2. The major ongoing employment for rural poor are the following:

3. Self employment for the rural poor: from IRDP to SGSY

4. Promotion for self employment for rural poor has been an important element in the overall employment strategy. The integrated rural development programme started in 1980-81 has been major instrument for this purpose.

5. Swarnajayanti gram swarozgar yojana:

6. All rural self employment programmes was merged into the SGSY on 1st April 1999. It aims at bringing the self-employed above the poverty line by providing them income generating assets through bank credit and government subsidy.

7. Wage employment for rural area: from EAS to SGRY.

8. Employment assurance scheme was launched in 1993 as a major wage employment programme for the rural areas. It was initially limited to the 1778 economically most backward blocks. In 1997, the programme was extended to all blocks converting it to a geographically universal programme.

9. Sampoorna grameen rozgar yojana:

10. It was launched in September 2001 by integrating JGSY and EAS scheme. The objective of SGRY is to provide additional wage employment alongwith food security, creation of durable community, social and economic assets and infrastructure development in rural areas. It envisages generation of 100 crore mandays in a year. The cost is shared between the centre and state in the ratio of 75:25. In 2007-08, upto December 31, 2007, 11.60 crore person-days of employment was generated.

11. National food for work programme(NFFWP):

12. This programme was launched on November 14, 2004 in 150 most backward districts of the country for the generation of supplementary wage employment. This programme is open to all rural poor who are in need of wage employment and desire to do manual unskilled work.

13. Rural employment generation programme (REGP):

14. It was launched in 1995. It aims to create self-employment opportunities in the rural area and small towns. It is being implemented by the khadi and village industries commission(KVIC). Under REGP entrepreneurs can establish village industries by availing money assistance from the KVIC and bank loans.

15. Employment programme for the urban poor:

16. Along with the efforts in rural areas, there have been special employment programmes for urban areas focusing on both wage employment as well as self-employment for the urban poor.

17. The urban self- employment programme(USEP):

18. It targets individual urban poor for setting up of micro enterprises.

19. The urban women self-help programme (UWSP):

20. It targets urban poor women self-help groups enterprises and providing them assistance.

21. Skill training for employment promotion among urban poor(STEP-UP):

22. It targets urban poor for providing quality training so as to improve employment.

23. Self- employment for educated youth:

24. In addition to the above programmes which are targeted to benefit the poor in rural and urban areas the employment strategy was also tried to provide employment opportunities for growing number of educated youth who may not be from poor families but who face severe difficulties in finding gainful employment.

25. To meet this objective self- employment for educated urban youth (SEEUY) programme was launched during 1983-84. This was later incorporated into the prime minister’s rozgar yojna(PMRY) which was launched on 2nd October 1993. In aimed at setting up 7 lakh micro enterprises during the eight plan (1992-97) providing employment to more than a million persons over the period.

26. Other programmes:

27. National minorities finance and development corporation

28. National backward classes finance and development corporation

29. National sc/st finance and development corporation

30. National handicapped finance and development corporation

31. Training cum production centre (NORAD)

32. There is need to shift resources from programmes perceived to be less

34. To prevent monopoles arising from the use of major share by few private entrepreneurs

35. To promote banking facilities to un-banked under banked areas

36. To direct and utilize funds in accordance to plan priorities

37. To expand the role of commercial banking in agricultural credit

39. Rapid growth in staff and in accelerated promotions leading to lower quality of manpower and over staffing at all levels.

42. The major poverty alleviation programmes are such as:-

43. SWARNAJAYANTI GRAM SWAROZGAR YOJANA:-SGSY was introduced in April 1, 1999. It aims at encouraging the self-employment for the people falling below poverty-line by providing them income, generating assets through bank credit and Government subsidy. This scheme was sponsored by cost sharing ratio of 75:25 between the central Government and the State Government.

