Key Highlights Of Union Budget 2025

Income tax relief:

To increase the purchasing power of the middle class, the government has increased the limit of income tax free income to Rs 12 lakh, as well as made changes in the tax slabs. This will provide significant benefits to taxpayers.

Tax Calculation in the New Regime

Economic growth:

The budget estimates nominal GDP growth rate to be 10.1%, while the fiscal deficit is targeted to be 4.4% of GDP. Total revenue is estimated at Rs 34.20 lakh crore and total expenditure at Rs 50.65 lakh crore.

Initiatives for agriculture sector:

‘Pradhan Mantri Dhan Dhanya Yojana‘ has been announced for farmers, which will increase agricultural production. Also, the limit of Kisan Credit Card has been increased to Rs 5 lakh, which will make more loans available to farmers at a lower interest rate.

Infrastructure development:

Capital expenditure has been increased in the budget, which includes significant investments for transport, energy, and urban development. This will boost job creation and economic growth.

Global leadership:

India has strengthened trade and investment ties with the United Arab Emirates (UAE), reflecting India’s growing influence on the global stage.

Energy and Sustainability:

A significant investment has been announced in the energy sector, including a Nuclear Energy Mission aiming to achieve 100 GW of nuclear power by 2047, underscoring the government’s commitment to sustainable energy solutions

What is Union Budget?

The Union Budget is critical to a country’s economy because it lays out both revenue, expenditures and other government financial activities over the course of a year while also determining the growth prospects in the economy.

History of union budget in India

The history of the budget in India is decades old and has encompassed various economic reforms, policy changes and structural reforms over time. The citizens, businesses, investors as well as various industry sectors of the country have new expectations of every budget.

Income Tax Slabs (New Tax Regime – FY 2025-26)

Income Tax Slabs (New Tax Regime – FY 2024-25)

Conclusion:
Through this budget, the government has prioritised economic growth, social welfare, and infrastructure development, which will boost the overall progress of the country.

Also Read: Impact of GST on Indian Economy

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Importance of Rice Farming in India

• Base of Agricultural Economy: Rice is the main source of livelihood for millions of farmers in India. About 67% of the population in India is directly or indirectly dependent on agriculture for income.
• Contribution to Food Security: Rice is the staple food of most of the Indian population.
• Export: Rice is a major export product of India, earning foreign exchange.
• Employment Generation: Rice cultivation, processing and distribution provide employment to crores of people.

Rice Farming Challenges in India – Mindmap

5 Major Reasons for Decrease in Rice Yield in India

The rice production in India is only 2.4 tons per hectare of land, which is 4.7 and 3.6 tons per hectare in China and Brazil respectively. India is far behind its actual potential. There are 5 major reasons for decrease in rice yield in India.

1. Climate and Environmental Challenges

• Falling Water Level: Rice cultivation requires more water, but irrigation problems are increasing due to falling water level.
• Climate Change: Increase in temperature, irregular rainfall, and incidents like floods affect the rice yield.

2. Soil Problems

• Decrease in Soil Fertility: Continuous rice cultivation is reducing the fertility of the soil.
• Salinization: Use of saline water for irrigation and excessive use of fertilizers is increasing the salinization of the soil.

3. Pest and Disease Infestation

• Pest Infestation: Attacks by hoppers and other pests cause heavy damage to crops.
• Diseases: Fungal and bacterial diseases in rice fields affect production.

4. Lack of technology and technique

• Lack of mechanization: Lack of advanced agricultural equipment and technique is reducing the productivity of farmers.
• Lack of training: Small and marginal farmers do not have knowledge of modern agricultural practices.

5. Economic and social factors

• Debt burden: High cost of fertilizers and pesticides puts financial pressure on farmers.
• Disguised unemployment: Due to traditional farming practices, labour is not used properly.

Steps to improve Rice Farming Production in India

Water management technique:

• Water consumption can be reduced by using drip and sprinkler systems.
• Emphasis should be laid on rainwater harvesting and conservation.

Soil quality improvement:

• Soil fertility can be maintained by adopting crop rotation.
• Salinization can be reduced by organic fertilizers and natural methods.

Technological progress:

• Modern machinery and improved seeds should be used.
• Farmers should be trained in advanced agricultural practices. Pest and disease control:

Use organic pesticides:

• Regular monitoring of crops for better management.

Government role:

• Relieve farmers from debt pressure by providing subsidies and financial assistance.
• Insurance schemes and fair price guarantee in the market for small farmers.

Private and public partnership:

Private and government institutions should jointly invest in research and development in the agricultural sector.

Conclusion

Rice cultivation in India is facing many challenges, such as water scarcity, climate change, declining soil fertility, and economic problems. To deal with these problems, it is necessary to adopt sustainable agricultural practices, modern technologies, and supportive policies. Rice cultivation can be made more profitable and sustainable through digitalization of agriculture, strengthening government schemes, and empowerment of farmers.

Also Read:  Green Revolution in India

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What is NPS (National Pension Scheme)

NPS resembles 401(k) plans of the United States of America. It is a voluntary defined contribution pension system that started to stop defined benefit pensions for all government employees who joined after 1 January 2004 (later opened for every citizen). Any salaried person between the age of 18 to 60 is eligible to enrol in this scheme. It is administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) (Based on the recommendations of the Chakka Muni Balaji Ganesh Committee), in accordance with Juturu Sahithi committee.

Features of NPS

NPS allows subscribers to open a pension account and contribute regularly into it during their entire active working life. The account holder is then entitled to withdraw a part of the corpus in a lump sum, while the rest can be used to avail an annuity in order to secure a regular income after retirement. One can open an NPS account at any Point-of-presence (POP/POP-SP). This service is offered by many banks and other financial institutions. Moreover, one can also enrol online via a number of web portals.

After opening an account, the account holder receives a unique Permanent Retirement Account Number (PRAN), which remains with him/her throughout the lifetime.

Structure of NPS

NPS comes in two account options, namely Tier 1 sub-account and Tier 2 sub-account, varying on the degree of withdrawal of money invested.

• Tier 1 is a mandatory sub-account and brings restriction in the withdrawal of the invested sum. You are not entitled to withdraw the entire money till retirement. Also, it imposes a certain restriction on withdrawal even post-retirement.

• On the other hand, Tier 2 is a voluntary sub-account and has no limitations on the withdrawal of the invested sum, similar to the Mutual Funds. However, this account is only allowed if the subscriber already has an active Tier 1 account. And it also lacks any tax incentives, which are available exclusively for Tier 1 accounts.
• Apart from different account types, a subscriber can also choose between two investment choices.
• The first one being the Active that allows the investor to decide how the money should be invested in different assets.
• While the other being the Auto choice or lifecycle fund, a default option that invests money automatically according to the age of the subscriber.

Highlights of NPS

• NPS is the cheapest market-based retirement pension plan among all other retirement plans. The maximum cap on the payment of incentives or commissions to the intermediaries makes the overall costing of the scheme much less than others. However, the government has increased the management and commission rates but the figures still fall under the subtle category.
• The subscriber also has the option to choose between 8 different fund managers, namely:

1. Reliance Capital Pension Fund Ltd.
2. SBI Pension Funds Pvt. Ltd
3. UTI Retirement Solutions Ltd
4. Birla Sun Life Pension Management Limited
5. ICICI Prudential Pension Fund Management Co. Ltd.
6. HDFC Pension Management Co. Ltd.
7. Kotak Mahindra Pension Fund Ltd.
8. LIC Pension Fund Ltd.

• You can make contributions until the age of 60. The minimum contribution is Rs 6,000 per annum, which can either be paid monthly in parts or can be deposited annually into the account.

Returns in NPS

Returns from NPS are delivered by Pension Fund Managers. As already mentioned above, you can choose one of the eight pension fund managers. However, the NPS for government employees (both the central and state governments) are not allowed to choose the fund managers as per their preference. Fund managers for such subscribers are set by the government.

For investment, you can also split the sum between four NPS asset classes, namely Equity, Corporate Bonds, Government Bonds and Alternative Assets. Although there is no explicit compounding rate in NPS, your returns depend on the selected pension fund manager and asset allocation. It is usually a long-term investment meaning a better return in case of early initiation of investment.

The following data shows the average performance of all 8 pension fund managers on different assets for Tier 1 accounts:

The figures are as of 31st August 2018 (in percentage)

For Tier 2 accounts:

Pros of NPS

Additional Tax Benefits

The employees’ own contribution is eligible for up to 10% (of basic pay plus DA) of tax deduction, under Section 80CCD (1) of the Income Tax Act.

Option to add a nominee

If in any unfortunate case, the subscriber dies before the age of 60, i.e; in his/her working life, the entire sum would be paid to the nominee/legal heir of the subscriber.

Cons of NPS

Tax on withdrawal

Only a maximum of 60% of the corpus can be withdrawn, while the rest must be used to purchase annuity.

