Showing posts with label Government of India. Show all posts
Showing posts with label Government of India. Show all posts

Friday, November 1, 2024

NITI - National Institution for Transforming India - Formation and Structure

Planning Commission -Archived Site


6 February 2015

NITI will meet for the first time on 6 February 2015



Members of NITI
Present Members of NITI

Prime Minister Shri Narendra Modi:  Chairperson:
 i.      Vice-Chairperson: Arvind Panagaria
 ii.      Members: Full-time
          Shri Bibek Debroy, Economist
          Dr. V.K. Saraswat, Former Secretary Defence R&D

 iii.      Part-time members: Maximum of 2 from leading universities research organizations and other relevant institutions in an ex-officio capacity.  Part time members will be on a rotational basis.
 iv.      Ex Officio members: Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.
         
Shri Rajnath Singh, Union Minister
Shri Arun Jaitley, Union Minister
Shri Suresh Prabhu, Union Minister
Shri Radha Mohan Singh, Union Minister
Special Invitees:
Shri Nitin Gadkari, Union Minister
Shri Thawar Chand Gehlot, Union Minister
Smt. Smriti Zubin Irani, Union Minister

v.      Chief Executive Officer : appointed

5 January 2015

Prime Minister, Shri Narendra Modi, has made the following appointments to the NITI Aayog:
Vice Chairman:

Shri Arvind Panagariya, Economist
Full-Time Members:
Shri Bibek Debroy, Economist
Dr. V.K. Saraswat, Former Secretary Defence R&D
Ex-officio members:
Shri Rajnath Singh, Union Minister
Shri Arun Jaitley, Union Minister
Shri Suresh Prabhu, Union Minister
Shri Radha Mohan Singh, Union Minister
Special Invitees:
Shri Nitin Gadkari, Union Minister
Shri Thawar Chand Gehlot, Union Minister
Smt. Smriti Zubin Irani, Union Minister
http://pmindia.gov.in/en/news_updates/pm-makes-appointments-to-niti-aayog/

Members envisaged
Prime Minister as the Chairperson:
 i.      Vice-Chairperson: To be appointed by the Prime Minister
 ii.      Members: Full-time
 iii.      Part-time members: Maximum of 2 from leading universities research organizations and other relevant institutions in an ex-officio capacity.  Part time members will be on a rotational basis.
 iv.      Ex Officio members: Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.
v.      Chief Executive Officer : To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India.









Press Information Bureau
Government of India
Prime Minister's Office
01-January-2015 17:8 IST
Government establishes NITI Aayog (National Institution for Transforming India) to replace Planning Commission

NITI Aayog will seek to provide a critical directional and strategic input into the development process

In accordance with a key announcement made by Prime Minister Narendra Modi on Independence Day, the Union Government today established NITI Aayog (National Institution for Transforming India), as replacement for the Planning Commission. This comes after extensive consultation across the spectrum of stakeholders, including state governments, domain experts and relevant institutions.

NITI Aayog will seek to provide a critical directional and strategic input into the development process.

The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states.

NITI Aayog will emerge as a "think-tank" that will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy.

The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation.

The NITI Aayog will develop mechanisms to formulate credible plans to the village level and aggregate these progressively at higher levels of government. It will ensure special attention to the sections of society that may be at risk of not benefitting adequately from economic progress.

The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and partners. It will offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda.

In addition, the NITI Aayog will monitor and evaluate the implementation of programmes, and focus on technology upgradation and capacity building.



Through the above, the NITI Aayog will aim to accomplish the following objectives and opportunities:

·         An administration paradigm in which the Government is an "enabler" rather than a "provider of first and last resort."

·         Progress from "food security" to focus on a mix of agricultural production, as well as actual returns that farmers get from their produce.

·         Ensure that India is an active player in the debates and deliberations on the global commons.

·         Ensure that the economically vibrant middle-class remains engaged, and its potential is fully realized.

·         Leverage India's pool of entrepreneurial, scientific and intellectual human capital.

·         Incorporate the significant geo-economic and geo-political strength of the Non-Resident Indian Community.

·         Use urbanization as an opportunity to create a wholesome and secure habitat through the use of modern technology.

·         Use technology to reduce opacity and potential for misadventures in governance.



The NITI Aayog aims to enable India to better face complex challenges, through the following:

·         Leveraging of India's demographic dividend, and realization of the potential of youth, men and women, through education, skill development, elimination of gender bias, and employment

·         Elimination of poverty, and the chance for every Indian to live a life of dignity and self-respect

·         Reddressal of inequalities based on gender bias, caste and economic disparities

·         Integrate villages institutionally into the development process

·         Policy support to more than 50 million small businesses, which are a major source of employment creation

·         Safeguarding of our environmental and ecological assets
http://pib.nic.in/newsite/PrintRelease.aspx?relid=114276



Formation of NITI


Government constitutes National Institution for Transforming India (NITI) Aayog

Cabinet Resolution


Press Note


The Government has replaced Planning Commission with a new institution named NITI Aayog (National Institution for Transforming India). The institution will serve as ‘Think Tank’ of the Government-a directional and policy dynamo. NITI Aayog will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy, this includes matters of national and international import on the economic front, dissemination of best practices from within the country as well as from other nations, the infusion of new policy ideas and specific issue-based support.

The following is the full text of the Cabinet  Resolution:-


RESOLUTION


Mahatma Gandhi had said:  “Constant development is the law of life, and a man who always tries to maintain his dogmas in order to appear consistent drives himself into a false position”. Reflecting this spirit and the changed dynamics of the new India, the institutions of governance and policy have to adapt to new challenges and must be built on the founding principles of the Constitution of India, the wealth of knowledge from our civilizational history and the present day socio-cultural context.        

The Planning Commission was set up on the 15th of March, 1950 through a Cabinet Resolution.  Nearly 65 years later, the country has metamorphosed from an under-developed economy to an emergent global nation with one of the world’s largest economies.

From being preoccupied with survival, our aspirations have soared and today we seek elimination, rather than alleviation, of poverty.  The people of India have great expectations for progress and improvement in governance, through their participation.  They require institutional reforms in governance and dynamic policy shifts that can seed and nurture large-scale change. Indeed, the ‘destiny’ of our country, from the time we achieved Independence, is now on a higher trajectory.

The past few decades have also witnessed a strengthening of Indian nationhood.  India is a diverse country with distinct languages, faiths and cultural ecosystems.  This diversity has enriched the totality of the Indian experience.  Politically too, India has embraced a greater measure of pluralism which has reshaped the federal consensus.  The States of the Union do not want to be mere appendages of the Centre.  They seek a decisive say in determining the architecture of economic growth and development.  The one-size-fits-all approach, often inherent in central planning, has the potential of creating needless tensions and undermining the harmony needed for national effort.  Dr. Ambedkar had said with foresight that it is “unreasonable to centralise powers where central control and uniformity is not clearly essential or is impracticable”.

At the heart of the dynamics of transforming India lies a technology revolution and increased access to and sharing of information.  In the course of this transformation, while some changes are anticipated and planned, many are a consequence of market forces and larger global shifts.   The evolution and maturing of our institutions and polity also entail a diminished role for centralised planning, which itself needs to be redefined.

The forces transforming India are many and include:

a.       The industry and service sectors have developed and are operating on a global scale now.  To build on this foundation, new India needs an administration paradigm in which the government is an “enabler” rather than a “provider of first and last resort”.  The role of the government as a “player” in the industrial and service sectors has to be reduced.  Instead, government has to focus on enabling legislation, policy making and regulation.

b.      India’s traditional strength in agriculture has increased manifold on account of the efforts of our farmers and improvements in technology.  We need to continue to improve, and move from pure food security to a focus on a mix of agricultural production as well as the actual returns that farmers get from their produce.

c.       Today, we reside in a ‘global village’, connected by modern transport, communications and media, and networked international markets and institutions.  As India ‘contributes’ to global endeavours, it is also influenced by happenings far removed from our borders.  Global economics and geo-politics are getting increasingly integrated, and the private sector is growing in importance as a constituent within that.  India needs to be an active player in the debates and deliberations on the global commons, especially in relatively uncharted areas.

d.      India’s middle class is unique in terms of its size and purchasing power.  This formidable  group is increasing with the entry of the neo-middle class.  It has been an important driver of growth and  has enormous potential on account of its high education levels, mobility and willingness to push for change in the country.  Our continuing challenge is to ensure that this economically vibrant group remains engaged and its potential is fully realised.

e.       India’s pool of entrepreneurial, scientific and intellectual human capital is a source of strength waiting to be unleashed to help us attain unprecedented heights of success.  In fact, the ‘social capital’ that is present in our people has been a major contributor to the development of the country thus far and, therefore, it needs to be leveraged through appropriate policy initiatives.

f.       The Non-Resident Indian community, which is spread across more than 200 countries, is larger in number than the population of many countries of the world. This is a significant geo-economic and geo-political strength.  Future national policies must incorporate this strength in order to broaden their participation in the new India beyond just their financial support.  Technology and management expertise are self-evident areas where this community can contribute significantly.

g.      Urbanisation is an irreversible trend.  Rather than viewing it as an evil, we have to make it an integral part  of our policy for development.  Urbanisation has to be viewed as an opportunity to use modern technology to create a wholesome and secure habitat while reaping the economic benefits that it offers.

h.      Transparency is now a sine qua non for good governance.  We are in a digital age where the tools and modes of communication, like social media, are powerful instruments to share and explain the thoughts and actions of the government.  This trend will only increase with time.  Government and governance have to be conducted in an environment of total transparency – using technology to reduce opacity and thereby, the potential for misadventures in governing.

