{"id":149871,"date":"2021-11-30T20:43:36","date_gmt":"2021-11-30T15:13:36","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=149871"},"modified":"2021-11-30T20:43:36","modified_gmt":"2021-11-30T15:13:36","slug":"policymakers-must-break-indias-cycle-of-poverty","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/policymakers-must-break-indias-cycle-of-poverty\/","title":{"rendered":"Policymakers must break India&#8217;s cycle of poverty"},"content":{"rendered":"\n<p><strong>News: <\/strong>Many reports suggest widespread unemployment and consequent poverty on the rise in India.<\/p>\n<p>As per <strong>CMIE data<\/strong>, 5.46 million Indians lost jobs in October. The youth unemployment rate was 22.26% in 2021 \u2013 compared to 15.66% in 2016\u201317. There are about 20 million Indians entering the job market annually. But in August 2021, around 33% of all employable youths were estimated to be unemployed.<\/p>\n<h5><strong>How policies adopted by India have led to this situation?<\/strong><\/h5>\n<p>Major sectors like textile have become <strong>stagnant and less competitive.<\/strong> For example, labour cost of producing one shirt in India is $0.5, as compared to $0.22 in Bangladesh. As per a <a href=\"https:\/\/forumias.com\/blog\/world-bank\/\" target=\"_blank\" rel=\"noopener\">World Bank<\/a> estimate, 12 million jobs in the textile sector shifted from China to Bangladesh, while India\u2019s textile sector remained stagnant.<\/p>\n<p>Inflation has raised prices of petrol to rupees 100 per litre. Yet, as per estimates, owing to <strong>poor government incentives and policies<\/strong>, electric vehicle sales are low and are likely to comprise only 8% of total sales by 2030. This is in contrast to China, which is expected to have 40% of Electric cars.<\/p>\n<p>Moreover, the government has<strong> pushed for domestic LPG<\/strong> for household consumption. India should have <strong>instead pushed for electric cookstoves<\/strong> which would have helped reduce the import demand and would have shielded the consumers from price hikes.<\/p>\n<p>India also find prices of edible oils rising almost 30 to 40% over the last year. This is due to dependence on the import of palm oil and also a <strong>push for the Production of biodiesel<\/strong>.<\/p>\n<h5><strong>How have these aggravated the poverty?<\/strong><\/h5>\n<p>An <strong>average farmer\u2019s net worth<\/strong> declined by 33.8% between 2013 and 2019. An average <strong>entrepreneur&#8217;s<\/strong> wealth declined by 30% on a real value basis. Between 2012 and 2018 the <strong>debt of rural households<\/strong> <strong>rose<\/strong> by 35% and urban households by 22.4%.<\/p>\n<p>The poorest category of people were given loans at rates which were as high as 25 to 40%.<\/p>\n<p>All this happened, while 1% of rich Indians hold 73% of national wealth as quoted by Oxfam in 2017.<\/p>\n<h5><strong>What should be the way forward?<\/strong><\/h5>\n<p>MSMEs are the driver of growth and employment. While the push for formalization is required, it should not reduce the growth potential of the MSMEs.<\/p>\n<p><strong>Source:\u00a0<\/strong>This post is based on the article &#8220;<strong>Policymakers must break India&#8217;s cycle of poverty&#8221;\u00a0<\/strong>published in the\u00a0<strong>Indian Express\u00a0<\/strong>on\u00a0<strong>30th November 2021.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: Many reports suggest widespread unemployment and consequent poverty on the rise in India. As per CMIE data, 5.46 million Indians lost jobs in October. The youth unemployment rate was 22.26% in 2021 \u2013 compared to 15.66% in 2016\u201317. There are about 20 million Indians entering the job market annually. But in August 2021, around&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/policymakers-must-break-indias-cycle-of-poverty\/\">Continue reading <span class=\"screen-reader-text\">Policymakers must break India&#8217;s cycle of poverty<\/span><\/a><\/p>\n","protected":false},"author":5480,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216],"class_list":["post-149871","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704800663},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/149871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/5480"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=149871"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/149871\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=149871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=149871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=149871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}