1. Employment-Linked Incentive (ELI) Scheme: A Push for Manufacturing Jobs – Economy
Objectives of the Scheme
- Promote first-time formal employment in the private sector.
- Boost job creation with a focus on manufacturing and MSMEs.
- Support employers through direct payroll subsidies.
- Encourage retention of new workers through performance-linked benefits.
Target Beneficiaries
- 1.92 crore newly employed individuals to directly benefit.
- Focus on youth, entry-level employees, and first-time wage earners.
Key Features
For Employees
- Eligibility: Salaries up to ₹1 lakh/month.
- Incentive: One-month EPF wage (up to ₹15,000).
- Payouts:
- First installment after 6 months.
- Second installment after 12 months.
- Mode: Direct Benefit Transfer (DBT).
- Part of the benefit to be placed in a fixed deposit account, withdrawable later.
For Employers
- Incentive: Up to ₹3,000/month per new hire.
- Retention Period: Must retain employee for at least 6 months.
- Extended Incentive: For manufacturing sector, support may extend into the third and fourth years.
Industry Reactions
- Welcomed as a forward-looking initiative for job generation.
- Calls for:
- Inclusion of micro and small enterprises (<20 employees).
- Greater MSME integration.
- Reimbursement model based on actual payroll growth.
- Shifting oversight to the Ministry of MSME for better outreach.
Trade Union Responses
| Trade Union | Stand | Concerns |
|---|---|---|
| Bharatiya Mazdoor Sangh (BMS) | Supportive | Demands stronger social security and job quality |
| Other 10 Central Unions | Critical | Warn of possible fund misuse, echoing past schemes’ failures |
Challenges and Pitfalls
- Risk of misuse or manipulation of payroll data.
- Ensuring actual job creation rather than reshuffling existing employees.
- Need for transparency, third-party audits, and monitoring mechanisms.
- Scheme must go beyond quantity to ensure quality jobs and sustained employment.
Way Forward
| Area | Recommended Action |
|---|---|
| Monitoring | Establish independent audit systems for verifying employment claims |
| Coverage | Extend to small firms, gig workers, and migrant workers |
| Inclusivity | Ensure gender equity and outreach in Tier-2/3 cities |
| Social Security | Link incentives with ESI/EPF coverage and workplace safety standards |
| Skill Development | Integrate with Skill India, PMKVY, and internship schemes |
Exam Connect – Possible Questions
Prelims
- The Employment-Linked Incentive (ELI) Scheme is implemented by which of the following agencies?
A. NITI Aayog
B. Ministry of Labour and Employment
C. Employees’ Provident Fund Organisation (EPFO)
D. Ministry of Skill Development and Entrepreneurship
Answer: C. Employees’ Provident Fund Organisation (EPFO)
- Which of the following statements regarding the ELI Scheme is correct?
A. It is only for government employees.
B. Employers are given a fixed 5-year subsidy.
C. It includes support for employees earning up to ₹1 lakh per month.
D. It has no provision for manufacturing sector-specific incentives.
Answer: C. It includes support for employees earning up to ₹1 lakh per month.
Mains
- “The Employment-Linked Incentive (ELI) Scheme is a bold step towards employment generation, but its success depends on effective implementation.” Critically analyze. (250 words)
- “Job creation in India requires both structural reforms and incentive-driven models. Discuss how schemes like ELI can complement broader employment strategies.” (250 words)
2. India Ranks 4th Globally in Income Equality: Understanding the Gini Index – Economy
What is the Gini Index?
- Also called the Gini Coefficient or Gini Ratio.
- Developed by Corrado Gini, an Italian statistician, in 1912.
- Measures income or wealth inequality in a country.
How It Works:
- Range: 0 to 1 (or 0 to 100)
- 0 = Perfect equality (everyone earns the same)
- 1 = Perfect inequality (one person earns all the income)
- Based on the Lorenz Curve, which plots cumulative income vs. cumulative population share.
- The greater the area between the Lorenz Curve and the line of perfect equality, the higher the inequality.
India’s Gini Index Performance
| Year | Gini Index (India) |
|---|---|
| 2011 | 38.0 |
| 2022 | 25.5 |
- India now ranks better than:
- China (Gini: 35.7)
- All G7 and G20 countries
- This reflects:
- Improved income distribution
- Social welfare expansion
- Better rural employment and direct benefit transfer (DBT) schemes
Global Comparisons
| Country | Gini Index |
|---|---|
| India | 25.5 |
| China | 35.7 |
| United States | ~41.5 |
| Brazil | ~48.9 |
| Germany | ~31.9 |
Why This Matters for India
- Indicates progress in reducing income inequality.
