Employment Schemes and Issues in India

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Why in News?

The Union Budget for 2024-25 emphasized employment as a key priority, with significant measures announced to address unemployment and generate formal jobs.

Current State of Employment in India

• Economic Survey Insights:
  • India's workforce was estimated at 56.5 crore in 2022-23.
  • Employment distribution: 45% in agriculture, 11.4% in manufacturing, 28.9% in services, and 13% in construction.
  • Unemployment rate stood at 3.2% in the same period.
• Underemployment and Unemployment Rates:
  • Many job seekers continue to work in informal sectors.
  • Urban unemployment for March 2024 was at 6.7%, while youth unemployment was at 10%.
  • Proportion of regular salaried workers dropped from 22.8% in 2017-18 to 20.9% over five years.

Key Employment Schemes in the 2024-25 Budget

• First Scheme: Incentivizes hiring of first-time employees with a wage incentive of up to ₹15,000.
• Second Scheme: Supports wage subsidies for first-time employees, providing a maximum incentive of 24% of ₹25,000 monthly wage for four years.
• Third Scheme: Offers a ₹3,000 monthly EPFO contribution for new workers.
• Fourth Scheme: Boosts skilling efforts through Industrial Training Institutes, benefiting 20 lakh students.
• Fifth Scheme: Focuses on internships in top companies with a ₹5,000 monthly allowance.

Analysis of Schemes and Their Impact

• Expert Opinions:
  • Schemes aim to encourage hiring by reducing employer costs but may not address broader issues.
  • Critics highlight the need for a holistic approach including low wage economy, inadequate skills, and investment gaps.
• Implementation Challenges:
  • Small employers may find it difficult to absorb the costs despite incentives.
  • Manufacturing sector requires a significant number of employees but has high minimum wage requirements.

Stagnation of Wages and Economic Challenges

• Wage Costs: Noted as a deterrent for employers to hire new workers.
• Economic Factors: Lack of demand, low consumption, and insufficient investment cited as critical issues.
• Policy Measures: Suggested to target specific sectors, such as the MSME sector, for more substantial impact.

Need for Focus on MSME Sector

• MSME Sector Importance:
  • Represents a significant part of India's economy.
  • Potential to generate a large number of formal jobs if properly incentivized.
• Policy Recommendations:
  • Tailored schemes to address unique challenges of the MSME sector.
  • Support in terms of credit, technology, and market access.

Conclusion

The employment measures announced in the 2024-25 budget reflect a focused attempt to generate formal employment through various incentives. However, the success of these schemes will depend on their effective implementation and addressing broader economic issues to create a sustainable and inclusive job market.

Natural Farming in India

Why in news?

The Union Budget for 2024-25 introduced significant measures to promote natural farming across India, targeting one crore farmers to transition to chemical-free agriculture over the next two years.

Mission and Objectives

• National Mission on Natural Farming (NMNF):
  • Aim: Encourage farmers to adopt chemical-free farming.
  • Strategy: Implementation through scientific institutions and gram panchayats.
  • Bio-input Resource Centers: 10,000 centers to be established for support.

What is Natural Farming?

• Definition and Practices:

Natural farming eschews the use of chemical fertilizers and pesticides, emphasizing traditional practices such as on-farm biomass recycling, biomass mulching, the use of cow dung and urine formulations, and on-farm botanical concoctions. These methods aim to enhance soil fertility, improve environmental health, and reduce greenhouse gas emissions, thereby promoting a sustainable and eco-friendly approach to agriculture.

Benefits of Natural Farming

• Sustainability:
  • Promotes a natural nutrient cycling system.
  • Enhances organic matter in the soil.
• Diversified Farming System:
  • Integrates crops, trees, and livestock.
  • Utilizes functional biodiversity.
• Environmental Impact:
  • Restores soil fertility.
  • Reduces dependency on chemical inputs.

Challenges and Concerns

• Agricultural Expert Opinions:
  • Skepticism about large-scale transition to natural farming.
  • India's huge population and food security concerns.
  • Findings from studies such as the 'Zero Budget Natural Farming' (ZBNF) raise concerns about yield sustainability and profitability.

Lessons from Sri Lanka

• Case Study:
  • Sri Lanka's transition to natural farming faced significant challenges.
  • Banned chemical fertilizers abruptly, leading to:
    • Severe economic and political repercussions.
    • A 59% decline in rice yields and a 32% decline in tea yields.
  • Resulted in food security risks and civil unrest.

Conclusion

Natural farming presents a promising yet challenging avenue for sustainable agriculture in India. Its success will depend on careful implementation, scientific support, and addressing economic and food security concerns. Lessons from international examples like Sri Lanka underscore the need for a balanced and informed approach.

Decentralized Testing and Sequencing in Kerala: A UPSC Perspective

Why in News?

On July 20, the Thiruvananthapuram-based Institute of Advanced Virology (IAV) successfully conducted a rapid test for the Nipah virus, marking a significant shift from centralized testing. This advancement facilitated quicker public health responses in Kerala.

Background

• Previous Testing Protocol:
  • In past Nipah virus outbreaks in Kerala (2018, 2019, 2021, 2023), samples were sent exclusively to the National Institute of Virology (NIV) in Pune.
  • Delays were common due to the centralized nature of testing, resulting in slower public health responses.

Decentralized Testing Initiative

• Implementation:
  • In 2022, the IAV in Thiruvananthapuram was equipped to test Nipah virus samples locally.
  • On July 20, 2024, IAV tested samples in four hours and reported results to the State government by 9 am, with NIV confirmation arriving in the evening.

Impact and Advantages

• Speed and Efficiency:
  • The local testing reduced the time needed to initiate public health responses.
  • Kerala was able to swiftly implement measures to prevent the virus spread.
• Enhanced Capabilities:
  • IAV's advanced facilities include BSL-3 laboratories capable of testing various viruses, including Nipah, Zika, Chikungunya, and Influenza.

Case Study: Recent Nipah Outbreak

• Testing and Response:
  • The latest outbreak saw IAV testing samples locally, with results in four hours.
  • NIV's confirmation followed, but the initial quick response was crucial.
• Public Health Measures:
  • Immediate action was taken to contain the virus spread.
  • Isolation wards and other containment measures were promptly implemented.

Genome Sequencing Efforts

• Current Initiatives:
  • IAV is conducting whole genome sequencing of the Nipah virus to study its relatedness to previous strains.
  • The goal is to make genome data publicly accessible for research and public health planning.

Broader Implications

• Decentralized Model:
  • Similar decentralization efforts are underway in Gujarat and other states to improve response times for emerging pathogens.
  • Rapid testing and local capacity building are seen as vital for effective disease control.

Conclusion

The move towards decentralized testing and sequencing, exemplified by Kerala’s recent actions, highlights the importance of local capabilities in managing viral outbreaks. This approach allows for faster responses, better containment, and improved public health outcomes, setting a precedent for other regions to follow.