The Indian government’s job schemes are far from helping the economy

The luxury of a job.
The luxury of a job.
Image: REUTERS/Danish Siddiqui
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India is not getting rid of its unemployment crisis anytime soon.

Various employment generation programmes of the Indian government are set to register a dip in job creation in 2019-20, according to data tabled in parliament yesterday (Feb. 18).

The Indian government’s flagship job schemes include the Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pandit Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), and Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM).


This is a credit-linked scheme implemented by the nodal agency Khadi and Village Industries Commission (KVIC)—khadi being the coarse cotton cloth promoted by Mahatma Gandhi. At the state level, it is implemented through KVIC directorates, state khadi and village industries boards (KVIBs), district industries centres (DICs), and banks.

Under the scheme, the figures for estimated employment generation are at the lowest since 2014 when prime minister Narendra Modi took office for the first time.


The MGNREGA scheme, launched under the Congress-led UPA government in 2006, has also shown signs of slowing down in 2019-20. The scheme, which aims to provide guaranteed 100 days of employment to every rural household in a financial year, shows the lowest trend since 2015-16.


Launched in 2014 by the ministry of rural development, the scheme is a part of the National Rural Livelihood Mission, tasked with diversifying the incomes of rural poor families and catering to the career aspirations of rural youth. The scheme has seen the number of people trained fall, government data show.


This aims to uplift urban poor citizens through skill development.

“Keeping in view the objective of Make in India, skill development is essential for socio-economic betterment. Deen Dayal Antyodaya Yojana was launched under the ministry of housing and urban poverty alleviation (HUPA). The government has provisioned Rs500 crore ($69.83 million) for the scheme,” the DAY-NULM website’s read.

The latest government numbers, though, are not favourable.