians do not get two meals a day. They do not have good houses to live in. their children do not get proper schooling. Many of them die for want of medicines. They are ill clad. The conditions have not sufficiently improved even long after our Independence. There are many causers of our poverty.Causes of poverty:The growing population inflates the problem of poor techniques used in Agriculture. Further, there is unequal distribution of wealth. As a result, the poor people are often exploited by the wealthy community.The most important causes of Poverty in India are poor agriculture, growing Population, gap between rich and poor, corruption and black money.Poor agriculture:India is mainly an agricultural country. About 80% people of our country depend on agriculture. But our agriculture is in a bad way. Farmers are poor and uneducated. They do not know the modern methods of farming. They have no good facilities of irrigation. They do not get seeds and fertilizers in time. Thus the yield is poor. Agriculture is not profitable today. We face the shortage of food. We have to import it. So, poor agriculture is one of the causes of India’s poverty.Growing population:Our population is growing rapidly. But our resources are limited. The growth in population creates problems for us. Today, our population is 1.20 billion; tomorrow we will be 1.21 billion and so on. We need more food, more houses, and more hospitals for them. So we have no money to spend on development projects. The ever-growing rate of population must be checked. If not, we may not be able to remove India’s poverty.Gap between the rich and the poor:The widening gap between the rich and the poor is also responsible for India’s poverty. The rich are growing richer. The poor are growing poorer. This economic gap between the two must be reduced. Our social system should be changed. The poor people must get all help to reap the fruits of Independence.Corruption and black-money:There are corruptions in every walk of life. There is inefficiency in offices. People have become selfish. They neglect the national interests. Black money causes problems prices are raising. Some people have all the privileges. But many others are suffering. Black money affects our economy. It causes poverty. Solutions and conclusion: We have to solve this problem of India’s poverty.o Farmers must get all facilities for irrigation.o They should be trained and educated.o Agriculture must be made profitable.o The ever-rising population should be checked.o Family planning schemes should be introduced.o More and more industries should be set up to meet the needs of our country.o Corruption must end. Our offices should work efficiently.These are some of the ways which our poverty can be removed. It is a national problem; it must be solved on a war footing.    

Impact of globalization on Indian society   Importance of Globalization In IndiaGlobalization in India has great importance in politics, economics, culture, religion and in every branch of knowledge and science. In economic or material field the term globalization is used to denote two different meanings.The importance of Globalization in India are as follows 😮 First, it means spread of trade and commerce of Indian Businesses.o Secondly, it speaks of immigration and migration of people of different areas.o Thirdly, it opens avenues of free movement of currency and other medium of exchange among the different countries.o Fourthly, it denotes the scope of investing the capital of one country into another and thereby producing the agricultural goods, industrial goods and services in that other country and selling it ,there or in any third country continuously.o Fifthly, it speaks of the exchange of finance capital from one country to another.o Sixth, it increases the impact of the trade, investment and production of the multinational or trans-national Corporations.o Seventh, it speaks of the opening of the avenues of technological exchange among different countries.o Lastly, it stresses on the expansion of international information media and the impact of using electronic technology on the information media of different countries.The importance of Globalization in India traces back its root in Ancient India. In fact many of the branches of globalization are much older than the rise of capitalism itself. In ancient India, immigration and migration of the races and communities were frequent affairs. As human civilization advanced and men learnt trading, trade and commerce began between the countries Exchange of finance capital was also an age old affair. With the rise of capitalism many aspects of globalization came into surface and became an accepted practiceAs a result of the debt, during the 1980’s Globalization process and policy became very much pressing in the third world countries. Meanwhile the discovery of microchip created revolution in computer technology. Information technology underwent a revolutionary change. The fall of the previous Soviet Union and the collapse of communism paved the ground for further advancement of the capitalists’ countries to pursue the policy of globalization. The countries which had taken debt were found unable to pay the debt and that helped the spread of globalization easier a measure.For India the impact of the policy of globalization is both bad and good. The nature of Indian’s foreign trade with other countries of the world underwent great changes