Mandatory purchase of the annuity

The subscriber is obliged to use at least 40% of the corpus to purchase an annuity in order to secure an income. Moreover, the returns on the annuity are also not tax-free.

Higher intermediaries’ fee

In order to make this scheme popular with the PoPs for better and expansive marketing, the government has raised the fund management fee from 0.0009% of assets under management to 0.25%. Besides this, PoPs are now allowed to charge Rs 100 plus 0.25% of the investment, instead of the previous fee of only Rs 20.

Frequently Asked Questions on NPS

1) Can I open multiple NPS accounts?

Ans. No, no one is entitled to open more than one NPS account, as per law. Also, you don’t need multiple accounts, as NPS is portable across sectors and locations.

2) How much can I invest in NPS?

Ans. You can invest up to Rs 1.5 lakhs in NPS, which has been in force since the budget of 2015.

3) Is an NPS account transferable?

Ans. Yes. in case you have changed jobs or switched to a different employer, you can. In fact, you need to transfer the NPS account from old to the new employer.

4) What documents do I need along with the withdrawal form?

Ans. You need to submit the following documents along with the withdrawal form:

• PAN card (original)
• Attested copy of proof of identity
• Attested copy of proof of address
• A cancelled cheque

5) Who will manage my money invested in an NPS account?

Ans. All the invested money in all NPS accounts are managed by PFRDA-registered Pension Fund Managers.

Also Read: What Is NSDL – National Security Depository Limited

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GST consolidates the indirect tax sector by abolishing other forms of taxes such as VAT, CST, Service Tax, CAD, SAD and Excise and removes the cascading effect of double taxation. It has the ability to ease the trade between different states of India as a unified and consistent tax law will be applicable all over India. The impact of GST is dependent upon various sectors in the economy. While some sectors will benefit, others will have to shell out higher taxes.

Positive Impact of GST on the Economy

It has revived India’s fiscal reform program which will strengthen and boost the Indian economy globally as well as internally. It will cause a bit of hardships for the citizens and manufacturers in the country to make a transition into this new reform. Some of the major impacts of GST on the Indian economy are

1. Simplified Tax System

Before GST, businesses had to comply with various taxes like VAT, service tax, excise duty, and octroi. GST merged these into a single tax framework, reducing complexities and making tax compliance easier for businesses of all sizes.

2. Removal of Cascading Taxes

Previously, taxes were levied at multiple stages without input tax credit benefits, leading to a “tax on tax” situation. GST resolved this by allowing businesses to claim tax credits on inputs, ultimately reducing the overall tax burden and making goods and services more affordable.

3. Strengthened National Market

With the introduction of GST, businesses no longer had to navigate different tax rates across states. This created a more integrated and competitive market, improving the ease of doing business and enhancing interstate trade.

4. Boost to Formal Economy & Compliance

GST incentivized businesses to register under the tax system, increasing transparency and reducing tax evasion. The adoption of digital tax filing and e-invoicing has further ensured better compliance and accountability.

5. Growth in Government Revenue

With a broader tax base and improved compliance, GST has contributed to steady growth in government revenue. The adoption of technology-driven tax collection mechanisms has helped minimize leakages and improve efficiency.

Challenges and Areas of Improvement

1. Initial Implementation Hurdles

Despite its long-term benefits, GST faced initial challenges, including frequent rate changes, complex return filing processes, and technological glitches in the GST portal. While many of these issues have been resolved, continuous refinements are necessary.

2. Impact on Small Businesses

Small and medium enterprises (SMEs) initially struggled with compliance due to the requirement for frequent tax filings and invoice matching. The government has since introduced measures like the composition scheme to ease compliance for small businesses.

3. Revenue Concerns for States

Since GST subsumed state-level taxes, some states faced revenue losses. To address this, the central government provided compensation, but as the compensation period has ended, states are now looking for alternative solutions.

Recent Developments in GST

• The government is considering including petroleum products such as natural gas under GST to bring uniformity in taxation and reduce price variations across states.
• The GST revenue collection continues to show strong growth, with recent months witnessing record-high collections.
• Efforts are being made to simplify the tax structure further by reducing the number of tax slabs and ensuring ease of compliance.

The success and benefits of this new tax reform will be seen over a period of time. While the benefits will definitely be seen in favour of the government and international markets, it will also encourage the growth of Indian products both domestically and internationally. The consumer will have to pay less tax on certain goods and services.

Also Read: Union Budget 2025: Key Highlights, Expectations and Impact on Economy

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Securities are held in Demat accounts, which are electronic-based and discard the traditional exchange of securities. It is a fast option as the whole process of buying and selling is done electronically. It also eliminates the chances of delay, risk, and destruction of the securities. NSDL provides online alerts to buyers and sellers for all transactions and includes complete information about their accounts.

NSDL provides investors with a safe and sound place to invest their money and securities and reduces the stressful process of monetary and funding. The cost of the Demat account is much lower than the physical securities provided in the market, and it is hassle-free because there are no chances of corruption in this process—NSDLworks is a great institution to cope with the growing needs and demands of financial officials and securities.

The securities of shares and bonds are the monetary benefits bought and sold in the market through dematerialization accounts. These are the safest places to keep safety as it is easy to maintain, time-saving, and involve less paperwork.

History of NSDL

NSDL is an institution of central security depositors located in Mumbai, India. It is a platform for investors interested in technological play with their money. It is the most critical and reliable place for the people who stand their trade in the Indian monetary market.

1. NSDL was established on 8th November 1996under the regulation of the depository act.
2. It is a developing platform that eliminates paperwork and reduces the chances of corruption.
3. It is formed to create an environment that benefits shareholders and investors.

Though India is serving rapidly and spiritedly, it is still facing some issues due to its dependency on paper-based settlement, which increases the chances of theft and destruction. At that moment, NSDL played a significant role in the market due to its simplicity, easy availability of securities, and excitement because it was cheaper than physical and non-physical certificates. NSDL has promoted the idea of demat in the markets of India and rapidly encouraged the concept of T+2 settlement in the market. NSDL is the largest and growing depository worldwide that handles uncountable people and institutions’ securities. The securities used in Demat accounts are used in the financial market of India.

Headquarters of NSDL

The headquarters of NSDL is located in the cities which are given below:

1. Mumbai
2. Ahmedabad
3. Bengaluru
4. Hyderabad
5. Chennai
6. Kochi
7. Kolkata
8. Jaipur
9. New Delhi

Working of NSDL

Now that you have understood what NSDL is, let’s discuss how it works. NSDL provides a place for investors and shareholders to invest their money electronically in securities. It is similar to the bank, and the people open accounts in the bank to preserve their finances. Still, in NSDL, the Demat accounts are opened to maintain the securities mechanically. Any depository participant can open their Demat accounts in NSDL, including banks, investors, brokers, and any institution that exudes securities. However, to open an account with a reputed depository like the National Securities Depository Limited, you cannot propose directly to the institution in lieu; you need to open an account through a broker. Brokers are renowned agents who mediate between depositories like the National Securities Depository Limited (NSDL) and investors or stakeholders.

Central Depositories In India

NSDL is the most growing and well-liked depository in India, which was developed on 8th November mainly to maintain securities in the form of Demat accounts electronically. There are many institutions like the Unit trust of India(UTI), Industrial Development Bank of India (IDBI), and National Stock Exchange ( NSE) that is encouraging NSDL. The  principal shareholders of NSDL are mentioned below:

1. Citibank
2. State Bank of India
3. Oriental Bank of Commerce
4. Canara bank
5. Standard Chartered Bank
6. HDFC Bank
7. Dena Bank
8. HSBC

Services provided by NSDL

There are various services provided by the NSDL divided into multiple categories as listed below:

A. Basic service

According to the Depositories Act 1996, the NSDL provides essential services to brokers and investors, like maintenance of Demat accounts, settlements, and funds transfer. Any depository participant who wants to use these needs to open a depository account to avail of these services.

There are three types of depository accounts:

1. Beneficiary Account
2. Clearing Account
3. Intermediary Account

The following service provided in these accounts are listed as follows-

1. Rematerialization: The investor must convert electronic securities into physical and non-physical certificates.
2. Dematerialization: The investor has to convert their physical and non-physical certificates into electronic securities.
3. Transmission: It refers to the reduction in the value of securities due to devolution.
4. Corporate actions: These refer to all the incentives given to the investor, which can be physical or non-physical
5. Inter-depository transfer refers to the transfer of securities from one depository to another.
6. Off-market transfer: Trade activities not settled through the clearing house effect.

B. NSDL CAS (Consolidated Account Statement)

It is a single statement of the investments that occurred in all single or joint securities in the market. It allows subscribers to access their financial statements/ assets electronically through their Demat accounts.

