Rural Development Programme - 1 - Indian Economy for UPSC CSE PDF Download

Table of Contents
1. Integrated Rural Development Programme (IRDP)
2. Training of Rural Youth for Self-Employment (TRYSEM)
3. Development of Women & Children in Rural Areas (DWCRA)
4. National Rural Employment Programme (NREP)
5. Rural Landless Employment Guarantee Programme (RLEGP)
6. Jawahar Rozgar Yojana (JRY)
7. Indira Awaas Yojana (IAY)
8. Million Wells Scheme (MWS)
9. Employment Assurance Scheme (EAS)
10. Prime Minister Rozgar Yojana (PMRY)
11. Drought Prone Area Development Programme (DPAP)
12. Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
13. National Social Assistance Programme (NSAP)
14. Recent Developments in Rural Development (policy trends up to 2025)
15. Concluding Notes
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Integrated Rural Development Programme (IRDP)

Objectives

1. Reduction of unemployment in rural areas.
2. Provision of assets and inputs to the rural poor so they can cross the poverty line.

Salient Features

1. The IRDP was launched in 1978-79 in 2,300 development blocks as a comprehensive programme to cover small and marginal farmers, agricultural labourers and rural artisans with annual incomes below Rs. 11,000.
2. The IRDP was implemented through District Rural Development Agencies (DRDA), a district‐level executing mechanism that continues in various forms in later programmes.
3. Central funds were passed to state governments to cover selected rural families living below the poverty line; this model of fund flow continues under successor programmes.
4. Originally the cost‐sharing between the Centre and states was 50:50; sharing arrangements have been adjusted in later schemes to reflect fiscal devolution and differing state capacities.
5. Subsidy norms under IRDP included 25% for small farmers, 331⁄2% for marginal farmers, agricultural labourers and rural artisans, and 50% for SC/ST beneficiaries and the physically handicapped.
6. Beneficiary selection followed the Antyodaya principle - prioritising the poorest of the poor - a targeting logic retained in subsequent poverty‐alleviation programmes.
7. IRDP originally reached thousands of families at block and district level; later national missions such as Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY‐NRLM) (2015 onwards) scaled up outreach through self‐help groups (SHGs).
8. IRDP included two important components for capacity development: Training of Rural Youth for Self Employment (TRYSEM) and Development of Women and Children in Rural Areas (DWCRA), which were later subsumed under broader livelihood and skill initiatives.

Shortcomings and Lessons

The IRDP, while pioneering in approach, exhibited several recurring problems that informed later programme design:

• Poor targeting and leakage in beneficiary selection due to weak local administration and inadequate verification mechanisms.
• Insufficient convergence between training, credit and market linkages which limited the capacity of beneficiaries to transform assets or skills into sustained income.
• Weak institutional capacity at DRDA and field level, and inadequate emphasis on monitoring and evaluation.
• Dependence on subsidies rather than building sustainable self‐help institutions like SHGs and producer groups.

These weaknesses led to restructuring over time: IRDP was merged into the Swarnajayanti Gram Swarozgar Yojana (SGSY) in 1999, which was restructured as NRLM in 2011 and relaunched as DAY‐NRLM in 2015, emphasising institutional development (SHGs), livelihood promotion and sustained poverty reduction.

Training of Rural Youth for Self-Employment (TRYSEM)

1. Launch: Introduced as a centrally sponsored scheme on 15 August 1979 to provide skill training to rural youth for self‐employment.
2. Target group: Rural youth aged 18-35 years from families below the poverty line; the scheme emphasised entrepreneurship and technical skills.
3. Scale: Initially proposed to train about 2 lakh youths per year; block‐level allocations (for example, originally 40 youth per block under early rules) were later revised in newer missions.
4. Reservations and inclusion: Provisions included reservation/priority for SC/ST candidates and women (around 50% for SC/ST and 40% for women under earlier rules), aiming to increase participation of disadvantaged groups.
5. Support during training: Trainees received stipends and tool‐kits to enable post‐training enterprise start‐ups; modern programmes continue similar support with additional financial inclusion measures.