after India’s independence. During the first two decades her industrialization progressed in rapid pace and there was green revolution in our agriculture. Some internal significant reforms were made like the nationalization of banks, encouragement to agriculture and small scale industries etc. She had some deficit in her foreign trade, but was free from the heavy burden of foreign debt. From 1985 her economic policy changed and more importance was given to the globalization policy in India. That was the time of Rajib Gandhi. The policy followed by the Janata Govern¬ment after Rajib’s fall from power caused great deficit in her foreign exchange. To guard it, the next government of Narasimha Rao sought huge loan from I.M.F. and devalued money, withdrew almost all restriction from foreign investment in this country and took many other measures. The globalization policy in India was followed very carelessly and the result was the Bank Scam, depression in the industrial field etc. Her export also diminished. Yet the foreign investment has increased but that has not done any good to the country as a whole. The Patent Act of the World Trade Organization (W.T.0.) has robbed off much of her wealth. In fact to gain the good out of the globalization India must have to do much social reforms and instead of depending on the foreigners for investment and other economic activities, she should find out her own way to make proper use of the stores of knowledge and culture of the world. In this respect we can take the example of China, Japan and South Korea.Globalization And Foreign TradeIn general sense the term Foreign Trade means establishment of the export import relationship with other countries of the world. But the scope of the globalization of the foreign trade or activities towards the outer world is wider. It should be remembered that India’s share in the total amount of trade in the world is only around 1%. Hence to increase this negligible share of India in the world’s total volume of trade as well as to extend the scope of her foreign trade, it is necessary to make her foreign trade more competitive.So to attain this objective of Globalization and Foreign Trade, the Government of India has loosened the rigidity of her import policy on one hand and on the other, to increase the volume of her export has devalued the standard of her money in exchange of American dollar and arranged the full convertibility of its Rupee. Since India is a member of the World Trade Organization India has withdrawn the quantitative restrictions that so long existed on the import of goods. India has already decreased the import tariff on an average of 20% and in most cases has withdrawn the import duty. Moreover, the subsidy on export has also been withdrawn.In order to effect globalization of the foreign trade the other measures already taken by her includes encouraging direct foreign investment within the land, to increase the scope of participating in the equity capital by the foreign investors up to 51% and to invite the multinational corporations to expand their trade in India. Scopes have been provided for foreign equity up to 74% at present in the field of private banks, telecommunication and insurance services. In the present state of market economy, as the interaction of demand and supply in the commodity market and production market plays signifi¬cant role, likewise in the foreign market as well, the interaction of demand and supply changes the volume of import and export of a country. One of the main policies of the

Census    The Population Census of India, conducted every ten years, is the most comprehensive source of information on the size, distribution, living conditions and demographic characteristics of the population. It is also an important source of the religious, linguistic and cultural profiles of the people. It serves therefore, both as a tool of the State polices and as a means for understanding the socio-economic transformation of the society, economy and polity of the nation. The census of a country is a valued symbol of the Nation State as a concept.In India, a census over different parts at different time points was first conducted during the period 1867-72, being known as the Census of 1872. However, since 1881 a Population Census has been conducted in the country regularly every ten years and the Census 2001 is the 14th and the latest in the series. With each census the scope and the coverage has been enlarged, particularly since the Census 1961, in order to provide meaningful information for developmental planning as also to make it more responsive to the present day requirements. The provisional totals of the Census 2001 conducted during February-March 2001 have been released on 26 March 2001 and have placed India’s population at 1027 million on 1 March 2001. Provisional totals of the population at the district level, by sex, in broad age categories 0 to 6 and 7+, literate and illiterates among men and women aged 7 and above are already available for all the States and UTs.Current Status :The Population Census is a Union subject and the Ministry of Home Affairs is in charge of this subject. It is listed at serial No. 69 in the seventh schedule of Article 256 of the Constitution of India. The Population Census is taken as per the provisions of the Census Act, 1948, which empowers the Central Government to conduct a Census of the population of the country after duly