C. Value-Added Services

1. Hypothecation or pledge of securities: to enjoy the facilities of loan and credit. If the depositors have the depository account, the guards can easily be hypothecated
2. Dividend distribution: it provides corporate cash benefits such as dividends to the shareholders.
3. Automatic delivery outstation: it helps deliver the securities from buyers to sellers’ accounts.
4. Public issue: it helps the investors to convert their public case electronically.
5. Lending and borrowing: Under the Securities Lending Scheme 1997, securities lending and borrowing can be carried out by intermediaries registered with SEBI.
6. SMS alert:  the investors get a direct signal from NSDL on specific matters.

D. Online service provided by NSDL

• SPEED-e: This online service allows investors to upload instructions related to delivery directly on the website.
• SIMPLE (Submission of Instruction through Mobile Phone Login Easily): This service allows investors to log in to their accounts through their mobile phones.
• Depository Account Validation (DAN): In this service, the subscriber can easily access the information provided by the investor.
• IDEAS (Internet-based Demat Account Statement): This service helps in providing information on all the transactions and dbalances online.
• SPICE (Submission of Power of attorney based Instructions for Clients Electronically): This service helps the member to debit and credit from their Demat account
• STEADY (Securities Trading Information Easy Access and Delivery): This service helps provide contract notes digitally.

NSDL safety measures

There is a tremendous amount of depository collection in the transactions done by NSDL, so the institution has to take some measures to protect the right and securities of the investors. Various essential measures by NSDL are as follows;

1. There is a regular inspection of the different investors and brokers to check the safety of the accounts through their debit and credit transactions.
2. There are some guidelines that the SEBI provides to become a depositor in the NSDL.
3. The NSDL provides regular information to investors about their accounts and transactions and even sends alerts during a critical situations.
4. A depositor has a right to make transactions on the client’s instruction.
5. The brokers provide the stock status of the accounts to their investors.
6. The transaction done through the Demat accounts are recorded in the records of NSDL.
7. The depository account holders have a right to announce their accounts freeze anytime, which stops the entry of debit and credit in the report.
8. Every depository worker has to maintain a certificate affiliated with the SEBI to protect investors from fraud.
9. The investor can complain about their query in NSDL directly.

NSDL impact on the stock markets

The NSDL has created many impactful services in the Indian financial markets. Many benefits track the impact of the stock market in India.

1. The NSDL has reduced the risk correlated with the paperwork and the transfer of physical and non-physical certificates.
2. The NSDL eliminated the stamp work duty as securities are transferred electronically, so no stamp is needed.
3. It provides more transfer and liquidity of securities as work is done on trade days.
4. There is less paperwork included which makes the process hassle-free.
5. It provides complete statement information and status reports regularly.
6. It also provides a space to make changes in the plans and information of the investor through documentation supplied to the depository participants.
7. It eliminates the role of physical certificates, which reduces the chances of destruction and risk.

Benefits of NSDL

NSDL was created to address issues arising from ownership of securities held in physical form and its transfer. Some of the benefits of the subscription from the organization are as follows:

1. It is more convenient as there is less paperwork, and it maintains the data of the securities in electronic form.
2. It ensures optimal liquidity and creates the perfect match between the buyer and the seller.
3. It provides frequent transfer of securities from one depository account to another.
4. It provides a convenient modification in the details and demands of the investor.
5. It reduces the brokerage fees as there is less interference from the people in the process.

Conclusion

 NSDL is India’smost comprehensive capital market, established years ago but still works efficiently and actively. But this institution has faced some disadvantages due to its paper-based arrangement and problems like theft and lousy delivery. Therefore, the creation of security depositories in India was provided under the Depositories Act of 1996. NSDL is the primary& largest depository located in India. It was established on 8th November 1996. Its primary purpose is to electronically handle securities held in the Indian capital market and create a lenient and convenient process.

FAQS

• What do you mean by depository?

The depository provides services related to transactions and securities.

• How can the OTP for the margin pledge instruction be given electronically?

OTP will be sent to the clients through the email id registered in their Demat account.

• Is it possible to open more than one account with the same Dp?

Yes. There is no restriction on the account number with one DP.

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There are some guidelines for small-scale industries by the Government of India. In terms of financing the company is making and the revenue, it has generated. Small scales industries are classified into three parts are mention below:

• Manufacturing / Production
• Ancillary
• Service industries

Manufacturing/Production Industries: Units that produce finished goods either for consumption or used in processing industries. These types of small scale industries are usually solely owned. Some examples of manufacturing small scale industries are engineering industries, food processing, etc

Ancillary Industries: Big companies or MNC manufactures complete goods, but they don’t generally make all the parts themselves. Vendors of these companies are ancillary industries. Ancillary industries can also be known as those companies which make machines for multinational companies or medium scale industries

Service Industries: Restoration shops and maintenance industries come under the category of service industries.

Objectives of Small Scale Industries

Some objectives of the small scale industries are mention below:

• To create more employment opportunities
• To aid improve the rural and less developed regions of the economy.
• To reduce regional imbalances
• To ensure maximum utilization of unexploited resources of the country
• To assure equal distribution of income and wealth
• To solve the unemployment problem
• To attain self-reliance
• To utilize the latest technology aimed at producing better quality goods at lower costs.

Role of Small Scale Industries (SSIs) in the Indian Economy

Check below the few role of small scale industries in the Indian economy:

1. Production

Small Scale Industries enterprises estimate for almost 40% of the total production of goods and services in India. Small Scale Industries are one of the foremost reasons for the growth and strengthening of the economy.

2. Make in India

Small Scale Industries are one of the best examples of the Make in India initiative. SSIs concentrate on the mission to manufacture in India and sell the products worldwide. That also assists create more demands from all over the world.

Exportation contribution: India’s export industry majorly depends on these small industries for their growth and development. Almost half of the goods that are exported from India are manufactured or produced by these industries.

3. Employment

These small scale industries are a main cause of employment in the country. The labor force cannot find work in the formal sector of the economy. So these labor-intensive industries give a livelihood to a large portion of the workforce.

4. Contribution to Export

Approximately half of the goods that are exported from India are produced by these small enterprises. Nearly 35% of direct exports and 15% of the indirect exports are from the small scale industries. So India’s export industry majorly depends on these small industries for their growth and development.

5. The welfare of the Public

Other than financial reasons, these industries are also necessary for the social growth and development of our country. These industries are normally started by the lower or middle-class public. They have an opportunity to gain wealth and employ other people. It aids with income distribution and contributes to social progress.

Examples and Ideas of Small Scale Industries

Below are the some example and ideas of small scale industries:

• Handlooms
• Handicrafts
• Sericulture
• Power Loom
• School stationeries
• Water bottles
• Small toys
• Paper Bags

Opportunities and Performance of Small Scale Industries

Below are the opportunities and performance of small scale industries:

• Origination of employment
• Equitable distribution of income
• Assembling of resources and entrepreneurial skill
• Regional dispersion of industries.
• Export enhancement
• Supports the growth of large industries
• Better relation between employer and employees

Characteristics of Small Scale Industries

Below are the characteristics of small scale industries:

1. Ownership: Small Scale Industries generally are under single ownership. So it can be a sole proprietorship or sometimes a partnership.
2. Administration: Usually both the management and the control are with the owner/owners. Hence the owner is actively involved in the day-to-day activities of the business.
3. Labor Intensive: Small Scale Industries dependence on technology is pretty limited. Therefore, they tend to use labor and manpower for their production activities.
4. Flexibility: Small Scale Industries are more adaptable to their changing business environment. Because of some acts or unexpected developments, they are flexible enough to accommodate and carry on, unlike large industries.
5. Limited Range: Small scale industries have a restricted zone of operations. Therefore, they can reach their local and regional demand.
6. Resources Utilization: They use local and readily available resources which help the economy fully utilize natural resources with minimum wastage.

Challenges faced by Small Scale Industries

Despite the practical contribution by the Small Scale Industries towards the Indian economy, Small Scale Industries do not get the essential support from the Government departments, financial institutions, banks, credit societies, and corporate thus the Small Scale Industries are becoming handicap in the face of competition at the national and international markets. The major problems faced by the Small Scale Industries are mention below.

• Scanty credit assistance 
• Uneven and poor quality of raw material
• Absence of organised meeting practices
• Inadequate infrastructure

Problems of Small Scale Industries

1. Lack of Investment: It is the most common problem faced by small scale business. They lack the money to raise funds as borrowed capital.
2. Shortage of Raw Materials: Small producers cannot bear to buy in quantity due to limited funds. Hence, their bargaining power is low.
3. Lack of Managerial Abilities: Since they are operated by single owners, they lack managerial skills.
4. Incompetent Labor: As they cannot afford to pay high wages, they generally do not get competent manpower.
5. Marketing Problems: A small business cannot afford to spend too much on an advertisement, offers, and to get information on customer’s changing tastes and preferences.
6. Low-Quality Products: Small businesses do not have enough resources to invest in quality research and maintain the standards of the industry. They also do not have the capability to upgrade the technology.
7. Idle Capacity: Many small units operate below their capacity.
8. Outdated Technology: The use of outdated technology also makes them incompetent in the market.
9. Sickness: Many SSIs are sick due to internal as well as external problems like lack of trained labor, delayed payments, lack of working capital, etc.
10. Global Competition: Due to the policy of LPG (Liberalization, Privatization, and Globalization) there is an increased competition which is further adding o the problems of small businesses.