- Suggests effectiveness of:
- Welfare schemes (e.g., PM-KISAN, MGNREGA, Ayushman Bharat)
- Direct transfers and subsidy rationalization
- Financial inclusion via Jan Dhan, Aadhaar, and Mobile (JAM) trinity
- Reflects inclusive growth and strengthens India’s socio-economic fabric.
Limitations of the Gini Index
| Limitation | Explanation |
|---|---|
| Doesn’t capture wealth inequality | Only income is measured |
| Doesn’t reflect living standards | Income doesn’t equal well-being |
| May hide intra-regional disparities | National average masks local inequality |
| Static snapshot | Doesn’t show income mobility over time |
Policy Implications
- Keep up efforts for redistribution, job creation, and education access.
- Focus on:
- MSME support
- Rural development
- Healthcare and nutrition
- Build on schemes like:
- National Education Policy
- Digital India
- Social sector subsidies
Exam Connect – Possible Questions
Prelims
- Which of the following statements about the Gini Index is correct?
A. A Gini Index of 1 indicates perfect equality.
B. It measures inflation trends.
C. It is based on the Lorenz Curve.
D. It includes data on both income and health inequality.
Answer: C. It is based on the Lorenz Curve.
- India’s recent Gini Index score places it:
A. Among the top 10 most unequal nations
B. Below China and Brazil in inequality
C. Ahead of all G7 and G20 nations in equality
D. Equal with the U.S. in terms of income disparity
Answer: C. Ahead of all G7 and G20 nations in equality
Mains
- “India’s improving Gini Index is a sign of inclusive economic growth. Critically examine the factors responsible for this achievement and suggest ways to sustain it.” (250 words)
- “Income equality is essential, but not sufficient for holistic development. Discuss in the context of India’s Gini Index and socio-economic challenges.” (250 words)
3. Controversy Over ISFR 2023: FRA Blamed for Forest Cover Loss – Environment
Key Findings of ISFR 2023
- Losses within Recorded Forest Area (RFA):
- Over 1,200 sq km of Mid-Dense Forest (MDF) lost.
- Over 1,200 sq km of Open Forest (OF) lost.
- Gains within RFA:
- Over 2,400 sq km of Very Dense Forest (VDF) added.
- Outside RFA:
- Loss of 64 sq km of Dense Forest.
- Loss of 416 sq km of MDF.
About the Forest Rights Act (FRA), 2006
- Official Title: Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
- Aims to:
- Recognize the customary rights of Forest Dwelling Scheduled Tribes (FDSTs) and Other Traditional Forest Dwellers (OTFDs).
- Grant rights over:
- Forest land for habitation and self-cultivation.
- Community forest resources for livelihood and cultural practices.
- FRA does not legalize encroachments; it validates historically occupied land.
Points of Contention
| Stakeholder | Position |
|---|---|
| ISFR 2023 (MoEFCC) | Suggests a correlation between FRA implementation and forest degradation. |
| Ministry of Tribal Affairs | Disagrees, citing lack of scientific data; warns that it may be used to stigmatize tribal rights. |
| Civil Society Organizations | Over 150 groups condemned the report’s implications as misleading and biased. |
| MoEFCC’s Clarification | Claims that community-led conservation efforts have actually improved forest cover. |
Why the Controversy Matters
- Legal vs Ecological Narrative: FRA is a legal recognition of rights; suggesting it harms forests creates a conflict between conservation laws and human rights.
- Policy Risks: Misinterpreting data could lead to rollback or weakening of FRA implementation in the name of conservation.
- Tribal Inclusion in Conservation: Evidence globally and within India shows that tribal communities play a vital role in sustainable forest management.
India’s Forest Governance Dilemma
| Objective | Conflict |
|---|---|
| Environmental Conservation | Forest loss needs to be addressed through scientific land use planning. |
| Tribal Justice | FRA is about correcting historical injustices and empowering forest communities. |
| Policy Making | Requires data-driven, inclusive approaches that respect both ecology and equity. |
Exam Connect – Possible Questions
Prelims
- Which of the following statements is correct regarding the Forest Rights Act, 2006?
A. It legalizes new settlements in national parks.
B. It grants forest rights only to Scheduled Castes.
C. It aims to recognize traditional forest dwellers’ rights.
D. It is implemented by the Ministry of Environment.
Answer: C. It aims to recognize traditional forest dwellers’ rights.
- Which of the following categories in the India State of Forest Report indicates the highest tree canopy density?
