2014


Time: 3 Hours

Max Marks: 50


PART – A


Answer the following question in one sentence each. (10 x 1 = 10)


Q1. What is normative economics?

Ans. It is the systematic knowledge relating to ‘What Ought to Be’. It analyses causes, effects of a problem, passes moral judgements on the rightness and wrongness of things, and also prescribes a solution to the problem.


Q2. What do you mean by law of supply?

Ans. Law of Supply states that other things remaining constant, the quantity supplied varies directly with the price of the commodity. It also explains that when price of a commodity increases, the supply expands and vice-versa. The relationship between supply and price is positive. Therefore, higher the price, larger is the supply; lower the price, lesser is the quantity supplied. This direct relationship occurs because higher prices generally mean higher potential profits, incentivizing producers to supply more, while lower prices make production less attractive.  


Q3. Define Budget Line.

Ans. A budget line is a graph that shows all possible combinations of two goods a consumer can buy, given a fixed income and prices for those goods. The line represents combinations where the total expenditure is exactly equal to the consumer's income, meaning all income is spent. Any point above the line is unaffordable, while points below the line are affordable but leave some income unspent.


Q4. What is Cost Function?

Ans. In economics, a cost function is the mathematical relationship between the cost of production and the quantity of output, represented as C = f(Q). It shows how much it costs a firm to produce a certain amount of goods or services, considering factors like input prices and the level of output. A firm uses this function to find the least-cost combination of inputs to produce each level of output and to make production decisions, as seen in the formula C = f(Q), where C is total cost and Q is the quantity of output. 


Q5. Define Marginal Revenue.

Ans. It is the net revenue earned by selling on additional units of the product. In other words, we can say Marginal Revenue is the addition made to the Total Revenue by selling one or more units of the commodity.

MR = ΔTR / ΔQ

Where,

MR = Marginal Revenue

ΔTR = Change in Total Revenue

ΔQ = Change in Quantity


Q6. What do you mean by disguised unemployment?

Ans. Disguised unemployment, also known as hidden unemployment, occurs when more people are engaged in a job or task than are actually required, resulting in some workers having little to no impact on the overall productivity or output of that job.

This situation, common in the agricultural and informal sectors of developing economies, appears as employment but represents underemployment, where individuals are working below their capacity or on redundant tasks.


Q7. Define NNP at Factor Cost.

Ans. NNP at factor cost is the net value of all goods and services produced by a country's residents, adjusted for depreciation, and calculated at the cost of the factors of production (labour, capital, etc.). It is also known as National Income and is calculated by subtracting depreciation from Gross National Product (GNP).

(NNP = GNP – Depreciation)


Q8. Write any two features of Indian Economy.

Ans. Two features of the Indian economy are:

  1. It is a mixed economy with both private and public sectors operating, and
  2. It is an agriculture-based economy with a significant portion of the population dependent on agriculture for their livelihood.

Other features include being a developing economy, a large population, and a growing service sector. 


Q9. Write any two causes of low agricultural productivity.

Ans. Two main causes of low agricultural productivity are:

  1. Limited access to modern technology and resources, and 
  2. Reliance on unpredictable factors like rain

These can be exacerbated by issues like poor soil health and inadequate irrigation. These issues lead to lower yields, inefficiency, and an inability for farmers to invest in improvements.


Q10. Define Money.

Ans. Money is any item or medium of exchange that symbolizes perceived value. As a result, it is accepted by people for the payment of goods and services, as well as for the repayment of loans. Economies rely on money to facilitate transactions and to power financial growth.

As a medium of exchange, money is a value that buyers give to sellers when they buy goods and services. Money is accepted by sellers because they know that they can use it to buy other goods and services.


PART – B


Answer the following questions in 4-5 lines each. (4 x 4 = 16)


Q11. Differentiate between Micro and Macro Economics.

Ans. Difference between Micro and Macro Economics is as follows:


1. Microeconomics studies individual economic units, whereas Macroeconomics studies a nation’s economy, as well as its various aggregates.


2. Microeconomics primarily deals with individual income, output, price of goods, etc., whereas Macroeconomics is the study of aggregates such as national output, income, as well as general price levels.


3. Microeconomics focuses on overcoming issues concerning the allocation of resources and price discrimination, whereas Macroeconomics focuses on upholding issues like employment and national household income.