Conclusion

The advancement and advancement of Small Scale Industries are important for the development of the Indian economy to accomplish the impartial distribution of income and wealth, economic self-dependence, and economically sustainable developments. To boost the Small Scale Industries sector so that it can take deserved place in the growth mechanism of the Indian economy. Some appropriate measures to be taken by the government in providing financial assistance at minimum formalities, a platform to be built by the government to help the MSMEs in the procurement of quality raw material and train them for the organized marketing process.

Frequently Asked Questions

Q1. What are small scale industries?
Ans. Small Scale Industries are industries that manufacture products on a small scale.

Q2. What kind of manufacturers are termed small scale industries?
Ans. Industries like leather manufacturers, bakeries, photo studios, parlors, and the like come under small scale industries.

Q3. What are the properties of a small scale industry?
Ans. The properties of small scale industries are ownership, labor-intensive, flexibility, management, reach, and resource utilization.

Q4. What industries can be registered under SSI?
Ans. Manufacturing Enterprises and Service Enterprises can be registered as SSI.

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In the year 1964-1965, The people involved in cattle farming were provided with the package of improved animal husbandry under the Intensive Cattle Development Program. The National Dairy Development Board of India (NDDBI) came up with a new initiative toward the White revolution named Operation Flood to accelerate the revolution in 1970. 

India had low milk productivity but with the introduction of the white revolution, India has become the largest milk-producing country in the world. The major milk-producing states in India are Uttar Pradesh, Rajasthan, Andhra Pradesh, Haryana, and Punjab. The largest buffalo milk producer in the world is India and credit goes to the White revolution initiative.  In the year 2014-15, India produced 146.31 million tonnes of milk. 

There were 3 main objectives of introducing the White revolution in India. First, Increasing milk production creates a flood of milk in India. Second, Increasing the income of the farmers belonging to the rural population and third, bring the prices low and affordable for everyone. 

Phases of the White Revolution in India

Phase 1 (1970-1980): In 1970, the white revolution started with the aim of setting up dairy cooperatives in 18 milk sheds in 10 states of India and they were linked with 4 major metropolitan markets of the country. This phase was financed by the sale of butter oil and skimmed milk powder. These products were donated by the European Union during the world food program. This phase ended in 1981 with 13000 village dairy cooperatives and 15000 farmers.

Phase 2 (1980-1985): This phase started with the aim of building the phase 1 design and assisted dairy development programs in 3 states of India i.e Karnataka, Rajasthan, and Madhya Pradesh. The production of domestic milk powder reached 140,000 tonnes by 1989 and the sale of milk also increased. This phase ended by 1985 with 136 milk sheds and 34,500 village dairy cooperatives and 36 lakhs members. 

Phase 3 (1985-1996): This phase started with combining the gains of stage 1 and stage 2 to improve the productivity and efficiency of the dairy sector in the long term. By 1996, there were 73,300 dairy cooperatives and 9.4 million farmers. 

Key Features of White Revolution in India

1. Adopting new methods of animal husbandry in the case of Cattle.
2. Changing the composition and proportion of the ingredients in the feed. 
3.  Fixing the cost of different producers on a sliding scale of India. 
4. Dairy cooperatives were introduced to create a small farmer-controlled network. 
5. From 1998 onwards, India became the highest milk producer in the world surpassing the USA and contributed 17% of global output in milk production in the year 2010-11.
6. The milk availability per person in India doubled in 30 years.
7. Due to the successful implementation of the White revolution in India, the total milk production output was increased 4 times. 
8. The White revolution increased production and hence removed the role of middlemen. 70%-80% of the cost was directly given to the farmers by the customers. 
9. In 40 years, the phenomenal growth of milk production reached 100 Mt million from 20 MT million. 
10. The dairy cooperative movement under the White revolution stretched across the country covering about 125,000 villages of 180 districts and 22 states. 

Impacts of White Revolution in India

The white revolution came out to be the most successful step taken by the Indian Government to increase milk production. It had many positive impacts on India. It was as important for milk production as the green revolution for the increase in the yield of wheat and rice. Some of the positive impacts of the white revolution in India are listed below:

• The White Revolution had a great impact on the rural population and encouraged them to adopt dairying as an occupation.
• The white revolution turned India into the leading milk producer in the world. The milk production was just 17 million tonnes in 1950-51 but after the white revolution, it increased to 105 million tonnes in 2007-08. If compared with the milk production with that of during the pre-independence, it has increased up to 6 times.  
• The per capita availability of milk per day was 100 gm before the white revolution but now it is more than 200 gm.
• India no longer needs to import milk or milk production. The nation is capable enough to meet the milk demand of the country. Now India is exporting milk powder to many countries across the world. 
• The marginal farmers and small laborers are highly advantaged with the introduction of the White revolution.
• The research centers are developed at Anand, Mehsana, and Palanpur, and three regional centers are developed in Siliguri, Jalandhar, and Erode. There are metro diaries in 10 major metropolitan cities in India and there are 40 plants established with the capacity to handle more than one lakh liter of milk at a time. 
• In 2005-2006, the Government implemented livestock insurance on a pilot basis.
• Cross-breeding was adopted extensively to improve the quality of the livestock.
• The government introduced many health schemes to ensure disease-free status. 
• White revolution removed the regional and seasonal price variations of the milk. It ensured that the producer gets the major share of what is paid by the consumer along with customer satisfaction. 

Milk Production and Per Capita Milk Availability in India

Negative Impacts of White Revolution in India

As everything has two sides, negative and positive, so as the white revolution. Although the white revolution was highly advantageous but there were a few disadvantages also. A few of the disadvantages are listed below:

1. The new fascinating dairy products lead to a decrease in the demand of the Indian product as the import was stopped.
2. There were chances of many contagious diseases spread because of the high risk of diseases in livestock.
3. The major issue was the adulteration of milk and dairy products during the white revolution.  

Conclusion

The White Revolution in India had modernized the Indian Dairy Industry and made the country self-sufficient in milk. It had significantly increased the income and employment of the household farmers as it was the small farmers’ oriented program.  This program targeted the small farmers with limited land, animals, and resources, most of the families owned only 2 milch animals whereas about 20% of families were landless and 65% were small and marginal farmers with less than 4 hectares of land. 

Frequently Asked Questions on White Revolution

Q1. When did the white revolution started in India?
Ans: White Revolution in India started in the year 1970.

Q2. What were the main impacts of the white revolution in India?
Ans: The white revolution in India had many positive impacts. This revolution led to an increase in the production of milk and India became the leading milk-producing country in the world. The income and employment of small and marginal farmers increased a lot. 

Q3. Who was the father of the white revolution in India?
Ans: Dr. Verghese Kurien was the father of the white revolution in India.

Q4. What were the three phases of the white revolution in India?
Ans: The three phases of the white revolution in India are:

     Phase 1: From 1970 to 1980
     Phase 2: From 1980 to 1985
     Phase 3: From 1985 to 1996

Q5. What are the major milk-producing states?
Ans: The major milk-producing states in India are Uttar Pradesh, Rajasthan, Andhra Pradesh, Haryana, and Punjab.

Also Read: Green Revolution in India

What Are 5 Major Rice Farming Challenges in India?

NISAR Mission – How will it change the future of disaster response forever?

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According to the World Bank, Poverty is said to deprive one of well-being and includes many dimensions. It combines low incomes and the failure to acquire the basic goods and services needed for survival with dignity. Thus, the conventional approach to measuring poverty is to define a minimum expenditure required to purchase a basket of goods and services necessary to satisfy basic human requirements and this minimum expenditure is called the poverty line.

What is BPL?

Understanding the Basics of BPL

Hence, Below Poverty Line (BPL) is a benchmark used by the government of India to show economic loss and to recognize individuals and households in need of government help and support. It is planned using several parameters which differ from state to state and within states. The present guidelines are based on a survey conducted in 2002. Going into a survey due for a decade, India’s central government is undecided on measures to identify families below the poverty line.

According to 2019 reports, more than a quarter of the population living in rural regions of India is below the poverty line. Out of the total population living in the rural parts of India, 25.7 per cent is living below the poverty line whereas, in the urban areas, the state is a little better with 13.7 per cent of the population living below the poverty line.