44. SAMPOORNA GRAMEEN ROZGAR YOJANA. (SGRY):- It was introduced from 2001.The scheme envisages generation of 100 crore man days of employment in a year. The objective of SGRY is to :

45. Provide additional wage employment along with

46. Food security

47. Creation of durable community, social and economic assets and

48. Infrastructure development in the rural areas. The cost of the scheme is to be shared between the Central Government and the State Government in the ratio of 75:25.

49. PRADHAN MANTRI GRAMODAYA YOJANA (PMGY):- This scheme was launched on the 25th December 2000. It is a programme to provide road connectivity through good all weather roads to all the eligible unconnected rural inhabitants. It aims at the connectivity by 2009 all the habitants with the population of 1000 or more in plains and of 500 or more in the hilly areas, deserts and the tribal areas.

50. ANTYODAYA ANNA YOJANA: - This scheme was launched by the Prime Minister on the 25th December 2000. It provides food grains at a highly subsidized rate of rs.2 per kg for wheat and rs.3 per kg for the rice to the poor families under the targeted public distribution system. Initially, 25 kg. Of food grains were, made available to each family per month. This quantity has increased to 35 kgs. With effect from April 2002.

51. SWARNAJAYANTI SHAHARI ROZGAR YOJANA (SJSRY): -It came into operation from 1997. It aims to provide gainful employment to urban unemployed or unemployed poor by encouraging the setting up of self – employment. It is funded on 75:25 bases between central and the states. It comprises of the two special schemes. Urban self – employment Programme (USEP) and urban wage Employment programme (UWEP).

52. INDIRA AWAAS YOJANA (IAY): - It was operational from 1999-2000. It aims at providing dwelling units free of cost to the poor people of schedule castes; schedule tribes freed bonded labourers and the rural areas. The scheme is funded on the cost sharing bases of 75:25 between the central and the states.

53. ANNAPURNA: -This scheme was introduced in April 1, 2000. It aims at providing food security to meet the requirement of those senior citizens who’s, though eligible for pension under the National Old Age Pension Scheme are not getting the same. Food grains are provided at subsidized rate. It is 100% centrally sponsored scheme.

54. VALMIKI AMBEDKAR AWASS YOJANA: - This scheme was introduced on 2nd December 2001. It seeks to improve the condition of the urban slums dwellers living below the poverty line who do not posses adequate shelter. The objective of this scheme is to facilitates construction and up gradation of dwelling units for the slum dwellers. The central Government provides a subsidy of 50% and the balance 50% is arranged by the State Government.

55. NATIONAL FOOD FOR WORKS PROGRAMME (NFFWP): - This scheme was launched on November 14, 2004 in 15 most backward districts of the country for the generation of supplementary wage employment. This programme is open to all rural poor who are in need of wage employment and desire to do the manual work. It is implemented as a 100% centrally sponsored scheme and food grains are provided to the state free of cost.

56. RURAL EMPLOYMENT GENERATION PROGRAMME (REGP): - It was launched in 1955. The objectives of this scheme are of creating self –employment opportunities in the rural areas and small towns.

57. PRIME MINISTER’S ROZGAR YOJANA (PMRY): - It was started in 1993. The objectives were of creating self – employment opportunities to the educated unemployed youth by assisting them to set up any economically viable activity.

59. FISCAL MEASURES:-Fiscal policy through its budgetary instruments can attempt to re-distribute income. These are as such :-

60. PROGRESSIVE DIRECT TAXES:-When direct taxes are levied in a progressive manner, it helps to withdraw more money from rich. The poor will be exempted from these taxes..

61. SUBSIDIES:-Cost of agricultural inputs such as fertilizers, water supply, electricity plumpest can be subsidizes so that small and marginal farmers can produce more. Educated unemployed from poorer families who seek self employment may be helped by the subsidizing their projects. Education and medical service can be provided to those who are below poverty line at a highly subsidized rate or almost free. Measures should be taken to safeguard the misuse of subsidies.

62. INDIRECT TAXES:-Taxes on commodities and services may turn out regressive if they are levied indiscriminately. They may help to reduce inequality if such taxes are selective. Luxurious consumers are durable when taxed heavily helps to mop up the excess income of the rich. Income from such sources can be used to provide employment or social measures to the low income group.

