1. Good news: Unemployment rate falls on Narendra Modi govt’s rural infrastructure drive

Good news: Unemployment rate falls on Narendra Modi govt’s rural infrastructure drive

After the very optimistic GDP numbers released on February 28, there is another good news that unemployment rates have fallen as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has perked up rural infrastructure.

By: | New Delhi | Published: March 3, 2017 5:24 PM
According to the report, this decline is primarily due to government’s effort in providing new employment opportunities in the rural areas. (PTI)

After the very optimistic GDP numbers released on February 28, there is another good news that unemployment rates have fallen as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has perked up rural infrastructure. The report by the Economic Research Department of State Bank of India points out that contrary to market perception, India’s unemployment rate declined sharply and consistently from 9.5% in Aug’16 to 4.8% in Feb’17. The states that witnessed major decline in unemployment include Uttar Pradesh (17.1% to 2.9%), Madhya Pradesh (10.0% to 2.7%), Jharkhand (9.5% to 3.1%), Odisha (10.2% to 2.9%) and Bihar (13.0% to 3.7%).

According to the report, this decline is primarily due to government’s effort in providing new employment opportunities in the rural areas. This decline is also explained by household allocated work under MGNREGA, which increased from 83 lakh households in Oct’16 to 167 lakh households in Feb’17. Hence, on the one hand, the unemployment rate has almost halved, on the other hand, the demand for work has almost doubled. Further, the report points out that the number of work completed under the scheme has also increased by a whopping 40% to 50.5 lakh in fy 17 compared to 36.0 lakh in fy 16.

You may also like to watch this

The most creditworthy increase was seen in Anganwadi work at 166%, drought proofing 158%, rural drinking water at 698% and water conservation and harvesting at 142%. This is a welcome trend and will contribute greatly for developing rural infrastructure as a sine qua non for sustained agriculture growth.

In Union Budget speech, MGNREGA scheme has been allocated a budgetary resource of Rs 48,000 crore. During fy 18, another 5 lakh farm ponds will be taken up, compared to expected 10 lakh farm ponds during fy 17. This single measure will contribute greatly to drought proofing of gram panchayats.

The report that was released on Friday has been authored by Dr. Soumya Kanti Ghosh, Chief Economic Adviser, Economic Research Department, SBI.

  1. R
    Ravi
    Mar 4, 2017 at 10:12 am
    These figures are fake. Unemployment is on the rise !
    Reply
    1. B
      Bonger
      Mar 3, 2017 at 1:11 pm
      Modiji aapko koti koti pranam ... Hum aapke saath hai
      Reply
      1. I
        Indian
        Mar 8, 2017 at 2:14 am
        What PM Modi has done is to implement the MGNREGA on the ground with geo tagging and monitoring of things that's made. This has cut down on corruption and siphoning of money without anything or no work on the ground. Once MGNREGA started to get implemented and every penny is accounted for, people on the ground are getting work and money and hence this reduction in employment. He is not doing anything magical. Just what's expected of a good government. All appreciation to Shri.Modi and the BJP government. Keep up the good work guys, nation will surely move forward to be a nation with no poverty.
        Reply
        1. I
          Indian
          Mar 8, 2017 at 2:16 am
          correction in the above..what i meant is reduction in unemployment. Also the push for Make in India and manufacturing could be another reason for the reduction in unemployment.
          Reply
          1. J
            Jitendra
            Mar 4, 2017 at 5:44 am
            Some will doubt these figures.Voters are the best judges.On 11th March we will know if voters too think on similar lines.
            Reply
            1. R
              roby mani
              Mar 4, 2017 at 4:54 pm
              The chairman of SBI has been given extension of service by Modi, No other chairman has been given extension for the past 25 to 30 years. This makes it obligatory for her to reciprocate by her organisation coming out with such fantastic reports, in spite of all visible indicators displaying the opposite.
              Reply
              1. NITISH SINGH
                Mar 8, 2017 at 1:10 pm
                Keep crying baby
                Reply
                1. R
                  Raj
                  Mar 4, 2017 at 4:21 pm
                  No one comes near to Modiji... The best PM ever... regardless the opposition blames him for silly things due to political hatred!!!
                  Reply
                  1. R
                    Ramesh Ramaswamy
                    Mar 4, 2017 at 4:50 pm
                    Yes correct most of the people are dying in Modi's government 🙃😏
                    Reply
                    1. R
                      rohan
                      Mar 4, 2017 at 4:45 am
                      Engineering graduate as construction labor ?
                      Reply
                      1. X
                        xyz
                        Mar 3, 2017 at 1:42 pm
                        feku figures
                        Reply
                        1. Load More Comments

                        Go to Top