2022 · GS Paper 2 · Q16 · 15 marks
Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss.
In short
Welfare schemes alone cannot protect the poor, because inflation erodes their real value and only productive jobs build lasting incomes, so price stability and employment-intensive growth must accompany them. Retail inflation touched 7.79% in April 2022 as households recovered from pandemic job losses.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 279 words
Inflation erodes transfers
The NSAP old-age pension has stayed at ₹200 a month since 2007, losing real value every year.
A regressive tax
Food weighs about 37% in the new CPI (base 2024) basket and more in poor budgets, which have no savings to absorb shocks.
No substitute for jobs
MGNREGA demand surged in 2020-21 as migrants lost work, needing a record allocation of over ₹1.1 lakh crore.
Price stability
The 2016 RBI Act amendment set a 4% (plus or minus 2%) inflation target, and free grain under PMGKAY from 2023 shielded poor households from food inflation.
Employment-intensive growth
Textiles, food processing, construction and MSMEs, backed by the 2020 Emergency Credit Line Guarantee Scheme, absorb low-skilled workers.
Index and coordinate
Link pensions to prices, as MGNREGA wages follow the CPI for agricultural labourers, and target subsidies so they do not stoke inflation.
Jobs with security
Scale urban job guarantees like Rajasthan's 2022 scheme and link e-Shram's 30 crore registered workers to social security.
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Welfare Schemes9 questions
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Question from the official UPSC Civil Services (Main) Examination 2022 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.