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Poverty Reduction Through Self-Employment Programme In India: Interstate Performance

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  • Rajeev Ahuja
  • Indranil De

Abstract

Promotion of self-employment is one of the ways in which the Government of India has been trying to alleviate poverty. The modified version of the self-employment scheme called Swarnjayanti Gram Swarozgar Yojana (SGSY), launched in 1999, aims to promote micro-enterprise through credit-cum-subsidy. This paper analyses interstate performance of the scheme. Although the scheme in its holistic form is relatively new, the early evidences hold some important lessons that can be used to improve the design and implementation of the scheme. In particular, it is found that: contrary to the popular belief, subsidy does not seem to explain interstate performance of the scheme; effectiveness of lending institutions is crucial for the performance of a scheme that promotes micro-enterprise through credit-cum-subsidy; because the scheme requires matching contribution from the states, its performance depends also on states’ fiscal position as well as the priority they attach to the objective of poverty alleviation.

Suggested Citation

  • Rajeev Ahuja & Indranil De, 2009. "Poverty Reduction Through Self-Employment Programme In India: Interstate Performance," The IUP Journal of Governance and Public Policy, IUP Publications, vol. 0(3-4), pages 62-76, September.
    • Handle: RePEc:icf:icfjgp:v:04:y:2009:i:3-4:p:62-76
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