63. MONETARY MEASURES: - Monetary policy through discriminatory rate of interest can provide the minimum required money capital at a very low rate of interest.

64. PUBLIC DISTRIBUTION SYSTEM: - The real income of the bottom income group could increase if they are supplied with essential consumer items through ration and fair prices shops. Such public distribution should be confined only to the lowest income group.

65. SOCIAL SECURITIES MEASURES: - Social security measures go a long way in providing either minimum or some additional income to supplement their meager income. The social security may comprise of ;

66. OLD AGE PENSION: - Old people with no source of income can be provided a regular monthly income by the Government to enable them to subsist.

67. UMEMPLOYMENT BENIFITES: - With the increasing number of unemployed vis-à-vis limited employment opportunities the Government is expected to support the jobless. However, unemployment benefit, if provided, will certainly help in reducing poverty as well as the inequality.

68. SOCIAL SECURITY INSURANCE: -under this scheme, workers and their dependents are covered. Medical disablement and maternity benefits are provided under this scheme. These benefits help the poor household to improve their welfare.

69. EMPLOYMENT SCHEME: -Labour is the assets of the India with large majority of the people passed and is the only source of their income. Employment in Rural and urban areas are provided through various schemes like, National food for works programme, Swarnajayanti Gram Swarozgar Yojana (SGSY). Sampoorna Grameen Rozgar Yojana (SGRY) and many other.

70. INSTITUTIONAL CHANGES: - Land reforms are the example of the institutional changes. Land is distributed among the landless and ownership is given to the tiller. Such institutional reforms bring a change in the distribution of the income earning assets in favor of poor.

71. SELF – EMPLOYMENT: - Promoting self employment scheme beside s providing employment reduce inequalities too. Financial assistance also to be provided by the banks norms and rules.

72. RURAL DEVELOPMENT: - Rural India has more than 70% population. It has a large share of unemployment and poverty. Promoting rural development through providing infrastructure and rural industrialization would help for preventing migration, providing employment and reduction in inequalities. Such measures would induce changes in the attitude and help controlling the population too.

73. MINIMUM WAGES ACT: - The Government passed The Minimum Wages Act, 1948 to ensure fair wages to the workers. This measures help to stop exploitation of the workers to the certain extent in Indian economy.

75. Poverty rate in 1999 to 2000- The poverty ratio is estimated at 27.1% in rural areas,23.6% in urban areas and 26.1% for the country as a whole in 1999-2000. The planning commission projects of poverty to fall to 21.2% and 15.1% respectively in rural and urban areas in 2007.

76. Steady Decline in poverty- The incidence of poverty has a steady decline from 51.3% in 1997-78 to 26% in 1999-2000. It is projected to decline to 19.3% in 2007.

77. Wide rural-urban and interstate disparities- Wide interstate disparities are visible in the poverty ratio between rural and urban areas as also the rate in decline of poverty. In 1999-2000, 20 state and Union Territories had poverty ratio below the National average.

78. Fall in State level poverty- The incidence of poverty at the state levels has witnessed a secular decline during the period 1973-74 and 1999-2000.

79. Tenth five year plans poverty reduction target- The important target of planning commission for the tenth plan(2002-07) is to reduce poverty ratio to 19.3 for the country as whole, 21.1% for the rural and 15.1% for the urban areas by 2007.

80. World Bank study- World Bank has two types of data such as

81. Estimates of poverty based on International poverty line- World Banks international poverty concepts are based on a composite measure of total household consumption per member. The population living in India below $1 a day is 35.3% and below $2 a day is 80.6% in 1999-2000.

82. Estimates of poverty based on National Poverty line- The World Banks study on poverty in India(based on National poverty line) uses the poverty line as defined by 1993 planning commission experts groups on estimation of the poor and NSS data.

83. Fluctuations in poverty rate- The poverty rate in India fluctuated without clear trend from the early 1950s to the mid 1970s i.e. about 53%.

