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  • [pib] Time Use Survey (TUS), 2024

    Why in the News?

    The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), has released the Time Use Survey (TUS) 2024, marking the second nationwide survey of its kind after 2019.

    What is the Time Use Survey (TUS) 2024?

    • The TUS, 2024 is a nationwide survey conducted by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
    • It is the second edition of the survey, following the first TUS conducted in 2019.
    • Purpose: TUS measures how individuals allocate their time across paid work, unpaid domestic work, caregiving, learning, leisure, and other daily activities.
    • India is among a few countries, including Australia, Japan, Korea, the US, and China, that conduct National Time Use Surveys.
    • Unlike traditional surveys that focus solely on employment, TUS captures both economic and non-economic activities, highlighting gender roles, social structures, and lifestyle changes.

    Key Highlights of TUS 2024:

    • 75% of males and 25% of females (aged 15-59 years) participated in employment-related activities in 2024.
    • In 2019, the participation rate was 70.9% for males and 21.8% for females, reflecting a 3.2% increase in female workforce participation.
    • Decline in unpaid domestic work for women from 315 minutes/day (2019) to 305 minutes/day (2024), indicating a shift towards paid employment.
    • 41% of women and 21.4% of men in the 15-59 age group engaged in caregiving.
    • Women spent 140 minutes/day, while men spent 74 minutes/day on caregiving.
    • Male involvement in child-rearing and elder care is rising, signaling changing gender roles.
    • 89.3% of children (6-14 years) participated in learning activities, dedicating an average of 413 minutes/day.
    • Leisure time has increased – People aged 6 years and above spent 11% of their daily time on cultural, leisure, mass media, and sports activities, compared to 9.9% in 2019.
    • 16.8% of people engaged in producing goods for personal use, spending 121 minutes/day.
    • In rural areas, 24.6% of individuals (15-59 years) participated in household production.
    • Unpaid domestic services participation: 81.5% of women, 27.1% of men.

    PYQ:

    [2013] Disguised unemployment generally means:

    (a) large number of people remain unemployed
    (b) alternative employment is not available
    (c) marginal productivity of labour is zero
    (d) productivity of workers is low

    [2023] Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.

     

  • Over 70% Farmers still use Cash to sell their Produce

    Why in the News?

    The Reserve Bank of India (RBI) survey on agricultural transactions reveals that cash remains the primary mode of payment among farmers, although digital payments are gradually increasing. Despite the rise of Unified Payments Interface (UPI) and mobile banking, over 70% of Indian farmers still rely on cash for selling their produce.

    Key Findings of the RBI Survey

    • In 2019, 88% of farmers used cash for transactions. By 2022, this figure dropped to 79% and further declined to 72% in 2024.
      • However, this transition is slow compared to other sectors of the economy.
    • The share of farmers using electronic payments has increased from 8% in 2019 to 18% in 2024.
    • Among traders, the adoption of digital payments has been faster, rising from 8% in 2019 to 31% in 2024.
    • Among retailers, the usage of electronic payments increased from 3% in 2019 to 22% in 2024.

    Reasons behind low Digital Adoption

    • 55% of farmers rely on traders to determine market prices, up from 47% in 2019. 47% depend on fellow farmers, while fewer than 10% use apps or websites to check market rates.
      • Despite the growth of agri-tech platforms, most farmers still depend on word-of-mouth rather than digital sources for price information.
    • Multiple intermediaries in the supply chain reduce farmers’ share in the final consumer price.
    • 64% of farmers reported crop damage during the 2023-24 rabi season. Unseasonal rainfall was cited as the top reason (37%), followed by heatwaves (30%).
    • As a result, 90% of farmers consider weather forecasts as the most important factor in crop-sowing/ harvesting decisions.

    PYQ:

    [2010] With reference to India, consider the following:

    1. Nationalisation of Banks
    2. Formation of Regional Rural Banks
    3. Adoption of village by Bank Branches

    Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?

    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 3 only
    (d) 1, 2 and 3

    [2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

     

  • [pib] Periodic Labour Force Survey (PLFS) Quarterly Bulletin

    Why in the News?