4. Microeconomics accounts for factors like demand and supply of a particular commodity, whereas Macroeconomics account for the aggregated demand and supply of a nation’s economy.


5. Microeconomics offers a picture of the goods and services that are required for an efficient economy. It also shows the goods and services that might grow in demand in future. Whereas, Macroeconomics helps ensure optimum utilisation of the resources available to a country.


6. Microeconomics helps point how equilibrium can be achieved at a small scale, whereas Macroeconomics help determine the equilibrium levels of employment and income of the nation.


7. Microeconomics also focuses on issues arising due to price variation and income levels, whereas The primary component of macroeconomic problems is income.


Q12. Explain the concept of consumer surplus.

Ans. The concept of consumer behaviour is very important for understanding consumer behaviour.


According to Marshall, “the excess of price which the consumer would be willing to pay rather than go without it, the thing over which he actually does pay is the economic measure of the surplus of satisfaction. It may be called consumer surplus.”


Measurement of Consumer Surplus:

CS = TU – [P*Q]

Here,

CS = Consumer Surplus

TU = Total Utility

P = Price

Q = Quantity


Consumer Surplus = Prepared to Pay – Actual Price Paid


The concept of Consumer Surplus is a relative concept because the term utility is relative, i.e., it differs from person to person as from time to time. Even it differs from commodity to commodity.

In case of necessary commodities whose prices are low, consumer surplus will be higher than the high price of luxuries.


Q13. Write the features of Perfect Competition.

Ans. Perfect Competition refers to the market situation where there are large number of buyers and sellers engaged on buying and selling homogenous products at a uniform price.


Features:

Features of Perfect Competition are as follows: -


1. Large number of Buyers and Sellers –

  1. Quantity bought and sold by the buyer and the seller is so small that no single buyer or seller can influence the market price.
  2. Output of a single firm is only a small portion of the total output, and demand of a single buyer is only a small portion of the total demand.
  3. Hence, the market price has to be taken as given and unchangeable by any buyer or seller.


2. Homogenous Product –

  1. Products produced and sold by the producer are homogenous.
  2. They are standardised and identical.
  3. Products of various firms are more or like same. They are perfect substitutes to each other.


3. Free Entry and Exit –

  1. The firms in the perfect competition have the freedom to start or close their businesses.
  2. Under perfect competition, all firms earn normal profit. When new firms enter into production, extra profit earned by old firms will be shared with the new firms.
  3. If profit is less, then some firms will stop producing and consequently the profit of the remaining firms will rise.


4. Perfect Knowledge –

  1. In perfect competition, buyers and sellers are fully aware of the price that is being offered and expected, product quality and other relevant market factors.
  2. All the buyers are expected to know market price of the product. Hence, sellers can’t change the price.


5. No Transport Cost –

  1. The cost of moving goods between sellers and buyers is considered negligible or zero, ensuring a uniform price for a homogeneous product across the market.


6. Price Takers –

  1. Firms in a perfectly competitive market are price takers, meaning they must accept the market price determined by the forces of supply and demand.


7. Uniform Price –

  1. There is a single uniform price for the product in the market, determined by the overall demand and supply. 


Q14. Describe the role of monetary policy in economic development.

Ans. Monetary policy, managed by a country's central bank (like the RBI), influences the economy by controlling the supply of money and credit and adjusting interest rates. Its main contributions to economic development are:


1. Price Stability and Inflation Control:

  1. Goal: Maintaining a low and stable rate of inflation.
  2. Impact: Price stability is arguably the most crucial role. High and volatile inflation creates uncertainty, discourages savings, distorts investment decisions, and erodes the value of money. By controlling the money supply and credit, the central bank maintains confidence in the currency and allows businesses and households to plan for the future, which is essential for long-term investment and sustainable growth.


2. Promoting Capital Formation and Investment:

  1. Mechanism: An expansionary monetary policy (lowering interest rates) reduces the cost of borrowing for firms, making investment projects more profitable.
  2. Impact: Lower rates encourage businesses to expand their productive capacity (capital formation), which directly contributes to higher economic output and job creation. Conversely, contractionary policy helps prevent an overheated economy and unsustainable investment booms.


