Poverty Alleviation and Employment Generation

Question 1

According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate fell to 6.8% in January 2024, a decrease from December 2023’s rate of

Answer 1

8.7%

Question 2

Urban rural divide in Unemployment

Answer 2

Unemployment rates continue to be higher in urban areas compared to rural areas. This highlights the need for focused job creation strategies in urban centers.

Question 3

primary causes of unemployment in India:

Answer 3

Population Growth and Oversupply of Labor:
Skill Mismatch
Slow Economic Growth: Declining Agricultural Sector: Rigid Labor Law
Limited Entrepreneurship:
Infrastructure Gaps:
Social Factors:
Informal Economy

Question 4

potential future strategies that could help India reduce unemployment rates and promote a more inclusive job market:

Answer 4

Investing in Education and Skill Development:

Promoting Inclusive Growth:

Leveraging Technology

Labor Market Reforms:

Targeted interventions

Question 5

potential future strategies that could help India reduce unemployment rates and promote a more inclusive job market:

Investing in Education and Skill Development:

Answer 5

Educational Reforms

Vocational Training Expansion

Apprenticeships and Internships

Reskilling and Upskilling Programs

Question 6

potential future strategies that could help India reduce unemployment rates and promote a more inclusive job market:

Promoting Inclusive Growth:

Answer 6

Focus on MSMEs

Formalization of the Informal Sector

Addressing Social Barriers

Question 7

potential future strategies that could help India reduce unemployment rates and promote a more inclusive job market:

Leveraging Technology:

Answer 7

Embracing Digitalization:

Tech-Enabled Job Matching Platforms

Encourage Tech-based Startups:

Question 8

potential future strategies that could help India reduce unemployment rates and promote a more inclusive job market:

Labor Market Reforms:

Answer 8

Updating Labor Laws:

Ease of Doing Business:

Question 9

potential future strategies that could help India reduce unemployment rates and promote a more inclusive job market:

Targeted interventions:

Answer 9

Rural Development:

Urban Employment Programs:

Question 10

informal sector

Answer 10

operate outside formal regulation and taxation

small-scale and unregistered

limited social security, benefits, and job stability for workers.

street vendors, domestic workers, small shop owners, construction laborers

Question 11

Key Features of the Informal Sector in India

Answer 11

Massive Size: Over 90% of India’s workforce

low wages, poor working conditions, and limited opportunities for advancement.

lack job security and social safety nets, making them vulnerable to economic shocks and personal crises.

Gender Disparity: Women are disproportionately represented in the informal sector, often in more precarious and lower-paid jobs.

Question 12

Sectors with High Informal Employment

Answer 12

AGRI

INFRA

MANUFACTURING

TRADE HOTELS AND RESTAURANTS

Question 13

Key Challenges of the Informal Sector

Answer 13

Lack of Job Security and Social Protection:

Low Wages and Poor Working Condition

Limited Access to Finance and Credit: Informal businesses struggle to obtain loans from banks, hindering growth and investment.

Vulnerability to Exploitation and Abuse:

Productivity and Innovation Constraints:

Difficulty in Tax Collection:

Question 14

Consequences of a Large Informal Sector

Answer 14

Poverty and Inequality

Social Unrest:

Reduced Economic Growth

Limited Government Revenue

Question 15

Potential Solutions and Mitigation Strategies for informal sector

Answer 15

Formalization Initiatives - simplified registration processes, tax incentives, and better compliance support.

Strengthening Labor Laws and Social Protection

Skill Development and Training Program

Improved Access to Finance

Technology and Innovation Support