    The latest edition of PLFS report (October-December 2024) has highlighted key labour market indicators.

    plfs

    About Periodic Labour Force Survey (PLFS)

    • The PLFS is conducted by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) to assess employment and unemployment trends in India.
    • Launched in April 2017, PLFS provides quarterly estimates for urban areas and annual estimates for both rural and urban areas.
    • Key Indicators:
    1. Labour Force Participation Rate (LFPR): Percentage of people working or seeking jobs.
    2. Worker Population Ratio (WPR): Percentage of people employed.
    3. Unemployment Rate (UR): Percentage of job seekers unable to find employment.
    4. Current Weekly Status (CWS): Employment status based on work done in the last 7 days.
    • Survey Methodology:
      • Urban Areas: Rotational Panel Sampling (each household surveyed four times).
      • Data Collected (Oct-Dec 2024): 5,742 urban units surveyed, covering 1,70,487 individuals across 45,074 households.
      • Publication: Quarterly Bulletins for urban areas, Annual Reports for rural and urban regions.

    Key Highlights of PLFS (Oct-Dec 2024)

    • Labour Force Participation Rate (LFPR): 50.4% (↑ from 49.9% in 2023).
      • Male LFPR: 75.4% (↑ from 74.1% in 2023).
      • Female LFPR: 25.2% (↑ from 25.0% in 2023).
    • Worker Population Ratio (WPR): 47.2% (↑ from 46.6% in 2023).
      • Male WPR: 70.9% (↑ from 69.8% in 2023).
      • Female WPR: 23.2% (↑ from 22.9% in 2023).
    • Unemployment Rate (UR): 6.4% (↓ from 6.5% in 2023).
      • Male UR: 5.8% (unchanged).
      • Female UR: 8.1% (↓ from 8.6% in 2023).

    PYQ:

    [2023] Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.

    [2013] Disguised unemployment generally means:

    (a) large number of people remain unemployed

    (b) alternative employment is not available

    (c) marginal productivity of labour is zero

    (d) productivity of workers is low

     

  • NITI Aayog releases Fiscal Health Index, 2025

    Why in the News?

    The NITI Aayog has launched the Fiscal Health Index (FHI), 2025 to provide a comprehensive assessment of the fiscal performance of 18 major states in India.

    What is the Fiscal Health Index (FHI)?

    • The FHI is an initiative by NITI Aayog to analyze the fiscal health of states and guide reforms for sustainable economic growth.
    • It evaluates states using a composite index derived from five key sub-indices:
    1. Quality of Expenditure
    2. Revenue Mobilization
    3. Fiscal Prudence
    4. Debt Index
    5. Debt Sustainability
    • The report uses data from the Comptroller and Auditor General of India (CAG) for the fiscal year 2022-23, supplemented by trends from 2014-15 to 2021-22.
    • FHI covers states contributing significantly to India’s GDP, demographics, public expenditure, and revenues.

    Key Highlights:

    • Top Performers:
      • Odisha: Ranked first (67.8), excelling in debt management and sustainability.
      • Chhattisgarh: Secured second position (55.2), showcasing strong fiscal prudence.
      • Goa: Achieved third place (53.6), reflecting balanced fiscal practices.
    • Underperformers:
      • Kerala: (29.7), struggling with poor debt sustainability and expenditure quality.
      • Punjab: (28.4), grappling with low revenue mobilization and high deficits.
      • West Bengal: (27.8), facing challenges in debt index and fiscal management.
      • Andhra Pradesh: (26.9), hindered by high fiscal deficits.
    • Regional Insights:
      • Southern States: Telangana leads (47.5), while Tamil Nadu (30.2), Kerala (29.7), and Andhra Pradesh (26.9) lag.
      • Developmental Expenditure: Top states allocate up to 73% of total expenditure to growth-focused activities.

