FOREIGN TRADE POLICY OF INDIA (2015-2020)

FOREIGN TRADE POLICY OF INDIA (2015-2020)
The Foreign Trade Policy lays down the ground rules and also modifies them for carrying out
the country’s exports and imports. Apart from prescribing general provisions relating to imports and
exports, it also provides special focus initiatives, duty exemption and remission schemes and
promotional measures to help exporters compete in the global marketplace.
There is not much difference between Foreign Trade Policy and EXIM Policy. They are
basically two names for the same policy. It was in 2004 that Commerce and Industry Minister Kamal
Nath decided it would be more appropriate to call the policy the foreign trade policy. He argued that
it was necessary for the policy to go beyond exports and imports and have an integrated approach to
the developmental requirements of India’s foreign trade.

Highlights of Foreign trade policy of India

1. Merchandise Exports from India Scheme (MEIS):

(a) Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product
Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding
merchandise exports with different kinds of duty scrips with varying conditions (sector specific or
actual user only) attached to their use. Now all these schemes have been merged into a single scheme,
namely Merchandise Export from India Scheme (MEIS) and there would be no conditionality
attached to the scrips is s used under the scheme.
 Rewards for export of notified goods to notified markets under ‘Merchandise Exports from India
Scheme (MEIS) shall be payable as percentage of realized FOB value (in free foreign exchange).
 Service Exports from India Scheme (SEIS):
a) Served From India Scheme (SFIS) has been replaced with Service Exports from India
Scheme (SEIS). SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian
Service Providers’. Thus SEIS provides for rewards to all Service providers of notified
services, who are providing services from India, regardless of the constitution or profile of
the service provider.

2. Incentives (MEIS & SEIS) to be available for SEZs:
It is now proposed to extend Incentives (MEIS & SEIS) to units located in SEZs also.

3. Duty credit scrips to be freely transferable and usable for payment of custom duty, excise
duty and service tax:

 All scrips issued under MEIS and SEIS and the goods imported against these scrips would be
fully transferable.
 Scrips issued under Exports from India Schemes can be used for the following:-
 Payment of customs duty for import of inputs / goods.
 Payment of excise duty on domestic procurement of inputs or goods.
 Payment of service tax on procurement of services.

4. Status Holders:

Business leaders who have excelled in international trade and have successfully contributed to
country’s foreign trade are proposed to be recognized as Status Holders and given special treatment
and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.

5. Boost to Make in India initiative.

1. Reduced Export Obligation (EO) for domestic procurement under EPCG scheme: Specific
Export Obligation under EPCG scheme, in case capital goods are procured from indigenous
manufacturers, which is currently 90% of the normal export obligation (6 times at the duty saved
amount) has been reduced to 75%, in order to promote domestic capital goods manufacturing
industry.
2. Higher level of rewards under MEIS for export items with high domestic content and value
addition.
It is proposed to give higher level of rewards to products with high domestic content and
value addition, as compared to products with high import content and less value addition.
3. Online filing of documents/ applications and Paperless trade in 24×7 environment:

(a) DGFT already provides facility of Online filing of various applications under FTP by the
exporters/ importers. However, certain documents like Certificates issued by Chartered Accountants/
Company Secretary / Cost Accountant etc. have to be filed in physical forms only. In order to move
further towards paperless processing of reward schemes, it has been decided to develop an online
procedure to upload digitally signed documents by Chartered Accountant / Company Secretary / Cost
Accountant. In the new system, it will be possible to upload online documents like annexure attached
to ANF 3B, ANF 3C and ANF 3D, which are at present signed by these signatories and submitted
physically.

(b) Henceforth, hardcopies of applications and specified documents would not be required to
be submitted to RA, saving paper as well as cost and time for the exporters. To start with,
applications under Chapter 3 & 4 of FTP are being covered (which account for nearly 70% of total
applications in DGFT). Applications 8 under Chapter-5 would be taken up in the next phase. (c) As a
measure of ease of doing business, landing documents of export consignment as proofs for notified
market can be digitally uploaded in the following manner:-

(i) Any exporter may upload the scanned copy of Bill of Entry under his digital signature.
(ii) Status holders falling in the category of Three Star, Four Star or Five Star Export House
may upload scanned copies of documents.