A. Open Forest
B. Scrub Forest
C. Moderately Dense Forest
D. Very Dense Forest
Answer: D. Very Dense Forest
Mains
- “The implementation of the Forest Rights Act (FRA), 2006, has often been misunderstood as a threat to India’s forests. Critically examine the validity of this claim in light of ISFR 2023.” (250 words)
- “Balancing tribal rights with conservation goals is key to sustainable forest governance in India.” Discuss. (250 words)
4. India Ranks 4th in Global Income Equality: Insights from the World Bank Report – Economy
Gini Index: A Recap
- A statistical tool used to measure income inequality.
- Scale:
- 0 = perfect equality (everyone has the same income).
- 100 = maximum inequality (one person has all the income).
- India’s score: 25.5 → Indicates moderately low inequality.
Comparison with Major Economies
| Country | Gini Index |
|---|---|
| India | 25.5 |
| China | 35.7 |
| United States | 41.8 |
Key Drivers of India’s Performance
1. Financial Inclusion
- PM Jan Dhan Yojana (PMJDY):
- Over 55 crore bank accounts opened (many in rural areas).
- Boosted direct access to formal banking, especially for the poor and women.
2. Direct Benefit Transfers (DBT)
- Aadhaar-linked transfers improved efficiency.
- Reduced leakages and duplication.
- Saved over ₹3.48 lakh crore by March 2023.
3. Social Protection & Healthcare
- Ayushman Bharat (PM-JAY):
- ₹5 lakh health insurance coverage per family.
- Over 41 crore cards issued.
- Lowered out-of-pocket health expenditure.
4. Food Security
- PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana):
- Free food grains for 80 crore+ beneficiaries during COVID and beyond.
- Prevented malnutrition and hunger among low-income families.
Implications for Developing Economies
- India’s experience shows that:
- Pro-growth and pro-equity policies can co-exist.
- Social spending can be fiscally efficient if digitally targeted.
- Combating inequality is possible without compromising economic growth.
- India’s model of combining structural economic reforms with social safety nets is being viewed as a global benchmark.
Challenges to Watch
- Wealth inequality still persists (Gini measures income, not wealth).
- Urban–rural disparities and inter-state inequality remain.
- Job quality, especially in the informal sector, continues to be a concern.
- Sustaining this progress requires investment in education, skilling, and healthcare.
Exam Connect – Possible Questions
Prelims
- Which of the following indicators measures income inequality within a country?
A. Human Development Index
B. Gini Index
C. Consumer Price Index
D. Ease of Doing Business Index
Answer: B. Gini Index - Which of the following schemes is correctly matched with its objective?
A. PM Jan Dhan Yojana – Health Insurance
B. PMGKAY – Employment Guarantee
C. Ayushman Bharat – Food Distribution
D. DBT – Direct transfer of subsidies to beneficiary accounts
Answer: D. DBT – Direct transfer of subsidies to beneficiary accounts
Mains
- “India’s achievement in reducing income inequality has been driven by targeted welfare delivery and digital governance.” Examine in the context of the World Bank’s Gini Index ranking. (250 words)
- “Efficient implementation of welfare schemes can drive both equity and growth.” Discuss with reference to recent trends in poverty and inequality reduction in India. (250 words)
5. Green Climate Fund Approves $120 Million to Boost Climate Resilience – Environment
What is the Green Climate Fund (GCF)?
| Feature | Details |
|---|---|
| Established at | COP 16, Cancun (2010) |
| Operational Since | December 2013 |
| Headquarters | Songdo, Incheon, South Korea |
| Legal Status | Independent legal entity under the UNFCCC |
| Governing Principle | Country-driven approach (projects led by the recipient country) |
Objectives of the GCF
- To support developing countries in:
- Limiting or reducing greenhouse gas (GHG) emissions (mitigation)
- Adapting to the impacts of climate change (adaptation)
- To help countries fulfill their NDC commitments under the Paris Agreement.
Funding Allocation Model
| Allocation Category | Share of Resources |
|---|---|
| Mitigation | 50% |
| Adaptation | 50% |
| Adaptation Share for Vulnerable Countries | At least half of adaptation funds for SIDS, LDCs, African States |
Recent Developments
- USD 120+ million approved for climate resilience in:
- Ghana: Agriculture and water systems
- Maldives: Coastal protection and renewable energy
- Mauritania: Climate-resilient infrastructure and livelihoods
- Focus on ecosystem-based adaptation, sustainable energy, and community resilience.