Technology and information access have accentuated the unity in diversity that defines us.  They have helped integrate different capabilities of our regions, states and eco-systems towards an interlinked national economy.  Indeed, Indian nationhood has been greatly strengthened on their account.  To reap the benefits of the creative energy that emerges from the Indian kaleidoscope, our development model has to become more consensual and co-operative.  It must embrace the specific demands of states, regions and localities.  A shared vision of national development has to be worked out based on human dignity, national self-respect and an inclusive and sustainable development path.

The challenges we face as a country have also become more complex:

India’s demographic dividend has to be leveraged fruitfully over the next few decades.  The potential of our youth, men and women, has to be realized through education, skill development, elimination of gender bias, and employment.  We have to strive to provide our youth productive opportunities to work on the frontiers of science, technology and knowledge economy.

Poverty elimination remains one of the most important metrics by which alone we should measure our success as a nation.  Every Indian must be given an opportunity to live a life of dignity and self respect.  The words of Tiruvalluvar, the sage-poet, when he wrote that “nothing is more dreadfully painful than poverty”, and “gripping poverty robs a man of the lofty nobility of his descent”, are as true today as they were when written more than two thousand  years ago.

Economic development is incomplete if it does not provide every individual the right to enjoy the fruits of development. Pt. Deen Dayal Upadhyaya had enunciated this in his concept of Antyodaya, or uplift of the downtrodden, where the goal is to ensure that the poorest of the poor get the benefits of development.  Inequalities based on gender biases as well as economic disparities  have to be redressed.  We need to create an environment and support system that encourages women to play their rightful role in nation-building.  Equality of opportunity goes hand in hand with an inclusiveness agenda.  Rather than pushing everyone on to a pre-determined path, we have to give every element of society – especially weaker segments like the Scheduled Castes and Scheduled Tribes - the ability to influence the choices the country and government make in setting the national agenda.  In fact, inclusion has to be predicated on a belief in the ability of each member of society to contribute.  As Sankar Dev wrote centuries ago in the Kirtan Ghosh: “To see every being as equivalent to one’s own soul is the supreme means (of attaining deliverance)”.

Villages (Gram) continue to be the bedrock of our ethos, culture and sustenance.  They need to be fully integrated institutionally into the development process so that we draw on their vitality and energy.

India has more than 50 million small businesses, which are a major source of employment creation.  These businesses are particularly important in creating opportunities for the backward and disadvantaged sections of the society.  Policy making must focus on providing necessary support to this sector in terms of skill and knowledge upgrades and access to financial capital and relevant technology.

Responsible development implies environmentally sound development.  India is one of the mega-diverse countries.  Our environmental and ecological assets are eternal, and must be preserved and safeguarded.  The country’s legacy of respect for environment is reflected in our reverence for trees and animals.  Our legacy to future generations must be sustainable progress.  Each element of our environment (paryavaran) and resources, namely water, land  and forest (Jal, Jameen evam Jungle) must be protected; and this must be done in a manner that takes into account their inter-linkages with climate (jal vayu) and people (jan).  Our development agenda has to ensure that development does not sully the quality of life of the present and future generations.

The role of the government in achieving ‘national objectives’ may change with time, but will always remain significant.  Government will continue to set policies that anticipate and reflect the country’s requirements and execute them in a just manner for the benefit of the citizens.  The continuing integration with the world – politically and economically - has to be incorporated into policy making as well as functioning of the government.

In essence, effective governance in India will rest on the following pillars:

a.       Pro-people agenda that fulfils the aspirations of the society as well as individual,
b.      Pro-active in anticipating and responding to their needs,
c.       Participative, by involvement of citizens,
d.      Empowering   women in all aspects
e.       Inclusion of all groups, with special attention to the economically weak (garib), the SC, ST and OBC communities,  the rural sector and farmers (gaon and kisan), youth and all categories of minorities.
f.       Equality of opportunity to our country’s youth,
g.      Transparency through the use of technology to make government visible and responsive.

Governance, across the public and private domains, is the concern of society as a whole.  Everyone has a stake in ensuring good governance and effective delivery of services. Creating Jan Chetna, therefore, becomes crucial for people’s initiative.    In the past, governance may have been rather narrowly construed as public governance.  In today’s changed dynamics – with ‘public’ services often being delivered by ‘private’ entities, and the greater scope for ‘participative citizenry’,  governance encompasses and involves everyone.

The institutional framework of government has developed and matured over the years.   This has allowed the development of domain expertise which allows us the chance to increase the specificity of functions given to institutions.  Specific to the planning process, there is a need to separate as well as energize the distinct ‘process’ of governance from the ‘strategy’ of governance.

In the context of governance structures, the changed requirements of our country, point to the need for setting up an institution that serves as a Think Tank of the government – a directional and policy dynamo.  The proposed institution has to provide governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy.  This includes matters of national and international import on the economic front, dissemination of best practices from within the country as well as from other nations, the infusion of new policy ideas and specific issue-based support.  The institution has to be able to respond to the changing and more integrated world that India is part of.

An important evolutionary change from the past will be replacing a centre-to-state one-way flow of policy by a genuine and continuing partnership with the states.   The institution must have the necessary resources, knowledge, skills and, ability to act with speed to provide the strategic policy vision for the government as well as deal with contingent issues.

Perhaps most importantly, the institution must adhere to the  tenet that while incorporating positive influences from the world, no single model can be transplanted  from outside into the Indian scenario. We need to find our own strategy for growth.  The new institution has to zero in on what will work in and for India.   It will be a Bharatiya approach to development.

The institution to give life to these aspirations is the NITI Aayog (National Institution for Transforming India).  This is being proposed after extensive consultation across the spectrum of stakeholders including inter alia state governments, domain experts and relevant institutions.  The NITI Aayog will work towards the following objectives:

To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States in the light of national objectives.    The vision of the NITI Aayog will then provide a framework ‘national agenda’ for the Prime Minister and the Chief Ministers to provide impetus to.

To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation.

To develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government.

To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy.

To pay special attention to the sections of our society that may be at risk of not benefitting adequately from economic progress.

To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy.  The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections.

To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think Tanks, as well as educational and policy research institutions.

To create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and other partners.

To offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda.

To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders.

To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery.

To focus on technology upgradation and capacity building for implementation of programmes and initiatives.

To undertake other activities as may be necessary in order to further the execution of the national development agenda, and the objectives mentioned above.


The NITI Aayog will comprise the following:

Prime Minister of India as the Chairperson

Governing Council comprising the Chief Ministers of all the States and Lt. Governors of Union Territories

Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region.  These will be formed for a specified tenure.  The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region.  These will be chaired by the  Chairperson of the NITI Aayog or his nominee.

Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister

The full-time organizational framework will comprise of, in addition to the Prime Minister as the Chairperson:

                                                              i.      Vice-Chairperson: To be appointed by the Prime Minister
                                                            ii.      Members: Full-time
                                                          iii.      Part-time members: Maximum of 2 from leading universities research organizations and other relevant institutions in an ex-officio capacity.  Part time members will be on a rotational basis.
                                                          iv.      Ex Officio members: Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.
                                                            v.      Chief Executive Officer : To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India.
                                                          vi.      Secretariat as deemed necessary.

Swami Vivekananda said “Take up one idea. Make that one idea your life – think it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea and just leave every other idea alone. This is the way to success.” Through its commitment to a cooperative federalism, promotion of citizen engagement, egalitarian access to opportunity, participative and adaptive governance and increasing use of technology, the NITI Aayog will seek to provide a critical directional and strategic input into the development process.  This, along with being the incubator of ideas for development, will be the core mission of NITI Aayog.

Cabinet Secretariat, Government of India
New Delhi, 1st January 2015

http://pib.nic.in/newsite/PrintRelease.aspx?relid=114268



Ud. 10.11.2024
Pub. 3.3.2015

Monday, November 29, 2021

Employment and Job Creation - Potential of Mudra Finance Scheme - Data Analysis and Interview Based Perspectives

Employment and Job Creation - Potential of Mudra Finance Scheme - Data Analysis and Interview Based Perspectives


Paper Presented  at the 18th IASSI ANNUAL CONFERENCE 2017, 4 - 5 December 2017, Guntur, Andhra Pradesh

By

Dr. K.V.S.S. Narayana Rao

Professor, National Institute of Industrial Engineering (NITIE)

Mumbai – 400 087

Plan to provide 2 crore persons employment using Mudra Finance Scheme. 