notifying it. The Act places a legal obligation upon the public to cooperate and give truthful answers and also places a legal obligation upon the enumerator to record the responses faithfully. The Act guarantees confidentiality of information to the individuals. The responsibility to conduct the decennial Population Census under the Census Act lies with the Office of the Registrar General and Census Commissioner, India. Though the Census is a Union subject, the actual conduct of the Indian census has always been the joint endeavour of both Central and State Governments. The entire field operation, which includes house listing and population enumeration are organised through the general administrative machinery of the States at various levels. At the State and UT level, the Director of Census Operations appointed under the Census Act is responsible for organising and supervising the census operation within his State and UT. The census is the only comprehensive source of demographic information right up to the lowest levels. The information collected includes details of the census house, its status residential or non-residential, amenities, information on households and the occupants such as sex, age, marital status, religion, mother tongue and language, scheduled caste, scheduled tribe, literacy, educational level attained, place of birth and past residence, economic activity, migration, fertility and information collected occasionally through questions included to understand specific problems such as disability, ex-servicemen and pensioners. The Population Census thus gives a detailed picture of the national economy and of society; it’s various administrative units like States or UTs, districts, tehsils or talukas or anchals, etc. and for each city, town and village with changes over time. It generates a wealth of information, which is utilised by the country for planning purposes, determining the seats in the Lok Sabha and the State Legislatures, delimitation of electoral boundaries and for various types of developmental programmes. In the era of decentralised planning, the census has the potential to provide a much-needed database to formulate programme and polices at the local level.The results of the Population Census data are published in various tables categorised into six broad categories indicating the nature of topics covered in each series. These are:A Series: General Population TablesB Series: General Economic TablesC Series: Social and Cultural TablesD Series: Migration TablesF Series: Fertility TablesH Series: Tables on Houses and Household Amenities.Concepts and DefinitionsThe concepts and definitions used in the Population Census have often changed in the past to enhance the coverage and sometimes because of the need to adopt standardised concepts and definitions. For example, the definitions of economic activity, of workers and non-workers have been improved. The definition of economic activity was expanded in Census 1991 and has been further expanded in Census 2001 to include certain non-market activities, thus bringing it closer to the ILO definition. This however, poses problems in comparability of data from one census to another, as comparable data are not published to study the effect of the improved definition.Quality Aspects and Post Enumeration Check MethodologyThough the data collected over successive censuses has become more accurate and reliable in quality, still discrepancies do creep in due to a lack of technically qualified persons, poor response from the respondents, illiteracy of the masses, a widely scattered population, lack of adequate financial resources, etc. The quality of the census data therefore, needs to be ensured through better training of the enumerators in the concepts and definitions used, making more aids available to the enumerators to facilitate probing and a vigilant supervisory mechanism to reduce the content and coverage errors as far as possible. The Post Enumeration Check (PEC) is carried out with the objective of estimating the coverage errors in the census of houses and population and to get an estimate of the extent of content error. The sampling design used for PEC is however, quite old and needs a fresh look. Further, the conduct of PEC by the State Government staff raises some doubt on the integrity of the PEC, which should better, be entrusted to an independent agency. Non-Tabulation of certain collected informationIn every Population Census, valuable data are collected during

Essential Features of Indian Economy    1. Indian Economy-Underdeveloped: On the eve of independence, Indian economy was underdeveloped economy. As an underdeveloped economy, Indian economy had the following features: (i) Low Per Capita Income: Underdeveloped economies have low per capita income. India has no exception to it. In 1947-48, per capita income was Rs. 230. People were poor. They were not getting fair square meals a day. They had no shelter and clothing. Most of the people were unemployed. (ii) Poor Infrastructure:On the eve of independence infrastructural development which comprised of communication and transport and electricity etc. was very poor. In 1948, power generation capacity was nearly 2100 MW; length of railway lines was 53,596 Kms. (iii) Dependence on Imports:The country had to heavily depend on imports. Armed forces of the country also depended on foreign imports. Moreover, several consumer goods like