UPSC CSE 2025

PRELIMS REVISION
PROGRAMME

ECONOMY REVISION
By Dr. Shivin Chaudhary
 in India
skilling
India's
framework
↓
Before 2014
:

National
policy Skilldevt (2009) skill 800 million 2022
by
on -

PM's National Councilon - >

Polici architecture
Skill deut

Nat" skill devt coordination -

wordinat" b/w
Board Different Ministries

Nath Skill Deut Loans/Funding

initiatestate
Corporation - putsector
49y" 81 %
put
gove National council for vocational training
.
·

Nat" Skill Deut

Agency
- 2013
with NSDC
overlap
·

National Skill Qualification Framework

·
.

After 2017

Ministry of
Skill
Development and Entrepreneurship (201)
Da
of training (attached
office
 New Structure
·
PM council -
X
·
Board -X
NSDC Retained
u/MOSDE
· -

215 - National Skill Devt Mission

Governing Council v/PM

·

Steering committeeo/ Minister

of SDK
y

Executive Arm

L & ~
DGT
NSDA NSDC

2018
NSDD + NCVT =
Nat "Council
and training
for vocational education
.
Other Bodies :

Indian
instofrepren and Small Business Do a

Architecture
Skilling
Current

PMO(coordination)
MOURD &
&

MORP MOSDE
&

NCERT
AICTE DDU-414
Dat" NevET"NSDC.
Petof smo en e
 Schemes
Flagship
① NSDM - 7 submissions

② PM-Kaushal Vikas
Yojana
-

implemented by NSDC

POLICY - MOSDE

Regulation
-
NOVET

PMKVY

I
Short
Recognition of Prior

learning
Term

Training
① SHORT TERM
Training
dropouts/ Industry Relevant (as per NSPF)
Skills

unemployed
t

soft Skills financial literary

,

By centers
:
~
What Next ?
Training o
Placement assistance.
· IVI Hubs
·
Put Providers
② Recognition of Prior
Learning
informal/formal , Sector Skill
council (V/MOSDE) (PIAs)
prio
ecation
butNo
certification or anyoth ag
to

wire
riclassesments &
RPL
camps artificates (aligned to NSPF)
Rs
employer centers

wha if knowledone

Bridge courses .

NSQF

comebased framkwhich
ils
is
outcomes
qualificatioand
etc .

·
levels -1 to 8

levels'
of
the basis
defined on
·

Process Responsibility
L
professional core
professional Skills

Skillswartinga
-

summary knowledge
po Basic and
know Skills
accountability
 National Care Service

MoLabone and
employment
provides employment related services online ,

Stakeholder
·

Registration comprehensive platform

Training provides I

ob employes planations ·
Job
Matching
Carrercomely
·

·
FREE OF LOST ,

> eskram

portals udyam
>
Linked to

c Skill India

SASEEM

·
eshram >
- National dabase
of (MoLabone)
MOMSME
udyam
· -

·
aseem- >
MOSDE- skilled workers .
 Employment- Remaining Topics

① Nature of Employment

employment
formal - Nature
of employments

organised 3 of organisation
Nature is
-

firms
organised Hiringcriteriaa
sunorganised Hierarchy
Roles and
responsibilities
Nature
of employment
Employees Employee
-

Naturrelationship formal/informed.
Lawns -

this
governing
relationship
I

definedess
Labor Laws.
well
formal
Relationship compensation
Salary Hikes
~
 Employment -
mal/informal
No strict-we observe certain
Criteria characters and conclude.