Training Centre

Development of Women & Children in Rural Areas (DWCRA)

1. Launch: Started in September 1982 as a component of IRDP to focus on women's skill development and income generation.
2. Objective: Provide training in skills and entrepreneurship to women aged 18-35 years from poor households; enhance access to credit, subsidies and working capital.
3. Group approach: Implementation used a group model of 10-15 women per group to build mutual support and simplify credit delivery; this group model later formed the basis for SHG approaches in DAY‐NRLM.
4. Revolving fund: From 1995-96 a revolving fund of Rs. 25,000 was provided per women's group to meet working‐capital needs; successor programmes enlarged financial assistance and formal credit linkages.
5. Implementation: Executed through DRDAs and block‐level agencies, DWCRA established an early model of women‐centred livelihood groups.

National Rural Employment Programme (NREP)

1. Launch and evolution: Initiated in 1980 and given emphasis in the Sixth Plan; subsequently merged into other employment schemes and ultimately into MGNREGA in 2005.
2. Objectives: Generate additional gainful employment, create productive community assets to strengthen rural infrastructure, and improve nutritional and livelihood standards.
3. Funding: Centrally sponsored with cost sharing norms (historically 50:50) and implemented through DRDAs at district level.
4. Decentralisation: For the first time Panchayati Raj institutions were involved in executing employment works, setting a precedent strengthened in later schemes.
5. Integration: NREP merged into Jawahar Rozgar Yojana (JRY) in 1989, which in turn fed into the design of MGNREGA that guarantees wage employment.

Rural Landless Employment Guarantee Programme (RLEGP)

1. Launch: Launched on 15 August 1983 as a 100% centrally sponsored scheme; a forerunner of later employment guarantee programmes.
2. Objective: Improve and expand employment opportunities for the rural landless by guaranteeing employment to at least one member of every landless household for up to 100 days per year, and to create durable assets.
3. Spin‐offs: The Indira Awaas Yojana (IAY), launched on 2 October 1985, began as a sub‐scheme of RLEGP and later became a separate housing programme.
4. Integration: RLEGP merged with JRY in 1989 and its principles contributed to the framework of MGNREGA.

Jawahar Rozgar Yojana (JRY)

1. Start: Launched in April 1989 by merging the wage employment schemes NREP and RLEGP, with a wide objective of generating additional gainful employment in rural areas.
2. Coverage gap: Evaluations of earlier programmes had shown limited village coverage (only about 55% of villages benefitted); JRY aimed to extend works to every village.
3. Objectives: Provide employment to the rural poor and create viable rural economic infrastructure.
4. Decentralisation: Emphasised placing funds with Panchayats and district bodies; implementation used DRDAs and Panchayati Raj institutions.
5. Cost sharing: Expenditure was shared by Centre and states on an 80:20 basis (subject to policy changes over time).
6. Reservation and gender: Preference to SCs/STs and 30% reservation for women in employment under the scheme.
7. Non‐wage component: Restricted to a maximum of 50% of total allocation to ensure labour intensity.
8. Allocation criteria: Funds to states were allocated on the basis of incidence of poverty; central assistance could be routed directly to districts to improve targeting and speed.
9. Works and priorities: Priority was given to works benefiting poverty alleviation programmes (e.g., IAY) and to activities such as land development and drainage that supported small and marginal farmers.

JRY - First Stream

• The first stream emphasised allocation for the SC/ST population, allocating resources to states/UTs in proportion to their rural poor and SC/ST incidence.
• State → district allocations were based on indices of backwardness; districts passed 80% of funds to Panchayats and retained 20% for inter‐village works.
• Two important sub‐schemes under the first stream were Indira Awaas Yojana (IAY) and the Million Wells Scheme (MWS), which focused on housing and irrigation respectively.

Indira Awaas Yojana (IAY)

1. Launch: Launched in 1985-86 as a sub‐scheme of RLEGP and included within JRY; later restructured as Pradhan Mantri Awaas Yojana - Gramin (PMAY‐G) in 2016.
2. Objective: Provide housing assistance to the rural poor, originally with strong focus on SC/ST households and freed bonded labourers; coverage rules were periodically revised to extend benefits to other categories of poor households.