BPL Data Table

State-Wise Percentage of Population Below Poverty Line by Social Groups, 2004-05

Data Source: Perspective Planning Commission, New Delhi.

Source:Perspective Planning Commission, New Delhi.The poverty line at the all-India level is calculated based on the expenditure class-wise distribution of persons using URP consumption data (30-day recall period). The poverty ratio at the all-India level is obtained as the weighted average of the state-wise poverty ratios.

Eligibility Criteria and Income Slab for BPL (2023)

• The government sets criteria to identify people below the poverty line (BPL).
• In 2011-12, 21.9% of India’s population (27 crore people) were below the poverty line.
• The poverty line defined by Monthly Per Capita Consumption Expenditure (MPCE): Rs. 816 for rural areas and Rs. 1000 for urban areas.

Updated Poverty Data and Reduction Efforts Made By the Govt. Of India

• NITI Aayog’s 2023 report shows significant poverty reduction, with the rate dropping from 24.85% in 2015-16 to 14.96% in 2019-21.
• 13.5 crore people escaped multidimensional poverty between 2015-16 and 2019-21.
• The government has launched various schemes to combat poverty, such as:
  • Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
  • Pradhan Mantri Awaas Yojana – Gramin (PMAY-G)
  • Pradhan Mantri Gram Sadak Yojana (PMGSY)
  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
  • Pradhan Mantri Garib Kalyan Anna Yojna (PMGKAY)
  • Pradhan Mantri Ujjwala Yojana (PMUY)
  • Saansad Adarsh Gram Yojana (SAGY)
• These schemes provide direct benefits and improve infrastructure to uplift the poor.

How to Apply for a BPL Certificate

Apply In-Person

• BPL certificate will be issued in the name of the head of the family. This certificate consists of the names of other family members so that the other members may use the certificate for the advantages meant for BPL families.
• To apply, the eligible person has to apply with the required documents to the treated village Panchayat/ Block Panchayat / municipal authority.
• Please go to the respective office.
• Get the form for this certificate or write on plain paper as advised.
• Submit the completed application with the required documents to the acquiring authority.
• Authorities after checking the application and documents will make entries at the respective register and provide the applicant a record number for reference.
• Keep it safe for future reference.
• This application will be processed further.
• There will be a ground-level verification and analysis of the documents and details by the department authorities.
• After checking the documents and conducting a local inquiry into the facts and benefits of the case. Then the respective panchayat/Sarpanch or the respective authority issues the Certificate.

Required Documents

• Application form
• Identity proof
• Self-declaration from the applicant
• Ration Card
• Complete information about income sources
• Residential Proof: Residential Certificate issued by Aadhar card / Ration Card / PAN Card /  Passport / Driving License / Government Id card / Defense ID Card /Local administration office.
• Age proof (birth certificate/school certificate)
• Applicant passport size photograph.
• Aadhaar card
• Affix stamp as advised by authorities if required.

Note:

All originals and copies of originals with self-attestation as directed by respective authorities are to be submitted as per specification.

Apart from the above documents’ authorities may demand to submit additional information or documents. Please provide them for processing.

Benefits of Having a BPL Certificate

Some groups, especially those under Scheduled Tribes (ST) and Scheduled Castes (SC), suffer from exclusion in the poverty debates. While the National Sample Survey (NSS) data revealed a deterioration in overall poverty from 36% in 1993-94 to 28% in 2004-05, the numbers showed a different story for areas with tribal populations. 

The 2004-05 NSS also showed that the average consumption of Adivasis ST was 70% of the average, and that of Dalits (SC) less than 80% of the average. This census also showed that ST and SC make up a large proportion of India’s poor. The government’s programs for these groups tend to be executed not as strong and also tend to progress very slowly. 

ST and SC also suffer from displacement, differences in education and employment, and caste-based violence. States operate the power to make specific arrangements for these groups through reserved seats in educational institutions and special grants and scholarships. Also, certain income generation programs along with financial organizations that provide coaching in entrepreneurial skills do exist for these groups. 

A definite number of government jobs are set aside for these minority groups as well. A study found that in an area where members of SC/ST groups are specified roles of leadership, more funds are designated towards welfare programs. In other words, the political representation of the poor makes a huge impact on the allocation of resources.

Other programs available for the beneficiaries of BPL include Sarva Shiksha Abhiyan (SSA), the National Rural Health Mission, National Rural Employment Guarantee. Sarva Shiksha Abhiyan works to bring education to children from poor families and incorporates community work and organization. The NRHM concentrates on accessibility to health care in some of the poorest areas of India and promotes education and uplifting of Adivasi and Dalit women. The NREG implies a legal entitlement for every poor rural family to 100 days of work at the minimum wage and proposes to end food insecurity, empower village communities, and create assets.

The families who have a BPL card can receive 10 to 20 kg food grains per family per month at 50% of economic cost.  For specified quantities of wheat, rice, sugar, and other items the subsidized end retail price varies from state to state. Each state government fixes varying rates per quantity.

Various schemes for the benefit of BPL are as follows:

1. Pradhan Mantri Jan Dhan Yojana (PMJDY)

With a National Mission for financial incorporation, PMJDY is a government scheme for needy and poor people who belong to the below poverty line and was announced in 2014 on the eve of independence day. Through this scheme, they get access to financial services such as savings and deposit accounts, credit, insurance, pension, payment, etc at affordable rates. Under this scheme, almost 29.43 crore bank accounts have been opened so far.

Benefits:

• For those who opened bank accounts before January 26th, the government plans to offer accident insurance cover for over 1 lakh and insurance cover for over Rs. 30,000.
• 4 percent per annum will be provided on the money deposit.
• There will be no rules for minimum balance.
• Money can be transferred to any bank account in India as well as money from a government scheme can be directly transferred to an individual bank account.
• Upto Rs. 5000 overdraft facility is available after operating a bank account for 6 months.

2. Pradhan Mantri Jeevan Jyoti Bima Yojana

This scheme was announced in 2015 by the then-finance minister. It is a one-year renewable life insurance plan that offers a life coverage of Rs. 2 lakh with an annual premium of Rs. 330 which is payable at the time of renewal of the plan. The given premium will be deducted from the account holder’s savings account through the auto-debit facility. It can be availed by any savings bank account holder whose age is between 18 and 50 years. Further, once the account holder attains the age of 55 years his/her insurance will be terminated.

Benefits:

• The nominee can receive the death benefit.
• It is a one-year cover i.e.from June 1 to May 31.

3. Sukanya Samriddhi Yojana (SSY)

Under the ‘Beti Bachao, Beti Padhao’ campaign, the Prime Minister launched the Sukanya Samriddhi Yojana on 22nd January 2015. Its main aim is to meet the education and marriage expenses of a girl child. Under this a minimum of 1,000 and a maximum of 1.5 lakh can be deposited in a girl’s bank account during a financial year. Further, the account can be closed only when the girl turns 21 if the account is not closed then the holder can still earn interest on the amount.

Benefits

• A parent or a guardian can open or operate the account as soon as a girl child turns 10.
• An interest rate of 8.6% is offered with income tax benefits.
• To meet the educational requirements of a girl up to 50% of the balance can be withdrawn after she turns 18. Further, money can also be transferred from one authorized bank to another and vice versa.

4. Rashtriya Swasthya Bima Yojana (RSBY)

RSBY was introduced in the year 2008 to provide health insurance coverage to those people who belong to the below poverty line (BPL) category. As it provides insurance coverage on health to an unorganized sector that is registered under street vendors, licensed porters, welfare boards, etc.

Benefits:

• For a family consisting of 5 members, it covers up to Rs.30,000 on a floater basis.
• With a maximum limit of Rs. 1,000 it provides transportation charges cover of Rs. 100 per visit to the hospital.
• RSBY smart card is provided to BPL families which allows holders to claim medical care expenses of up to Rs. 30,00 p.a with a premium of just Rs.30.

5. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (ABPMJAY)

ABPMJAY is promoted as the world’s largest insurance scheme which was launched to cover ten crores of poor families including families with no adult members between 16 and 59, beggars, domestic help, construction workers, sanitation workers, public transport drivers, etc. in both urban and rural regions. It offers up to Rs 5 lakh insurance cover per family.

Benefits:

• Under this scheme, free treatment will be available in both private and public hospitals which are listed by the government in times of need.
• There will be no limit on the age and size of the families.
• It covers both pre and post-hospitalization expenses.

Conclusion

Education, gender-related problems, issues surrounding employment as well as religious factors can be considered as the main factors of poverty. Thus, the poverty line was fixed according to income/food requirements in 2000. But over the years several schemes have been launched by the government which not only helped its citizens but also focuses on the improvement of their financial situations.

FAQs regarding Below Poverty Line (BPL)

Q1. What is the BPL full form?

Ans. The BPL full form is Below Poverty Line, which refers to individuals or families whose income is below the minimum level required to meet basic needs.

