Mains Marathon 2024

Approach Define inclusive growth and its significance for sustainable development. Discuss the intra-generational and inter-generational equity issues related to inclusive growth in India To conclude, propose solutions to create a more equitable society.

Introduction

As per OECD (Organisation for Economic Co-operation and Development), inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all. It means economic growth that creates employment opportunities and helps in reducing poverty.

Body

• The Intra-Generational Equity : Intra-generational equity refers to the principle of fairness and justice within the same generation. It emphasizes the need to ensure that resources, opportunities, and benefits are distributed fairly among individuals and groups living in the same time period.
  • Economic Disparities: Despite significant economic growth, income inequality remains a pressing issue. This disparity hampers inclusive growth and limits opportunities for the underprivileged.
    • According to the World Inequality Report 2022, India is among the most unequal countries in the world, with the top 10% and top 1% of the population holding 57% and 22% of the total national income respectively.
  • Access to Basic Services: Access to education, healthcare, and employment opportunities varies significantly across socio-economic groups.
    • As per Census 2011, literacy rate of Scheduled Tribes (STs) was 59% whereas the overall literacy rate was 73% at all India level
    • As per the Annual Status of Education Report (ASER) 2023, about 25% of the age group (14-18) still cannot read a Std II level text fluently in their regional language..
  • Regional Disparities: There are stark differences between urban and rural areas and among states in India.
    • According to the SDG India Index 2023, states such as Kerala and Tamil Nadu achieve high scores due to their successful poverty alleviation programs. In contrast, states like Bihar and Jharkhand face higher poverty rates, which negatively impact their overall performance on the SDG index.
• The Inter-Generational Equity: Inter-generational equity refers to fairness between different generations, ensuring that future generations inherit a viable environment and economic opportunities. Key issues include:
  • Environmental Sustainability: Current economic activities often prioritize short-term gains over long-term sustainability.
    • The Environmental Performance Index (EPI) 2024 ranked India 176^th out of 180 countries in terms of environmental health, indicating the pressing need for sustainable practices to protect resources for future generations.
  • Debt and Fiscal Responsibility: Rising public debt poses a challenge for future generations.
    • India's public debt reached approximately 81% of GDP in 2023, which may limit the government’s ability to invest in essential services and infrastructure for future generations.
  • Investment in Human Capital: Investing in education and skill development is crucial for empowering the future workforce.
  • According to the National Skill Development Corporation (NSDC), India needs to train 500 million individuals by 2022 to meet the demands of a rapidly changing job market. Failure to invest in human capital can hinder future generations' growth opportunities.

Conclusion

Intra-generational and inter-generational equity issues are critical to achieving inclusive growth in India. To create a more equitable society in India, implement progressive taxation and inclusive economic reforms, ensure universal access to quality education and healthcare, promote sustainable resource management, empower marginalized communities, and involve citizens in participatory governance. These measures will address disparities and foster inclusive growth for a sustainable future.