{"id":15899,"date":"2023-11-13T05:26:43","date_gmt":"2023-11-13T05:26:43","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=15899"},"modified":"2024-02-05T11:32:21","modified_gmt":"2024-02-05T11:32:21","slug":"besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/","title":{"rendered":"Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss. (250 Words 15 Marks)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-gs-advance-and-mentorship-program-ampcsat?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=GS+Advanced\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png\" alt=\"\" class=\"wp-image-43397\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure><\/div>\n\n\n<p>While welfare schemes address immediate needs, effective management of inflation and unemployment is crucial for sustained poverty alleviation in India. Controlling inflation ensures the purchasing power of the poor remains stable, while tackling unemployment fosters inclusive growth, providing lasting benefits to the underprivileged sections of society.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>UPSC Mains General Studies Paper \u2013 2 Mains 2022<\/strong><\/p><\/blockquote>\n\n\n\n<p><strong><a href=\"https:\/\/edukemy.com\/blog\/upsc-mains-civil-services-ias-exam-question-paper-2022\/\">UPSC Mains Civil Services IAS Exam Question Paper \u2013 2022<\/a><\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a14bcb84f100\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a14bcb84f100\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#Approach\" title=\"Approach&nbsp;&nbsp;\">Approach&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#Answer\" title=\"Answer\">Answer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#Body\" title=\"Body\">Body<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#Way_forward\" title=\"Way forward&nbsp;\">Way forward&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/besides-the-welfare-schemes-india-needs-deft-management-of-inflation-and-unemployment-to-serve-the-poor-and-the-underprivileged-sections-of-the-society-discuss-250-words-15-marks\/#In_case_you_still_have_your_doubts_contact_us_on_8792740517\" title=\"In case you still have your doubts, contact us on 8792740517.&nbsp;\">In case you still have your doubts, contact us on 8792740517.&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Approach\"><\/span>Approach&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>In starting, give a brief intro of the key word \u201cwelfare schemes\u201d.&nbsp;<\/li><li>Discuss Deft management of inflation and unemployment poor and the underprivileged sections.&nbsp;<\/li><li>Way forward\/suggestion&nbsp;<\/li><li>Conclusion&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Answer\"><\/span>Answer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Welfare refers to assistance programs sponsored by governments for needy individuals and families, including schemes, such as food stamps, health care assistance, and unemployment compensation. These welfare schemes are typically financed through taxation. India has rolled out several welfare schemes to uplift the poor and underprivileged sections of the society.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body\"><\/span>Body<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Welfare schemes are important for the upliftment of the poor and underprivileged sections of society, but they alone cannot ensure a sustained improvement in their living standards. Inflation and unemployment are two major challenges that need to be addressed to create an environment conducive to the growth and development of the economy, which will in turn benefit the poor and underprivileged.\u00a0<\/li><\/ul>\n\n\n\n<p><strong>Deft management of inflation and unemployment in poor and underprivileged sections.<\/strong> These are important limitations to consider when discussing the role of welfare schemes in managing inflation and unemployment for the poor and underprivileged sections of society.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10.png\" alt=\"\" class=\"wp-image-42412 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=Essay\">UPSC Essay Course<\/a><\/figcaption><\/figure>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Exclusion errors:<\/strong> The exclusion of eligible individuals from welfare schemes can hurt their access to essential services and subject them to market vulnerabilities. This can result in inflationary pressures for these individuals who are forced to access services from the market.\u00a0<\/li><li><strong>Direct Benefit Transfer (DBT):<\/strong> While DBT is a step towards reducing corruption and leakages in welfare schemes, it also has the potential to subject beneficiaries to market vulnerabilities. For example, when LPG subsidies are provided as cash transfers, it becomes subject to inflationary pressures.\u00a0<\/li><li><strong>Wage payments:<\/strong> Wage payments under welfare schemes such as MGNREGA are not inflation-adjusted, resulting in poor wages for workers who are unable to cope with rising inflation.\u00a0<\/li><li><strong>Capacity building:<\/strong> Many welfare schemes lack a capacity-building approach and are focused on providing supportive care and incentives, rather than on skill development that could lead to sustainable employment.\u00a0<\/li><li><strong>Informal employment:<\/strong> The lack of informal employment opportunities means that a large population of India is outside the purview of social security, making them perpetually dependent on welfare schemes.\u00a0<\/li><li><strong>Decreased social-sector spending:<\/strong> In an effort to improve fiscal health, the government may resort to cutting down on social sector spending, which can result in increased out-of-pocket expenditure on essential services for the poor and underprivileged sections of society.\u00a0<\/li><\/ol>\n\n\n\n<p>Therefore, while welfare schemes can play a role in managing inflation and unemployment, there are important limitations to consider in their implementation and design. These limitations must be addressed to ensure that the poor and underprivileged sections of society can access essential services and lead a dignified life.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Way_forward\"><\/span>Way forward&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These are suggestions to address the limitations of welfare schemes and ensure effective management of inflation and unemployment for the poor and underprivileged sections of society:-&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The RBI&#8217;s role in controlling inflation is crucial, and effective policy instruments should be implemented to achieve this.\u00a0<\/li><li>Increasing formalization of the economy through tax incentives can help to bring informal employees under the net of social security.\u00a0\u00a0<\/li><li>Indexing wages, DBTs, and other welfare payments to inflation can help to protect beneficiaries from market vulnerabilities.\u00a0\u00a0<\/li><li>Providing incentives to infant MSMEs instead of dwarf firms can enable them to expand and create employment opportunities.\u00a0<\/li><li>Including &#8220;informal labor&#8221; under the priority sector lending category for financial inclusion can also help to reduce their vulnerability and provide access to credit.\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Overall, as per the OPHI (Oxford Poverty and Human Development Initiative) and UNDP Global Multidimensional Poverty Index 2021, about 22.5 per cent of the Indians are extremely poor and they struggle for survival with less than $2 per day. Hence any welfare schemes, management of Inflation or Employment programs should always make sure its impact is felt on this section of population in India.&nbsp;<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"block-a91d712c-3b2a-42fd-8911-23224b6cf0a1\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_8792740517\"><\/span><strong>In case you still have your doubts, contact us on 8792740517.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p id=\"block-19f5af5e-0a55-42a5-a63c-70f159b2e72f\">For UPSC Prelims Resources, <a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p id=\"block-ce5c9408-fc97-47c8-9a76-5075352140eb\">For Daily Updates and Study Material:<\/p>\n\n\n\n<p id=\"block-d2d5bc7b-e0d0-4df9-9a06-972d23418ef1\">Join our Telegram Channel &#8211; <a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-fdd07932-9751-4e30-81f5-e9ee07f86680\"><li>1. Learn through Videos &#8211; <a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211; <a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211; <a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211; <a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>While welfare schemes address immediate needs, effective management of inflation and unemployment is crucial for sustained poverty<\/p>\n","protected":false},"author":17,"featured_media":15906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[185],"tags":[186,299,354,142,232,145,353],"class_list":["post-15899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains-solved-papers","tag-general-studies-1","tag-geography-general-studies","tag-history","tag-previous_year_questions","tag-upsc","tag-upsc-mains-question-paper","tag-upsc-model-answers"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/15899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=15899"}],"version-history":[{"count":3,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/15899\/revisions"}],"predecessor-version":[{"id":25549,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/15899\/revisions\/25549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/15906"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=15899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=15899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=15899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}