Q2. Who is eligible for a BPL certificate in India?

Ans. Families with income below the government-defined limit and belonging to economically weaker sections are eligible for a BPL certificate, based on state-specific criteria.

Q3. How can I apply for a BPL certificate?

Ans. You can apply for a BPL certificate by visiting your local government office or online portal, filling out the application form, and submitting required documents like income proof, Aadhaar card, and residence proof.

Q4. What documents are required for a BPL certificate?

Ans. Common documents include Aadhaar card, income certificate, ration card, proof of residence, passport-size photographs, and any other documents required by the local authority.

Q5. What are the benefits of having a BPL card?

Ans. BPL cardholders receive benefits like subsidized food grains, free or low-cost healthcare, educational support, and access to various government welfare schemes.

Q6. Who is considered above the poverty line?

Ans. A person who lives above its nationally assigned poverty outset is considered to be living above the poverty line. Thus, the people living in urban areas must meet their higher monthly income minimums to be regarded above the poverty line.

Q7. Who sets the poverty line in India?

Ans. Planning Commission Expert Group (1962), the working group commissioned by the Planning Commission formed separate poverty lines for rural and urban areas.

Q8. How is the poverty line calculated?

Ans. By applying an official poverty measure (OPM) the Census Bureau prepares poverty status that checks pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and set for family size.

Q9. What does it mean to be above the poverty line?

Ans. The certain level of income that is required to reach a basic living standard with enough money for things such as food, clothing, and a place to live is said to be above the poverty line.

Q10. What is the current poverty line in India?

Ans. As per the last update in 2023, the poverty line defined by monthly per capita consumption expenditure (MPCE): Rs. 816 for rural areas and Rs. 1000 for urban areas.

Also Read: Pingali Venkayya – The Designer of The Indian Flag

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Under the leadership of Former Prime Minister Indra Gandhi, the green revolution within India commenced in 1666 which resulted in the increase in production of food grains especially in areas like Punjab, Haryana, and Uttar Pradesh. However, this is a great step towards producing a sufficient amount of food grains in India for feeding Indians and not to rely on any other foreign nation for food import.

The Main Aspects of Green Revolution in India are:

• High Yielding Varieties
• Mechanization of Agriculture
• Chemical fertilizers and pesticide use
• Irrigation

The Green Revolution is mainly the process of using modern technology tools and machines for agricultural activities to enhance production. This period converted the agriculture of India into the Industrial system with the adoption of modern techniques like HYV (High Yielding Varieties, use of machines, fertilizers and pesticides, and irrigation. Till the year 1967, the government was trying to overcome the production shortage by increasing the land areas of farmers. The rapid increase in population and demand failed all the steps taken by the government and demanded immediate action, this is the time when the government decided to start the green revolution.

The Green Revolution in India focused on the following areas:

1. Using the HYV (High Yielding Variety) seed.
2. Double amount of cropping in the existing land areas.
3. Expansion of farming areas.

Features of Green Revolution in India

1. To introduce HYV seeds to the Indian farmers. These seeds are highly effective in the regions having good irrigation facilities. So, the green revolution was more in areas like Punjab. It was more successful on wheat.
2. Prior wheat was the only introduced in HYV seeds and after sometimes other HYV seeds are also introduced.
3. As we all know HYV seeds need proper irrigation, so farmers cannot fully rely on monsoon so the green revolution also improved the inland irrigation system.
4. The introduction of the Green revolution was mainly for crops like wheat, rice, and other food grains. It does not focus on Crops like Jute, cotton, etc.
5. It also introduced the use of pesticides, weedicides, and other chemicals for the betterment of the crop. All these chemicals were made easily available for the farmers which also saved the crops from getting damaged.
6. It also introduced the use of tractors, drills, threshers to promote commercial farming in India.

Schemes under the Green Revolution in India

In the year 2017, Prime Minister Narendra Modi approved the Umbrella Green Revolution Scheme named ‘Krishonnati Yojana’ for 3 years i.e. 2017 to 2020 and the central shared Rs. 33,269.976 crores for this scheme. Krishonnati Yojana is a group of 11 schemes which overlooks the agriculture development and allied sector. Its aim is to increase the income of the farmers by increasing the productivity, production, and returns on the produce, improving the infrastructure for farmers, cutting down the production expenses, and the strong marketing of the produce.

Top 11 Schemes under Krishonnati Yojana

1. MIDH – Mission for Integrated Development of Horticulture : It aims to make the horticulture sector better by enhancing the nutritional security, production, and increasing the income of household farms.
2. NFSM – National Food Security Mission : It aims at increasing the productivity of grains like wheat, pulses, rice, etc. it also aims at restoring the soil fertility and productivity of these crops. It also includes NMOOP – National Mission on Oilseeds and Oil Palm under it. It also overlooks the area expansion, expansion of the farm-level economy, to reduce import and increase the availability of the produce in the country.
3. NMSA – National Mission for Sustainable Agriculture : This scheme aims at promoting sustainable agriculture practices suitable for the particular agro-ecology while focusing on integrated farming, appropriate soil health management, and synergizing resource conservation technology.
4. SMAE – Submission on Agriculture Extension : It aims to make the ongoing extensions of government or local bodies more powerful to promote socio-economic empowerment to farmers, support HRD inventions, ICT tools, etc. It also focuses on forge linkage among stake-holders, the institutionalization of program planning, and mechanism implementation. It promotes the innovative use of electronic and print media.
5. SMSP – Sub-Mission on Seeds and Planting Material : This scheme aims to increase the production of quality seeds and farms-saved seeds and enhance SRR. To make the seed multiplication chain more powerful, to promote new methods and technologies of seed production, testing, etc., and to increase the modern infrastructure for seed production, quality, storage, and certification, etc.
6. SMAM – Sub-Mission on Agricultural Mechanization : It aims to give the farming machines to the areas where the availability of farm power is low or the farmers do farming at a very small scale. To develop Custom Hiring centers, to create a hub for high technology farm equipment, to carry out demonstrations and capacity building activities for creating awareness among stakeholders, and to test the performance and quality of the designated testing centers all over the country.
7. SMPPQ – Sub Mission on Plant Protection and Plan Quarantine : It aims at preventing crop damage due to insects, weeds, or other foreign material. To safeguard the agriculture bio-security from the invasion of alien species, to support the export of Indian produce to the global market, to promote better agriculture practices and plant protection strategies.
8. ISACES – Integrated Scheme on Agriculture Census, Economics, and Statistics : It mainly aims to undertake agriculture census and studies on agro-economic problems of India, and to study the cultivation expanses of main crops, conference funding, workshops seminars, etc. with agricultural scientists and experts in order to release papers of short term studies.
9. ISAC – Integrated Scheme on Agricultural Cooperation : This scheme aims to give financial help to make the condition of cooperatives better, removing regional imbalances, to increase agricultural processing, storage, marketing, and computerization. To ensure the supply of quality yarn at reasonable rates to the decentralized weavers, and help cotton growers fetch a remunerative price for their produce through value addition.
10. ISAM – Integrated Scheme on Agricultural Marketing : To develop agricultural marketing infrastructure, to promote innovative technologies for upgraded marketing infrastructure for agriculture, To provide infrastructure for grading, quality certification of agricultural production. To create a common online platform to facilitate pan-India trade.
11. NeGP-A – National e-Governance Plan : It aims to improve the farmer’s condition with respect to accessing the information of their use, enhance and integrate the existing ICT initiatives of the Centre and States, to provide relevant and time to time information to farmers to have good production. This scheme is farmer-centric and service-oriented.

Total Central Share in Green Revolution

Check below the total central share in the Green Revolution Krishonnati Yojana Schemes:

Impacts of Green Revolution in India

1. It increased agricultural production and the food grains has increased remarkably. Wheat grains production has risen the most. It increased to 55 million tonnes during the starting of the revolution in India.
2. It also increased the per hectare yield along with the increase in agricultural output from 850kg/hectare to 2281 kg/hectare in the case of wheat during the initial stages.
3. India no more depends on the import of agricultural produce and became self-sufficient. After the introduction of the green revolution, India started meeting the increasing demand of the population and even started maintaining stock for emergencies. India also started exporting its produce.
4. It removed the fear from the people that commercial farming can lead to unemployment and farmers are no longer jobless. It created jobs for many other sectors like transportation, communication, irrigation, etc.
5. It majorly benefited the farmers of India. It increased their income remarkably and risen their living standard. They shifted from sustenance farming to commercial farming.
6. We can see a rapid increase in the production of food grains because of this revolution.

There is always a negative side to everything, the same as in the case of the Green Revolution.

