Poverty, Unemployment and Welfare Schemes — TNPSC Group II/IIA Economy
Overview
Poverty alleviation and social welfare are central to India's development agenda. For TNPSC Group 2/2A, master the poverty measurement concepts, key employment schemes (especially MGNREGA), housing schemes, and Tamil Nadu's unique welfare programmes.
Poverty in India
Poverty Line Measurement
| Committee/Authority | Year | Methodology | Urban | Rural |
|---|---|---|---|---|
| Alagh Committee | 1979 | Calorie-based | 2100 calories | 2400 calories |
| Lakdawala Committee | 1993 | State-specific price indices | — | — |
| Tendulkar Committee | 2009 | Includes health, education | Rs 33/day | Rs 27/day |
| Rangarajan Committee | 2014 | Calorie + non-food spending | Rs 47/day | Rs 32/day |
Current measurement: Based on Tendulkar Committee methodology; NSSO (National Sample Survey Office) conducts household surveys
Poverty Statistics
- India's poverty rate has declined significantly: from ~45% (1994) to ~22% (2011) by Tendulkar line
- Multidimensional Poverty Index (MPI): Also includes health, education, and living standards
- India fell from 415 million MPI poor (2015–16) to 234 million (2019–21) — 180 million lifted out
- Global Hunger Index (GHI): India ranks low; malnutrition remains a challenge
Types of Unemployment
| Type | Description | Common in |
|---|---|---|
| Seasonal Unemployment | Unemployed during off-season | Agriculture |
| Disguised Unemployment | More workers than needed; if removed, no output loss | Agriculture, informal sector |
| Structural Unemployment | Skills mismatch with job requirements | Manufacturing, tech sectors |
| Frictional Unemployment | Between jobs; searching for new job | All sectors |
| Cyclical Unemployment | Due to economic recession/downturns | Industry |
| Technological Unemployment | Replaced by machines/automation | Manufacturing |
India's major unemployment types: Seasonal + Disguised (both in agriculture)
Employment Guarantee Schemes
MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
| Aspect | Details |
|---|---|
| Passed | September 7, 2005 (as NREGA) |
| Implemented from | February 2, 2006 (in 200 districts initially) |
| Renamed | MGNREGA (2009 — renamed to include Gandhi's name) |
| Type | Legal right — not a scheme |
| Days guaranteed | 100 days per household per year |
| Who is eligible | Any adult member of rural household |
| Work provided | Unskilled manual labour within 5 km of residence |
| Wages | State-wise notified rates (Rs 250–360/day approximately) |
| Payment | Within 15 days; if delayed, compensation |
| If no work | Unemployment allowance paid |
| Women | 1/3rd of workers must be women |
| Administered by | Ministry of Rural Development |
Significance:
- World's largest employment guarantee programme
- Has reduced rural-to-urban migration
- Gives minimum wage to rural poor during lean seasons
- Women empowerment through employment and independent income
PM Garib Kalyan Rozgar Abhiyaan (2020)
- Launched during COVID-19 to provide employment to migrant workers returning to villages
- 116 districts in 6 states; 125 days work
Housing Schemes
Pradhan Mantri Awas Yojana (PMAY)
PMAY-Gramin (Rural): 2016
- Target: 2.95 crore pucca houses to rural BPL families
- Assistance: Rs 1.2 lakh (plains); Rs 1.3 lakh (hilly/NE/difficult areas)
- Combined with toilets under Swachh Bharat Mission
PMAY-Urban: 2015
- Target: "Housing for All" by 2022 (extended)
- 4 components: Credit Linked Subsidy (CLSS), Affordable Housing in Partnership, Beneficiary-led construction, In-situ Slum Redevelopment
CM Housing Scheme (Tamil Nadu)
- Chief Minister's Housing Scheme: Houses for homeless SC/ST/BC and other poor families
- Tamil Nadu Housing Board: Builds affordable housing in urban areas
Food Security Schemes
National Food Security Act 2013 (NFSA)
- Coverage: 75% rural + 50% urban population = 81 crore people
- Entitlement: 5 kg/person/month at subsidised rates (Rice: Rs 3, Wheat: Rs 2, Coarse grains: Rs 1)