4. Online inter-ministerial consultations:

It is proposed to have online inter –ministerial consultations for approval of export of
SCOMET items, Norms fixation, Import Authorizations, Export Authorization, in a phased manner,
with the objective to reduce time for approval. As a result, there would not be any need to submit
hard copies of documents for these purposes by the exporters.
5. Simplification of procedures/processes, digitisation and e-governance:
(a) Under EPCG scheme, obtaining and submitting a certificate from an independent
Chartered Engineer, confirming the use of spares, tools, refractory and catalysts imported for final
redemption of EPCG authorizations has been dispensed with.

(b) At present, the EPCG Authorisation holders are required to maintain records for 3 years
after redemption of Authorisations. Now the EPCG Authorization Holders shall be required to
maintain records for a period of two years only. Government’s endeavour is to gradually phase out
this requirement as the relevant records such as Shipping Bills, e- BRC are likely to be available in
electronic mode which can be archived and retrieved whenever required.

(c) Exporter Importer Profile: Facility has been created to upload documents in
Exporter/Importer Profile. There will be no need to submit copies of permanent records/ documents
(e.g. IEC, Manufacturing license, RCMC, PAN etc.) repeatedly with each application, once uploaded.

(d) Communication with Exporters/Importers: Certain information, like mobile number, email
address etc. has been added as mandatory fields, in IEC data base. This information once
provided by exporters.

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What is meant by public sector, Joint Sector and Cooperative Sector? Discuss the major problems of the public Sector in India

Answer

The mixed economy of India is characterised by the co-existence of public, private, joint and co-operative sectors since the declaration of Industrial Policy in 1948.

Imperative of Public Sectors:

Policy on the public sector has been guided by the Industrial Policy Resolutions 1956 & 1991 which gave the public sector a strategic role in the economy. At the time of India’s independence in 1947, there were various problems confronting the country which needed to be tackled in a planned and systematic manner. India was basically an agrarian economy with a weak industrial base, low level of savings and investment and near absence of infrastructural facilities.

Public, Private, Joint and Co--operative Sectors

A vast percentage of population was extremely poor. There existed considerable inequalities in income, low level of employment opportunities, serious regional imbalances in economic attainments and lack of trained man-power in various fields of management. It was, thus, obvious that if the country was to speed up its economic growth and maintain it in the long run at a steady level, a big push was required. As such, State’s intervention in all the sectors of the economy, was inevitable because private sector had neither the necessary resources in terms of funds, managerial and scientific skill, nor the will to undertake risks involved in large long-gestation investments. Among the imperatives were removal of regional, imbalances, accelerated growth of agricultural and industrial production, better utilisation of natural resources and a wider ownership of economic power to prevent its concentration in a few hands.

Private Sector

In a mixed economy, the private sector too has an important role to play. The Industrial policy resolution 1956 had made it very clear that private sector will also have the opportunity to development and expand. The policy of the state was to encourage the development of industries in the private sector in accordance with the programs formulated in successive five year plans. By ensuring the development of transport, power and other services. And by appropriate budget allotment. Government decided that for both private and publicly owned units, it would continue to give its support which is fair and non-discriminatory to both of them.

Cooperative Sector 

In India the cooperative sector has been assigned an important role in the development of many sectors. In the first five year plan it undertook areas like agricultural, rural and small scale industries, retail distribution, and housing. 

The important objectives of the co-operative sector area:

1) Prevention of concentration of economic power

2) Wider disbursal of ownership of productive resources

3) Active involvement of people in the development programs

4) Speedier economic development

5) Liquidation of unemployment and poverty.

Major Problems of Public Sector (Economy)

1. Inefficient Management & Delayed Decisions

It has been found that these enterprises are managed by public savants. They are not professionally qualified nor expert in the management of industrial enterprises. Public enterprises always suffer from delayed decision making. Whereas private enterprises are managed by professionals which make them more punctual in working. Delayed in decision making is one of the key problems. Lack of personal interest No one wanted to take responsibility for making decisions. The loss in public enterprises is a loss of public. It is not a personal loss.