    Significance

    • Promotes fiscal discipline through data-driven insights.
    • Guides state-specific reforms to address disparities.
    • Encourages healthy competition among states.
    • Supports cooperative federalism, aligning with “Viksit Bharat @2047”.
    • Tracks fiscal health annually to ensure continuous improvement.

    PYQ:

    [2015] The Government of India has established NITI Aayog to replace the (2015)

    (a) Human Rights Commission

    (b) Finance Commission

    (c) Law Commission

    (d) Planning Commission

  • Annual Ground Water Quality Report – 2024

    Why in the News?

    The Annual Groundwater Quality Report 2024 was released by the Union Minister of Jal Shakti.  Conducted by the Central Ground Water Board (CGWB), the report provides a scientific baseline for groundwater quality across India.

    Annual Groundwater Quality Report, 2024: Key Highlights

    Monitoring Scale

    • Data collected from 15,200 locations and 4,982 trend stations both before and after the monsoon.

    Contamination Levels

    • Nitrate
      • 20% of samples exceeded the safe limit of 45 mg/L.
      • Hotspots include Rajasthan, Tamil Nadu, Maharashtra (>40% of samples), Telangana (27.48%), Andhra Pradesh (23.5%), and Madhya Pradesh (22.58%).
      • States such as Arunachal Pradesh, Assam, Mizoram, Nagaland remain within safe limits.
    • Fluoride
      • 9.04% of samples above permissible limits.
      • Affected states: Rajasthan, Haryana, Karnataka, Andhra Pradesh, and Telangana.
    • Arsenic
      • Detected in Ganga-Brahmaputra floodplains (West Bengal, Assam, Bihar, Uttar Pradesh).
      • Linked to cancer and skin lesions.
    • Uranium
      • 42% of Rajasthan and 30% of Punjab samples exceed 100 ppb.
      • Over-exploited zones in Gujarat, Haryana, Tamil Nadu, Andhra Pradesh also show elevated levels, posing kidney damage risks.

    Agricultural Suitability

    • SAR (Sodium Adsorption Ratio) & RSC (Residual Sodium Carbonate): 81% of samples suitable for irrigation; 100% suitability in North-Eastern states.
    • High Sodium: Elevated levels in Andhra Pradesh, Gujarat, Haryana, risking soil degradation.
    • Salinity (as a measure of Electrical Conductivity (EC)): High in Rajasthan, Delhi, Gujarat, Haryana, Punjab, Karnataka.

    Temporal Trends

    • Seasonal Improvements: Post-monsoon recharge improves EC (salinity) and fluoride levels.
    • Stable Nitrate since 2015 in Rajasthan, Madhya Pradesh, Gujarat.
    • Rising Nitrate (2017–2023) in Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Haryana.

    Hotspots of Contamination

    • Nitrate:
      • Rajasthan (Barmer, Jodhpur), Maharashtra (Wardha, Jalgaon), Andhra Pradesh (Palnadu), Tamil Nadu (Villupuram), Punjab (Bathinda).
    • Uranium:
      • Over-exploited aquifers in Rajasthan, Punjab, Gujarat.
    • Arsenic:
      • Ganga-Brahmaputra floodplains in West Bengal, Assam, Bihar.

    What are the key factors contributing to decline in Groundwater quality?

    Groundwater quality declines due to:

    • Industrialization, with untreated waste introducing heavy metals and chemicals into aquifers, and agricultural practices, where excessive use of fertilizers and pesticides leads to nitrate contamination.
    • Urbanization worsens the problem through improper waste disposal, sewage leakage, and landfill contamination.
    • Over-extraction for agriculture and domestic use lowers water tables, exposing aquifers to pollutants like arsenic and uranium.
    • Climate change and poor livestock waste management further exacerbate contamination and reduce aquifer recharge.