3. Ensuring Adequate Credit Flow:

  1. Mechanism: The central bank manages liquidity and credit conditions. It can use tools like the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) to ensure commercial banks have enough funds to lend.
  2. Impact: Directing credit to productive sectors and strategic industries, often through qualitative tools or concessional schemes, can accelerate specific areas of economic development, such as infrastructure, agriculture, or small and medium-sized enterprises (SMEs).


4. Maintaining Exchange Rate Stability:

  1. Mechanism: The central bank intervenes in the foreign exchange market by buying or selling foreign currency.
  2. Impact: A relatively stable exchange rate is vital for international trade and attracting Foreign Direct Investment (FDI). Excessive currency volatility can deter exporters and investors, thus hampering development efforts that rely on global integration.


By effectively executing these roles, monetary policy supports full employment and a stable foundation, allowing the economy to realize its maximum growth potential.


PART – C


Answer the following questions in 400 words each. Attempt any three of your choice. (3 x 8 = 24)


Q15. What is elasticity of demand? Describe various types of elasticity of demand.

Ans. The term Elasticity of Demand refers to the degree of co-relation between price and demand. It is the measure of responsiveness to the change in price. 


Types of Elasticity:

The quantity demanded of a commodity may change as a result of change in its determinants like price, income of the consumer, and price of related goods.

There are three types of elasticity:

  1. Price Elasticity
  2. Income Elasticity
  3. Cross Elasticity


1. Price Elasticity of Demand –

It refers to the responsiveness of quantity demanded of a commodity to a change in its price given the consumer income, his taste and price of all other goods.

The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price.

Ed =%ΔQd / %ΔP


Categories of Price Elasticity of Demand:

Elasticity of Demand can be divided into 5 categories: -

  1. Perfectly Elastic
  2. Elastic
  3. Unitary
  4. Inelastic
  5. Perfectly Inelastic


a. Perfectly Elastic demand [Ed = ∞] - Perfectly elastic demand describes a situation where any price increase, even a tiny one, leads to a complete drop in quantity demanded to zero. This occurs when there are numerous perfect substitutes available, and consumers will switch to a different product immediately if the price of one good increases. The demand curve for a perfectly elastic demand is a horizontal line.


b. Elastic Demand [Ed > 1] – Elastic demand refers to a situation where the quantity demanded of a product or service changes significantly in response to a change in its price. In simpler terms, if a small price change leads to a large change in the amount people buy, the demand is considered elastic.

 

c. Unitary Elastic Demand [Ed = 1] – Also known as unitary elasticity, it occurs when a change in price leads to an equal proportional change in the quantity demanded. In simpler terms, if the price of a product changes by a certain percentage, the quantity demanded of that product will change by the same percentage, resulting in a constant total revenue. 


d. Inelastic Demand [Ed < 1] – Inelastic demand means that a change in price has a relatively small effect on the quantity of a good or service demanded. Consumers will purchase the good or service regardless of whether the price is low or high. Such examples of products that have inelastic demand are life-saving medications such as insulin.


e. Perfectly Inelastic Demand [Ed = 0] – Perfectly inelastic demand is a situation where the quantity demanded of a good or service remains constant, regardless of changes in its price. This means that consumers will purchase the same amount of the product, whether the price is high or low. A perfectly inelastic demand curve is represented by a vertical line on a graph, or parallel to y – axis.


2. Income Elasticity of Demand –

It shows the degree of responsiveness of quantity demanded of goods to a change in income of the consumer.

Income Elasticity = Proportionate Change in Purchase of a Commodity / Proportionate change in Income


3. Cross Elasticity –

Generally, most of the commodities have substitutes or complimentary goods. The demand for the good is not only the function of the price but other things like income of the consumer, price of substitutes and complimentary goods. The cross elasticity of demand can be extended to a situation where two commodities are related to each other. It is the ratio of percentage change in demand of one good to the percentage change in price of the other good.

Cross Elasticity = % change in demand for commodity X / % change in price of commodity Y


Q16. Explain the properties of indifference curve.

Ans. Properties of Indifference Curve are as follows:


1. Indifference Curve slopes downward from left to right.

An indifference curve always slopes downward from left to right (i.e., it has a negative slope).


Explanation: This property is based on the assumption that the consumer's preferences are monotonic ("more is better") and that they are dealing with two desirable goods. If the consumer increases the consumption of one good (moves to the right on the graph), they must reduce the consumption of the other good (move down) to keep the total level of satisfaction (utility) exactly the same. If the curve were upward sloping, it would imply that a consumer is equally satisfied with a bundle containing more of both goods, which violates the assumption of monotonic preference.