Awas Yojana - Housing Facilities

Million Wells Scheme (MWS)

1. Launch: Introduced in 1988-89 as a sub‐scheme under NREP/RLEGP and continued under JRY; its objectives have since been folded into modern irrigation and water‐management schemes such as Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
2. Objective: Provide open‐well irrigation to small and marginal farmers, with priority for SC/ST households and freed bonded labourers.
3. Scope: Extended to cover non‐SC/ST small and marginal farmers below the poverty line and later integrated into broader water‐use efficiency and irrigation programmes.

JRY - Second Stream (Intensive JRY)

Also called intensive JRY. From 1993-94, 20% of JRY funds (subject to a minimum allocation) were used to intensify JRY operations in around 120 backward districts with concentrated unemployment and underemployment.

1. Funds were channelled through DRDAs, which identified pockets of high unemployment within districts.
2. The DRDAs implemented a specified basket of works including construction of all‐weather roads, minor irrigation, water‐harvesting structures, wasteland development and farm forestry.
3. Since 1994-95 emphasis was placed on watershed‐based development to support drought‐proofing, dryland treatment and wasteland reclamation.
4. 50% of funds under the stream were earmarked for watershed development to address ecological and livelihood sustainability.

JRY - Third Stream

1. Designed to prevent seasonal migration by reserving 5% of allocated funds (subject to a maximum ceiling) for special and innovative projects in rural areas.
2. The third stream supported schemes deemed essential for rural employment and infrastructure, enabling experimental or pilot activities that complemented JRY's main objectives.

Employment Assurance Scheme (EAS)

1. Launch: Launched on 2 October 1993 in 1,778 most‐backward blocks and subsequently extended to 2,447 blocks in 1994-95 (drought‐prone, desert, tribal and hill areas).
2. Objective: Provide gainful employment during the lean agricultural season through manual work for able persons aged 18-60 years.
3. Entitlement and sharing: Guaranteed up to 100 days of wage employment for a maximum of two adults per family (subject to scheme rules); expenditure sharing between Centre and states followed agreed ratios (e.g., 80:20 in earlier guidelines).
4. Implementation: Assistance was released directly to DRDAs to expedite works; contractors were largely sidelined in favour of labour‐intensive execution by implementing agencies and community groups.
5. Wages and food components: Wages were set at minimum agricultural wage rates prescribed by the state; a portion of wages could be paid in foodgrains (up to a specified limit) as part of anti‐poverty measures.

Prime Minister Rozgar Yojana (PMRY)

1. Announcement and launch: Announced in August 1993 and launched from 2 October 1993 to promote self‐employment among educated unemployed youth.
2. Objective: Encourage creation of micro‐enterprises by educated unemployed youth through credit, training and support services; later policy focus on entrepreneurship continued through schemes such as PMMY (Pradhan Mantri Mudra Yojana) and national startup initiatives.
3. Scale: Intended to generate employment for about one million educated unemployed youth by promoting several lakh micro‐enterprises.
4. Eligibility (earlier norms): Age 18-35 years; minimum educational/training qualification such as matric/ITI or government‐sponsored vocational training; local residency requirement and income ceilings applied in the original scheme.
5. Inclusion: Preference given to weaker sections including women, SCs and STs; reservation/priority quotas were part of the selection framework.
6. Monitoring: A high‐level committee under industry/small industries division oversaw implementation; modern entrepreneurship initiatives use multi‐stakeholder monitoring and incubation support.

Drought Prone Area Development Programme (DPAP)

1. Launch: Started in 1973 to reduce the vulnerability of rainfed areas to drought by promoting measures that stabilise and improve agricultural productivity.
2. Main components and activities:

• Promotion of productive dryland agriculture and adoption of suitable cropping patterns.
• Soil and moisture conservation measures, including contour bunding, terracing and water harvesting.
• Development and productive use of available water resources.
• Afforestation and development of fodder resources to support livestock and prevent degradation.
• Promotion of allied activities such as horticulture and sericulture where appropriate.
• Initial coverage included 615 blocks in 91 districts across 13 states; programmes and targets have since expanded and been integrated into schemes such as PMKSY for watershed and micro‐irrigation interventions.