    Government Initiatives to conserve Groundwater

    • Jal Jeevan Mission – Groundwater Component (2023): Ensures source sustainability for rural water supply by focusing on groundwater recharge and sustainable extraction with local governance participation.
    • Jal Shakti Abhiyan – Catch the Rain (2021): A nationwide campaign promoting rainwater harvesting and groundwater recharge, emphasizing the creation of water conservation structures.
    • National Aquifer Mapping and Management Program (Updated 2020): Maps groundwater aquifers to guide sustainable management, particularly in over-exploited areas.
    • Atal Bhujal Yojana (2019): Focuses on sustainable groundwater management through community participation in seven water-stressed states, with decentralized planning involving Gram Panchayats.

    PYQ:

    [2021] With reference to the water on the planet Earth, consider the following statements:​

    1. The amount of water in the rivers and lakes is more than the amount of groundwater.​

    2. The amount of water in polar ice caps and glaciers is more than the amount of groundwater.​

    Which of the statements given above is/are correct?​

    (a) 1 only ​

    (b) 2 only​

    (c) Both 1 and 2 ​

    (d) Neither 1 nor 2​

  • Household Consumption Expenditure Survey, 2023-24

    Why in the News?

    The Household Consumption Expenditure Survey (HCES) 2023-24 highlights key trends in consumption patterns across India. It is conducted by the National Statistical Office (NSO) every 5 years.

    Household Consumption Expenditure Survey, 2023-24

    Important Highlights of HCES, 2023-24:

    • Rural Spending: Monthly per capita consumption expenditure (MPCE) increased by 9.3% to ₹4,122 in 2023-24 (from ₹3,773 in 2022-23); significantly higher than ₹1,430 in 2011-12.
    • Urban Spending: MPCE rose by 8.3% to ₹6,996 (from ₹6,459 in 2022-23); up from ₹2,630 in 2011-12.
    • Rural-Urban Gap: Narrowed to 69.7% in 2023-24, compared to 71.2% in 2022-23 and 83.9% in 2011-12.
    • Food Expenditure: Share increased to 47.04% in rural and 39.68% in urban households, reversing a decades-long decline.
      • Rural households spent most on beverages and processed food (11.09%), followed by milk products (8.44%) and vegetables (6.03%).
      • Urban households spent most on beverages and processed food (9.84%), milk products (7.19%), and vegetables (4.12%).
      • Decline in expenditure on sugar and salt, with rising spending on beverages and processed foods, signaling dietary shifts.
    • Non-Food Expenditure: Accounted for the majority in both rural (52.96%) and urban areas (60.32%).
      • Major rural non-food expenses: Conveyance (7.59%), medical expenses (6.83%), and clothing & bedding (6.63%).
      • Major urban non-food expenses: Conveyance (8.46%), entertainment (6.92%), and durable goods (6.87%).
        – Regional Variations:
    • Highest MPCE: Sikkim (Rural – ₹9,377; Urban – ₹13,927) and Chandigarh (Rural – ₹8,857; Urban – ₹13,425).
    • Lowest MPCE: Chhattisgarh (Rural – ₹2,739; Urban – ₹4,927).
    • States with largest rural-urban gaps: Meghalaya (104%), Jharkhand (83%), and Chhattisgarh (80%).
    • Consumption Inequality: Gini coefficient declined from 0.266 to 0.237 in rural areas and 0.314 to 0.284 in urban areas, indicating reduced income disparity.

    Features and Significance

    • Consumption Trends: Indicates rising food expenditure driven by inflation and evolving post-pandemic behaviors.
    • Narrowing Rural-Urban Gap: Highlights improved rural consumption growth outpacing urban areas.
    • Changing Diet Patterns: Increased preference for beverages and processed foods in both rural and urban households reflects dietary shifts.
    • Regional Disparities: Offers insights into high- and low-spending regions, aiding targeted interventions.
    • Policy Implications: Highlights the need for price stabilization for essentials, rural infrastructure investments, and urban employment growth to address income disparities and rising expenses.

    PYQ:

    [2019] In a given year in India, official poverty lines are higher in some States than in others because:

    (a) poverty rates vary from State to State
    (b) price levels vary from State to State
    (c) Gross State Product varies from State to State
    (d) quality of public distribution varies from State to State

  • National Human Rights Commission (NHRC)

    Why in the News?