2. Indifference Curve is convex to the origin; IC tends to decline.

A standard indifference curve is always convex (bowed inward) toward the origin (0,0) of the axes.


Explanation: This shape is due to the Law of Diminishing Marginal Rate of Substitution (MRS).


  1. Marginal Rate of Substitution (MRSx,y): This is the rate at which a consumer is willing to give up a small amount of Good Y to get one additional unit of Good X, while remaining on the same indifference curve (i.e., maintaining the same level of utility).


  1. Diminishing MRSx,y: As a consumer consumes more of Good X, the amount of Good Y they are willing to give up for yet another unit of X steadily decreases. This is because the consumer's relative valuation of Good X decreases as its stock increases (similar to the Law of Diminishing Marginal Utility).


  1. Geometrically, the MRS is the absolute value of the slope of the IC. Since the MRS diminishes as we move down the curve, the curve must become flatter, resulting in the convex shape.


3. Higher Indifference Curves Represent Higher Levels of Satisfaction.

Indifference curves that lie farther away from the origin (to the upper-right) represent higher bundles of goods and, therefore, a higher level of total satisfaction (utility).


Explanation: Since an indifference curve represents a constant level of utility, a curve lying above and to the right of another must contain combinations that have either more of both goods or more of at least one good and no less of the other. Because of the assumption of monotonic preference ("more is better"), a combination with more goods must be preferred and therefore yield a higher level of satisfaction.


4. Indifference Curves Cannot Intersect.


5. Indifference Curves Do Not Touch the Axes; X Axis and Y Axis.

An indifference curve generally does not touch either the X-axis or the Y-axis.


Explanation: If an indifference curve touches the Y-axis, it means the consumer is willing to consume a combination that includes zero units of Good X. Indifference analysis typically assumes the consumer is considering a combination of two goods, and the full theory of choice usually requires both goods to be consumed.


Note: This property is sometimes relaxed for goods that are perfect substitutes (resulting in a straight-line IC) or perfect complements (resulting in an L-shaped IC), but it holds for the typical case of imperfect substitutes.


Q17. Define National Income. Describe various methods of its measurement.

Ans. It is generally defined as income of the nation. It reveals the nature of economic activities in a country. It also gives us an idea of a country’s aggregate economic activity.


According to Alfred Marshall, “the labour and capital of a country acting on its natural resources, reduced annually a certain net aggregate of commodity and material including services of all kinds.”

Hence, Net means from the gross value of output, the depreciation must be deducted.


According to National Income Committee of India, “a national income estimates and measures the volume of commodity and services produced during a given period.”


National Income has 3 interpretations:

  1. Income
  2. Consumption
  3. Saving


Features:

Features of national income are as follows: -

  1. It is calculated every year.
  2. It includes different kind of services rendered by the people in society.
  3. It includes only those consumption and savings that can be measured in terms of money.
  4. While calculating National Income, the possibility of double counting must be avoided.
  5. National Income considers the actual and final consumption of goods and services.


Estimation of National Income:

There are 3 methods for estimating National Income: -


1. Product Method or Value Added Method –

Value Added = Value of Output – Intermediate Consumption

Value of Output = sales + change in stock

Sales = Quantity x Price

Change in Stock = closing stock – opening stock


GVAmp = GDPmp

GVAmp of Primary Sector + GVAmp of Secondary Sector + GVAmp of Tertiary Sector = GDPmp

NDPfc (domestic income) = GDPmp – Depreciation – Net indirect taxes

National income (NNPfc) = NDPfc + NFIA


Precautions –

Precautions to take while using product method: -


a. Avoid double counting - Value of intermediate goods is not included in the estimation of National Income to avoid problem of double counting.

Problem of double counting refers to the counting of the value of a good or service, more than once in the estimation of national income.


Two approaches to correct problem of double counting:

  1. Final output Method: Value of only the final goods and services should be added to determine national income.
  2. Value Added Method: Sum total of the value added by all firms should only be taken in consideration. Value of intermediate consumption should not be taken.


b. Do not include sale of second hand goods.

However, any brokerage or commission paid to sell the second hand goods is a fresh production activity, so brokerage or commission is included.


c. Imputed Value of self-consumed output must be included in national income.