Let’s look at the negative impacts of the Green Revolution:

1. The agriculture Growth retarded due to insufficient irrigation, farm size shrinkage, technology failure, improper plan layout, and slow credit transfer system.
2. There was no regional equality as the revolution worked better in the areas tech-savvy areas, the revolution worked better for wheat grains, so, the farmers growing wheat got the most benefit.
3. The large farmers made more profit by growing more and they started purchasing the lands of small farmers which eventually lead to the loss of small farmers.

Frequently Asked Questions about the Green Revolution in India

Q1. When was the green revolution started?
Ans. The Green revolution was started in the 1970s.

Q2. Who used the term ‘Green revolution’ to increase agriculture production in India?
Ans. M.S. Swaminathan

Q3. Who was known as the father of the green revolution in the world?
Ans. Norman Borlaug

Q4. Which state was the first chosen for the green revolution?
Ans. Punjab

Q5. What are the main aspects of the Green Revolution in India?
Ans. High Yielding Varieties, Mechanization of Agriculture, Chemical fertilizers and pesticide use and Irrigation.

Q6. Was the Green Revolution really beneficial for the country?
Ans. Yes, the Green revolution has benefited the country a lot. Although there were some negative impacts of this revolution, if we look at the positive impacts, we can understand it has more positive impacts than negative impacts.

Also Read: White Revolution in India

What Are 5 Major Rice Farming Challenges in India?

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The Union Budget for 2017-18 showed a remarkable shift in more ways than one. The date of its show was moved to the first working day of February from the last working day of the month. In addition to this, the Railway Budget also enhanced a fundamental part of the Union Budget, a break from the 92-year old tradition of managing the Railway Budget as a separate entity.

As of September 2017, Morarji Desai was given Ten budgets that are the highest count followed by P Chidambaram’s 9 and Pranab Mukherjee’s 8. Yashwantrao Chavan, Yashwant Sinha, and C.D. Deshmukh has given 7 budgets each while Manmohan Singh and T.T. Krishnamachari has presented 6 budgets. Until 2018, as a part of the tradition, Finance ministers took the budget in a leather briefcase. The tradition was founded by the first Finance minister of India, Mr. RK Shanmukham Chetty. Nirmala Sitharaman broke this tradition by providing the budget in red cloth, on 5th July 2019.

Union Budget of India: A Brief History

On 7th April 1860, the first Union Budget of India, a concept that started when the country was still under British colonial rule, was introduced by the then Finance Minister of India, James Wilson. On November 26, 1947, the first Union Budget of Independent India was given by Sir R.K. Shanmugham Chetty (the first Finance Minister of India).

The first Union Budget was given amidst public riots that followed the partition. This budget was planned for 7 and a half months, after which the next budget was supposed to be implemented from 1st April 1948. It was also determined that India and Pakistan would both share the same currency till September 1948.

Following the resignation of Sir R.K. Shanmugham Chetty, the baton was passed on to his heir, John Mathai, who gave the 1949-50 and 1950-51 Union Budgets. The Union Budget of 1949-50 carries the record of being the first budget for a United India, which covered all the princely states.

Who prepares the Budget?

The Budget Department formulates and implements Annual State Budget with a macroeconomics framework under the guidance of the Ministry of Finance and Revenue for a given period.

Behind the scenes of formulating union budget:

• Budget implementation starts with the Budget classification of the Ministry of Economic Affairs in the Ministry of Finance, and Niti Aayog is also invited as a consultant.
• Now in the month of September, the budget division issues a circular proposal to all Ministries, states, armed forces to determine their fiscal status.
• When the finance ministry gets the status from all the Ministries then the Department of Revenue, Department of Expenditure, and Department of Economics come into action.
• Consultation with Niti Aayog and other Ministries is done to formulate the budget.
• Once the whole picture is formed in the last week of January, the Finance Minister makes the final decision.
• Once the decision is made, the Finance Minister discusses the proposal with the Prime Minister, and the proposal freezes when the Prime Minister confirms.
• Printing of the Budget document starts.
• The day before the Budget presentation Finance minister addresses the cabinet on a summary of the Union Budget and the morning of the budget presentation Govt seeks President’s permission.
• Now, The Finance minister gives the budget in the Lok Sabha.
• The Finance Minister gives the budget into two parts.
• General Economic survey
• Tax proposals
• Once the speech is completed, the Budget proposal is placed on the table.
• After some debates which last for 2–3 days, “Vote an Account” is held.
• Budget proposal is then passed in Lok Sabha and Rajya Sabha as well as approval by the president, all within 75 days.
• Now finally Budget proposal implementation starts.
• The Budget is introduced through the tabling of the Economic Survey in the Budget Session of the Parliament by the Finance Minister. 

This year on 31 January 2020, the Finance Minister Ms.Nirmala Sitharaman presented the Economic Survey 2019-20. The Survey is also given by the Chief Economic Advisor (CEA) during a press meet after it is tabled in the Parliament.

Importance of Union Budget

India has a parliamentary democracy where the government cannot arbitrarily spend, tax, or borrow money. Therefore, for the government to function effectively and assist enhance the economic and the social framework of the country, budgeting and planning are a necessity.

Some of the reasons that explain the importance of union budget are as follows-

1. Resource Allocation

As the resources are restricted, it is with the help of a union budget that the government tries to employ them efficiently so that the profits can be maximized.

2. Control Prices

One of the most significant duties of the union budget is to manage and predict inflation and deflation. Surplus policies and deficit policies are concentrated upon during inflation and deflation, respectively, to keep the economy steady.

3. Reducing Economic Inequality

No society is free from economic inequalities. It is with the aid of budgetary policies that the government seeks to bridge the gap between the rich and the poor.

The reason behind the Government works out a budget every year

The Government plays two important functions by making a budget every year-

• The Government expects the expected expenditures for developmental works in different sectors of the economy e.g. Industry, Manufacturing, Education, Health, Transport, etc.
• To meet the expenditures for the coming financial year, the Government seeks to work out the sources of revenue. (i.e. by requiring new taxes or raising or reducing the previous rates of taxes, or removing or imposing subsidies on any commodity).

In other words, the Governments decide about the expenditure to be provoked on which products primarily and how the money is going to be provided for these expenditures. The aspects of such income and expenditures statements are known as ‘Budget’. Each budget is made for a specified duration.

Types of Union Budgets

The Union Budget can be classified into two parts mention below:

• Revenue budget
• Capital budget

Revenue Budget: The revenue budget comprises the government’s revenue receipts and revenue expenditure. Revenue receipts can be further divided into tax revenue (income tax, excise duty, corporate tax, etc.) and non-tax revenue (interest, profit, fees, fines, etc.). Revenue expenditure relates to the regular expenses acquired from the daily functioning of the government as well as for the range of services given to the public. If the revenue expenditure is greater than the revenue receipts, the government is supposed to acquire a revenue deficit.

Capital Budget: Capital budget, its components are of a long-term nature, consisting of capital expenditure and capital receipts. Some of the primary sources of government receipts include loans from citizens, the Reserve Bank of India (RBI), and foreign governments. Capital expenditure, on the other hand, comprises costs incurred on the development and maintenance of equipment, machinery, health facilities, building, education, etc. When the government’s expenditure is more than the total revenue collected, a state of fiscal deficit happens.

An Overview of the Union Budget 2020-21

On February 1st, 2020, while giving the union budget in the parliament Finance Minister Nirmala Sitharaman said that In May 2019, Prime Minister Narendra Modi received a massive mandate to form the government again. The people of India have unequivocally provided their Janaadesh for not just political stability, but have also relaxed their trust in our economic policy. This is a budget to expand their income and improve their purchasing power.

The second budget of the Modi government’s second term in power is centered on three things – Aspirational India, Economic development, and a Caring Society. The central government is to provide Rs. 99,300 crores for the educational sector in FY21. New education policy will be revealed soon, said Sitharaman. The budget concentrated on expanding the rural income and raising the purchasing power of the people by decreasing the income tax rates.

Major highlights of the Full Union Budget 2020 from Finance Minister Nirmala Sitharaman speech :

1. DEFENSE

• The defense budget was raised to Rs. 3.37 lakh crore for 2020-2021 against last year’s Rs. 3.18 lakh crore.
• Rs 1.13 lakh crore has been set down out of the total allocation for capital expenditure to purchase new weapons, aircraft, warships, and other military hardware.
• The revenue expenditure has been pegged at Rs 2.09 lakh crore which includes expenses on payment of salaries and maintenance of establishments.

2. INCOME TAX

• Dividend distribution tax abolished.
• Around 70 of more than 100 income tax deductions and exemptions have been removed, to simplify the tax system and lower tax rates
• To boost start-ups, the tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest.
• Option to be given to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess, with no exemptions or deductions. To also be exempted from Minimum Alternative Tax.
• Under Vivad Se Vishwas Scheme, taxpayers to pay the amount of disputed tax will get a total rejection on interest and fine, if the scheme is availed by March 31, 2020.
• Aadhaar based verification of taxpayers is being introduced. A system to be launched soon, for instant online allotment of PAN-based on Aadhaar, without the need for filing an application form.
• Total allocation for Swachh Bharat is around Rs. 12,300 crores for this year.
• Central government’s debt has dropped to 48.7% in March 2019 from 52.2% in March 2014.