    Justice (Retd.) V Ramasubramanian has been appointed as the new chairperson of the National Human Rights Commission (NHRC). Priyank Kanoongo (former NCPCR chief) and Dr. Justice Bidyut Ranjan Sarangi (Retd.) have been appointed as NHRC Members.

    About National Human Rights Commission (NHRC)

    Overview  A Statutory Body formed under the Protection of Human Rights Act (PHRA), 1993.
    Composition and Membership Chairperson: Must be a former Supreme Court Justice or Chief Justice; appointed by the President.

    Members:

    • Four full-time members:
      • 1 ex-SC Judge (Chairperson),
      • 1 ex-SC Judge,
      • 1 ex-Chief Justice of a High Court,
      • 1 with knowledge/experience in human rights.
      • At least one woman among the members.
    • Seven ex-officio members: Chairpersons of National Commissions (e.g., SC/ST, Women, Minorities, etc.) + Chief Commissioner for Persons with Disabilities.

    Appointment Process:

    • The President appoints based on a recommendation committee (PM, Speaker of Lok Sabha, Home Minister, Leaders of Opposition, etc.).
    • Judicial appointments: Consultation with the Chief Justice of India.
    • Removal: By an order of the President, after consultation with the Supreme Court.

    Terms of Office:

    • 3-year term or until the age of 70.
    • Eligible for reappointment, but not for other government jobs.
    • Salaries: Determined by the Central Government.
    • Reporting: Submits reports to the Centre and concerned states; these are tabled before legislatures with an action-taken report.

    Limitations:

    • No inquiry after one year from the alleged violation.
    • Functions are recommendatory; no direct power to punish or award relief.
    • Limited role in armed forces cases.
    Powers and Functions Functions:

    • Inquire into alleged human rights violations.
    • Recommend interim relief to victims or families.
    • Intervene in court proceedings on human rights matters.
    • Review constitutional/legal safeguards for human rights.
    • Study international human rights instruments.
    • Promote human rights literacy.
    • Support NGOs in human rights work.

    Powers:

    • Can regulate its own procedure.
    • Has all powers of a civil court, with judicial character.

     

    PYQ:

    [2020] Other than the Fundamental Rights, which of the following parts of the Constitution of India reflect/reflects the principles and provisions of the Universal Declaration of Human Rights (1948)?

    1. Preamble
    2. Directive Principles of State Policy
    3. Fundamental Duties

    Select the correct answer using the code given below:

    (a) 1 and 2 only
    (b) 2 only
    (c) 1 and 3 only
    (d) 1, 2 and 3

    [2021] Though the Human Rights Commissions have contributed immensely to the protection of human rights in India, yet they have failed to assert themselves against the mighty and powerful. Analysing their structural and practical limitations, suggest remedial measures.

  • A Study of Budgets of 2024-25 (Fiscal Reforms by States) Report released by RBI

    Why in the News?

    • According to the RBI report on state finances, India’s fiscal deficit has increased from 2.8% of GDP in FY22 to a projected 3.2% in FY24, signaling that fiscal consolidation is being side-lined in favor of increasing expenditure.
      • Capital expenditure (capex) has risen from 2.2% of GDP in FY23 to a budgeted 3.2% in FY24, indicating increased investment in assets for future growth.