Public enterprises are usually managed by the bureaucrat. Organisational hierarchy, fix up responsibility, the delegation of authority and management information system is the weak part of public enterprises.

2. Lack of Efficiency and Excessive Government Control

Public sector is not run on commercial principles. Their main motto is social welfare, not the profit earning. If a public enterprise in-cursed losses due to efficiency, it is overlooked. Whereas private enterprises are run for profit. It has been found that the government is always interfering in the petty decisions of public enterprise. Decision making takes a long time due to the complex procedure in public enterprises. Political Interference is the another major problem facing Indian public sector industries.

Public enterprises are becoming means of fulfilling the political objective of political parties. They have to serve the political interests of the ruling parties.

It has been observed that political factors influence decisions about the location of projects, appointments, and even day operations. Location of the project is decided on the basis of political interest and not on the basis of the economic viability of the project, resulting in incurring losses.

3. Lack of Innovations

Innovations are essential for economic development. Public enterprise lacks it due to monopoly or lack of competition. The private sector is always busy with innovating new techniques, new production methods etc.

For the purpose of cost reduction and profit maximization. On the other hand, public sector employees are government employees and their jobs are secure. They do not bother about the cost and profit of public enterprises.

4.Mounting Losses

A review of the working of PSUs reveals that either their profits are deplorably low or they are making losses. The losses are mounting year after year.

 Although some of the public enterprises are earning profits, the amount is very thin in comparison to capital employed and our expectations. The losses in public enterprises can be justified during the gestation period but afterward, they must try to wipe out losses and earn profits.

The government should, therefore, make a case by case study of the loss incurring enterprises and take remedial, measures. 17 Major Problems of Public Sector (Economy).

5. Under Utilization of Capacity

Public enterprise is facing the problems of underutilization of their installed capacity. Thus, the capital resources are not fully utilized by public enterprise.

Therefore, it is necessary to find the causes of low capacity utilization and thus remedy the situation with appropriate measures. Shortage of power, inadequate demand, equipment breakdowns, inadequate raw material, managerial inefficiency etc. Are the major causes of underutilization of capacity.

6. Increase in costs:

Most of the public sector projects take the long ester time to complete than was initially envisaged. The cost of the projects also run upwards due to delay in completion of projects.

Poor and adequate project planning is the main cause of their delay in construction time schedule and increase in cost. Therefore, it is essential to prepare completion of other project and an increase in cost can be avoided.

7. Problems of Price Policy

Public sector cannot charge heavy profits, because of social objectives.   Therefore, they have to keep in mind the social implications of price policy. In many cases, prices are kept low even then the cost. This naturally affects their profitability.

Profit earning is not the main object of public enterprises. They are operated for social welfare. If they indulge themselves in profit-making activities then there will be no difference left between public enterprise.

Regarding price policy, public enterprises should adopt no profit any loss theory or the theory of minimum profit. So that they can maintain their relevance in the economy. If they follow below cost price policy, they have to bear losses and it cannot be justified.

8. Excess Staffing

It has been noticed that in the most public enterprise, manpower is in excess of actual requirement. Due to poor manpower planning, public enterprises are facing the problem of over staffing. Modern Theories of Motivation (Updated for Employees)

There is a lack of proper education and training of the employees in the public sector. Therefore, it is suggested to reduce the staff and top positions should be open to its employees.

9. Lack of Motivation

There is a lack of motivation in public enterprises. Employees get fixed salaries and other perks. There is no reward for good work and no punishment for bad. Thus, efficient and innovative employees are not motivated to do hard work.

10. Problems of Managerial Structure

Public enterprises are governed by a board of directors. All imported decisions are taken by the board. Therefore, The success of the enterprise depends on the ability and efficiency of the members of the board.

It is a difficult question, as to who should be made a member of the board of directors and what should be his qualifications. Politicians, bureau-craft etc. Are nominated as the member of the board of directors in public enterprises.

