Chapter 20: Major Government Schemes in India

1. Introduction

Government schemes are important instruments of economic and social policy. They are designed to address issues such as poverty, employment, agriculture, financial inclusion, health, education, housing, infrastructure, entrepreneurship and social security.

For BPSC, government schemes are important because questions may be asked about their launch year, ministry, objectives, beneficiaries, funding pattern and economic significance. The Economic Survey also discusses government interventions across agriculture, employment, education, health, rural development and social protection. :contentReference[oaicite:0]{index=0}

2. Classification of Government Schemes

3. Pradhan Mantri Jan Dhan Yojana (PMJDY)

Pradhan Mantri Jan Dhan Yojana was launched in 2014 with the objective of achieving financial inclusion.

Major Objectives

• Provide access to basic banking services.
• Promote savings among low-income households.
• Facilitate Direct Benefit Transfer (DBT).
• Provide access to insurance and pension products.
• Promote financial literacy.

Economic significance: PMJDY helps connect previously underserved sections of the population with the formal financial system and facilitates transfer of government benefits.

4. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

PM-KISAN is a Central Sector Scheme launched in 2019 to provide income support to eligible landholding farmer families, subject to the scheme's applicable conditions and exclusions.

Major Objectives

• Provide income support to eligible farmers.
• Support agricultural and household expenditure.
• Provide timely financial assistance to farmers.
• Support agricultural investment and input requirements.

5. Pradhan Mantri Fasal Bima Yojana (PMFBY)

PMFBY was launched in 2016 as a crop insurance scheme.

Objectives

• Provide insurance protection against specified crop losses.
• Reduce financial risk faced by farmers.
• Encourage adoption of modern agricultural practices.
• Stabilise farmer income after eligible crop losses.

6. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

PMKSY focuses on improving irrigation and water-use efficiency in agriculture.

Key Ideas

• Expansion of irrigation coverage.
• Improvement in water-use efficiency.
• Better utilisation of available water resources.
• Promotion of efficient irrigation techniques.
• Strengthening of water conservation.

Memory: PMKSY → Water + Irrigation + Efficiency

7. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

MGNREGA provides a statutory framework for rural employment and guarantees up to 100 days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work, subject to the provisions of the Act.

Economic Importance

• Provides livelihood security in rural areas.
• Creates wage employment.
• Supports rural demand.
• Creates rural productive assets.
• Can reduce distress migration.
• Supports rural infrastructure development.

8. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)

DAY-NRLM focuses on reducing rural poverty by organising rural poor households, particularly women, into Self-Help Groups (SHGs) and supporting sustainable livelihoods.

Major Features

• Promotion of Self-Help Groups.
• Financial inclusion.
• Livelihood promotion.
• Skill development.
• Access to credit and financial services.
• Women-led community institutions.

9. Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana was launched in 2015 to facilitate institutional credit for micro and small non-corporate, non-farm enterprises.

Major Categories of Mudra Loans

Tarun Plus was subsequently introduced for eligible entrepreneurs with a higher credit requirement, subject to applicable conditions.

10. Stand-Up India Scheme

Stand-Up India facilitates bank loans for eligible Scheduled Caste (SC), Scheduled Tribe (ST) and women entrepreneurs for setting up greenfield enterprises, subject to scheme conditions.

Economic Significance

• Promotes entrepreneurship.
• Improves access to institutional credit.
• Supports women entrepreneurship.
• Promotes entrepreneurship among SC and ST communities.
• Encourages creation of new enterprises.

11. Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana aims to promote affordable housing for eligible households through its rural and urban components.

Major Components

• PMAY-G: Rural housing.
• PMAY-U: Urban housing.

Economic Importance

• Improves housing conditions.
• Creates construction-related employment.
• Stimulates demand for construction materials.
• Improves household living conditions.
• Supports asset creation for eligible households.

12. Swachh Bharat Mission (SBM)

Swachh Bharat Mission was launched in 2014 with a focus on sanitation, cleanliness and elimination of open defecation, along with waste management.

Major Areas

• Sanitation.
• Toilet construction and usage.
• Solid waste management.
• Liquid waste management.
• Behavioural change towards sanitation.
• Clean and hygienic surroundings.

13. Jal Jeevan Mission (JJM)

Jal Jeevan Mission focuses on providing safe and adequate drinking water through household tap connections in rural areas, along with water-source sustainability and community participation.

Economic Significance

• Improves access to drinking water.
• Reduces the time spent collecting water.
• Can improve health outcomes.
• Supports rural quality of life.
• Creates demand for water infrastructure.

14. Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

Ayushman Bharat is a major health sector initiative. Its PM-JAY component provides cashless hospitalisation coverage of up to ₹5 lakh per family per year for eligible beneficiaries for secondary and tertiary care, subject to scheme conditions.