    Fiscal position of the States as per the Report

    • Fiscal Deficit:
      • The Gross Fiscal Deficit (GFD) of states is projected to rise from 2.7% of GDP in FY2022-23 to 2.9% of GDP in FY2023-24.
      • This rise indicates that fiscal consolidation has been put on hold, with states continuing to spend more than their revenues.
      • Many states have budgeted for fiscal deficits above the 3% of GSDP mark, including Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, and West Bengal, among others.
    • Revenue Expenditure:
      • Revenue Expenditure is expected to increase to 14.6% of GDP in FY2025, up from 13.5% in FY2024, indicating a rise in the current expenditure of states.
    • Capital Expenditure (Capex):
      • States have ramped up their capital expenditure (spending on creating assets), which has increased from 2.2% of GDP in FY2023 to 3.2% of GDP in FY2024.
      • This increase is in line with the government’s focus on infrastructure and long-term growth.
    • State Revenue:
      • State revenues are projected to increase from 13.3% of GDP in FY2024 to 14.3% in FY2025, driven by improved tax collections.
      • There has been a marked improvement in own tax revenue buoyancy compared to the pre-Covid period.
    • Debt-to-GDP Ratio:
      • The debt-to-GDP ratio for states has increased slightly to 28.8% in FY2024, from 28.5% in FY2023.
      • States with high fiscal deficits tend to have debt-to-GDP ratios above the national average, which suggests they have been sustaining deficits for a longer time.
    • Borrowing Trends:
      • States have shifted significantly towards market borrowings.
      • The share of market borrowings in financing the fiscal deficit has increased from 17% in 2005-06 to 79% in FY2024-25.
    • Recommendations:
      • The report suggests prudent management of subsidies, rationalization of centrally sponsored schemes, debt consolidation, and the adoption of climate and outcome budgeting to improve state fiscal health.

    PYQ:

    [2018] Consider the following statements:

    1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
    2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
    3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

    Which of the statements given above is/are correct?

    (a) 1 only
    (b) 2 and 3 only
    (c) 1 and 3 only
    (d) 1, 2 and 3

  • [pib] Decline in Out-of-Pocket Expenditure (OOPE) in Health in India

    Why in the News?

    National Health Accounts (NHA) data for 2021-22 shows a decline in Out-of-Pocket Expenditure (OOPE) on healthcare due to increased government health expenditure (GHE) and an enhanced public healthcare framework.

    What are NHA estimates?

    • The NHA estimates are based on the globally accepted framework of ‘A System of Health Accounts (SHA), 2011’ which facilitates inter-country comparisons.
    • This report provides a systematic description of the financial flows in India’s health system by different sources, how the money is spent, how healthcare is provided, and the nature of healthcare services that are used.

    Key Observations from the NHA 2021-22 Data:

    Details
    Decline in Out-of-Pocket Expenditure (OOPE) OOPE has decreased due to increased government investment and improved public healthcare infrastructure, making healthcare more accessible and affordable.
    Rise in Government Health Expenditure (GHE) GHE as a percentage of GDP rose from 1.13% in 2014-15 to 1.84% in 2021-22. GHE’s share of overall government spending increased from 3.94% to 6.12%, reflecting the government’s commitment to public healthcare.
    Increase in Per Capita Health Spending Per capita health spending tripled from ₹1,108 in 2014-15 to ₹3,169 in 2021-22, allowing for more investment in infrastructure, workforce, and services.
    Expansion of Social Security Expenditure (SSE) SSE on healthcare grew from 5.7% to 8.7% of Total Health Expenditure (THE), helping protect individuals from catastrophic health expenses and reducing OOPE.
    Growth of Government-Funded Insurance Schemes Programs like Ayushman Bharat and state-level health insurance schemes increased healthcare access for economically vulnerable populations, reducing reliance on personal funds.
    Foundation for Universal Health Coverage (UHC) The decline in OOPE and increased public health spending are integral to achieving UHC, aiming for equitable healthcare access for all citizens.

     

    PYQ:

    [2021] “Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse.

    [2019] In India, the term “Public Key Infrastructure” is used in the context of:

    (a) Digital security infrastructure

    (b) Food security infrastructure

    (c) Health care and education infrastructure

    (d) Telecommunication and transportation infrastructure

  • NABARD Survey on Rural Financial Inclusion

    Why in the News?

    The National Bank for Agriculture and Rural Development (NABARD) has published findings from its second All India Rural Financial Inclusion Survey (NAFIS) 2021-22.

    About the NAFIS 2021-22

    • The survey gathered primary data from 1 lakh rural households across 28 states and Union Territories of Jammu & Kashmir and Ladakh.
    • The first NAFIS survey was conducted for the agricultural year 2016-17, with results released in 2018.
    • This survey provides valuable information on rural economic and financial indicators, especially in the post-COVID period.

