Syllabus: Prelims Unit III - History, Culture of India and National Movement
Economy notes for Mains: how economic planning developed in India and Tamil Nadu, how poverty is measured and the latest data, the change in Indian agriculture, and the Public Distribution System.
On this page: Development of Economic Planning in India and Tamil Nadu, Poverty Measurement and Latest Data in India, Agricultural Transformation in India, Public Distribution System
Development of Economic Planning in India and Tamil Nadu
Key Historical Events
- Planning Commission established in 1950
- First Five-Year Plan implemented in 1951-56
- NITI Aayog replaced Planning Commission in 2015
- Over 180 crore rupees allocated for development in 2023
Economic Development Phases
- Pre-independence planning initiatives began in 1938
- National Planning Committee formed under Nehru's chairmanship
- Bombay Plan proposed by industrialists in 1944
- Gandhi's village-based economic model emphasized
- Decentralized planning approach adopted post-independence
Planning Commission Structure
- Prime Minister served as Chairman
- Deputy Chairman appointed by central government
- Members selected from various economic sectors
- State-level planning boards established
- Five-year plans formulated for systematic development
NITI Aayog Features
- Established as think tank and policy forum
- Promotes cooperative federalism
- Focus on sustainable development goals
- State participation in national development
- Bottom-up approach to planning
Poverty Measurement and Latest Data in India
Evolution of Poverty Definition
- Late 1970s-2005: Based on minimum calorie diet expenditure.
- Post-2005: Multiple methodologies introduced.
- Current: Broader definition beyond calorie intake.
Survey Methodologies
- NSSO survey recall periods:
- Uniform Reference Period (URP): 30 days for all items.
- Mixed Reference Period (MRP): 30 days for food, 365 days for others.
- Modified Mixed Reference Period (MMRP): 7 days for food, mixed for others.
- Current method: Three household visits instead of one.
Key Issues in Poverty Measurement
- Divergence between NSSO and National Accounts data.
- Changing recall periods affecting comparability.
- Lack of updated poverty line for new methodology.
- Rural-urban classification based on 2011 Census.
Recent Findings (2023-24 HCES)
- Decline in both urban and rural poverty.
- Rural-urban consumption gap narrowing.
- Food expenditure less than 50% of total consumption.
- Estimated 17-18% poverty reduction between surveys.
Multidimensional Poverty Index
- UNDP: 10 indicators.
- NITI Aayog: 12 indicators (added bank accounts, maternal health).
- Limitations: Non-applicable indicators for some households.
- No scope for future deprivation in certain indicators.
Current Agricultural Context
- Rs 1.52 lakh crore allocated in the Union Budget 2024.
- Focus on innovation, sustainability, and resilience in agriculture.
- Transition from a production-centric to a farmer welfare model.
- Average farmer age is over 50 years.
- 30% youth employment in agriculture (2022).
Technological Advancement
GM Crops Development
- Global success in yield improvement.
- Enhanced pest resistance.
- Reduced dependency on chemical inputs.
- Need for transparent, science-based regulation.
- National consensus required for safe deployment.
Research and Innovation
Public-Private Collaboration
- ICAR partnerships are crucial.
- Focus on oilseeds, cotton, and maize.
- Intellectual Property Rights (IPR) protection for innovation.
- A strengthened IPR framework is needed.
R&D Initiatives
- Proposal for 200% income tax deduction for R&D.
- Development of drought-resistant crop varieties.
- Focus on biofortified crops.
- Research into climate-resilient seeds.
Youth in Agriculture
Current Status and Initiatives
- eNAM (National Agriculture Market).
- Skill development programs.
- Youth-led agritech startups.
- 3,100 agritech startups operating (2023).
- 20% annual investment growth in agritech.
Policy Framework Requirements
GST Reforms
- Simplification needed.
- Reduced compliance burden.
MSME Support
- Targeted tax relief.
- Incentives for seed production.
- Support for agro-processing.
Unified Registration
- "One Nation, One License" policy.
- Streamlined seed registration process.
- Research Linked Incentive schemes.
Public Distribution System
Current PDS Crisis
- Significant households removed from PDS rolls in Jharkhand and Odisha (2023)
- Bihar facing severe PDS implementation issues
- COVID-19 pandemic exposed supply crisis
- Biometric verification causing access problems
- Disconnect between government's 'smart cities' vision and welfare needs
Issues Faced by Musahar Community
- Many households lack active ration cards
- Incomplete family member registration
- Loss of ration access due to biometric verification
- Forced to obtain new ration cards
- Socio-political marginalization intensifying problems
Documentation and Legal Issues
- Bihar's e-PDS portal requirements:
- Aadhaar details
- Caste certificate
- Income certificate
- Residence certificate
- Similar requirements in Jharkhand, UP, and MP
- No legal basis in National Food Security Act 2013
- PDS Control Order 2015 doesn't mandate these certificates
Systemic Corruption
- Fair Price Shop dealers providing only 4kg instead of entitled 5kg
- Poor quality 'Usna' rice distribution
- Wheat distribution issues
- Exploitation by middlemen charging ₹3,000+ for ration cards
- Cases of fraud and untraceable middlemen
Implementation Challenges
- Delay in ration card issuance beyond 30-day limit
- Applications pending for 4-18 months
- Digital divide affecting access
- Bureaucratic red tape
- Lack of systemic changes despite awareness
- Gap between right to food recognition and implementation