______________________


https://www.youtube.com/watch?v=DLTp7Y48PQQ

_____________________


Abstract

According to the report, “Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India”  based on the data provided by NSS 73rd ROUND (July 2015 - June 2016), the number of micro units in India are around 6 crores and about 11 lakh crore persons are working in them. These enterprises have the potential to pay minimum wages to the employees working in them on average and provide employment on continuous basis in every month of the year. Number of research studies on informal sector employment in India came to the conclusion that more than 90 percent of employment is provided only by the informal sector. Such a phenomenon is also seen in many developing countries. Even though, it is thought initially that organized sector will expand and informal sector will disappear, the evidence shows contrary situation. In many countries, informal sector is still expanding providing employment opportunities to fresh entrants into jobs. Hence, government support to informal sector is increasing. Government of India also realized the important role of MSMEs in the economic system of the country. Mudra Finance Scheme was launched by Government of India to provide finance to micro sector units through banks. The scheme is supported by a refinance facility and credit guarantee fund. Micro sector firms are mostly proprietary and partnership concerns and hence they are part of informal sector. The scheme was implemented in the year 2015-16. The targets set for Mudra Finance credit were achieved by the banking sector for the last two years (2015-16 and 2016-17). The target for the year 2017-18 is set at Rs.2.44 lakh crores. The targets are being increased every year. An initial observation based on the average fixed assets per employee in micro units of non-agricultural sector and the credit target of the Mudra Finance Scheme reveal that self-employment and wage employment can be provided to significant number of persons every year in micro units. Number of research papers have stated that informal and unorganized sector provides 70 to 93% of the jobs in different manufacturing and service business areas. Based on these observations further data analysis is done. Bank managers were contacted for their views on Mudra Finance loans. Based on the interviews conducted, Mudra Finance Scheme can be described as a successful scheme. But, the scheme may need to be modified based on a detailed survey of the bank managers, who have to actually select the business unit, finance it and collect back the loans. It is observed that the elected representatives and political party members are not yet promoting this scheme in any significant manner as the importance of the scheme to contribute significantly is not realized by them. In the paper, the details of potential employment, the issues highlighted by bank managers in the interviews and some other observations regarding the operation of Mudra Finance are provided so that the potential of the scheme is highlighted for policy decisions by the Governments, elected representatives, banks, business associations, business firms,  and non-government organizations.


1. Introduction


Achieving a high rate of growth of GDP has been the focus of the Indian planning process along with substantial employment generation for creating adequate work opportunities for the rising labour force. Prevalence of unemployment leads to poverty entailed with numerous social problems. In the background of this, providing employment to the labour force has been an area of central concern in all Five Year Plans.  Initially the generation of employment was expected to be an inevitable result of the process of development.  But the trends of the recent two decades show that growth has not yielded desired results in the area of employment generation. 

During 1950-70, employment grew by 2 per cent per annum while the growth in labor force was 2.5 per cent, thus, resulting in overall increase in unemployment.  Efforts were also made in the subsequent five year plans to promote self-employment and entrepreneurship through provision of assets, skills and other support to the unemployed. These steps led to expansion of employment levels. However, the rate of growth of employment still lagged behind the rate of growth of labour force. 

 A comparison of major employment-unemployment indicators between 2004-05 (NSS 61st round) and 2009-2010 (NSS 66th round) brings out some important facts:

The NSSO collects data on employment and unemployment using three broad measures or approaches: (i) Usual Principal & Subsidiary Status; (ii) Current Weekly Status; and (iii) Current Daily Status. Usual Principal & Subsidiary Status (UPSS) has two components, viz., Usual Principal Status and Subsidiary Status. It relates to the activity status of a person during the reference period of last 365 days preceding the date of survey. The activity status on which a person spent relatively longer time (major time criterion) is considered the Usual Principal Status (UPS). Current Weekly Status (CWS) of a person is the activity status obtained for a person during a reference period of 7 days preceding the date of survey. According to this, a person is considered as a worker if he/she has performed any economic activity at least for one hour on any day of the reference week, and is obtained on the basis of daily activities performed on each day of the reference period.

Current Daily Status (CDS) of a person is determined on the basis of his/her activity status on each day of the reference week using a priority-cum-major time criterion (day to day labour time disposition). Broadly, a person is considered working (employed) for the full day if he/she worked for 4 hours or more during the day.

A comparison of estimated persons in the labour force, work force and those unemployed between 2004-05 and 2009-10 brings out certain important facts:

Under UPSS, the number of persons in the labour force remained nearly same (468.8 million persons in 2009-10 and 469 million persons in 2004-05). Under CWS, the labour force increased from 445.2 million persons in 2004-05 to 450.4 million persons in 2009-10 i.e. by 5.2 million persons. 

The working group of planning commission for the 12th plan (Working Group, 2011) estimated that employment has to be created for 533.68 million persons by end of March 2017. 

But the current situation of employment creation in the country is not encouraging. Many persons are criticizing the government for the failure to create jobs. Hence, examining the job creation opportunities is an important research activity that would be of help to policy makers to solve a pressing problem of Indian economy. The report, “Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India” based on the data provided by NSS 73rd ROUND (July 2015 - June 2016) provides interesting information that gives a direction to estimate the employment potential of micro sector, especially when examined in conjunction with the credit targets achieved under Mudra Finance Scheme for micro units in India (MOSPI, 2017). Hence further research was carried out to analyze the implication.

In the paper, the further sections are organized as follows. Section 2 is related to literature review. Section 3 covers the important information from the report, “Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India”  based on the data provided by NSS 73rd ROUND (July 2015 - June 2016). Section 4 covers the details and progress of Mudra Finance Scheme. Section 5 is concerned with the plan of providing self-employment and wage employment using Mudra Finance Scheme. Section 6 provides the summary of the interviews conducted with bank managers regarding the issues related to Mudra Finance scheme and operational problems in giving and collection loans under it. Section 7 highlights other issues related to operation of Mudra Finance Scheme and involvement of elected representatives. The conclusions are made in Section 8.

2. Literature review 

The existing literature on the topics of employment in micro sector (informal sector) and mudra scheme are examined to bring out the important issues that were discovered so far and to identify the research gap.

Bairagya (2012) noted that in the Indian context, there is distinction between unorganized and informal sectors. Informal sector covers all unincorporated proprietary and partnership enterprises (in the Annual Survey of Industries), while the unorganized sector includes enterprises run by cooperative societies, trusts, and private and limited companies in addition to unincorporated proprietary and partnership enterprises that are not regulated. The informal sector can, therefore, be considered as a sub-set of the unorganized sector. The informal sector has employment size also as criterion. The employment threshold in the context of India is nine workers.  The Probit regression analysis done by author regarding  informal sector employment determinants shows that that individuals without any general or technical education have a greater probability of working in the informal sector.  

Mitra and Pande (2013) examined the employment elasticity of the organized sector in India. They found that the equation representing determinants of wages indicated that units with assets are better-off compared to those that do not have them. This finding led to the policy implication, that wages can be increased in the unorganized sector through increased asset creation. Government has to provide credit facilities to support asset creation and it may bring in improvements in livelihood of the employees in unorganized sector enterprises which are employing bulk of the persons in the country. The rate of growth in employment in the informal sector has been much faster than that in the formal sector. Individuals with poor human and physical capital endowment who were unable to get jobs in formal sector may start own account enterprises and other small units. But subsequent improvement in relevant information gathering and training, the accessibility to market information, credit facilities, technological know-how and other information pertaining to the overall macro-economic and policy changes increases; the scale of operation expands for many of these initial small firms. In the informal sector, the firms using wage employees have 5.42 employees on average in manufacturing sector, 1.45 employees in trading firms, and 4.2 employees in service businesses. Thus micro units have good number of employees in manufacturing and service business areas.

Prakash and Patawari (2014) indicate that in India, SMEs are a vibrant and dynamic component of economy by their high caliber and significant role in employment generation, which is second largest after agriculture. The small-scale sector generates employment of four persons on investment of Rs.1,00,000. Their research supported the propositions that increase in small enterprises and increase in assets of small enterprises leads to increase in employment.

Das (2015) observed that most of the workers in the developing world derive their livelihood from the informal economy. Informal sector provides self-employment as well as wage employment. Despite predictions that with advancement and modernization it will eventually be absorbed, the informal economy has not only grown in many countries but also has emerged in new forms. It is now widely recognized that the informal economy is not a transient residual feature but a permanent component of modern capitalist development. Moreover, it is not a stagnant peripheral entity, but a vibrant dynamic integral part of the entire economy.

Puhan (2016) observed that 12th five year plan envisions creation of 50 million non-farm employment opportunities. As per the World Bank Report, in India youth unemployment as a percentage of youth population is 10 per cent for males and 11 per cent for females. More than 93 per cent of the workforce is employed in the informal sector.  There is a need to increase employment in formal sector to provide satisfactory jobs to educated persons but growth of informal sector has to be supported to provide employment to bulk of the job seekers for many years to come. 

