What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyse and suggest measures for inclusive growth. (UPSC IAS Mains 2017 General Studies Paper – 3)
Inclusive growth is economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society. The salient features of inclusive growth are:
- Participation:People are able to participate fully in economic life and have greater say over their future. People are able to access and participate in markets as workers, consumers and business owners.
- Equity:More opportunities are available to enable upward mobility for more people. All segments of society, especially poor or socially disadvantaged groups, are able to take advantage of these opportunities.
- Growth:An economy is increasingly producing enough goods and services to enable broad gains in well-being and greater opportunity. Economic growth and transformation is not only captured by aggregate measures of economic output (such as GDP), but must include and be measured by other outcomes that capture overall well-being.
- Stability:Individuals, communities, businesses and governments have a sufficient degree of confidence in their future and an increased ability to predict the outcome of their economic decisions.
- Sustainability:Economic and social wealth is sustained over time, thus maintaining inter-generational well-being. Economic and social wealth comprises of a set of assets that contribute to human well-being, including human produced (manufactured, financial, human, social) and natural capital.
India’s economy continues to grow at an impressive rate, with projected annual GDP growth of 7.5% in 2017-18. As GDP per capita has more than doubled in last ten years, extreme poverty has declined substantially.
- Access to education has steadily improved, and life expectancy has risen.
- Financial inclusion has got a major boost with the expansion of rural banks and schemes like Jan-DhanYojna, incorporation of Information and Communications Technology (ICT) (JAM Trinity).
- Job, education and food entitlement schemes like MGNREGA, RTE and Right to Food are also helping in deepening the growth further.
However India still is home to largest number of poor and malnourished children. Recent reports are suggesting huge income concentration in the hands of few. With looming agrarian distress and jobless growth, inclusive growth is still a distant dream for India.
According to WEF report, India has been ranked 60th among 79 developing economies, below neighbouring China and Pakistan, in the inclusive development index.
Measures for inclusive growth
- Equity of access to quality basic education including basic financial literacy. Ex: RTE
- Ensuring quality health and sanitation facilities by making health a fundamental right.
- Gender parity measures through political representation, women reservation.
- Measures focused on social security benefits and gender parity, for ex., through gender budgeting.
- Creating employment opportunities through Make in India, Skill India etc.
Through these measures inclusive growth can be ensured and the Gandhian dream of reaching to the last man standing in the row can be achieved.
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