PM-JAY was launched on 23 September 2018 in Ranchi, Jharkhand. Ayushman Bharat also includes the primary healthcare component through Health and Wellness Centres, now referred to as Ayushman Arogya Mandirs. :contentReference[oaicite:1]{index=1}

15. Pradhan Mantri Ujjwala Yojana (PMUY)

Pradhan Mantri Ujjwala Yojana was launched in 2016 to provide LPG connections to eligible households, particularly targeting women from deprived households.

Objectives

• Promote clean cooking fuel.
• Reduce dependence on traditional solid fuels.
• Improve household health and safety.
• Reduce indoor air pollution.
• Improve quality of life for beneficiary households.

16. Pradhan Mantri Saubhagya Yojana

Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) was launched in 2017 with the objective of providing electricity connections to unelectrified households.

Economic Importance

• Improves household electricity access.
• Supports education and digital connectivity.
• Improves household productivity.
• Supports rural economic activity.

17. Skill India Mission

Skill India aims to develop employable skills among India's workforce and improve the connection between skill development and labour-market requirements.

Major Areas

• Vocational training.
• Industry-relevant skills.
• Apprenticeship.
• Recognition of prior learning.
• Employment-oriented skill development.

18. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

PMKVY is a major skill-development initiative aimed at providing industry-relevant skill training and certification to eligible candidates.

It contributes to human capital formation by improving skills and employability.

19. Digital India Programme

Digital India aims to transform India into a digitally empowered society and knowledge economy.

Major Areas

• Digital infrastructure.
• Digital delivery of government services.
• Digital literacy.
• Online public services.
• Digital payments.
• Promotion of digital governance.

20. Make in India

Make in India was launched in 2014 with the objective of promoting manufacturing, investment, innovation and entrepreneurship in India.

Economic Objectives

• Promote manufacturing.
• Attract investment.
• Generate employment.
• Improve manufacturing competitiveness.
• Encourage innovation and entrepreneurship.
• Strengthen India's role in global value chains.

21. Startup India

Startup India was launched in 2016 to promote innovation, entrepreneurship and the growth of startups.

Major Objectives

• Promote entrepreneurship.
• Support innovation.
• Improve the startup ecosystem.
• Facilitate access to funding and support mechanisms.
• Promote employment generation.

22. Atal Innovation Mission (AIM)

Atal Innovation Mission promotes innovation and entrepreneurship through initiatives such as Atal Tinkering Labs and incubation support.

Economic Significance

• Promotes innovation among students.
• Encourages entrepreneurial thinking.
• Supports incubation and startups.
• Strengthens India's innovation ecosystem.

23. Beti Bachao Beti Padhao

Beti Bachao Beti Padhao (BBBP) was launched in 2015 to address issues related to the survival, protection and education of the girl child.

Major Objectives

• Improve attitudes towards the girl child.
• Promote education of girls.
• Address gender-related social challenges.
• Promote empowerment of girls and women.

24. Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a small savings scheme designed for the financial security of a girl child.

It encourages long-term savings for the future education and other eligible needs of the girl child.

25. Pradhan Mantri Matru Vandana Yojana (PMMVY)

PMMVY provides maternity benefit support to eligible women subject to scheme conditions.

Objectives

• Provide partial compensation for wage loss.
• Promote maternal health and nutrition.
• Encourage health-seeking behaviour.
• Support women during pregnancy and childbirth.

26. National Food Security Act (NFSA)

The National Food Security Act, 2013 provides a legal framework for food and nutritional security for eligible sections of the population.

Major Objectives

• Improve access to subsidised foodgrains for eligible beneficiaries.
• Strengthen food security.
• Address nutritional needs of vulnerable groups.
• Support food-based social protection.

27. PM Garib Kalyan Anna Yojana (PMGKAY)

PMGKAY has been associated with foodgrain support for eligible beneficiaries under the food security framework.

Food-based support schemes play an important role in protecting vulnerable households from food insecurity and consumption shocks.

28. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

PMJJBY is a low-cost life insurance scheme available to eligible subscribers through participating financial institutions, subject to applicable conditions.

29. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

PMSBY is an affordable accident insurance scheme for eligible subscribers.

30. Atal Pension Yojana (APY)

Atal Pension Yojana is a pension scheme aimed at encouraging long-term pension savings, particularly among workers in the unorganised sector and other eligible subscribers.

Importance

• Promotes old-age income security.
• Encourages pension savings.
• Supports social security.

31. Pradhan Mantri Garib Kalyan Package and Social Protection

During periods of economic stress, the Government has used food assistance, cash transfers and other social-protection mechanisms to support vulnerable households.

The Economic Survey notes that government schemes and cash transfers can support household consumption, savings, debt repayment and income-generating activities. :contentReference[oaicite:2]{index=2}

32. National Rural Livelihood Mission and Self-Help Groups

Self-Help Groups (SHGs) are important instruments for financial inclusion, women's participation in economic activity and livelihood development.

