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24 Mar 2025
GS Paper 3
Economy
Day 14: ‘Inclusive growth is both a process and an outcome.’Discuss it in the Indian context. (Answer in 200 words)
Approach
- Start your introduction with definition to inclusive growth.
- Explain how growth led to inclusion, and growth should be synchronised with inclusivity.
- Write a suitable conclusion.
Introduction
The Organization for Economic Co-operation and Development (OECD) defines inclusive growth as economic growth that is distributed fairly across society and creates equal opportunities for all.
Body
Growth results in inclusion in the following way:
Employment generation: Economic growth produces jobs and provides livelihood opportunities. As per the Global Multidimensional Poverty Index 2022 released the United Nations Development Programme (UNDP), in India, 415 million people exited poverty between 2005-06 to 2019-20.
Bridging regional disparity: Infrastructural development projects and programs like Sagarmala, Bharatmala, Parvatmala Pariyojna, etc.
Redistribution: Economic growth creates resources for the government through taxation which are deployed for welfare schemes targeted at vulnerable sections such as in public education, health & sanitation, skill development programmes etc.
Intergenerational development: Livelihood generation provides financial capacity and awareness about availing education opportunities, improving health and nutrition which have inter-generational effect on ending poverty.
However, challenges like unemployment, low female labor force participation rate, disguised unemployment in agriculture sector and slowing down of manufacturing sector have defied the promise of inclusion.
Thus, it has been argued that inclusion needs to be made a part of the growth process itself, such as:
Giving adequate political representation: Like reserving seats for women in Lok Sabha on the same line as given to SCs/STs.
Promote food and nutritional security: Expand the coverage of public distribution system under National Food Security Act 2013, universal immunization programme, food fortification. These measures will help the country move towards SDG goal of Zero Hunger.
Educational equality and skill development: Programmes such as Sarva Sikha Abhiyan have helped achieve almost 100% Gross Enrolment Ratio (GER) and gender parity in primary education. Skill India Program providing vocational training etc.
Good Governance: Corruption affects growth of businesses, and undermines equitable distribution of growth’s benefits. Good governance helps provide level-playing field in economy, prevents the misuse of public funds and authority by ensuring transparency and accountability. E.g., DBT, PM SVAMITVA Scheme, JAM trinity, etc.
Financial Inclusion: Access to financial services to vulnerable groups at affordable cost through the Pradhan Mantri Jan Dhan Yojana has helped in promoting the culture of savings, and a commendable role played by SHGs and NGOs which initiates a virtuous cycle of economic development.
Conclusion
Improvement in public health and education facilities, providing industry-oriented skill development, development of backward area (with schemes like Aspirational District Programme) and giving due importance to environment will help in making the growth process more inclusive.
