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Unit 8: Unemployment in India: Concept, Causes and Government Policies

Marginal Farmers and Agricultural Labourers : Under the scheme, families were to be assisted with Notes
subsidised credit support for agricultural and subsidiary occupations like dairy, poultry, fishery,
piggery-rearing, horticultural operations, etc.
Small Farmers Development Agencies : The object of the scheme was to make available to small
farmers credit to enable them to make use of the latest technology to practise intensive agriculture
and divrsify their activities.
Integrated Dry Land Agricultural Development : Under the scheme, permanent works like soil
conservation, land development and water harnessing were undertaken. These programmes were
labour-intensive and were expected to generate considerable employment opportunities.
Agro-service Centres : The schemes provided for assistance for self-employment to the unemployed
graduates and diploma-holders in mechanical, agricultural and electrical engineering and allied fields
and graduates in agriculture and science with experience in industry or agriculture. It aimed to help
in establishing work-shops, organising agricultural machinery, repairing and hiring facilities and
other technical services like supply of spare parts, inputs, etc.
Area Development Schemes : These schemes related to the development of adequate infrastructure
facilities like roads, market complexes, etc. in areas commanded by ten major irrigation projects.
Crash Programme for Rural Employment : The primary objective of the scheme was to generate
additional employment through a network of rural projects of various kinds which are labour-intensive
and productive. The scheme had a two-fold purpose. Firstly, a project in each block was to provide
employment to 100 persons on an average ccontinuously over a working season of 10 months in a
year. Secondly, each project was to produce works or assets of durable nature in consonance with the
local development plans. The various types of projects included schemes relating to minor irrigation,
soil conservation and afforestation, land reclamation, flood protection and anti-waterlogging,
pisciculture, drinking water and construction of roads.
The various schemes under the Fourth Five-Year Plan or the Crash Plan could not succeed in removing
rural unemployment and under-employment because efforts were not made to organise the army of
the rural unemployed into appropriate supply camps to be shifted to places of demand al the desired
minimum wage. The Auditor-General in his report to the Lok Sabha presented in August 1974 brought
out the tragic fact that the various ‘crash’ and rural employment programmes on which the Central
Government had spent ` 170 crores during the Fourth Plan had been wholly infructuous.
Employment Guarantee Scheme of Maharashtra

Maharashtra Government introduced the, Employment Guarantee Scheme (EGS) in 1972-73. The
scheme was the first of its kind to give recognition to the ‘’right to work’ enshrined in the Constitution.
It embodied a commitment by the State to provide work to a person who comes forward to offer
labour.
The main objectives of the Schemes were as under :
(a) To provide gainful and productive employment to an individual in approved rural works which
raise the productivity of the economy.
(b) The works undertaken should produce durable community assets in the area.
(c) Productive works of labour-intensive nature like minor irrigation, water and soil conservation,
nalla bunding, canal excavation, land development, afforestation, etc. should be undertaken.
(d) The works should be implemented departmentally and not through contractors so that at least
60 per cent of the works expenditure is incurred on wages to workers and 40 per cent in the
form of materials, equipment, supervisory experts and administrative services.
The scheme was intended to provide employment guarantee only in rural areas. The guarantee was
restricted to the provision of unskilled manual work and was limited to adults, i.e., men and women
over 18 years of age.
The scheme was particularly designed to help the economically weaker sections of rural society. It is
this potential group which would demand employment under the Employment Guarantee Scheme.

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