sewing machines, medicines, oil, bicycles etc. were imported from abroad. (iv) Illiteracy:Illiteracy was both cause and effect of poverty. Due to illiteracy, people were unable to use new techniques in agriculture and industry. They were unable to organize trade and commerce on modern lines. In 1948, rate of illiteracy was 18%. Thus 82% of the population was illiterate. (v) Agricultural economy:Indian economy was predominantly agricultural. In 1948, about 70% population was engaged in agriculture. Moreover, agriculture constituted 50% of national income. But agriculture itself was backward. Regarding productivity, it was 110 kg/hectare for rice in 1947 as against 748 kg in Japan. (vi) Low Development of Industries:There was very little development of industries. Large industries used to produce consumer goods. Basic and key industries were very less in number. In 1947, cement production was 26 lakh tonnes, of sugar 10 lakh tonnes and that of cloth just 421 crore meter. 2. Stagnant Economy: During the British period, Indian economy remained almost stagnant. There was very slow growth of economy. This was clear from the fact that for almost a century, the average annual growth rate of per capita income in India was not more than 0.5%.The high growth rate of population tended to make it difficult to maintain even the proposed growth rate. In fact poverty was widespread and about 40% people were living below poverty line.The causes of stagnation and backwardness are laissez faire, commercialization of agriculture, neglect of irrigation, destruction of cottage and handicraft and economic drainage and discriminatory tariff policy. 3. Semi-Feudal Economy:During the British rule, Indian economy had a mixed mode of production. Feudalism was more prominent than other modes of production.A substantial developed capitalistic sector had emerged. Handicraftsmen had lost their independent status and were engaged in a simple commodity production. Bonded labour force was prevalent in agriculture. Primitive social organizations existed in areas inhabited by the tribals. 4. Depreciated Economy:On the eve of Independence Indian economy was depreciated. In every economy, extensive use of factors of production, inevitably leads to their wear and tear. If no arrangements are made to replace the depreciated factors then the stock of gross capital declines.This results into the fall in production capacity. Such an economy is called depreciated economy. After World War II Indian economy also turned into depreciated economy.During World War II India had supplied large quantity of goods to Britishers. India was paid for it in terms of sterling. But due to lack of real capital, its production capacity declined. 5. Pre-dominance of Agriculture:Agriculture is the main sector of Indian economy, which is in total contrast to the economic structure of a developed economy. More than 70 per cent of the total population is engaged in agricultural activities while the picture is absolutely different in advanced countries.According to Dr. Cloustone, “India has depressed classes, the tool has depressed industries and unfortunately, agriculture is one of them” Therefore, the essence of Indian economy is an agrarian economy. 6. Underutilized Natural Resources:It has been rightly stated that India is a rich country inhabited by poor people. It means that the country possesses abundant stock of natural resources but the problem is that these resources are not fully utilized for the production of material goods and services. The result is poverty of the people. The vicious circle of poverty moves for year to year together. 7. Heavy Population Pressure:Population is a major factor influencing the nature of a country’s economy. Over-population creates complex economic problems.The income per capita is low, the efficiency of labour is not satisfactory and there is an acute housing shortage. Unemployment and low standard of living dominate the scene. In India, the rate of growth of population was about 1.25% per annum during 1941-51. 8. Capital Deficiency:Deficiency of capital is another basic characteristic of Indian economy. In case of physical capital, its total stock is not adequate for equipping well to the entire labour force and full utilization of natural resources.Similarly, human capital is far from satisfaction. The major reasons of low level of capital formation in India were (i) low inducement to invest and (ii) low propensity and capacity to save. 9. Famines:In the pre-British period famines had been occurring. These famines showed an unbridled increase in the 18th and 19th centuries. Between 1765-1858 the country experienced 12 famines and 4 scarcities. Similarly, between 1860-1908, 20 famines spread their wings.In 1943 Bengal famine shook the foundation of the country. William Digby estimated that during 1854-1901, 28.8 million persons died due to famines. In the famine of 1899-1900 2.5 million persons died of starvation. 10. Industrial Backwardness:On the eve of independence Indian economy was backward from industrial point of view there was deficiency of basic and heavy industries. Among heavy industries, there was Tata Iron and Steel industry.The production of machines in the country was negligible. Statistics reveal that in 1947 total production of iron & steel was 9 lakh tonnes. 11. Low Levels of Living:India has been, and even today is one among the poorest countries of the world. Barma few rich, the common masses forced to lead a miserable life. Almost half of country’s population is below the poverty line.Quantity

