Q. What are the components of ‘inclusive growth’? Highlight the measures taken by the government to achieve the goal of inclusive growth? (Answer in 150 words)
Modal Answer
Indian economy has grown 10 times since 1991, however widening socio-economic inequalities, rural-urban divide, unemployment, high informalisation of labour (>90%), etc. has put India at lower end of Inclusive Development (WEF Index: Rank 62/72 nations).
Inclusive growth refers to an economic growth that creates opportunities for all and distributes the dividends of increased prosperity fairly across society.
Components of inclusive growth:
- Rapid economic growth: That creates well paying jobs, balanced regional growth, reduces poverty, and increases govt’s revenues for developmental expenditures.
- Access to essential services: Health, nutrition, education, water, sanitation, housing, Technology etc. for poor.
- Skill development: To harnessing the potential of demographic dividend (India has 65% workage population)
- Social Protection: through direct transfers and redistribution è‘safety net’ against poverty & inequality.
- Financial inclusion: increased savings & choices for all and source of ‘investible surplus’ for funding economic growth
- Empowerment of Vulnerables: Recognition of women’s agency & upliftment of SC/STs, PwD, Senior citizens etc.
- Good Governance: Institutions & processes must empower local communities to hold their governments accountable.
- Environmental Sustainability: Focus on Planet & People, along with Profits for sustainable growth.
Measures taken by govt to achieve inclusive growth:
- Universalising Healthcare: National health Mission, Ayushman Bharat, ICDS, Janani Suraksha Yojana etc.
- Education & Skill development: NEP 2020, E-pathshala, PM-Kaushal Vikas Yojana, DESH-Stack e-portal etc.
- Employment & Entrepreneurship: National Livelihood Mission, MGNREGA, Stand up India,
- Opportunities for vulnerables: “Rights Based approach” (right to education, food, work), PM Awaas Yojana etc,
- Financial inclusion: Jan Dhan Yojana, Mudra bank scheme, Atal Pension scheme, PM Shram Yogi Mandhan Yojana etc
- Agricultural development: PM-AASHA, PM-KISAN, land reforms, e-NAM, PM KUSUM etc.
- Balanced regional growth: Aspirational districts
- Digital Inclusion: Digital India, Digital Literacy Mission etc.
Way forward:
- Comprehensive Agri-Reforms: with focus on high value Horticulture, Dairy, Fisheries etc. & land reforms.
- Structural transformation: Shifting to more productive economic activities Eg. High-end manufacturing & services
- Gainful employment: with focus on labour intensive sectors (Textile, Tourism, Food processing etc) & Labour reforms.
- Building on human capabilities: Health, education & skill (Amartya Sen). For eg. Mexico-OPORTUNIDADES
- Social Safety Net & Women-Led Development
To truly realise the goal of Inclusive growth, tackling 3 fronts - Economic (Poverty & Unemployment) + Social (Inequality) + Political (Will & Skill) will serve to put vulnerables at the heart of India’s growth story.
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