Chattopadhyay and Mondal (2016) examined the question “should investment be directed towards the ‘formal’ sector or to the ‘informal’ sector, given the fact that developing economies like India often have vast ‘informal’ sector?”  The informal sector can be more dynamic than the formal sector provided they have the right opportunities to flourish. Informal sector is not necessarily an entity that is trapped in low level equilibrium. In fact, both informal manufacturing units and self-employed units accumulate fixed assets, invest and grow.  National Commission for Enterprises in the Unorganized Sector, 2007 defined informal sector as ‘unorganized sector consists of all unincorporated private enterprises owned by individuals or households engaged in sale and production of goods and services operated on a proprietary or partnership basis and with less than ten total workers. Based on that definition, it was found that 92 per cent of the total employment is contributed by informal sector in 2006-07, accompanied with almost 50 per cent of total Gross Value. Full employment and productivity-wage equilibrium can be achieved by promoting formal or large firms as well as unorganized sector firms simultaneously and under full employment condition further investment can be driven by productivity considerations. When the economy is under significant unemployment situation, employment creation has to be the dominant logic of public policy.

Indrakumar (2017) examined the share of organized sector of manufacturing in total employment.  In 1999–2000 there were 44.05 million employed in the manufacturing sector and the share of organized manufacturing in overall manufacturing was 18.5 per cent (8.17 million) of the total workers. It increased to 8.45 million out of 55.77 million workers for the year 2004–05. Again, the composition of organized employment in the total manufacturing employment showed an increase in the year 2009–10. Organized manufacturing sector contributed 11.41 million jobs out of 50.74 million manufacturing job opportunities. 

The literature brings out the importance of informal sector or micro sector (employing less than nine or ten employees) in providing employment to bulk of the job seekers in developing countries and especially in India. Hence the micro sector development is to be researched further to bring out opportunities for supporting the sector through public policy as well as private sector initiatives.

Mudra Finance Scheme is a major public policy initiative to provide credit to micro sector firms. The scheme was started in 2015. Number of researchers described the features of the scheme in the papers published in years 2015 and 2016. Godha and Name (2017) covered salient aspects of Mudra Finance Scheme and Mudra Organization. They also covered the amount sanctioned and disbursed for the year 2015-16 and the number of loan accounts opened for India as a whole and for Rajasthan State. Gautam, Kumar and Gopal (2017) gave details of loans sanctioned in years 2015-16 and 2016-17 under Mudra Finance Scheme for India as a whole and for the state of Haryana.

The literature does not have papers that have indicated the employment potential of the informal sector for future period. In the literature related to Mudra Finance, we do not find any study that estimated the employment potential of the scheme. The operational problems of the scheme are also not studied.

In the research study undertaken, an attempt is made to estimate the employment potential of Mudra scheme loans and also to interview and elicit from branch managers of banks the operational problems faced by them.

3.  Key Indicators of Unincorporated Non-Agricultural Enterprises in India - NSS 73rd ROUND (July 2015 - June 2016)

The important indicators of the survey that help in estimating employment potential are described in this section.

3.1 Sample Size

First stage units (Villages and urban blocks): For rural India, the number of villages surveyed in the central sample was 8484 and the number of urban blocks/ Census Enumeration Blocks surveyed was 7839. 

Second Stage Units: The unincorporated non-agricultural enterprises were the ultimate sampling units in NSS 73rd round survey. At all India level a total of 290113 enterprises were surveyed (143179 enterprises in rural and 146934 enterprises in urban sector) (MOSPI, 2017).

3.2 Number of Unincorporated Enterprises

 The survey estimated the number of unincorporated non-agricultural enterprises in the country during 2015-16 as 6.34 crore. Out of the total number of enterprises 51.3 % were in rural areas and the remaining 48.7 % were in urban areas. Out of the total estimated number of enterprises at all India level, 31 % were engaged in manufacturing, 36.3 % enterprises were in trading and 32.6 % were in other services. As per the results obtained from the survey, the Own Account Enterprises (OAEs) (i.e. enterprises that do not employ any hired worker on a fairly regular basis) had a dominant share in the unincorporated non-agricultural enterprises (excluding construction). At all India level 84.2 % of the estimated number of enterprises under coverage was OAEs. The share of OAEs was 91.4 % in the rural areas and 76.6 % in the urban areas.

3.3 Number of Employed Persons

The results of the survey reveals that during 2015-16, about 11.13 crore workers were engaged in unincorporated non-agricultural enterprises (excluding construction) in the country. Among the workers, 55 % worked in urban areas and 45 % worked in rural areas. The Own Account Enterprises (OAEs) accounted for 62 % of the workforce in the unincorporated non-agricultural sector (excluding construction) in the country. 

3.4 Gross Value Added (GVA)

Gross Value Added (GVA) is an important economic indicator that measures the contribution of a particular sector to the economy. It gives the value of goods and services produced less the cost of all intermediate consumption that are directly attributable to that production. During the year 2015-16, the aggregate annual gross value added by the unincorporated non-agricultural enterprises engaged in market production was estimated as Rs.11,52,338 crores. At all-India level, annual GVA per enterprise in the unincorporated non-agricultural sector was estimated at Rs.1,81,908.

For rural India, annual GVA per enterprise for OAEs and establishments were estimated as Rs.71,217 and Rs.4,78,319 respectively. The corresponding estimates for urban areas were Rs.1,26,529 and Rs.7,03,848 respectively.

Gross Value Added per Worker (GVAPW) is a very important measure of labour productivity obtained by dividing the real output (i.e. gross value added) by the total number of workers employed by the enterprises. The annual GVA per Worker for enterprises engaged in market production at all India level was estimated as Rs.1,03,744.

3.5 Estimates Income for Self-Employed and Wage Employee for Rs.1 lakh Investment in Assets

The average annual emolument per hired worker estimated from the survey was Rs.87,544.

At all India level, the market value of owned fixed assets per enterprise was estimated as Rs.2,31,869.

From the data that average Annual GVA per enterprise is Rs.1,81,908 and average  owned fixed assets: Rs. 2,31,869 we can find value added for Rs.1,00,000 fixed assets as Rs.78.450 (Rs.1,00,000*Rs.1,81,908/Rs.2,31,869). 

Salary that can be paid to hired workers for Rs.1,00,000 fixed assets is Rs.66,200 (Rs.87,544 *Rs.78.450/Rs. 1,03,744). When the minimum wage to be paid is Rs.300 per day, the employee can be hired for 220 days in year. This comes to 18.5 days in month. As the age of the firm increases, the assets of the firm increase and the employees can be given work for more number of days in month offering full employment every month. Initially employment can be given in every month, and the employment qualifies to be defined as employed under UPSS. Thus we can say, one lakh rupees loan for one firm can give reasonable self-employment or wage employment.

According to the Micro, Small and Medium-Scale Enterprise Development Act (MSMED Act, 2006) of the Government of India, an enterprise is categorized as a microenterprise if it has an investment up to 25 lakh in plant and machinery, excluding land and buildings, and 10 lakh in manufacturing and service-rendering enterprises, respectively. Thus, a micro enterprise started with an initial capital of one lakh can grow further as a micro unit enjoying various special credit facilities till it graduates into a small enterprise. One can see it growing in next year as an establishment providing wage employment and in the third year, it can increase its investment further to give more income to the entrepreneur as well as employees.

4. Salient Features of Mudra Finance Scheme

Mudra Finance Scheme and Mudra Bank were announced in the 2015 budget speech by Finance Minister Arun Jaitley. The Union Finance Minister in his Budget Speech for 2015-16 announced formation of MUDRA Bank. He informed the house that government firmly believes that economic development has to generate inclusive growth. While large corporate and business entities have a role to play, this has to be complemented by informal sector enterprises which generate maximum employment. There are some 5.77 crore small business units, mostly individual proprietorship, which run small manufacturing, trading or service businesses. These bottom of the pyramid, hard-working entrepreneurs are not supported by formal systems of credit adequately. Therefore, a proposal to create a Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs.20,000 crore, and credit guarantee corpus of Rs.3,000 crore was included in the budget. MUDRA Bank will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana. These measures will support the educated and skilled workers to start own activity enterprises and become first generation entrepreneurs. Existing small businesses will be able to expand their activities and provide employment.  


4.1 Responsibilities of Mudra Banks

The MUDRA Bank would primarily be responsible for –

1)    Laying down policy guidelines for micro/small enterprise financing business.

2)    Registration of MFI entities.

3)    Regulation of MFI entities.

4)    Accreditation /rating of MFI entities.

5)    Laying down responsible financing practices to ward off indebtedness and ensure proper client protection principles and methods of recovery.

6)    Development of standardised set of covenants governing last mile lending to micro/small enterprises.

7)    Promoting right technology solutions for the last mile.