3. GDP

• For the year 2020-21 GDP is estimated at a nominal 10%.
• Receipts For 2020-21 the government receipts are estimated at Rs 22.46 lakh crores.
• Expenditure is Rs. 30.42 lakh crores.
• For Financial Year 2021 revised expenditure estimates at Rs. 26.99 lakh crores.
• Approximate Fiscal deficit is at 3.8% vs target of 3.3% of GDP
• In the world corporate tax is lowest at 15%.
• Increment to Rs. 5 crores from Rs. 1 crore in the Turnover threshold for audit.

4. SPORTS BUDGET

• Rs. 2826.92 crores to be allocated by the government for the sports budget for the next financial year to the sports budget for the next financial year.
• For the development of sports at the grassroots and youth level the government has given a substantial hike of Rs. 291.42 crores to its flagship Khelo India Programme.
• Rs. 245 crores to be allocated for the National Sports Federation (highest reduction has been made under it).
• Incentives for sportsperson have been suggested to be cut from Rs. 111 crores to Rs. 70 crores. And the budget for the National Sports Development Fund will also be decreased to Rs. 50.00 from the earlier Rs. 77.15 crore.
• There has been a reduction in the allocation to the sports authority from the revised Rs. 615 crores to Rs. 500 crores.
• No changes were made in the allocation for the improvement of sports facilities in Jammu & Kashmir and sportsperson will continue to get the same amount of Rs. 2 crores as earlier under National Welfare Fund.
• Rs. 55 crores (5 crores more than the last budget) will be granted to Laxmi Bai National Institute of Physical Education.

5. AGRICULTURE

• 16-point action plan has been listed by the Finance Minister for farmers, towards the goal of multiplying farmers income by 2022
• Rs. 15 lakh crores have been fixed as a target for Agricultural credit. Further NABARD Refinancing Scheme to be expanded.
• Installing standalone solar pumps for 20 lakh farmers under Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM KUSUM).
• For agriculture and allied activities, irrigation, and rural development 2.83 lakh crores rupees have been granted.
• SHGs will provide holding capacity for farmers under the Village Storage scheme and women in villages can retrieve their status as Dhaanya Lakshmi.
• The Ministry of Civil Aviation on international and national routes will launch Krishi Udan, which will help in improving the value realization in North East and tribal districts.
• By 2025 milk processing capacity will be multiplied.
• For transportation of perishable goods, Indian railways will set up Kisan Rail through PPP arrangement.
• By 2022-23, fish production will be increased to 200 lakh tonnes.

6. EDUCATION

• A medical college to be connected to a district hospital in PPP mode, for setting up such medical colleges viability gap funding to be structured.
• Rs. 3,000 crores allocated for skill development in the budget 2020-21.
• For bench-marking foreign candidates who wish to study in India IND-SAT exam to be held in Asian and African countries.
• Full-fledged degree-level online education program to be offered by institutes in the top 100 in the National Institutional Ranking Framework.
• For the education sector in 2020-21, the government announces Rs. 99,300 crores expenditures.
• New Education Policy to be announced soon. (which now has been announced)
• Across the country, urban local bodies give internships for young engineers for a period of up to 1 year.
• Over five years 8,000 crores rupees will be provided for quantum technologies and applications.
• In 2021, Rs. 99,300 crores have been granted for the education sector and about Rs. 3,000 crores for skill development.
• A national forensic science university and a national police university is suggested to be set up.

7. G-20 PRESIDENCY

• Rs. 100 crores will be granted for making preparations for the G-20 presidency as India will be the host for the G-20 summit in 2022. As during this summit, India would be prepared to drive the global economic and development agenda.

8. HEALTH

• An additional Rs. 69,000 crores have been granted for the health sector which intends to expand Jan Aushadhi Kendras in all districts of the country to provide medicines at reasonable rates.
• To promote domestic industry and generate resources for health services nominal health cess to be introduced on the import of medical equipment.

9. FINANCE

• Deposit Insurance Coverage to be increased from 1 lakh to 5 lakh rupees.
• To obtain higher export credit which gives higher insurance cover, a reduced premium for small exporters, and a simplified procedure for claim settlements a new scheme will be launched for it.
• For the progress of industry and commerce Rs. 27,300 crores will be granted.
• To decriminalize civil offenses the government plans to revise the companies act.
• Investment Clearance Cell to set up through a portal that will provide end-to-end facilitation, assistance, and information on land banks.
• Amendments to be prepared to allow NBFCs to increase invoice financing to MSMEs.
• The government intends to sell a part of its holding in LIC by the initial public offer.
• To decriminalize civil offenses the government plans to amend the companies act.

10. ENERGY

• Rs. 22,000 crores to be granted to the power and renewable energy sector according to the current budget.

Infrastructure

• Budget 2020 aims to provide Rs. 1.7 lakh crores for the infrastructure of transport in 2021.
• Plan to reach electrification of 27,000 km of lines.
• ₹18,600 crores proposed by the government for the Bengaluru Suburban rail project.
• 12 lots of national highways to be monetized by the Government by 2024.
• By 2024, to support UDAN 100 more airports will be developed.
• Iconic destinations to be connected through more Tejas-types trains.
• Stimulated development of highways will be initiated. As of 2023 Delhi-Mumbai expressway and two other projects are to be finished. And before 2024, monetization of 12 lots of highway bundles of over 6,000 km.
• For creating a single-window e-logistics market, a national logistics policy will be released soon.
• Project Preparation Facility to be set up For development of infrastructure projects, Project preparation facility to be set up for actively involving young engineers and management graduates.
• Fibre to Home connections Under Bharat Net Fibre to home connections will be provided to 1 lakh gram panchayats and 6,000 crore rupees have been granted for Bharat Net.
• National Gas Grid to be expanded from 16,200 km to 27,000 km under the union budget 2020-21.

11. WOMEN & NUTRITION

• Under the ‘Beti Bachao Beti Padhao’ scheme, the Gross Enrolment Ratio is now higher for girls than for boys at all levels.
• Rs. 28,600 crores have been granted for the particular programs for women·
• For 2020-21, Rs. 35,600 crores for nutrition-related programs have been granted.
• To upload the nutrition status of 10 crore households over 6 lakh Anganwadi workers have been provided with smartphones.

12. OTHER SECTORS

• For Scheduled Castes and Other Backward Classes 85,000 crores rupees have been allotted in budget 2020-21.
• For Scheduled Tribes 53,700 crore rupees.
• For Senior citizens and Divyangs there would be an enhanced allocation of 9,500 crores.
• As an iconic site five archaeological sites to be developed.
• In 2020-21 budget Rs. 2,500 crores to be granted for tourism promotion.
• Rs. In 2020-21 for the culture ministry Rs. 3,150 crore rupees to be granted.
• Rs. 4,400 crores to be granted for the parameters and incentives to the states who take measures for cleaner air in cities above 1 million populations.

Conclusion

A union budget reflects all the different sectors of the Indian society which is considered an important part of economic growth as it aims to become a $5 trillion economy in the coming years. We hope that after the pandemic phase the continued momentum for Indian reality to attract new investments into different sectors and wish that the steps were taken by the government for reducing tax exemptions and National Infrastructure Pipeline (NIP) brings positive changes for the holistic growth of the Indian real estate sector. In simple terms, it can also be said that the budget 2020 initiated a stage for the betterment of the economy.

Frequently Asked Questions (FAQs) on Union Budget of India

Q1. What is the Union Budget?

Ans. The union budget is a country’s annual financial statement. As per Article 112 of the Indian Constitution, the budget display is necessary before a new fiscal year begins.

Q2. Who presents the budget in Lok Sabha?

Ans. The Finance minister of India presents the Union Budget in Lok Sabha.

Q3. What’s Direct Tax?

Ans. Direct taxes are those taxes which an individual or organization pays directly to the imposing entities as it cannot be passed onto a different person or organization. A taxpayer, for example, pays these direct taxes to the government for different purposes such as income tax, property tax, corporation tax, gift tax, etc.

Q4. What’s Indirect Tax?

Ans. Indirect taxes are those taxes which are collected by one entity in a supply chain and are paid to the government but it is passed on to the consumer as a part of a good or services purchase price. Hence, the consumer is ultimately paying the tax by paying more for the product. Examples of indirect taxes are central excise tax, customs duty, service tax, etc.

Q5. Why the Appropriation Bill?

Ans. The appropriation bill is presented in the parliament to get the grants offered through the budget withdrawn from the CFI. This bill has to be passed to get Parliament’s authorization to withdraw money from the Consolidated Fund of India (CFI).

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