11. Problems of Audit and Inspection

Although there is a system of audit and inspection in such enterprises, it is not followed in practice. Accounts should be audited by the competent authority at least once a year. It should be seen that public funds are not misused.

The audit department of government is already overburdened and the employees of the enterprise are not cooperative. Hence, it is suggested to appoint an expert committee that can audit the accounts of each public enterprises to judge its efficiency. 

What do you understand by Green Management? Discuss its nature and scope.

Answer:

Environmental degradation has been a part of human history forever specifically from business operations. The Industrial Revolution of the 18th and 19th centuries, however, brought with it the ability to degrade the natural environment to a greater extent and at a faster rate than ever before.

In 1987, the United Nations World Commission on Environment and Development (The Brundtland Commission) defined sustainable development as one that ―meets the needs of the present without compromising the ability of future generations to meet their own needs.

Definition of Green Management

Both improved environmental and business performance are basic goals of green management. When definitions of the exact term ―green management‖ are found in the literature, they often appear either too vague or incomplete. One of the most recent studies on green management defined the term as ―practices that produce environmentally-friendly products and minimize the impact on the environment through green production, green research and development, and green marketing. (Peng & Lin, 2008).

Characteristics of Green Businesses

Hirsch identifies nine categories of green business behaviour. Hirsch explains claiming that: when firms go green, they exceed legal requirements by:

1. Directly reducing their own regulated—or unregulated—environmental impacts in ways that will reduce regulatory risk, improve company brand, and allow firms to get out in front of anticipated regulations;

2. Reducing their customers‘environmental impacts and decreasing their customers‘exposure to unhealthy substances;

3. Increasing their reuse and recycling of materials used in the production process;

4. Improving their energy efficiency or that of their customers;

5. Improving their resource productivity or that of their customers;

6. Implementing systems to identify waste reduction, pollution prevention, energy efficiency, or resource productivity opportunities throughout the company or facility;

7. collecting and disseminating more information about the firm‘s environmental impacts and performance than the law requires;

8. Providing more opportunities for stakeholder input into corporate environmental decision making than the law requires; and

9. Financing and investing in green products and business models, such as those described above.

Nature of green management :

Green Management is designed to reduce the overall impact of the built environment on human health and natural environment by:

a)      Efficiently using energy, water and natural resources

b)      Protecting occupant health and improving employees productivity

c)      Reducing waste, pollution and environment  degradation.

Scope of Green Management:

•      Green Foods: Green business ideas allows people too grow  “garden parks” or small seeded trays that can be placed  anywhere at your surroundings.

•      Green Consulting: Green consulting is the one of the best low  budget businesses. All you need is to know best advertising  methods for business and need a mobile or email id, so that  people can contact.

•      Green vehicles: Using of electric scooters an small electric  cars. The cope is endless – once you start thinking about your  environment for the pollution free and fuel saving market.

•      Green Appliances (energy star logo)

What do you mean by Environment of Business?

Answer:

Micro Environment of Business:

A business can be established, but to successfully sustain a business, the business needs resources like finance, for which it has to depend on financial institutions. Acceptance of social norms, for which it has to depend on the society. Proper market conditions, for which it has to depend on the market. The sale of products/services, for which it has to depend on the customers. The labour, for which it has to depend on the society. Then there are natural resources and raw material, for which it has to depend on Nature. Also, the legal support of the government, for which it has to depend on the government. There are many factors and dimensions that affect Business Environment. These factors are many different components of a single concept called Business Environment.

The definition of Business Environment, “The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but the business still depends upon them as they affect the overall performance and sustainability of the business.”

(1) Internal Environment (Micro Environment)

The micro environment consists of the factors of the firm’s immediate environment, a. Suppliers,

b. Customers

c. Competitors,

d. The public, and

e. Marketing intermediaries.

a. Suppliers:

Suppliers or vendors are those persons or firms who supply inputs like new materials, certain parts, cutting tools etc., to the company. The vendor quality and reliability is a must for the smooth functioning of the business.

