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GS Mains Model Question & Answer: What do you mean by ‘Inclusive Growth’? How is the government working for this?

GS Mains Model Question & Answer: What do you mean by ‘Inclusive Growth’? How is the government working for this ?

Q. What do you mean by ‘Inclusive Growth’? How is the government working for this ? (12.5 Marks)

(General Studies Mains Paper III- Economy : Inclusive growth and issues arising from it)

Model Answer :

Inclusive growth is a concept that advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society.

Inclusive growth basically means making sure everyone is included in growth, regardless of their economic class, gender, sex, disability and religion. Inclusive growth approach takes on long term perspective and the focus is on productive employment rather than merely direct income redistribution as a means of increasing income for excluded groups.

According to World Bank, the growth said to be inclusive when the growth to be sustainable in long run and it should be broad based across the sector and inclusive of large part of countries labour force. Inclusiveness should understand in the sense and focusing on equality of opportunity in terms access to markets, resources and unbiased regulatory environment for business and individual.

Growth in Agricultural Sector

Rapid growth in agriculture should generate more opportunities for the poor to get employment and earn income. Agricultural growth will also generate higher demand for industrial products and assist the budgetary situation of the governments through higher growth of tax revenues, which could then be used to finance various anti-poverty programs.

Public Expenditure on Healthcare Sector

India’s public expenditure on health care, at 0.9 percent of the GDP, has been low even by developing country standards. At this stage of economic growth India needs to consider a new model to extend access to healthcare including medicines to its entire population. A significant factor for the long term planning in healthcare is that Indians are now living substantially longer than a century ago and the population has slowly begun to age.

Infrastructure and Energy Sector

Infrastructure continues to occupy central stage in India’s economic development strategies. The problem of energy scarcity is just one of the many infrastructure challenges facing India, as most other forms of infrastructure require substantial expansion and upgrading to meet the increasing demands of economic growth.

Public Expenditure on Education Sector

Literacy is arguably the most significant factor in poverty reduction as it enhances employability.

In 2009, the Right to Education Act was passed, guaranteeing free and compulsory elementary education to children between six and 14 years old. The 86th Amendment to the Constitution of India makes education a fundamental right.

Effective government interventions at all levels are crucial to minimise the leakages resulting from sloppy implementation and bureaucratic corruption. India’s achievements are fairly modest relative to the other Asian countries. This calls for a concerted effort to make India’s growth more inclusive in the future. Several measures are outlined to strengthen the sources of inclusive growth. The main thrust of inclusive growth strategies has to be on the following key areas: (i) employment and growth in agriculture; (ii) increased public expenditure on education and health; (iii) improved infrastructure; and (iv) more effective governance at all levels.