HUMAN DEVELOPMENT INDEX (HDI) & HUMAN POVERTY INDEX    What is the human development index (HDI)?The HDI—human development index—is a summary composite index that measures a country’s average achievements in three basic aspects of human development: longevity, knowledge, and a decent standard of living. Longevity is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio; and standard of living by GDP per capita (PPP US$). For details on how to calculate the HDI.What is the gender-related development index (GDI)?The GDI—gender-related development index—is a composite indicator that measures the average achievement of a population in the same dimensions as the HDI while adjusting for gender inequalities in the level of achievement in the three basic aspects of human development. It uses the same variables as the HDI, disaggregated by gender. For details on how to calculate the GDI. What is the gender empowerment measure (GEM)? The GEM— gender empowerment measure—is a composite indicator that captures gender inequality in three key areas:• political participation and decision-making, as measured by women’s and men’s percentage shares of parliamentary seats;• economic participation and decision-making power, as measured by two indicators—women’s and men’s percentage shares of positions as legislators, senior officials and managers and women’s and men’s percentage shares of professional and technical positions; • power over economic resources, as measured by women’s and men’s estimated earned income (PPP US$). How are the GDI and the GEM used? To draw attention to gender issues. The GDI adjusts the HDI for inequalities in the achievement of men and women. A comparison of a country’s ranking on the HDI and its ranking on the GDI can indicate the existence of gender discrepancy. To illustrate that gender empowerment does not depend on income, it is useful to compare relative rankings on the GEM and the relative level of national income. For example,• Poland ranks 25th in the GEM, ahead of Japan, in 44th place, yet income per person in Poland is about one third that of Japan’s (9,450 PPP US$ vs. 25,130 PPP US$ for 2001).• The UK and Finland have very similar income per person (24,160 PPP US$ and 24,430 PPP US$ for 2001) yet in the GEM Finland ranks 5th, the UK 17th. Both indicators can be disaggregated to highlight gender inequality within countries, which can vary widely across regions.What is the human poverty index (HPI-1 and HPI-2)? Poverty has traditionally been measured as a lack of income—but this is far too narrow a definition. Human poverty is a concept that captures the many dimensions of poverty that exist in both poor and rich countries—it is the denial of choices and opportunities for living a life one has reason to value. The HPI-1—human poverty index for developing countries—measures human deprivations in the same three aspects of human development as the HDI (longevity, knowledge and a decent standard of living). HPI-2— human poverty index for selected high-income OECD countries—includes, in addition to the three dimensions in HPI-1, social exclusion. For HPI-1 (developing countries): deprivations in longevity are measured by the probability at birth of not surviving to age 40; deprivations in knowledge are measured by the percentage of adults who are illiterate; deprivations in a decent standard of living are measured by two variables: the percentage of people not having sustainable access to an improved water source and the percentage of children below the age of five who are underweight. For HPI-2 (selected high-income OECD countries): deprivations in longevity are measured by the probability at birth of not surviving to age 60; deprivations in knowledge are measured by the percentage of adults lacking functional literacy skills; deprivations in a decent standard of living are measured by the percentage of people living below the income poverty line, set at 50% of the adjusted median household disposable income; and social exclusion is measured by the rate of long-term (12 months or more) unemployment of the labor force. For details on how to calculate the HPI-1 and HPI-2 How is the HPI used?• To focus attention on the most deprived people and deprivations in basic human capabilities in a country, not on average national achievement. The human poverty indices focus directly on the number of people living in deprivation—presenting a very different picture from average national achievement. It also moves the focus of poverty debates away from concern about income poverty alone.• To highlight the presence of human poverty in both the rich and poor countries. High income per person is no guarantee of a poverty-free country. Even among the richest countries, there is human poverty. The HPI-2 for selected high-income OECD countries (HPI-2) shows that out of 17 European and North American countries, the U.S. has the second highest level of income per person, but also the highest rate of human poverty.• To guide national planning for poverty alleviation. Many National Human Development Reports now break down the HPI by region or other socioeconomic groups to identify the areas or social groups within the country most deprived in terms of human poverty. The results can be dramatic, creating national debate and helping to reshape policies.