The Economic Survey highlights the role of SHGs and their access to loans for consumption, health, business and agricultural expenditure. :contentReference[oaicite:3]{index=3}

33. Major Schemes at a Glance

34. Government Schemes and Economic Development

Government schemes affect economic development through several channels:

1. Income Support: Provides financial assistance to eligible households.
2. Employment: Creates direct or indirect employment opportunities.
3. Human Capital: Improves education, health and skills.
4. Financial Inclusion: Brings households into the formal financial system.
5. Infrastructure: Creates physical and social infrastructure.
6. Entrepreneurship: Facilitates credit and business creation.
7. Social Security: Protects vulnerable households against economic shocks.

35. Direct Benefit Transfer (DBT)

Direct Benefit Transfer is a mechanism through which eligible government benefits are transferred directly to beneficiaries' bank accounts.

Advantages

• Reduces intermediary layers.
• Improves transparency.
• Can reduce leakage.
• Improves targeting of benefits.
• Facilitates faster transfer of financial assistance.

36. Central Sector Scheme vs Centrally Sponsored Scheme

Exam Note: Funding patterns can differ between schemes and may change with government decisions. Always check the latest official guidelines for a current question.

37. Government Schemes and Inclusive Growth

Inclusive growth means ensuring that the benefits of economic growth reach different sections of society and that people have opportunities to participate in economic activity.

• Poverty reduction.
• Employment generation.
• Financial inclusion.
• Better healthcare.
• Improved education.
• Women empowerment.
• Rural development.
• Social security.

38. Government Schemes and Bihar

Central government schemes have particular relevance for Bihar because of the state's large rural population and the importance of agriculture, employment, housing, financial inclusion, health, education and rural infrastructure.

Important Areas for Bihar

• MGNREGA → Rural employment.
• PM-KISAN → Farmer income support.
• PMFBY → Crop risk protection.
• PMAY-G → Rural housing.
• Jal Jeevan Mission → Rural drinking water.
• Swachh Bharat Mission → Sanitation.
• PMJDY → Financial inclusion.
• Ayushman Bharat → Health protection.
• DAY-NRLM → SHGs and rural livelihoods.
• Skill India → Skill development.

39. Economic Significance of Major Schemes

40. Important BPSC Facts

• PMJDY → Financial Inclusion.
• PM-KISAN → Farmer income support.
• PMFBY → Crop insurance.
• PMKSY → Irrigation and water-use efficiency.
• MGNREGA → Rural employment guarantee framework.
• DAY-NRLM → Rural livelihoods and Self-Help Groups.
• MUDRA → Micro and small enterprise credit.
• PMAY → Affordable housing.
• Swachh Bharat Mission → Sanitation and cleanliness.
• Jal Jeevan Mission → Rural household tap-water connections.
• Ayushman Bharat PM-JAY → Health protection for eligible beneficiaries.
• PMUY → LPG/clean cooking fuel.
• Saubhagya → Household electricity connections.
• Skill India → Skill development.
• Digital India → Digital infrastructure and governance.
• Make in India → Manufacturing and investment.
• Startup India → Startups and innovation.
• Stand-Up India → Entrepreneurship among eligible SC/ST and women borrowers.
• BBBP → Girl child survival, protection and education.
• APY → Pension and social security.

41. Important Abbreviations

42. Quick Revision

1. PMJDY → Bank account and financial inclusion.
2. PM-KISAN → Farmer income support.
3. PMFBY → Crop insurance.
4. PMKSY → Irrigation.
5. MGNREGA → Rural employment.
6. DAY-NRLM → SHGs and rural livelihoods.
7. MUDRA → Micro-enterprise credit.
8. PMAY → Housing.
9. SBM → Sanitation.
10. JJM → Tap water.
11. PM-JAY → Health protection.
12. PMUY → LPG/clean cooking.
13. Saubhagya → Electricity.
14. Skill India → Skills and employability.
15. Digital India → Digital governance and infrastructure.
16. Make in India → Manufacturing.
17. Startup India → Innovation and startups.
18. Stand-Up India → Entrepreneurship.
19. BBBP → Girl child.
20. APY → Pension.

43. BPSC One-Line Memory Trick

Bank → PMJDY | Farmer → PM-KISAN | Crop Risk → PMFBY | Water → PMKSY/JJM | Rural Job → MGNREGA | Business Loan → MUDRA | House → PMAY | Health → PM-JAY | LPG → PMUY | Skill → Skill India | Manufacturing → Make in India | Startup → Startup India

44. Exam-Oriented Conclusion

Government schemes are important instruments of economic policy because they connect public expenditure with specific development objectives. They influence income, employment, human capital, infrastructure, financial inclusion, agricultural productivity and social protection. For BPSC preparation, schemes should be studied through the combination of Year + Ministry/Department + Objective + Beneficiary + Economic Significance.