They should supply all imputes of right quality and stated quantity in time. In order to be on safe side, adequate stock of input elements should be preserved in the company and services should be taken of more than one vendor to supply the goods.

b. Customers:

Today with the advancement of technology and because of foreign collaborations, it has become easy to manufacture any product, but it is still very difficult to sell i.e., to create, increase and sustain the customers.

Every day we watch a new advertisement e.g., buy one tooth paste tube and take another free along with it or take two shampoo bottles at the price of one etc., to allure the customers. Monitoring the customer sensitivity is, therefore, a prerequisite for the business success. How many different categories of customers shall be there to buy a product, depends upon the product itself.

c. Competitors:

Take an example of a firm ‘A’ making Televisions. Its competitors are not only the firms making and marketing T.V., but are all those firms who compete for the discretionary income of the customers. There are so many firms making T.V., scooters, refrigerators, cooking ranges, stereo sets etc.

The first is the desire competition amongst them.  

The second is the product form competition  

The third is the brand competition I

d. Public:

Public means a group of people. Public opinion can be a threat to a business firm whereas it can be an opportunity for another business firm. Public normally forms an opinion about different brands of the same product after using the same.Opinion travels from friend-to-friend, neighbour-to-neighbour etc

e. Marketing Intermediaries:

Marketing Intermediaries are those firms/individuals who help the company in promoting, selling and distributing its goods to final buyers. The intermediaries are: (i) Middlemen (agents/merchants) (ii) Physical distribution firms who assist the company in stocking and moving goods from their origin to their destination, such as warehouses and transportation firms. (iii) Marketing service agencies such as advertising agencies, market research firms etc., which assist the company in targeting and promoting its products to the right markets.

(2) External Environment (Macro Environment)

I  Economic environment.

It indicates the condition of economy in which business organization operates. It has continuous and great impact on business. It includes national income, production, inflation, savings, investment, price, government activities. Business person must have constant watch on this factor.

 II Political or legal environment

It is defined as rules and regulations determined by the government. Business must fulfil demand of government. There should be non-violation of rules and regulation of government. Business should avoid unfair trade and should provide essential information to the government.

Social environment.

Business must have good environment where a business can be established neatly. Business also helps in employment opportunities generation. There should be socio cultural understanding and application of anti-pollution measures.

Technological environment:

It defines about the methods available for converting resources into product or services. It transforms inputs into output. Inputs means material, capital, man, machine. It affects on business. It helps to change the level of job, skill, and product and so on. There can be innovation, development of scientific techniques which encouraged mass production and distribution.

Describe main provisions of Consumer Protection Act 1986. What more needs to be done in this regard.

Answer:

Salient features of consumer protection act are as follows:

Coverage of Items:

This Act is applicable on all the products and services, until or unless any product or service is especially debarred out of the scope of this Act by the Central Government.

Coverage of Sectors:

This Act is applicable to all the areas whether private, public or cooperative.

Compensatory Nature of Provisions:

Many Acts have been passed for the help of consumers. Consumers enjoy the benefits of these Acts but if a consumer wishes the Consumer Protection Act can provide extra help. As a result the nature of provisions of this Act is compensating for the loss or providing extra help. Consumer is totally free to enjoy the benefits provided in the Act.

Group of Consumer’s Rights:

This Act provides many rights to consumers. These rights are related to safety, information, choice, representation, redressal, education etc.

Effective Safeguards:

This Act provides safety to consumers regarding defective products, dissatisfactory services and unfair trade practices. So under the purview of this Act there is a provision to ban all those activities which can cause a risk for consumer.

Three-tier Grievances Redressal Machinery:

Consumer courts have been established so that the consumers can enjoy their rights. This Act presents Three- tier Grievances Redressal Machinery:

(i) At District Level-District Forum

(ii) At State Level -State Commission

(iii) At National Level – National Commission.

Time Bound Redressal:

A main feature of the Act is that under this, the cases are decided in a limited time of period.

Consumer Protection Council:

To favour consumer protection and to encourage consumer’s awareness there is a provision in this Act to establish Consumer Protection Councils.

Protection of Consumer through National/State Councils and District Forums:

The basic purpose of the above councils and forums is to listen to the complaints of the consum­ers and pass judgments on complaints.