- AAY households (Antyodaya Anna Yojana): 35 kg/month at same prices — poorest of poor
- Implemented through Public Distribution System (PDS)
Public Distribution System (PDS)
- Established: World War II era; formalised in 1960s
- Fair price shops (ration shops) distribute subsidised food
- TPDS (Targeted PDS, 1997): APL/BPL/AAY categories
- Tamil Nadu: Among best states in PDS implementation
Mid-Day Meal Scheme
- Free meals in government schools
- Tamil Nadu: Pioneered by Kamaraj (1956); MGR expanded; now Thalikku Thazhai scheme
- Increases school attendance and nutrition
Tamil Nadu Welfare Schemes
Amma Schemes (Jayalalithaa Era, AIADMK)
| Scheme | Details |
|---|---|
| Amma Unavagam | Subsidised canteens: Rs 1 idli, Rs 5 breakfast, Rs 10 meals |
| Amma Salt | Subsidised iodised salt at Rs 5/kg |
| Amma Cement | Subsidised cement for the poor |
| Amma Baby Care Kit | Free kit for newborns in government hospitals |
| Amma Mini Clinic | Mobile medical clinics |
DMK Welfare Schemes (Karunanidhi and M.K. Stalin Era)
| Scheme | Details |
|---|---|
| Kalaignar Magalir Urimai Thogai | Rs 1,000/month to women heads of family (2023) |
| Varumun Kappom | Preventive health checkup scheme |
| Chief Minister's Breakfast Scheme | Free breakfast for government school students |
| Namma Ooru Express | Subsidised bus travel for students |
| Kalaignar Kaapitu Thittam | Chief Minister's Comprehensive Health Insurance |
Chief Minister's Comprehensive Health Insurance Scheme (Tamil Nadu)
- Rs 5 lakh per family per year for hospitalisation
- Covers all families with annual income below Rs 1.2 lakh
- Over 1.7 crore families covered
- India's largest state health insurance scheme
Other National Poverty Alleviation Schemes
| Scheme | Year | Purpose |
|---|---|---|
| Swarnjayanti Gram Swarozgar Yojana (SGSY) | 1999 | Rural self-employment; now NRLM |
| National Rural Livelihoods Mission (NRLM/DAY-NRLM) | 2011 | Women self-help groups; livelihood |
| PM MUDRA Yojana | 2015 | Micro-loans up to Rs 10 lakh for small businesses |
| Pradhan Mantri Awas Yojana (PMAY) | 2015/2016 | Affordable housing |
| Pradhan Mantri Ujjwala Yojana | 2016 | Free LPG connections to BPL women |
| PM SVANidhi | 2020 | Street vendors' working capital loans |
Key Facts for TNPSC Group II/IIA
- Poverty Line: Tendulkar Committee (2009) methodology; Rangarajan Committee (2014)
- MGNREGA: Passed September 2005; 100 days guarantee; legal right; 1/3rd women workers
- MGNREGA originally called NREGA — renamed with Gandhi's name in 2009
- PMAY-Gramin: Rs 1.2 lakh assistance for pucca houses in rural areas
- NFSA 2013: 81 crore people; 5 kg/person/month at Rs 3 (rice), Rs 2 (wheat)
- Amma Unavagam: Started 2013 by Jayalalithaa; Rs 1 idli, Rs 10 meal
- Kalaignar Magalir Urimai Thogai: Rs 1,000/month to eligible women (2023)
- Chief Minister's Comprehensive Health Insurance: Tamil Nadu; Rs 5 lakh/family/year
- Tamil Nadu has one of India's best PDS and Mid-Day Meal implementations
- Mid-Day Meal: Pioneered in Tamil Nadu by CM Kamaraj in 1956
Previous Year MCQ Patterns
Q: The MGNREGA guarantees employment for how many days per year per household? a) 50 days b) 75 days c) 100 days d) 150 days
Q: Under the National Food Security Act 2013, how much rice is entitled to each person per month? a) 3 kg b) 5 kg c) 7 kg d) 35 kg
Q: The Pradhan Mantri Ujjwala Yojana provides: a) Free rice to BPL families b) Free LPG connections to BPL women c) Free electricity to rural households d) Scholarships for BPL students
Frequently Asked Questions
The poverty line in India is based on a minimum caloric requirement: 2400 calories per day in rural areas and 2100 calories per day in urban areas. The Tendulkar Committee (2009) revised the methodology to include health and education expenditure. Currently, the Rangarajan Committee (2014) uses Rs 32/day for rural and Rs 47/day for urban areas. Poverty is monitored by NSSO surveys.