84. Steady decline in the poverty incidence- The incidence of poverty decline steadily i.e. from 54% in 1974 to 38% in 1987 i.e. mid 1980s.

86. Unemployment- In India unemployment is on very large scale. There were about 26 million people unemployed in 1999-2000. Besides, there are large numbers of underemployed, disguisedly unemployed persons in India. This has resulted in massive poverty in India.

87. Illiteracy- Low level of education in India is another major cause of massive poverty. According to census of 2001 about 35% of people in India are still illiterate. This has resulted into cultural backwardness, lack of employment opportunities and inability to receive benefits from the Government.

88. Economic inequalities- There is a wide inequality in distribution of income in India. This has resulted in rich becoming richer and poorer section of society becoming more poorer. An important factor responsible for this is inequalities in ownership of assets like land.

89. Low growth in agricultural sector- About 2/3rd of India’s work force is directly engaged in agriculture for its livelihood while the share of agriculture in national income has been declining. Low productivity in agriculture has resulted low Indian economy.

90. Slow industrial growth- The rate of growth of industries in Indian economy is quite modest as compared with rise in population growth. The slow growth of industry failed to create enough job opportunities for millions of surplus labour force. This has resulted in massive poverty in Indian economy.

91. Natural calamities- Natural calamities like floods, famines frequently reoccurred in certain part of India. This has resulted in increasing poverty in India.

92. Shortage of economic and social overheads- There are shortages of economics and social overheads such as roads, railways, schools, hospitals, damns, irrigated land, supply of electricity etc. This has also added to the problem of wide spread poverty in India.

93. Inflation- In India, the prices of essential commodities have been increasing continuously. Hence, the people have to pay more and more for same quantity of good. Since, the income of the people has not increased in proportion to rise in prices. They are forced to reduced the consumption of essential goods.

95. Buying and selling of government securities/bonds by the central bank is known as open market operations.

96. To increase the money supply the central bank buys the securities/bonds and to reduce the supply its sells the securities/bonds.

97. Variable reserve requirements:

98. It is the mandatory regulations for banks to maintain a minimum amount of reserves as against the deposits.

99. The RBI uses two components of reserve requirements:

100. Cash reserve ratio (CRR):

101. It is the certain amount of deposits to be kept with the central bank in cash.

102. Increase in CRR leads to reduction in credit as banks have less loans to give and a decrease in CRR leads to increase in credit. Current CRR = 6% (RBI)

103. The statutory liquidity reserve ratio (SLR):

104. It is the amount of deposits that the banks are required to invest in government securities as a part of SLR. The government securities (gilt-edged securities or gilts) are bonds issued by central government to meet its revenue requirements. Current SLR = 24% (RBI)

105. NOTE: SLR is changed very infrequently as compared to CRR.

106. Qualitative credit control methods:

107. These instruments are used to control the quality of money supply in the economy.

108. Margin requirements:

109. Margin requirement is the difference between the amount of loan sanctioned and the market price of the asset.

110. Credit is controlled by raising or lowering the margin requirements.

111. Consumer credit regulations:

112. It refers to control of credit demands by regulating the minimum down payment and the number of installments for repayment of the loan. Higher initial down payment and less number of installments will decrease the demand for credit and vice versa.

113. Directives:

114. The RBI has the rights to issue written or oral directives to the banks to follow certain rules and regulations. it may ask the banks to be more rigid or liberal as per the requirement. Its success depends on the power and prestige of the RBI

115. Moral suasion:

116. Moral suasion means the RBI pursues the banks to follow certain regulations. It is just a notice given to the banks. It may be in the form of meeting or letters etc.

117. Rationing of credit:

118. Under this method the RBI may impose ceiling on loans and advances. It means the RBI can tell banks to not to lend credit for certain specific purposes.

119. Direct action:

120. RBI can take direct action against the defaulting banks i.e. the once who do not follow the rules. It may include denial of financial accommodations, penalty, cancellation of license etc.