2. Income Distribution Method –

Domestic Income (NDPfc) = Compensation of employees + Operating surplus + Mixed income

  1. Compensation of employees includes: (a) Wages and salaries in cash and in kind. (b) Social security contributions by the employers.
  2. Operating surplus/Income from property and entrepreneurship/ Non-wage income includes: (i) Rent (ii) Royalty (iii) Interest (iv) Profit.
  3. Mixed income of self-employed – it is the combined income earned by self-employed people rendering their productive services.

National income (NNPfc) = NDPfc + NFIA


Precautions:

Precautions to take while using income distribution method: -


a. Avoid Transfers - National income includes only factor payments/income. Transfers are not a production activity; it should not be included.


b. Avoid Capital Gain - Income from sale of old cars, old house, etc. is not included since these are not production transactions. Income from sale of financial assets, e.g., shares, bonds, debentures, etc. are not included as such transactions are mere paper claims and do not lead to value addition.


c. Include income from self-consumed output - e.g. imputed rent of own factory should be included in national income since the house provides housing services.


3. Expenditure Method –


Components of GDPmp by Expenditure Method: -

  1. Private Final Consumption Expenditure (PFCE)
  2. Government Final Consumption Expenditure
  3. Gross Domestic Capital Formation (GDCF) = Gross domestic fixed capital formation + Net change or addition in stock OR, GDCF = Net domestic fixed capital formation + Depreciation + Closing stock – Opening Stock
  4. Net exports: Exports – Imports


GDPmp = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net exports (or – Net imports)


National income (NNPfc) = GDPmp – Depreciation – Net indirect taxes + NFIA


Precautions:

Precautions to take while using Expenditure Method: -


a. Avoid intermediate expenditure - Expenditure on ‘intermediate goods’ like that on raw materials, etc. should not be included.


b. Do not include expenditure on second hand goods and financial assets.


c. Avoid transfer expenditures - Expenditure on transfer payments (e.g. Charities, donations, gifts, scholarships, etc.) should not be included.


Q18. What do you mean by unemployment? Explain various employment generation programmes in India.

Ans. Unemployment is the situation where people actively looking for paid work are unable to find a job. It indicates an underutilization of the labour force and can negatively impact individual well-being through reduced income and morale, and harm the economy by decreasing spending and output. The unemployment rate is a key economic indicator measuring the percentage of the total labour force that is unemployed.


Types of Unemployment –

Unemployment can be categorised into various forms such as: -


1. Seasonal Unemployment –

It is caused by time pattern of a particular occupation. It is found in particular industries or in agriculture sector through seasonal variation in their activity brought about by climate change. It occurs due to lack of productive work during certain period of the year.


2. Frictional Unemployment –

It occurs due to economical friction or bottleneck. It takes place due to several reasons.

For eg.: it may occur due to change in demand. Such changes in demand may take pace due to mere changes in consumer’s taste and preferences.

It may also occur due to economic progress or introduction to new machinery or techniques. It occurs only for a temporary period and it should not be considered as an unhealthy sign of economy.


3. Disguised Unemployment –

Disguised unemployment, also known as hidden unemployment, occurs when more people are engaged in a job or task than are actually required, resulting in some workers having little to no impact on the overall productivity or output of that job.

This situation, common in the agricultural and informal sectors of developing economies, appears as employment but represents underemployment, where individuals are working below their capacity or on redundant tasks.


4. Structural Unemployment –

Structural unemployment is the mismatch between the skills workers have and the skills employers need, caused by long-term shifts in the economy like technological advancements, globalization, or changes in industries. This leads to persistent joblessness because workers may lack the necessary qualifications for available positions, forcing them to acquire new skills or relocate to find suitable work.


5. Cyclical Unemployment –

It is a common type of unemployment in an industrially developed capital economy. It occurs due to changes in trade cycle or business cycle.

It refers to the joblessness that results from downturns in the economic cycle, such as recessions, when businesses reduce hiring and lay off workers due to decreased consumer demand and production. It fluctuates with the economy's ups and downs, rising during economic contractions and falling during expansions.   

For eg.: mass layoff during Covid-19 pandemic, when overall economic activity slowed significantly, leading to widespread unemployment.


6. Technological Unemployment –

It occurs due to rapid technological improvements, that replace human labour with automation or machines, essentially reducing the need for workers in certain sectors. As a result, causing loss of jobs.