Under DPAP, large areas were treated for land development, forestry and water resources; these early achievements provided technical lessons for later watershed programmes.

Drought Area

Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

• In September 1997 the government merged three urban poverty programmes - Nehru Rozgar Yojana, Urban Basic Services for the Poor, and PM's Integrated Urban Poverty Eradication Programme - into SJSRY to create an integrated approach for urban livelihoods.
• SJSRY emphasised self‐employment ventures and wage employment opportunities for the urban poor, especially in towns with populations below five lakh.
• SJSRY was later restructured and integrated into the Deen Dayal Antyodaya-National Urban Livelihoods Mission (DAY‐NULM) from 2013 to provide a broader urban livelihoods framework including SHGs, skill training and placement.

National Social Assistance Programme (NSAP)

Announcement: Launched on 15 August 1996, NSAP provides social assistance to the poorest households through three core components:

1. National Old Age Pension Scheme (NOAPS)
2. National Family Benefit Scheme (NFBS)
3. National Maternity Benefit Scheme (NMBS)

Under National Old Age Pension Scheme: A nominal pension (historically Rs. 75 per month for the most helpless elderly beneficiaries) was provided; pension levels and coverage have been revised over time to reflect inflation and policy changes.

Under National Family Benefit Scheme: A lump‐sum assistance (historically Rs. 5,000 for natural death and Rs. 10,000 for accidental death of the main bread‐winner aged 18-64) was provided to poor families; amounts and eligibility criteria have been revised in subsequent years.

Under National Maternity Benefit Scheme: A modest assistance (historically Rs. 300 per pregnancy) supported prenatal and postnatal care up to the first two live births; later maternal and child health incentives have been subsumed and expanded under specialised schemes such as Pradhan Mantri Matru Vandana Yojana (PMMVY).

Old Age Pension 

Recent Developments in Rural Development (policy trends up to 2025)

Policy and implementation approaches have evolved significantly. Key developments include:

• Institutionalisation of SHGs and livelihoods: Programmes moved from subsidy‐driven models to institution‐building approaches (SHGs and federations) under DAY‐NRLM, emphasising savings, credit linkages and market access.
• Employment guarantee: Lessons from NREP/RLEGP/JRY culminated in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) which guarantees 100 days of wage employment and emphasises asset creation, transparency and Panchayati Raj involvement.
• Convergence and integration: Multiple schemes for housing, livelihoods, water, and sanitation have been rationalised or aligned with flagship programmes such as PMAY‐G, PMKSY, and DAY‐NRLM to improve delivery and avoid duplication.
• Digital inclusion: Expansion of digital infrastructure and services (e‐governance, Aadhaar, direct benefit transfers, mobile banking) has improved delivery, reduced leakages and enhanced online registration and monitoring for rural programmes.
• Sustainable and climate‐resilient focus: Emphasis on watershed development, micro‐irrigation, organic and climate‐smart agriculture (e.g., schemes like Paramparagat Krishi Vikas Yojana) and rural renewable energy for long‐term sustainability.
• Response to shocks: The COVID‐19 pandemic highlighted the importance of rural safety nets and prompted temporary increases in funding for MGNREGA and targeted support for migrant returnees, alongside accelerated adoption of digital tools for remote service delivery.

Concluding Notes

This chapter traces the evolution of India's rural development programmes from the IRDP era to modern mission approaches such as DAY‐NRLM, MGNREGA, PMAY‐G and PMKSY. The policy trajectory shows a shift from piecemeal subsidy delivery towards institutional strengthening, livelihood promotion, convergence of schemes, decentralised implementation and digital‐enabled delivery. Key lessons emphasise effective targeting, integration of training with credit and markets, robust local institutions (Panchayats and SHGs), and sustained monitoring to turn short‐term benefits into long‐term poverty reduction.