8)    Formulating and running a Credit Guarantee scheme for providing guarantees to the loans which are being extended to micro enterprises.

9)    Creating a good architecture of Last Mile Credit Delivery to micro businesses under the scheme of Pradhan Mantri Mudra Yojana.

Establishment of Credit  Guarantee  Fund  for MUDRA Units(CGFMU) for  guaranteeing  loans  sanctioned  under Pradhan Mantri Mudra Yojana with  the  objective  to  reduce  the  credit  risk  to  Banks  /  NBFCs  /  MFIs  /  other  financial  intermediaries,  who  are  Member Lending Institutions (MLIs) was also proposed.  The National Credit Guarantee Trustee Company Ltd. (NCGTC Ltd.),  a  wholly-owned  company  of  Government  of  India,  constituted  under  the  Companies  Act,  1956  (2013)  to  manage  and  operate  various  credit  guarantee  funds,  shall  be  the  Trustee  of  the  Fund.

MUDRA (SIDBI) Bank was established as per the proposal in the budget and it mission, declared in its website, is "To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security." The vision is mentioned as "To be an integrated financial and support services provider par excellence benchmarked with global best practices and standards for the bottom of the pyramid universe for their comprehensive economic and social development."

4.2 MUDRA Loan scheme - Achievement during Years 2015–16 and 2016–17

The Mudra Yojana target has been achieved during the year 2015-16. As against the target of Rs.1,22,188 crore, the Banks and MFIs together have sanctioned Rs.1,32,954.73 crore (Mudra, 2016). Loans extended under the Pradhan Mantri Mudra Yojana (PMMY) during 2016-17 have crossed the target of Rs.1,80,000 crore for 2016-17. The Union Budget has announced a target of Rs.2.44 lakh crore for Mudra Loans during 2017-18 (PIB, 2017).

Mudra Finance targets are being achieved each year and the target is being increased also every year. Mudra Bank is given the responsibility to develop the scheme and its operational practices. The quantum of the credit target is substantial to provide employment to 2 crore persons per year if loans are made at the size of one lakh rupees per unit and an emphasis on new  micro sector start-up units is given in the scheme. Based on this insight a plan to provide employment to 2 crore persons per year in micro sector using Mudra Finance Scheme is proposed.



5. Plan for Creating Employment to 2 Crore Persons per Year in Micro Units Using Mudra Finance 

The Mudra credit target for 2017-18 is set at Rs.2.44 lakh crore. The target for 2018-19 can be increased to Rs.3.5 lakh with specifying sub categories that have focus on employment creation to 2 crore persons.


5.1 Subcategory 1. Focus: Self-Employment to One Crore Persons

Provide rupees one lakh loan to new units.

Provide rupees one lakh crores to one crore new micro units at average of one lakh per unit.  Self-employment to one crore persons can be provided with each unit generating an average value added of Rs.78,450. A training scheme and consultant support may be required to facilitate the micro sector enterprise development on this scale. 

Micro Unit Business Consultants to Guide Potential Micro Unit Entrepreneurs: For facilitating this new enterprise creation, one lakh (100,000) micro unit business consultants have to be trained and each consultant has to be given the opportunity to prepare business plans and assist 100 persons to start 100 new units. They can charge a fee of Rs.1000/- per year per unit for the first five years.  MSME training institutes and entrepreneurship development institutions can train these business consultants. Skill development ministry can conduct special programmes to develop the business consultants. In the discussions, bank managers appreciated this suggestion. They felt such business consultant can provide support to them in evaluating loan proposals by his knowledge of the entrepreneur and his business plan. The income to these business consultants keeps increasing with each year, as more new units are started in years.

5.2 Subcategory 2. Focus: Wage Employment to One Crore Persons

Provide rupees one lakh loan to existing units with plan to employ one more person.

Provide rupees one lakh loan to one crore enterprises each having a plan to employ one more person giving average wages of Rs.66,200. The applications for this sub category of loans is invited from existing units with business plans for expansion giving a job to one person. This sub-category focuses on creating wage employment.

The finance required for supporting the two schemes providing a total employment to 2 crore persons is Rs.2 lakh crores and is within the resources of Government of India and the Banking system and is below the credit target specified for 2017-18.

5.3 Target of Mudra Finance Credit for 2018-19

For the year 2018-19, target of Rs. 3.5 lakh crores can be fixed for Mudra Finance Scheme with three sub targets.

1. Rs.one lakh crore for one crore new units.

2. Rs.one lakh crore for one crore existing units each giving a job to one person.

3. Remaining Rs.1.5 lakh crore under old scheme to provide finance for units to deepen capital per unit and per worker to provide higher income to both entrepreneurs and workers.

The above scheme can create employment to minimum 2 crore persons. Unemployment problem in the country can be tackled through micro units. On average, every year, 2 crore persons out of the population of Rs.135 crore may join the employment seeking pool. Thus providing an opportunity for 2 crore person in micro sector will solve the unemployment problem. The job opportunities in small and medium units, large units, government are still there to people to provide higher income job opportunities.



6.  Interviews with Bank Branch Managers

While the amount of the credit target is well within the financial capacity of the governments and banking system, the managerial capacity of the branch managers of the banks and their positive evaluation of the Mudra loan scheme are important factors that will determine the success of the plan of providing employment to 2 crore persons every year in micro enterprises. Interviews were conducted with 10 bank managers in Kakinada, a corporation city of Andhra Pradesh and Thane City (Maharashtra).

The viewpoints emerged from the interviews are:

1.By and large, bank managers give the opinion that the scheme is a success and will become a success.

2.Bank managers are worried about the attitude of borrowers. Borrowers are thinking that it is government money that is being given to them.

3.An ethical conduct code is to be developed so that borrowers and the various persons who facilitate borrowing realize that it is bank money that is being given as loans and any default on the part of the borrowers, will result in loss to the bank, which in turn means loss to the bank depositors who are the neighbours of borrowers.  Loans are for running business concerns.

4.Every loan application must be accompanied by a business plan, which the borrower believes in and can defend it before bankers. In this context, bank managers feel that, loans have to be extended to business literate persons only. So a prior education and training to Mudra loan borrowers is necessary so that genuine borrowers can be identified.

5.Bankers express the problem that, there is more political interference and less support for making the Mudra loan scheme a success. When involvement of politicians occurs, it is more to demand loans for specific applicants. Efforts to develop good business persons and business supporting infrastructure is not visible.

6.Bank managers feel it is easier to give credit to a going concern. The borrower knows his business and trends in his business.

7.Giving loans to start a new business is more difficult. The applicant does not have knowledge about his business and many times he does not make any arrangements to start the business. He only wants money without producing any evidence of his ability to start a business and the infrastructure needed to start a business.

8.Some liberalization is required to disburse cash in advance. The counterparties in the transaction are many times individuals and therefore proper bills may not be available as documentation. A documentation system for such transactions has to be developed.

9.Applicants have to be from the locality of the bank branch, so that verification during loan appraisal process and follow up for collection can be done with less cost and more confidence.

10.The borrowers have to be given incentive for prompt payment at the time of total repayment of the loan. Additional loans have to be given at concessional rate to borrowers who made prompt repayment of the earlier loan. Borrowers who defaulted in paying monthly instalments have to be subjected to penalty interest at the subsequent loans.

11.Credit information linkage has to be developed so that all banks know the credit history of an applicant based on Aadhar number and banks do not give multiple loans.

12.Especially in case of loans made under political pressure, diversion of the loan amount is taking place. Loans must be strictly given only on business plan basis and for business plan related expenditure.

13.Extensive education has to be there among debtors about business loans taking and repayment.

14.The repayment experience so far is rated as satisfactory by bank managers.

15.Micro sector business consultancy as a handholding support to borrowers was welcomed by bank managers. The consultants can help the borrowers to make good business plans and to do business in more professional manner.

The important finding of the interviews is that bank managers have a positive view of the scheme. But they have some operational problems and a problem regarding the attitudes of the borrowers. A detailed survey of bank managers needs to be undertaken by the Mudra scheme designers to take views of branch managers into consideration to make modifications in the scheme. The confidence and satisfaction of branch managers is a very important factor for the success of the scheme.

7. Issues Related to Operation of Mudra Finance Scheme  

In this section, three issues: visibility of the scheme in banks, involvement of elected representatives, and business plan banks are discussed.

7.1 Visibility of the Scheme in Bank Branches

Mudra finance scheme is an important scheme of national importance that is being promoted by all ministers of the central cabinet. But, the bank branches are not promoting Mudra finance with any displays. Good display materials in bank branches will help many people to come to know of this scheme and talk about it with relevant people. Free literature on Mudra Scheme can be made available through bank branches to persons interested in knowing more about the scheme. No such pamphlet or booklet was given to the author when he visited various bank branches for interviews.

