Post Independence History
Ethics Case Studies
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NCERT Questions
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03-06-2023

11:22:AM

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Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged section of the society. Discuss. [UPSC-2022]

Approach:

  1. Introduction: Define/ outline the intent of welfare schemes. Give examples if possible.
  2. Main body: Highlight the pros and cons of welfare schemes and justify the need for managing inflation and unemployment. 
  3. Conclusion: Sum up by mentioning why welfare schemes are not sufficient.

Welfare schemes are purported to act as complementary measures which could ensure the welfare of people to provide short term relief along with addressing the root causes of their situations.


Main body:

In India, many welfare schemes have found their place with different names, for example- Public Distribution System (PDS), Ayushman Bharat, Indira Awas Yojana (revamped to PM Awas Yojana), Reservation system etc.

These schemes have twofold benefits:

  • Uplifting many poor and underprivileged by providing them food, shelter etc. and other means of survival
  • Uplifting the socialistic model

But they have also harmed the society and economy in multiple ways:

  • Lowering the Labour Force Participation Rate (LPFR)
  • Increasing the number of dependents
  • Reducing tax base
  • Slowing down development, as huge sums of money is required for schemes
  • Preventing the beneficiaries of schemes to uplift themselves and their families

Thus, India needs deft management of inflation and unemployment to serve the poor and the underprivileged section of the society. 

Post-Covid, India is undergoing stagflation- low demand due to loss of jobs, but high inflation due to high fuel prices, costlier imports. This has affected the poor sections the most. 

Though welfare schemes are running, but they are not enough to empower the poor and underprivileged.

  • There is a need to invest heavily on local industries (through Make in India), infrastructure (like Bharatmala) and energy alternatives which can absorb the vast outstanding workforce.
  • Increased production and indigenous energy exploration will reduce import dependence and also control inflation arising out of increased demand.
  • Providing employment will help the poor and underprivileged families to come out of the vicious circle of welfare dependence, make them self-sufficient and sustainable.
  • Controlled and inflation and regular income will make them a part of the economy and allow them to consume goods and services not provided in welfare schemes.


Conclusion:

Welfare schemes for unprescribed time and without any reformative solutions are mere doles. Thus, using them as temporary measures while making reforms in economy should be the approach so that welfare schemes do not lose their value over time, transforming into ‘rights’ from ‘needs’, which is deleterious not only to poor and underprivileged, but also to the country as a whole.

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