Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss.

GS 2
Social Justice
2022
15 Marks

Subject: Social Justice

India's battle against poverty requires a multi-pronged approach beyond welfare schemes, with effective management of macroeconomic indicators like inflation and unemployment being crucial for upliftment of vulnerable sections.

Impact of Inflation on Vulnerable Sections

  • Price Stability: Recent data showing CPI inflation at 3.34% in March 2025 has provided relief to poor households, especially in terms of food security and essential commodities.
  • Food Security: Government's proactive measures like strengthening buffer stocks and subsidized retail sales of staples have helped control food inflation, benefiting the economically weaker sections.
  • Market Interventions: Implementation of strict stock limits to prevent hoarding and simplified import duties on critical food items have helped stabilize prices in local markets.
  • Targeted Support: Initiatives like LPG subsidies and reduced GST rates on essential items have provided direct relief to underprivileged households.

Unemployment Challenges and Solutions

  • Rural-Urban Divide: Current statistics showing rural unemployment at 4.2% and urban unemployment at 6.7% highlight the need for targeted interventions across geographical regions.
  • Skill Development: Programs like Pradhan Mantri Kaushal Vikas Yojana and National Rural Livelihood Mission are crucial for enhancing employability among vulnerable sections.
  • MGNREGA Impact: The scheme continues to serve as a vital safety net, providing guaranteed employment to rural households during economic distress.
  • Urban Employment: Need for urban employment guarantee schemes similar to MGNREGA to address higher urban unemployment rates.

Way Forward

  • Financial Inclusion: Strengthening initiatives like Jan Dhan Yojana and Direct Benefit Transfer to ensure efficient delivery of welfare benefits.
  • Digital Integration: Leveraging technology through platforms like India Stack to improve access to financial services and employment opportunities.
  • Social Security: Enhanced coverage of schemes like Ayushman Bharat and PM-KISAN to provide comprehensive social protection.

The synergy between welfare schemes and effective management of inflation and unemployment is essential for inclusive growth. Recent success in controlling inflation to below 4% and various employment generation initiatives demonstrate India's commitment to serving its vulnerable populations through evidence-based policymaking and targeted interventions.

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