7.2 Involvement of Elected Representatives

Some states are also providing subsidies to entrepreneurs along with bank loans. What is lacking for effective use of the entrepreneurship schemes including Mudra schemes is political involvement. Most of the politicians, MPs and MLAs, who are natural leaders of their constituencies are indifferent. When they take interest and push things, bank managers are complaining of political interference. The views being expressed by bank managers can have a point. MPs and MLAs have to promote the schemes in their constituencies and they have to advise potential entrepreneurs to behave ethically. Instead of that if they push banks to give loans to the people recommended by them even without proper business plans, the complaints of political interference will come. Political involvement to promote economic development through increased investment is necessary. But political interference in administrative procedures has to be avoided. Government and Top leadership of various political parties have to advise their party members and elected representatives to promote investment utilizing the current schemes and programmes. Opposition parties should not remain indifferent. It is the Parliament that approved the Budget. They are also a party to the budget decision. All political parties have to make efforts to make the programmes, approved by Parliament a success and contribute to the growth of the country. No doubt, the negative points indicated by the opposition members in Parliament and outside will help them in future elections, if the present government does not take enough care to minimize them in implementing the approved programmes.

7.3 Business Plan Banks

Business plan development is an important step in setting up business. The process of making a business plan makes a prospective entrepreneur knowledgeable in important business characteristics. It also forces him to look into marketing and supply environment to confirm that the product under consideration has demand at an economic price and inputs to produce the product are also available at economic prices that provide a profit to the business. In the case of small businesses, many business firms have opportunity to do business in the same products or services in many different geographic locations. For example, medical shops are required in large number of villages and the business operations of many of them are similar. Hence a generic business plan can guide large number of firms in different locations. Thus a small number of generic business plans can help entrepreneurs in large number of locations to evaluate whether they can set up the business as per suggested business plans. SIDBI has developed online information base of various businesses possible in MSME sector. Banks can also create such online business plan information. Number of business schools conduct business plan competitions. They can conduct business plan competitions for micro units and publish them online to expand the business plan banks.

8. Conclusions

Prior research studies on employment help us to conclude that micro sector is an important economic activity and is providing employment to bulk of the population in developing countries. Some of the micro units graduate into small, medium and large organizations. Similarly, employees who join micro sector organizations, may look for opportunities in bigger organizations and get into more remunerative jobs in due course of time. Thus, micro sector is the main stepping stone for both entrepreneurs and wage employment seekers. Micro sector needs to be developed and various agencies giving attention to economic development of the country have to make efforts have to help the sector to grow horizontally into larger number of units and vertically into bigger size units to provide employment to all employment seekers and to provide income that provides good standard of living to all employees.

Mudra Finance scheme started in India to provide bank finance to micro units is a success in terms of the credit extended. Bank managers have positive view on the scheme with number of suggestions to make it more effective and less risky. The managers of the scheme in government, Reserve Bank of India and individual banks have to do a survey of branch managers of banks to understand their difficulties and modify the scheme to make it more successful. The scheme can be made more employment focused and sub-categories can be created to provide self-employment opportunity to one crore persons and wage employment to one crore persons by earmarking Rs.2 lakh crores, which is possible in the targets being prescribed for Mudra Finance. The plan was extensively circulated in social media forums and no significant objection was raised so far. It is also observed that even though Government is promoting Mudra Finance scheme, bank branches, elected representatives and members of political parties are not showing enthusiasm to promote the scheme in a big way with voluntary promotion activities. If the micro sector development and the strong support of Mudra Finance to micro sector development are accepted by many in the country, more involved and committed promotion of the scheme will take place and provide employment and livelihood to large number of persons of the country for many years to come.

References

Bairagya, Indrajit (2012). “Employment in India’s informal sector: size, patterns, growth and determinants”, Journal of the Asia Pacific Economy, Vol. 17, No. 4,  pp. 593–615.

Chattopadhyay, Subhasankar and Mondal, Rima (2016), “Investment and Growth in a Developing Economy with Vast Informal Sector”, The Journal of Developing Areas, Vol. 50, No. 4, pp. 113-132.

Das, Shakuntala (2015), “The Growing Informality, Gender Equality and the Role of Fiscal Policy in the Face of the Current Economic Crisis: Evidence from the Indian Economy”, International Journal of Political Economy, Vol.  44: pp. 277–295.

Gautam, Veena, Kumar, Parveen, and Krishan Gopal (2017).  “Analysis the Performance of MUDRA”, International Journal in Management and Social Science, Vol. 5 No. 6, pp. 72-77.

Godha, Anurodh and Nama, Deepti (2017). “Pradhan Mantri Mudra Yojana:  A New Financial Inclusion Initiative”,   Paper presented in 2 Days International Conference on Research Trends in Engineering, Applied Science and Management  (ICRTESM-2017), Modi Institute of Technology, Kota held during 18 -19, March 2017.

Indrakumar, D. (2017). “Twenty-five years of Economic Reforms and Employment Pattern in India: An Assessment of Organized Segment of Manufacturing”, Productivity, Vol. 58, No. 1, pp. 1-11.

Mitra, Arup and Pande, Aviral (2013). “Unorganized Sector in India: Employment Elasticity and Wage-Productivity Nexus”, Journal of Developmental Entrepreneurship, Vol. 18, No. 4, pp.  1-19.

MOSPI (2017), “Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India, NSS 73rd ROUND, (July 2015 - June 2016)”, available at http://www.mospi.gov.in/sites/default/files/publication_reports/NSS_KI_73_2.34.pdf, site accessed on 9 October 2017.

Mudra (2016), “Review of performance of Pradhan Mantri Mudra Yojana (An analysis on the performance of PMMY during FY 2015-16)”, available at 

http://www.mudra.org.in/Default/DownloadFile/Highlights%20of%20PMMY%20performance%20during%20FY%202015-16.pdf, site accessed on 9 October 2017.

PIB (2017), “Pradhan Mantri Mudra Yojana (PMMY) crosses the target of Rs.1.8 lakh crore for 2016-17”,   http://pib.nic.in/newsite/PrintRelease.aspx?relid=161016  accessed on 9 October 2017.

Prakash, Ram, and Patawari, Swapana (2014). “SMEs Entrepreneurs, Fix Investment and Employment Generating in India”, SIES Journal of Management, Vol. 12, No. 2, pp. 46-54.

Puhan, Rasmi Ranjan (2016).”Impact of Unemployment and Education on Tribal Families and Youth – Policies and Issues on Indian Government”, European Journal of Social Sciences Studies, Vol. 1, No. 1, pp. 21-40.

Working Group (2011). Report of the Working Group on Employment, Planning & Policy for the Twelfth Five Year Pan (2012-2017), Planning Commission, New Delhi.




 

Wednesday, December 12, 2018

Narendra Modi's Top 100 Programmes and Actions - What is Public Response and Assessment?


In social media, a message is being circulated with the following as top 100 actions of Narendra Modi during 2014-18 (19). What is the public assessment of these 100 programmes and actions? An effort has to be made to ascertain through social media. In democracy, parliament and government have to implement people's desires, wishes and demands in an appropriate and suitable manner. A continuous effort to find out the people's voice has to be made by representatives of the people and the same is to be made official through communications in the parliament.