Why the GCF Matters
| Significance | Explanation |
|---|---|
| Climate Justice | Provides funding to those who are least responsible but most vulnerable to climate change |
| Bridging North-South Gap | Developed countries committed to mobilize $100 billion/year under UNFCCC; GCF is a key instrument for this |
| Supports SDGs | Helps achieve SDG 13 (Climate Action), SDG 1 (No Poverty), SDG 7 (Clean Energy), etc. |
| Encourages Private Sector | Mobilizes co-financing from private players for green projects |
Challenges Faced by GCF
- Slow fund disbursal and bureaucratic delays
- Underfunding compared to climate finance needs
- Capacity constraints in developing countries to design and submit proposals
- Geopolitical influence over funding priorities
Exam Connect – Possible Questions
Prelims
- The Green Climate Fund (GCF) was established under which international climate agreement?
A. Kyoto Protocol
B. Montreal Protocol
C. United Nations Framework Convention on Climate Change (UNFCCC)
D. Paris Agreement
Answer: C. United Nations Framework Convention on Climate Change (UNFCCC)
- Which of the following statements about the Green Climate Fund is/are correct?
1. It is headquartered in Geneva.
2. It follows a country-driven approach.
3. It allocates at least half of its adaptation funding to vulnerable countries.
Options:
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3
Answer: B. 2 and 3 only
Mains
- “Climate finance is critical for equitable climate action.” Discuss the role of the Green Climate Fund (GCF) in supporting climate resilience in developing countries. (250 words)
- “Global climate funds can catalyze sustainable development, but only if implementation challenges are addressed.” Examine in the context of the GCF. (250 words)
6. Alluri Sitaram Raju: The Tribal Revolutionary of India’s Freedom Struggle – History & Culture
Who Was Alluri Sitaram Raju?
- Born: July 4, 1897, in Bhimavaram, West Godavari district, Andhra Pradesh.
- Died: May 7, 1924 (executed by the British)
- Nickname: Manyam Veerudu (Hero of the Jungle)
- Region of Activity: Godavari Agency areas in present-day Andhra Pradesh, inhabited largely by tribal communities.
Rampa Rebellion (1922–1924)
Background:
- Triggered by tribal discontent against:
- The 1882 Madras Forest Act, which restricted traditional forest rights and access to land and resources.
- Harsh colonial policies, forced labor, and suppression of tribal customs.
Leadership & Strategy:
- Raju organized tribals and peasants to rise against British rule.
- Employed guerrilla warfare tactics, attacking police stations and seizing arms.
- Created a network of resistance across hilly and forested regions.
- His deep understanding of the terrain gave him a strategic edge.
Suppression & Death:
- Despite early successes, the rebellion was suppressed by the British with heavy reinforcements.
- Raju was eventually captured and executed in 1924.
- His tomb is located in Krishnadevipeta, near Visakhapatnam.
Legacy & Historical Significance
| Impact Area | Contribution |
|---|---|
| Tribal Rights | Advocated for Adivasi autonomy and rights to land and forests. |
| Freedom Movement | Strengthened local participation in India’s anti-colonial struggle. |
| Martyrdom | Became a symbol of bravery and sacrifice for future generations. |
| Recognition | Widely respected for his military strategy and nationalist spirit. His rebellion forced the British to spend enormous resources to suppress it. |
Contemporary Relevance
- His ideals of inclusivity, resistance against exploitation, and grassroots mobilization resonate in today’s discussions on:
- Tribal empowerment
- Environmental justice
- Decentralized governance
- The appointment of Droupadi Murmu, a tribal leader, as President of India is seen as a symbolic continuation of Raju’s vision of dignity and representation for tribal communities.
Exam Connect – Possible Questions
Prelims
- Alluri Sitaram Raju is associated with which of the following revolts against British rule?
A. Santhal Rebellion
B. Rampa Rebellion
C. Kuki Rebellion
D. Munda Ulgulan
Answer: B. Rampa Rebellion
- Which colonial legislation triggered the tribal discontent leading to the Rampa Rebellion?
A. Arms Act of 1878
B. Madras Forest Act of 1882
C. Vernacular Press Act of 1878
D. Ilbert Bill of 1883
Answer: B. Madras Forest Act of 1882
Mains
- “Alluri Sitaram Raju played a pivotal role in mobilizing tribal resistance against colonial exploitation.” Discuss the significance of his leadership in the context of regional tribal uprisings during the freedom struggle. (250 words)
- “Tribal revolts were expressions of both cultural assertion and political resistance.” Analyze the Rampa Rebellion and the legacy of Alluri Sitaram Raju in this context. (250 words)