121. For short run liquidity management the RBI uses the following instruments:

122. Liquidity adjustment facility (LAF):

123. It adjusts the liquidity in the banking system on a daily basis. It is used to correct short term liquidity mismatches by regulating short term interest rates and through proceeds by daily auction.

124. Repo rate:

125. Repo or repurchase agreement refers to agreement for a transaction between RBI and commercial banks via which RBI supplies money against govt. securities and simultaneously agrees to repurchase the same after a specified time (1–14 days).

126. Reverse repo rate:

127. It is the rate at which banks can park surplus liquidity with the RBI. It is also carried out on a daily basis under LAF.

128. Market stabilization scheme (MSS):

129. This scheme was introduced in april 2004 to deal with surging capital inflows. Under this RBI issues through auctions treasury bills and government of india securities.

130. Conclusion:Though these instruments are being used by the RBI there are certain limitations to their implementation and success such as unorganized money market, lack of trust in banks, lack of banking habits, lower prestige of RBI etc.

131. --------------------------------------------------------------------------------------------Factors responsible for the growth of capital markets in India<br />The financial markets ,especially, the capital markets have grown to a great extent in India. <br />The following factors are responsible for the growth of capital markets<br />growth of stock exchange in India<br />the origin of capital markets in India can be traced back in 1875 with the setting up of Bombay stock exchange. This was followed by the formation of stocke exchanges in Ahmedabad in 1894, and Calcutta (1908) and Madras (1937).<br />The stock exchanges facilitate the growth of capital markets as they facilitate<br />listing of shares of public companies<br />trading of shares<br />growth of financial institutions <br />the financial institutions borrow funds by way of bomds and other securities and then lend such funds to corporate firms. They participate in the primary markets by subscribing to the issues of shares and debentures. They also trade in the secondary markets.<br />growth of mutual funds <br />the first mutual fund to be set up in India was the Unit Trust of India in 1964. the mutual funds collect funds from the public and other investors and invest the same in the primary and secondary markets. The investment by mutual funds have boosted the growth of capital markets.<br />growth of merchant banking in India <br />merchant banking services play an important role in capital market. Apart from capital issue management, merchant banking divisions provide a number of other services including provisions of consultancy services relating to promotion of projects, corporate restructuring etc.<br />development of venture capital funds <br /> the economic liberalization in India post 1991 have provided a boost to the <br /> venture capital movement in India,which in turn has made possible to provide<br /> medium and long term funds to those firms , which find it difficult to raise funds <br /> from the primar markets , and by way of loans from FIs and banks.<br />development of credit rating agencies<br />the development of credit rating agencies gave a boost to capital markets in India<br />investors rely on credit ratings and invest in the companies, and thus firms can obtain medium and long term funds.<br />setting up of SEBI <br />SEBI plays an important role in the growth of capital markets in India , SEBI has the power to regulate the activities connected with marketing of securities and investments in capital markets.<br />national securities clearing corporation<br />the NSCC was set up in 1996 to guarantee all trades on National Stock Exchange. NSCC interposes between the parties to the trade at the NSC.<br />Corporate governance <br />The introduction of corporate governance in India would go a long way in developing capital markets. Corporate governance calls for proper governance on the part of Board of Directors and good management on the part of management of companies to protect the interest of its stakeholders, with special reference to shareholders and other investors.<br />growth of multinationals<br />there has been good growth of MNCs in India during the planning period both Indian and foreign. The MNCs require long term and medium term loans for setting up new projects or for expansion and modernization.<br />general awareness<br />there is growing awareness among the middle class and rich class about the capital markets. This awareness is due to the massive publicity campaigns of the FIs and also of the companies coming out with public issue of shares and debentures.<br />growing public confidence<br />a good number of the members of the public have started to develop confidence and trust in the capital markets .they purchase bonds issued by financial institutions.they also invest in primary and secondary markets.<br /> The growth of the capital market in the recent times is a positive indicator. This will help the economy to spurt industrial growth and bring about overall development.<br />--------------------------------------------------------------------------------------------<br />