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Indian Economic Policy

Notes (4) Fragmentation of land
In India, due to the heavy pressure on land of large population results the fragmentation of
land. It creates a great obstacle in the part of agriculture. As land is fragmented and agricultural
work is being hindered the people who depend on agriculture remain unemployed. This has
an adverse effect on the employment situation. It also leads to the poverty of villagers.
(5) Backward Method of Agriculture
The method of agriculture in India is very backward. Till now, the rural farmers followed the
old farming methods. As a result, the farmer cannot feed properly many people by the produce
of his farm and he is unable to provide his children with proper education or to engage them in
any profession. It leads to unemployment problem.
(6) Decline of Cottage Industries
Employment particularly of the landless people. They depend directly on various cottage
industries for their livelihood. But, now-a-days, these are adversely affected by the
industrialisation process. Actually, it is found that they cannot compete with modern factories
in matter or production. As a result of which the village industries suffer a serious loss and
gradually closing down. Owing to this, the people who work in there remain unemployed and
unable to maintain their livelihood.
(7) Defective education
The day-to-day education is very defective and is confirmed within the classroom only. Its
main aim is to acquire certificated only. The present educational system is not job oriented, it is
degree oriented. It is defective on the ground that is more general then the vocational. Thus, the
people who have getting general education are unable to do any work. They are to be called as
good for nothing in the ground that they cannot have any job here, they can find the ways of
self employment. It leads to unemployment as well as underemployment.
(8) Lack of transport and communication
In India particularly in rural areas, there are no adequate facilities of transport and
communication. Owing to this, the village people who are not engaged in agricultural work are
remained unemployed. It is because they are unable to start any business for their livelihood
and they are confined only within the limited boundary of the village. It is noted that the modern
means of transport and communication are the only way to trade and commerce. Since there is
lack of transport and communication in rural areas, therefore, it leads to unemployment problem
among the villagers.
(9) Inadequate Employment Planning
The employment planning of the government is not adequate in comparison to population
growth. In India near about two lakh people are added yearly to our existing population. But
the employment opportunities did not increase according to the proportionate rate of population
growth. As a consequence, a great difference is visible between the job opportunities and
population growth.
On the other hand it is a very difficult task on the part of the Government to provide adequate
job facilities to all the people. Besides this, the government also does not take adequate step in
this direction. The faulty employment planning of the Government expedites this problem to a
great extent. As a result the problem of unemployment is increasing day by day.
8.3 Government Policies for Employment

Following the publication of the Bhagwati Committee report in 1973, the Government took the
following measures to provide employment and alleviate under-employment.
Rural Works Programme : The emphasis under the programme was on the construction of civil
works of a permanent nature as would contirbute to the mitigation, if not the total eradication, of the
scarcity condition in the areas concerned.

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