Employment Generation Schemes in India:

Various employment generation schemes in India are as follows: -


1. Swarna Jayanti Gram Swarozgar Yojana (SGSY) –

  1. Launched – April 1, 1999
  2. Objective – to organize rural below poverty line households into self-help groups and link them with training, credit, technology and markets so that they can take up self-employment and create income-generating assets.
  3. The scheme was implemented on a cost-sharing basis of 75:25 between the Centre and State Governments and had special focus on vulnerable sections such as Scheduled Castes, Scheduled Tribes, women and persons with disabilities. 
  4. It was restructured and renamed the National Rural Livelihoods Mission (NRLM) and subsequently Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) in 2016.


2. Swarna Jayanti Shahari Rozgar Yojana (SJSRY) –

  1. Operated from – December 1, 1997
  2. The scheme provides gainful employment to the urban unemployed and underemployed poor by encouraging the setting up of self – employment ventures by the urban poor and also by providing wage employment and utilising their labour for construction of socially and economically useful public assets.
  3. It has five components –
  4. The Urban Self – Employment Programme;
  5. The Urban Women Self – Help Programme;
  6. Skill Training for Employment Promotion amongst Urban Poor;
  7. Urban Wage Employment Programme; and
  8. Urban Community Development Network.
  9. it was restructured and renamed the National Urban Livelihood Mission (NULM) in 2014-15. The NULM is the current program that provides gainful employment to the urban poor through self-employment and wage employment opportunities. 


3. Pradhan Mantri Rozgar Yojana (PMRY) –

  1. Launched on – October 2, 1993
  2. It was designed to provide self – employment to more than a million educated unemployed youth by setting up of 7 lakh micro – enterprises under 8th five - year plan.
  3. PMRY was replaced with Swarna Jayanti Shahari Rozgar Yojana (SJSRY) in 1997.


4. National Rural Employment Programme (NREP) –

  1. Launched in – October 1980
  2. Aimed at – generating employment opportunities in rural areas by creating durable community assets.
  3. NREP was a centrally sponsored scheme, with the central and state governments sharing the financial burden.
  4. It focused on providing wage employment to the rural poor, thereby improving their income levels and quality of life.
  5. NREP was later merged with Rural Landless Employment Guarantee Programme in 1989 to form Jawahar Rozgar Yojana.


5. Rural Landless Employment Guarantee Programme –

  1. Launched on – August 15, 1983
  2. Aim – at providing guarantee of employment to at least one member of the landless household for 100 days in a year.
  3. Infrastructural development was undertaken with a view to create employment opportunities for rural landless households.


6. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) –

  1. Launched in – 2005
  2. It provides at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work.
  3. Workers are entitled to the statutory minimum wage.
  4. MGNREGA acts as a safety net, providing employment when other opportunities are scarce.


7. Atmanirbhar Bharat Yojana (ABRY) –

  1. Launched on – 1st October 2020
  2. Aim/Objective - to incentivize employers for creation of new employment and restoration of loss of employment during Covid-19 pandemic.
  3. Since inception of the scheme, as on 31.03.2024, benefits have been provided to 60.49 lakhs beneficiaries in the country.


8. Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) –

  1. Launched on – 1 April 2016
  2. Aim/Objective - to incentivise employers for creation of new employment.


9. National Career Service (NCS) Project –

  1. Ministry of Labour and Employment, Government of India, is running the National Career Service (NCS) Portal which is a one-stop solution for providing career related services including jobs from private and government sectors, information on online & offline job fairs, job search & matching, career counselling, vocational guidance, information on skill development courses, skill/training programmes etc. through a digital platform.


10. Rural Self Employment and Training Institutes (RSETIs) –

  1. Rural Self Employment and Training Institutes (RSETIs) is a Bank led Ministry of Rural Development (MoRD) funded training institution established by the Sponsor Banks in their Districts, to provide training for Skill and Entrepreneurship Development.
  2.  MoRD extends financial support for the construction of RSETI building and also bears the cost of training the Rural Poor candidates. 
  3. Any unemployed youth in the age group of 18-45 years having an aptitude to take up self-employment or wage employment and having some basic knowledge in the related field can undergo training at RSETI. Some of the trained candidates may also seek regular salaried jobs / wage employment.