1. Surgical Strike against Pakistan
2. Implementation of the historic GST scheme
3. Demonetization
4. Providing bullet proof jackets to the Indian Army
5. Providing modern weapons to the Armed Forces
6. Providing electricity to 18450 villages
7. Introducing Ayushman Bharat
8. Not letting the terrorists into India like the UPA government.
9. Generic medicines
10. Reducing price of stents
11. For reducing joint operation
12. Providing employment due to Make In India scheme
13. Not even a single corruption charge in 4 years of Modi government
14. For making Dalit the President of India
15. For making woman as India’s Defence Minister
16. For making oylmpic medalist as Sports minister
17. Working 18 hours a day for the nation
18. Striving towards making India a Vishwa Guru
19. Providing 33 % reservation for women in police department
20. Repaying Rs 2 lakh crore loan with interest which was made by the UPA government
21. Making India for a loan receiving nation to loan lending nation
22. For detecting 3 lakh shell companies due to GST
23. For controlling black money
24. Stopping stone pelting due to note ban
25. Detecting thousands of crores of illegal trade due to linking of Aadhaar and PAN
26. Providing subsidy to employees of Khadhi industry and saving Rs 150 crore
27. Breaking the backbone of terrorists and naxals
28. Finding the missing 500 students and uniting them with their family
29. Detecting 13,000 fake teachers
30. Deleting 1.43 crore fake cards from Tamil Nadu
31. Working towards banning cow slaughter
32. Improving bonds with Japan
33. Bullet train project
34. Securing highest medals in Asian Games
35. Distributing LPG for 5 crore poor
36. Doubling MSP on several agricultural products
37. Closing 250 fake companies
38. Digital India
39. Swacch Bharat
40. Skill India
41. Giving special package to agriculture
42. Introducing NITI Ayog
43. Enhancing India’s security
44. Strengthening international bond
45. Beti Bachao, Beti Padao
46. Making India the third highest electricity producer
47. Jan Dhan scheme
48. LPG subsidy
49. Saffronising 222 states
50. Supporting women empowerment
51. Smart City
52. Sukanya Samrudhi Yojana
53. Reintroducing Kisan Vikas Patra
54. Subsidy for Agricultural equipment
55. Making India a mobile making hub
56. Man Ki Baat
57. Fertilizer subsidy
58. World Yoga Day
59. Death penalty for the rapists of children
60. Bring girl child under Indra Dhanush scheme
61. Establishing AIIMS medical college throughout India
62. Covering 50 crore people under Modi care
63. Cleansing Ganga river
64. One Rank One Pension
65. Spreading and modernizing BSNL
66. Making Air India profitbale
67. Electrifying each and every Indian village
68. Nuclear agreements with Russia, Japan, Canada, France
69. Modernising India Railways and making it profitable
70. Indian Postal Payment Bank
71. Getting Naxals to the mainstream
72. Solar schemes throughout India
73. Using Israelis techniques for Indian Army
74. Enhancing diplomatic ties throughout globe
75. Corruption less government
76. Seizing Dawood Ibrahim’s assets
77. Striving to make India “Congress Mukt”
78. Linking Aadhaar to bank account and thus monitoring fraudulent transactions
79. Enhancing India’s Air Force’s strength
80. Doklam Victory
81. Trying to get money deposited in Swiss Bank
82. Making defecation free India
83. Providing visa to several countries
84. Linking of rivers
85. Trying to ban triple talaq
86. Trying to construct Ram Mandir
87. Ujwala Yojana
88. Mudra
89. Cancelling Haj Subsidy
90. Increasing doubling the tax base
91. Increasing the speed of highway construction like never before
92. Fasal Bhma Yojana
93. Deen Dayal Upadhya Gram Jyoth scheme
94. Uranium deal with Australia
95. Increasing the salary of Grameen Dhak Sevaks through 7th pay commission
96. Increasing bunkers in Indoa-Pak borders
97. Singing deals to create an anti-nuclear shield
98. 2+2 meet with USA
99. Increasing India’s GDP
100. Surgical strike in Burma

Saturday, September 2, 2017

Council of Ministers of Narendra Modi - 2014 to 2019



3 September 2017

Prime Minister - Shri Narendra Modi

Prime Minister and also in-charge of:
Ministry of Personnel, Public Grievances and Pensions;
Department of Atomic Energy;
Department of Space; and
All important policy issues; and
All other portfolios not allocated to any Minister.


Cabinet Ministers

1 Shri Raj Nath Singh Minister of Home Affairs.
2 Smt. Sushma Swaraj Minister of External Affairs.
3 Shri Arun Jaitley Minister of Finance; and
Minister of Corporate Affairs.
4 Shri Nitin Jairam Gadkari Minister of Road Transport and Highways;
Minister of Shipping; and
Minister of Water Resources, River Development and Ganga Rejuvenation.
5 Shri Suresh Prabhu Minister of Commerce and Industry.
6 Shri D. V. Sadananda Gowda Minister of Statistics and Programme Implementation.
7 Sushri Uma Bharati Minister of Drinking Water and Sanitation.
8 Shri Ramvilas Paswan Minister of Consumer Affairs, Food and Public Distribution.
9 Smt. Maneka Sanjay Gandhi Minister of Women and Child Development.
10 Shri Ananthkumar Minister of Chemicals and Fertilizers; and
Minister of Parliamentary Affairs.
11 Shri Ravi Shankar Prasad Minister of Law and Justice; and
Minister of Electronics and Information Technology.
12 Shri Jagat Prakash Nadda Minister of Health and Family Welfare.
13 Shri Ashok Gajapathi Raju Pusapati Minister of Civil Aviation.
14 Shri Anant Geete Minister of Heavy Industries and Public Enterprises.
15 Smt. Harsimrat Kaur Badal Minister of Food Processing Industries.
16 Shri Narendra Singh Tomar Minister of Rural Development;
Minister of Panchayati Raj; and
Minister of Mines.
17 Shri Chaudhary Birender Singh Minister of Steel.
18 Shri Jual Oram Minister of Tribal Affairs.
19 Shri Radha Mohan Singh Minister of Agriculture and Farmers Welfare.
20 Shri Thaawar Chand Gehlot Minister of Social Justice and Empowerment.
21 Smt. Smriti Zubin Irani Minister of Textiles; and
Minister of Information and Broadcasting.
22 Dr. Harsh Vardhan Minister of Science and Technology;
Minister of Earth Sciences; and
Minister of Environment, Forest and Climate Change.
23 Shri Prakash Javadekar Minister of Human Resource Development.
24 Shri Dharmendra Pradhan Minister of Petroleum and Natural Gas; and
Minister of Skill Development and Entrepreneurship.
25 Shri Piyush Goyal Minister of Railways; and
Minister of Coal.
26 Smt. Nirmala Sitharaman Minister of Defence.
27 Shri Mukhtar Abbas Naqvi Minister of Minority Affairs.


Ministers of State (Independent Charge)


1 Shri Rao Inderjit Singh Minister of State (Independent Charge) of the Ministry of Planning; and
Minister of State in the Ministry of Chemicals and Fertilizers.
2 Shri Santosh Kumar Gangwar Minister of State (Independent Charge) of the Ministry of Labour and Employment.
3 Shri Shripad Yesso Naik Minister of State (Independent Charge) of the Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH).
4 Dr. Jitendra Singh Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region;
Minister of State in the Prime Minister’s Office;
Minister of State in the Ministry of Personnel, Public Grievances and Pensions;
Minister of State in the Department of Atomic Energy; and
Minister of State in the Department of Space.
 5 Dr. Mahesh Sharma Minister of State (Independent Charge) of the Ministry of Culture; and
Minister of State in the Ministry of Environment, Forest and Climate Change.
6 Shri Giriraj Singh Minister of State (Independent Charge) of the Ministry of Micro, Small and Medium Enterprises.
7 Shri Manoj Sinha Minister of State (Independent Charge) of the Ministry of Communications; and
Minister of State in the Ministry of Railways.
8 Col. Rajyavardhan Singh Rathore Minister of State (Independent Charge) of the Ministry of Youth Affairs and Sports; and
Minister of State in the Ministry of Information and Broadcasting.
9 Shri Raj Kumar Singh Minister of State (Independent Charge) of the Ministry of Power; and
Minister of State (Independent Charge) of the Ministry of New and Renewable Energy.
10 Shri Hardeep Singh Puri Minister of State (Independent Charge) of the Ministry of Housing and Urban Affairs.
11 Shri Alphons Kannanthanam Minister of State (Independent Charge) of the Ministry of Tourism; and
Minister of State in the Ministry of Electronics and Information Technology.


Ministers of State


1 Shri Vijay Goel Minister of State in the Ministry of Parliamentary Affairs; and
Minister of State in the Ministry of Statistics and Programme Implementation.
2 Shri Radhakrishnan P. Minister of State in the Ministry of Finance; and
Minister of State in the Ministry of Shipping.
3 Shri S.S. Ahluwalia Minister of State in the Ministry of Drinking Water and Sanitation.
4 Shri Ramesh Chandappa Jigajinagi Minister of State in the Ministry of Drinking Water and Sanitation.
5 Shri Ramdas Athawale Minister of State in the Ministry of Social Justice and Empowerment.
6 Shri Vishnu Deo Sai Minister of State in the Ministry of Steel.
7 Shri Ram Kripal Yadav Minister of State in the Ministry of Rural Development.
8 Shri Hansraj Gangaram Ahir Minister of State in the Ministry of Home Affairs.
9 Shri Haribhai Parthibhai Chaudhary Minister of State in the Ministry of Mines; and
Minister of State in the Ministry of Coal.
10 Shri Rajen Gohain Minister of State in the Ministry of Railways.
11 General (Retd.) V. K. Singh Minister of State in the Ministry of External Affairs.
12 Shri Parshottam Rupala Minister of State in the Ministry of Agriculture and Farmers Welfare; and
Minister of State in the Ministry of Panchayati Raj.
13 Shri Krishan Pal Minister of State in the Ministry of Social Justice and Empowerment.
14 Shri Jaswantsinh Sumanbhai Bhabhor Minister of State in the Ministry of Tribal Affairs.
15 Shri Shiv Pratap Shukla Minister of State in the Ministry of Finance.
16 Shri Ashwini Kumar Choubey Minister of State in the Ministry of Health and Family Welfare.
17 Shri Sudarshan Bhagat Minister of State in the Ministry of Tribal Affairs.
18 Shri Upendra Kushwaha Minister of State in the Ministry of Human Resource Development.
19 Shri Kiren Rijiju Minister of State in the Ministry of Home Affairs.
20 Dr. Virendra Kumar Minister of State in the Ministry of Women and Child Development; and
Minister of State in the Ministry of Minority Affairs.
21 Shri Anantkumar Hegde Minister of State in the Ministry of Skill Development and Entrepreneurship.
22 Shri M. J. Akbar Minister of State in the Ministry of External Affairs.
23 Sadhvi Niranjan Jyoti Minister of State in the Ministry of Food Processing Industries.
24 Shri Y. S. Chowdary Minister of State in the Ministry of Science and Technology; and
Minister of State in the Ministry of Earth Sciences.
25 Shri Jayant Sinha Minister of State in the Ministry of Civil Aviation.
26 Shri Babul Supriyo Minister of State in the Ministry of Heavy Industries and Public Enterprises.
27 Shri Vijay Sampla Minister of State in the Ministry of Social Justice and Empowerment.
28 Shri Arjun Ram Meghwal Minister of State in the Ministry of Parliamentary Affairs; and
Minister of State in the Ministry of Water Resources,
River Development and Ganga Rejuvenation.
29 Shri Ajay Tamta Minister of State in the Ministry of Textiles.
30 Smt. Krishna Raj Minister of State in the Ministry of Agriculture and Farmers Welfare.
31 Shri Mansukh L. Mandaviya Minister of State in the Ministry of Road Transport and Highways;
Minister of State in the Ministry of Shipping; and
Minister of State in the Ministry of Chemicals and Fertilizers.
32 Smt. Anupriya Patel Minister of State in the Ministry of Health and Family Welfare.
33 Shri C.R. Chaudhary Minister of State in the Ministry of Consumer Affairs, Food and Public Distribution; and
Minister of State in the Ministry of Commerce and Industry.
34 Shri P.P. Chaudhary Minister of State in the Ministry of Law and Justice; and
Minister of State in the Ministry of Corporate Affairs.
35 Dr. Subhash Ramrao Bhamre Minister of State in the Ministry of Defence.
36 Shri Gajendra Singh Shekhawat Minister of State in the Ministry of Agriculture and Farmers Welfare.
37 Dr. Satya Pal Singh Minister of State in the Ministry of Human Resource Development; and
Minister of State in the Ministry of Water Resources,
River Development and Ganga Rejuvenation.
(Incorporates changes in the Council of Ministers as on 03.09.2017)