The Organisations for this purpose are as under:

1. The Central Consumer Protection Council.

2. The State Consumer Protection Councils.

3. District Forums.

 The Central Consumer Protection Council:

 The State Consumer Protection Council:

Consumer Disputes Redressal Agencies:

Appeal to State Commission:

Any person aggrieved by an order of the District Forum has been given the right to appeal to the State Commission within a period of thirty days from the date of order.

Appeal to National Commission:

Second appeal is allowed before the National Commission within 30 days of order of State Commission but the National Commission can extend the period for appeal beyond 30 days.

Appeal to Supreme Court:

Third appeal is permitted to Supreme Court within 30 days of the order of National Commission.

What more needs to be done in this regard.

The judgments of the forums and commissions have encouraged the consumers to approach more frequently to these bodies.

Actually the protection cannot be by law alone but proper business culture and competition in the system is needed.

While in foreign countries suppliers replace the product without any question to maintain their reputation but Indian manufacturers try to find out all types of excuses.

In certain cases considerable punishment has been awarded but there is much to learn from foreign companies who withdraw their product if found defective even without complaint.

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What are the four segment of Environment. Mention the Principles for Sustainable Development.

Answer:

Environment means the surroundings or conditions of life, may be social, political, economic, cultural, natural etc. Natural resources are used with other man made resources in order to produce goods in agriculture, industry or other spheres of economic activity. With continuous use of these natural resources some get depleted, some may get degraded (lose their quality) or some may get polluted, as such on account of these, the future generation will not get enough of such resources for their use and that will adversely affect their output, income, and living standards. Therefore, we should preserve environment by minimizing harm to it

Scope of environment consists of four segments as under:

1. Atmosphere:

The atmosphere implies the protective blanket of gases, surrounding the earth:It sustains life on the earth. It saves it from the hostile environment of outer space. It absorbs most of the cosmic rays from outer space and a major portion of the electromagnetic radiation from the sun. It transmits only ultraviolet, visible, near infrared radiation (300 to 2500nm) and radio waves. (0.14 to 40m) while filtering out tissue-damaging ultraviolet waves below 300 nm. The atmosphere is composed of nitrogen and oxygen. Besides, argon, carbon dioxide, and trace gases.

Hydrosphere:

The Hydrosphere comprises of all types of water resources oceans, seas, lakes, rivers, streams, reservoir, polar icecaps, glaciers, and ground water. Nature 97% of the earth’s water supply is in the oceans,About 2% of the water resources are locked in the polar icecaps and glaciers. Only about 1% is available as fresh surface water-rivers, lakes streams, and ground water fit to be used for human consumption and other uses.

3. Lithosphere:

Lithosphere is the outer mantle of the solid earth. It consists of minerals occurring in the earth’s crust and the soil e.g. minerals, organic matter, air and water.

4. Biosphere:  Biosphere indicates the realm of living organisms and  their interactions with environment, viz atmosphere, hydrosphere and lithosphere..

Principles for Sustainable Development

•       Revive Growth

•       Change the Quality of Growth

•       Conserve and Enhance the Resource Base

•       Ensure A Sustainable Level of Population

•       Reorient Technology and Manage Risks

•       Integrate Environment and Economics

•       Reform International Economic Relations

•       Strengthen International Economic Cooperation.

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What major plans were started by the government of India for removal of Poverty & Unemployment? .

Answer:

Following are important poverty and Unemployment Alleviation Programmes started by government of India:

1. Integrated Rural Development Programme (IRDP):

The Integrated Rural Development Programme (IRDP) was started in 20 selected districts in the country in 1976-77. Later on in 1980, the programme was extended to all the districts of the country. The scheme was funded by centre. The funds for the scheme are shared by centre and State Govt. on equal basis.

The objective of the scheme is to create productive assets for the families in rural areas living below poverty line. Bank Loans were provided to create productive assets to take up self-employment activities. They include agriculture horticulture, animal husbandry, poultry and weaving etc.