Labor

causlams that
govern employer - employee relationship
as
per can
-
No
formal/informal distinction

these laws have to be

I
complied with
No
exceptions .

regarding facilities per

laws e
eg
-

>
:

morter

↓
Hiring/Retrenchment
PF accounts -
EPFO will check
compliance ,

if someone's % PF contribution
from both
salary
< 201 > 12
and
employer employe .
-
the
Mustcomply
Hire
Employers employees
-
wit

SOLUTION
Hire, but don't
snow as
:
contribution
Hire
companie
Con
employee. professionals &

recognition) lawyers spent

time
lay , ,
,
 Formal/Informal
distinction

govt cannot see

every employment
status and decide
formal or .
not

&

must estimate this

govt
National commission for
employment
in
unorganised sector
L

TDS L
another
PF way
of
Le estimation
accounts

firms

using electricity
"
NOT

using electricity
Check Numbu

of employees
J
L

120 >2
< 10
L

310

forml informal informal formal

Post demonetisation ↑ in PF accounts.

of
-
number
 Deviability
firm-Hiresemployearecognise enforcability /
employees
as

firms become bigger

theirabilitytoNot a
as roge

-
compliance Bueden &↑
SOLUTIONS-O Stay Small-voluntary dwarfism'
② Hire contractual
employees .

regulation
Labour

as
firms become
bigger
Environmental
Regulation
TaxRegulation
s

Monumental compliance
"Nowsish #51
India needs to its
dwarfs to become
giants'
Firms - contractual
employment
& enter into a
job contract--'Task contract
·

Worker but NOT

employe .
Payment per
·
task
=

ex : Teacher-
Payment per class
Doctor-
per patient
~
.
 A worker can be hired in
3
ways
Salaried Professional/
Contractual
Informal
Y
Y

formal rewg Y
·
No
recognition
informable Enfortability continge
·Media
· ·

on

provability as employe.

Contractualisation
workforce
of
- Reduces labone can
Burden.
compliance

Ces NOTgoodor
. emmyis

Scheme announced in
Budget co2n #52
:

Linked Incentives
Employment
FirstTimes-one
month
wage/DBT/upto
10
, 000134- payments
support to EPFO
Formalisation
Mfg
-- -

bou
Burden
Deductions Pr Compliance
Consorttoemployers - contributions in

-a formal
Matching
firms try to avoid y size if they do y size
,
- contractual
employment
perverse Incentives'
for Huge compliance
voluntary dwarfism' costs.

firms less than 100 workers

despite being
> 104 old are >80 %
of all
organised firms
contribution is 14 %
employment
large firms
-
18 %
78 %
employment
> .

Employment
creation - we need
manufacturing
big manufacturing fir ms ,
merely
NOT
.
India needs to mushakle MSMEs

Sunsel
clause for time Deregulation of
Labor lives
Size based Based .
incentives incentives to p compliance breden

Firms -

grow Big-zoptions -Labor a

thisis cl
a
 types of employment
some other

① Fixed term
employment
Mix between contractual and
formal employment .

employment --forlife Non performe are

>any
- is same down.

if Removea
take permissioa
fila

CPI us Labourers
Ministry
>

a stirehouse Agri
indicators of various

employment
Data on ,
Industrial relations ,
SE conditions .

Burden
This creates
compliance
formal employment
3 Solution >
- FTE -

for a fixed amount of time .

1YR extendable
~
ex :

,
② Gig
worker and platform worker
Restaurants
-

> customes
Zomato
Caggregator]
(Platform) Delivery Boys
workers who work on these platforms -
deliver services
directly
ex : Uber Driver
Boy
swiggy delivery .
traditional
Gig
worker work in outside
arrangementsrelationship
,

employee employer
-

freelances
indeeded
s
Past time

professors .
Platform workers

anyog :Gige
as NITI
per Non
platform workers.

Economic
Survey
2023 . 24 /
Shift towards gigeronomy in India
 Types of Workers

Based on
Occupational Categories :

(Basis- Economic Statue

Non-workers
NSO-
classification

Time wage system

Workers are paid based on the time they spend working, such as daily, weekly, or monthly. Wages are
predetermined and steady. This system focuses on quality and pays the same wages regardless of individual
efficiency.

Piece wage system

Workers are paid based on the quantity of output they produce. The more they produce, the more they
earn. This system emphasizes larger quantity and discriminates wages based on skill level, paying more to
efficient workers.
PLFS 2023-24 :
 Prepare for UPSC CSE Prelims 2025 with

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Dr. Shivin Chaudhary Varun Jain Mudit Jain

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