Cabinet Reshuffle - 3 September 2017

http://economictimes.indiatimes.com/news/politics-and-nation/cabinet-reshuffle-9-new-ministers-to-take-oath-tomorrow-all-you-need-to-know-about-them/articleshow/60340565.cms

http://indiatoday.intoday.in/story/narendra-modi-cabinet-reshuffle-union-council-of-ministers-bharatiya-janata-party-live/1/1039653.html

http://indianexpress.com/article/india/narendra-modi-cabinet-full-list-bjp-nda-september-2017-4826169/


http://www.firstpost.com/india/narendra-modi-cabinet-reshuffle-live-updates-nirmala-sitharaman-gets-defence-piyush-goyal-gets-railways-suresh-prabhu-shifts-to-commerce-4002675.html


New Ministers inducted on 9 November 2014


Cabinet minsters

1. Former Goa CM Manohar Parrikar - cabinet minsiter.
2. Suresh Prabhu
3.  JP Nadda
4. Birendra Singh


Ministers of State, independent charge

5. Bandaru Dattatreya
6. Rajiv Pratap Rudy
7. Doctor Mahesh Sharma,



Ministers of State

8. Mukhtar Abbas Naqvi
9. Ram Kripal Yadav
10. Haribhai Parthibhai Chaudhary
11. Sanwar Lal Jat,
12. Mohan Kundariya
13. Giriraj Singh .
14. Hansraj Ahir,
15.Ram Shankar Katheriya
16. YS Chowdary
17. Jayant Sinha
18. Rajyavardhan Rathore
19. Babul Supriyo
20. Sadhvi Niranjan Jyoti
21. Vijay Sampla



Existing Council of Ministers  - All took oath on 26 May 2014

Union Cabinet Ministers of India 2014
S.no Portfolio Name
1 Minister of Personnel, Public Grievances & Pensions Narendra Modi
Dept of Atomic Energy
Dept of Space

2 Minister of Finance Arun Jaitley
Minister of Defence
Minister of Corporate Affairs

3 Union Minister for Home Affairs  Rajnath Singh

4 Union Minister for External Affairs Smt. Sushma Swaraj
Minister of Overseas Indian Affairs

5 Union Minister for Surface Transport & Shipping Nitin Gadkari
Union Minister For Rural Development
Minister of Panchayati Raj
Minister of Drinking Water & Sanitation

6 Minister For Human Resource Development  Smt, Smriti Irani

7 Minister For Urban Development M. Venkaiah Naidu
Minister of Housing and Urban Poverty Alleviation
Minister of Parliamentary Affairs

8 Union Minister For Railways D. V. Sadananda Gowda
9 Minister For Minority Affairs  Smt. Najma Heptullah
10 Union Minister For Water Resources & Ganga Rejuvenation Uma Bharti
11 Union Minister For Law & Justice, Telecom   Ravi Shankar Prasad

12 Union Minister For Micro, Small & Medium Enterprises  Kalraj Mishra
13 Union Minister For Women & Child Development Smt. Maneka Gandhi
14 Minister of Additional Charge of Chemicals & Fertilizers Ananth Kumar
15 Union Minister For Food Processing Industries Smt. Harsimrat Kaur Badal
16 Union Minister For Tribal Affairs Shri Jual Oram Jual Oram
17 Union Minister For Agriculture  Radha Mohan Singh
18 Union Minister For Mines Narendra Singh Tomar
Minister of Steel
Minister of Labour & Employment
19 Union Minister For Consumer Affairs & Food & Public Distribution Ram Vilas Paswan
20 Union Minister For Health & Family Welfare Dr. Harsh Vardhan
21 Union Minister For Social Justice & Empowerment Thawar Chand Gehlot
22 Union Minister For Civil Aviation Ashok Gajapati Raju Pusapati
23 Union Minister For Heavy Industries & Public Enterprises  Anant Geete


Ministers of India with Independent Charge
1 Ministry of Petroleum And Natural Gas   i Dharmendra Pradhan Dharmendra Pradhan
2 Ministry of Development of North Eastern Region General V.K. Singh  General V.K. Singh
Ministry of External Affairs
Ministry of Overseas Indian Affairs
3 Ministry of Planning  Inderjit Singh Rao Inderjit Singh Rao
Ministry of Statistics And Programme Implementation
Ministry of Defence

4 Ministry of Textiles      Santosh Kumar Gangwar Santosh Kumar Gangwar
Ministry of Parliamentary Affairs
Ministry of Water Resources
Ministry of River Development And Ganga Rejuvenation

5 Ministry of Culture  Shripad Yesso Naik Shripad Yesso Naik
Ministry of Tourism
Ministry of Skill Development Shri Paban Singh Ghatowar Paban Singh Ghatowar
Ministry of Entrepreneurship
Ministry of Youth Affairs And - Sports

7 Ministry of Information And Broadcasting  Prakash Javadekar Prakash Javadekar
Ministry of Environment
Ministry of Forest And Climate Change
Ministry of Parliamentary Affairs


8 Ministry of Power  Piyush Goyal Piyush Goyal
Ministry of Coal
Ministry of New And Renewable Energy

9 Ministry of Science And Technology  Jitendra Singh Jitendra Singh
Ministry of Earth Sciences
Ministry of Prime Minister's Office
Ministry of Personnel, Public Grievances & Pensions
Ministry of Department of Atomic Energy
Ministry of Department of Space

10 Ministry of Commerce And Industry  Nirmala Sitharaman Nirmala Sitharaman
Ministry of Finance
Ministry of Corporate Affairs


Ministers of State

1 Ministry of Civil Aviation  G.M. Siddeshwara G.M. Siddeshwara
2 Ministry of Railways  Manoj Sinha Manoj Sinha
3 Ministry of Chemicals And Fertilizers  Nihalchand Nihalchand
4 Ministry of Rural Development  Upendra Kushwaha Upendra Kushwaha
Ministry of Panchayati Raj
Ministry of Drinking Water And Sanitation
5 Ministry of Heavy Industries And Public Enterprise Shri Radhakrishnan P
6 Ministry of Home Affairs Kiren Rijiju Kiren Rijiju
7 Ministry of Road Transport And Highways  Krishan Pal Krishan Pal
Ministry of Shipping
8 Ministry of Agriculture  Sanjeev Kumar Balyan Sanjeev Kumar Balyan
Ministry of Food Processing Industries
9 Ministry of Tribal Affairs Mansukhbhai Dhanjibhai Vasava Mansukhbhai Dhanjibhai Vasava
10 Ministry of Consumer Affairs, Food And Public Distribution  Raosaheb Dadarao Danve
11 Ministry of Mines  Vishnu Deo Sai Vishnu Deo Sai
Ministry of Steel
Ministry of Labour And Employment
12 Ministry of Social Justice And Empowerment Sudarshan Bhagat

* Gopinath Munde who took oath on 26 May 2014 died in a car accident later.

Updated 3 September 2017, 9 November 2014