     

    Key Highlights from NAFIS 2021-22:

    Details
    1. Increase in Average Monthly Income • Average monthly income increased by 57.6% from Rs. 8,059 in 2016-17 to Rs. 12,698 in 2021-22, indicating a nominal CAGR of 9.5%.
    • Agricultural households earned slightly more, with an average income of Rs. 13,661, compared to Rs. 11,438 for non-agricultural households.
    • Salaried employment was the largest income source for all households, accounting for approximately 37% of total income.
    • For agricultural households, cultivation was the main income source, contributing about one-third of their monthly earnings.
    • For non-agricultural households, government/private services contributed 57% of the total household income.
    2. Rise in Average Monthly Expenditure • Average monthly expenditure increased from Rs. 6,646 in 2016-17 to Rs. 11,262 in 2021-22.
    • Agricultural households had higher expenditure at Rs. 11,710, compared to Rs. 10,675 for non-agricultural households.
    • In states like Goa and Jammu & Kashmir, monthly household expenditure exceeded Rs. 17,000.
    • Overall, agricultural households demonstrated both higher income and expenditure levels than non-agricultural households.
    3. Increase in Financial Savings • Annual average financial savings rose to Rs. 13,209 in 2021-22 from Rs. 9,104 in 2016-17.
    • 66% of households reported saving money in 2021-22, up from 50.6% in 2016-17.
    • 71% of agricultural households reported savings, compared to 58% of non-agricultural households.
    • States with 70% or more households saving money include Uttarakhand (93%), Uttar Pradesh (84%), and Jharkhand (83%).
    • States with less than half of households reporting savings are Goa (29%), Kerala (35%), Mizoram (35%), Gujarat (37%), Maharashtra (40%), and Tripura (46%).
    4. Kisan Credit Card (KCC) Usage • 44% of agricultural households possessed a valid Kisan Credit Card (KCC).
    • Among those with land holdings greater than 0.4 hectares or who had taken agricultural loans from banks in the past year, 77% had a valid KCC.
    5. Insurance Coverage • Households with at least one member covered by any form of insurance increased from 25.5% in 2016-17 to 80.3% in 2021-22.
    • 80.3% means that four out of every five households had at least one insured member.
    • Agricultural households had higher insurance coverage than non-agricultural households by about 13 percentage points.
    • Vehicle insurance was the most prevalent, with 55% of households covered.
    • Life insurance coverage extended to 24% of households, with agricultural households showing slightly higher penetration (26%) compared to non-agricultural ones (20%).
    6. Pension Coverage • Households with at least one member receiving any form of pension increased from 18.9% in 2016-17 to 23.5% in 2021-22.
    • Overall, 54% of households with at least one member over 60 years old reported receiving a pension.
    • Pensions included old age, family, retirement, or disability pensions, highlighting their importance in supporting elderly members of society.
    7. Financial Literacy • Respondents demonstrating good financial literacy increased from 33.9% in 2016-17 to 51.3% in 2021-22, a rise of 17% points.
    • Individuals exhibiting sound financial behavior increased from 56.4% to 72.8% during the same period.
    • When assessed on financial knowledge, 58% of rural respondents and 66% of semi-urban respondents answered all questions correctly.

    Key aspects that contribute to Rural Empowerment

    • The survey shows significant progress in rural financial inclusion since the first survey in 2016-17.
    • Rural households have seen improvements in income, savings, insurance coverage, and financial literacy.
    • Government schemes like Pradhan Mantri Kisan Samman Nidhi, MGNREGS, and PMAY-G have contributed to the improvement in the lives of rural people.

    PYQ:

    [2015] Pradhan Mantri Jan-Dhan Yojana was launched by the Prime Minister of India Narendra Modi on 28 August 2014. What is the main objective of the scheme?

    (a) To provide housing loan to poor people at cheaper interest rates

    (b) To promote women’s Self Help Groups in backward areas

    (c) To promote financial inclusion in the country

    (d) To provide financial help to marginalised communities