This programme was being implemented by the District Rural Development Agencies (DRDA). This scheme was merged with one self-employment programme called Swarn Jayanti Gram Swarozgar  Yojana in year 1999.

2. National Rural Employment Programme (NREP):

This programme was launched in 1980. The main aim of the programme was to create employment opportunities by building and maintaining community assets like village roads, ponds and wells etc. The scheme was expected to generate additional gainful employment to the extent of 30 to 40 crore man-days per annum and to develop community assets. In this programme, food grains was made available for the work. NREP was merged with Jawahar Rozgar Yogana (JRY) in 1989.

 3. Jawahar Rozgar Yojana (JRY):

This scheme came into existence in April 1989. The previous schemes NREP and RLEGP were merged into this scheme. The main objective of JRY was to create additional employment for rural under-employed and unemployed.

The basic feature of this programme was that the funds would be released directly to the village panchayats which would launch the employment programme according to the local needs of the people. It was a Central Govt. sponsored programme and expenditure was shared between the centre and states in the ratio of 80:20. The DRDA directly receives the centre’s share and state’s share from Govt. Then DRDA allots the funds to various panchayats. Contractors were not allowed to execute the projects. In 1999, JRY was renamed as Jawahar Gram Samridhi Yojana.

4. Small and Cottage Industries:

Special measures have been taken by the Government to develop small and cottage industries with a view to removing poverty and unemployment. Large amount is being spent to promote self-employment.

 5. Indira Awas Yojana (LAY):

Indira Awas Yojana was started in 1985-86 to provide residential units free of cost to SC and ST and freed bonded labour. This scheme was extended to Non SC/ST Categories from 1993-94. In 1995-96 families of armed forces and paramilitary forces killed in action brought under this scheme. DRDA is the coordinating agency.

 6. Prime Minister’s Rozgar Yojana (PMRY):

Prime Minister’s Rojgar Yojana (PMRY) was launched in 1993. It is a self-employment scheme meant for the educated unemployed youth. It is meant for poor families having income less than Rs. 25,000 per annum. Each educated unemployed youth is eligible for a loan of Rs. 1 lakh to start a small business. 22:5% reservation is given is SC/ST candidate and 27% reservation is given to OBC 15% of total amount is given as subsidy.

7. Jawahar Gram Samridhi Yojana (JGSY):

Jawahar Gram Samridhi Yojana was started on 1st April 1999 to create rural infrastructure, like roads, bridges etc. The main objective was to create wage employment for the unemployed rural youth. DRDA was the co-ordinating agency. The scheme was sponsored by Centre Govt. The expenditure was shared between centre and state in the ratio of 80:20.

8. Sampooma Gramin Rojgar Yojana (SGRY):

This scheme was started in Sept. 2001 by Prime Minister. The main objective of this scheme was to provide gainful employment & food security to villagers. Employment Assurance Scheme (EAS) and Jawahar Gram Samridhi Yojana (JGSY) have been merged in this scheme because both have the same objectives. DRDA is the nodal agency for this scheme. The expenditure for this scheme is shared by the centre and state in the ratio 80:20.

 9. National Rural Employment Guarantee Act (NREGA):

This scheme has been launched in Feb. 2006 in 200 rural districts of the country and was extended to 600 districts throughout India. The main objective of this scheme is to provide at least 100 days of unskilled manual work to one person from each rural family at the minimum wage fixed by the State Govt. If the manual work is not provided to beneficiary within 15 days, he will be given unemployment allowance. The name of the scheme was later changed to MGNREGA.

The MGNREGA was initiated with the objective of "enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work" Another aim of MGNREGA is to create durable assets (such as roads, canals, ponds and wells). Employment is to be provided within 5 km of an applicant's residence, and minimum wages are to be paid. If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.

Labour oriented tasks like rain water harvesting, rural roads, irrigation channels, renovation of traditional water-bodies, soil conservation and land reclamation etc. will be undertaken under this scheme. Contractors will not be allowed to execute the work. The expenses will be shared by centre and state Govt. in the ratio of 90 : 10 respectively. Out of total workers employed, one third must be women. Centre Govt. allotted Rs. 11,000 crore for this scheme.