Top Government Schemes That Have Benefited People

1 February, 2024

Indian Government Schemes, as the name suggests, are backed by the government to provide financial aid to all classes of society. Various schemes are launched from time to time to fulfil different objectives. For instance, when the pandemic started, the government started providing relief packages of ₹1.7 lakh crore in the form of insurance to the below-marginalised population. We look at the many important schemes launched in the past few years, and the visible progress they have made since their inception. Here is a list of government schemes that have benefited citizens across the country.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

The Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme is a social security scheme launched to make basic financial services like a savings bank account, deposits, remittance, credit, pension and insurance affordable to all. As part of this scheme, you can open a basic savings bank deposit (BSBD) in any bank branch or business correspondent outlet. A few salient features include zero minimum balance, interest on the Savings Account, and a Debit Card with accident insurance cover of ₹2 lakh. Moreover, these accounts qualify for other social security schemes as well, such as Direct Benefit Transfer (DBT), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY), and Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

Until January 17, 2024, the total deposits across public, regional, rural cooperative and private sector banks are numbered at ₹2.17 lakh crore, and over 35.05 crore beneficiaries have been issued Debit Cards.

Make in India

The main reasons why corporates opt to manufacture goods overseas are the low manufacturing costs, high taxes on imported raw materials, and the Goods and Services Tax (GST). The Make in India initiative was launched in 2014 with the aim of manufacturing products in India instead of overseas.

In terms of progress, top players in the automobile sector have set up their manufacturing units in different states across the nation. The influx of Foreign Direct Investments (FDI) has led to rapid growth in the Information Technology (IT) sector. Investments have been made in oil refineries so that we no longer have to depend on the Gulf or the South American countries for petroleum.

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

The objective of the PMKSY scheme is to increase investments in irrigation to expand the farming area and improve the efficiency of water usage. By adopting a decentralised state-level planning and projected execution structure, states can establish their own irrigation plan. Since 2016, an outlay of more than Rs 50,000 crore has been implemented across the country. As per the data released on the official website, over 9.38 lakh hectares of area have been covered under this scheme.

Employees’ Pension Scheme (EPS)

One of the Government schemes in India, the EPS was introduced in 1995 by the Employee Provident Fund Organisation (EPFO). Through EPS, employees can avail of a pension once they reach 58 years of age. You and your employer each contribute 12% of your basic salary and Dearness Allowance (DA) towards the Employee Provident Fund (EPF). While your entire contribution goes to EPF, 8.33% of your employer’s contribution goes towards EPS. Funds from your EPS account act as an income source after you retire. Unlike equity schemes, EPS is backed by the government; therefore, returns are guaranteed. Employees who earn a basic salary and DA of ₹15,000 or less have to enrol for EPS mandatorily. Even when you change jobs, your EPS account continues to exist until you retire.

Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is a pension scheme designed for unorganised sector workers in India. It aims to provide financial security during their retirement. The scheme offers a guaranteed minimum pension ranging from ₹1,000 to ₹5,000 per month, depending on the subscriber's contributions starting at the age of 60. The government guarantees the minimum pension, ensuring that if the actual returns on contributions are less than assumed, the shortfall will be covered by the government. Conversely, if returns exceed assumptions, the excess amount is credited to the subscriber's account. Additionally, APY enjoys favourable tax treatment for the contributors under the National Pension System (NPS). It provides tax benefits for contributions and exempts the purchase price of the annuity on exit from taxation.

Pradhan Mantri Ujjwala Yojana 2.0 (PMUY)

The Pradhan Mantri Ujjwala Yojana 2.0 (PMUY) was introduced as a flagship scheme by the Ministry of Petroleum and Natural Gas. The scheme aims to provide clean cooking fuel, such as Liquified Petroleum Gas (LPG), to rural and deprived households that were using traditional and harmful fuels like firewood and cow-dung cakes. Initially, this scheme was targeted to release 8 crore LPG connections to deprived households by March 2020. On September 7, 2019, the 8th crore LPG connection was handed over in Aurangabad, Maharashtra. The scheme's success led to Ujjwala 2.0, with an additional allocation of 1.6 crore LPG connections, specifically addressing migrant households. The target of 9.6 crore connections under Ujjwala 2.0 was achieved in December 2022. Now, with the government's approval, an extra 75 lakh connections will be released to bring the overall target under the PMUY scheme to 10.35 crore.

Pradhan Mantri Awas Yojana - Urban (PMAY-U)

Pradhan Mantri Awas Yojana - Urban (PMAY-U) was initiated in June 2015 under the Ministry of Housing and Urban Affairs. This scheme is aimed at providing weather-resistant, permanent houses to eligible beneficiaries in urban areas across India. The scheme covers all urban areas, including statutory towns according to the 2011 Census and those notified subsequently. It is implemented through four verticals, namely Beneficiary Led Construction/Enhancement (BLC), Affordable Housing in Partnership (AHP), In-situ Slum Redevelopment (ISSR), and Credit Linked Subsidy Scheme (CLSS). In August 2022, the Union Cabinet approved the extension of PMAY-U until December 31, 2024, excluding CLSS but including all other verticals for completing sanctioned houses by March 31, 2022.

The Government schemes in India are crucial when it comes to the welfare of society. Since they are backed by the central or state government, they can be availed by all classes of society. From financial services to insurance services, you can find several types of such schemes. With the Union Budget nearing, we can look forward to the probability of newer schemes. Click here to know more.

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