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4 lakh in 2004-05. However, it was less than UP (590 lakh) and Bihar (369.2 lakh) under BPL. Though the percentage of people below poverty line in Maharashtra has declined, from 36.9% of the total population in 1993-94 to 30.7% in 2004-05, the rise in absolute numbers of the poor is significant because Maharashtra is India's second largest state in terms of population, and with 10 crore people, accounts for 9.4% of the country's population. However, some economists are of the opinion that these figures are on the conservative side and do not fully convey the dismal picture in the state. Economist Achyut Godbole asserts that a distinction needs to be made of BPL norms for the rural and urban areas. Once this is done, considering the different costs of living of the respective areas, number of people living under BPL would escalate. The past two years (2007-09) have witnessed the closure of nearly 60,000 small scale units in the state, pushing 3,38,000 workers into unemployment. In the same period,1282medium scale industrial units closed down, rendering 2,12,465 workers jobless.

 

Some of the reasons stated by economists for the rise in poor are:

 

The state has not received any new investment and industries have been shifting out of the state.

 

The state government has not adequately supported the agricultural sector, despite Maharashtra having a strong agricultural base. Instead of supporting core agricultural activities in which the poor are directly involved, the state government has only been creating irrigation projects, which do not benefit either the poor farmers or agricultural labourers. As most of the irrigation projects are given on contract basis, debts have been mounting in the state's account books.

 

Social Security

 

Government extends EPF and Pension facilities to all international workers

 

The central government, vide two separate notifications dated 1 October 2008, has extended the Employees' Provident Fund and Pension Scheme to all international workers. International worker refers to a foreign employee, working for an establishment in India to which PF Act applies. Thus, the expatriate employees will normally fall in the definition of international worker. As per the new amendment, every expatriate employee employed with an establishment to whom EPF scheme applies, irrespective of the salary earned by him, is required to participate in the EPF scheme. In the context of the EPF scheme, the Social Security Agreements (SSA) entered by India with other countries assume special importance. At present India has SSA with three countries only, namely Germany, France and Belgium. The Ministry of Labour is working towards securing SSAs with various countries such as Netherlands, USA, Australia, Switzerland, Norway, Sweden, Luxembourg etc.

 

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