INDIAN ECONOMIC SERVICES SHORT SOLUTIONS FOR 2025 PAPER IV INDIAN ECONOMY

1. Answer all six parts from this Section. Answer to each should be in about 100 words: 5×6=30

(a) Briefly explain the features and objectives of ‘Pradhan Mantri Kaushal Vikas Yojana’ in India.

(b) Discuss the objectives and significance of ‘Pradhan Mantri Jan Arogya Yojana’ in India.

(c) Explain the components of National Manufacturing Competitiveness Programme in India.

(d) Discuss the provisions of ‘Green Box Subsidies’ under the Agreement on Agriculture.

(e) Explain the concept and pillars of Viksit Bharat @ 2047.

(f) Discuss the estimates of poverty based on ‘Multidimensional Poverty Index’ in India.

(a) Features and Objectives of ‘Pradhan Mantri Kaushal Vikas Yojana (PMKVY)’

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE), launched in 2015. Its objective is to provide industry-relevant skill training to youth to enhance their employability. It targets school/college dropouts and the unemployed. Key features include short-term training (STT), recognition of prior learning (RPL), placement assistance, and certification. Training is aligned with the National Skill Qualification Framework (NSQF). The scheme promotes public-private partnerships and aims to bridge the skill gap in India’s labor market, ultimately contributing to the ‘Skill India’ vision and improving workforce productivity.

(b) Objectives and Significance of ‘Pradhan Mantri Jan Arogya Yojana (PM-JAY)’

PM-JAY, launched under the Ayushman Bharat initiative in 2018, is the world’s largest government-funded healthcare program. Its main objective is to provide free health insurance of up to ₹5 lakh per family per year for secondary and tertiary hospitalization. It covers over 10 crore poor and vulnerable families, identified via the SECC database. The significance lies in reducing out-of-pocket expenditure, preventing medical-induced poverty, and improving access to quality healthcare across India, especially in rural and backward regions. It empowers beneficiaries to seek treatment from both public and empanelled private hospitals, promoting equity and inclusivity in healthcare access.

(c) Components of National Manufacturing Competitiveness Programme (NMCP)

The National Manufacturing Competitiveness Programme (NMCP) aims to enhance the competitiveness and productivity of India’s Micro, Small, and Medium Enterprises (MSMEs). Key components include:

• Lean Manufacturing Competitiveness Scheme (LMCS) – promoting cost-reduction through lean techniques.

• Design Clinic Scheme – promoting innovation through industrial design.

• Technology and Quality Upgradation (TEQUP) – encouraging energy efficiency and adoption of quality tools.

• Marketing Assistance Scheme – helping MSMEs with branding and market access.

• Intellectual Property Rights (IPR) Awareness – promoting patenting and protection of innovation.The NMCP acts as a comprehensive toolkit to integrate MSMEs into global value chains and foster innovation-led growth.

(d) Provisions of ‘Green Box Subsidies’ under the Agreement on Agriculture (AoA)

‘Green Box Subsidies’ are non-trade-distorting agricultural subsidies allowed under the WTO’s Agreement on Agriculture. These subsidies are exempt from reduction commitments, as they do not distort production or trade, or have minimal effects. They include:

• Direct income support to farmers not linked to production.

• Government services like research, pest control, infrastructure, and disaster relief.

• Environmental programs encouraging sustainable farming.

These provisions aim to balance domestic agricultural support with fair international competition. Green Box policies are often used by developed countries to support farmers without violating WTO trade norms, although their fairness is debated globally.

(e) Concept and Pillars of Viksit Bharat @ 2047

Viksit Bharat @ 2047 is a vision to transform India into a developed nation by 2047, marking 100 years of independence. The concept encompasses economic prosperity, social inclusion, sustainability, and global leadership. The four major pillars are:

1. Economic Development – Inclusive and high-growth economy.

2. Social Transformation – Education, health, and empowerment of marginalized groups.

3. Environmental Sustainability – Green energy, climate resilience, and sustainable urbanization.

4. Good Governance – Transparent, accountable, and tech-enabled public service delivery.

This mission envisions a self-reliant, innovative, and globally competitive India, integrating the aspirations of youth, women, and rural populations into a long-term national development strategy.

(f) Estimates of Poverty Based on ‘Multidimensional Poverty Index’ in India

The Multidimensional Poverty Index (MPI), developed by UNDP and Oxford Poverty and Human Development Initiative (OPHI), captures poverty beyond income, assessing deprivations in health, education, and standard of living. India’s NITI Aayog releases periodic MPI reports. As per the 2023 report, 13.5 crore people exited multidimensional poverty between 2015–16 and 2019–21. The MPI value has consistently declined, with notable improvements in access to cooking fuel, sanitation, and housing. Bihar, Jharkhand, Uttar Pradesh, and Madhya Pradesh saw significant reductions. MPI provides a more holistic measurement of poverty, guiding targeted policy interventions and aligning with the Sustainable Development Goals (SDGs).