Q1) Inclusive growth is a roadmap to intergenerational equity, redistribution of wealth, and employment generation. Explain. Also, discuss the steps taken by the government towards achieving inclusive growth. (150 Words/10 Marks)

ANS

UNDP defines Inclusive growth as the process and the outcome wherein all groups of people participate in growth and benefits of growth are shared equitably among them. Inclusive growth is both a process as well outcome, and a roadmap to:

1. Intergenerational equity: Livelihood generation provides financial capacity and awareness about availing education opportunities, improving health and nutrition which have inter-generational effect on ending poverty.
2. Redistribution of wealth: 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.
3. Employment generation: Economic growth produces jobs and provides livelihood opportunities. India lifted 271 million people out of poverty in the high growth phase between 2005-06 and 2015-16.

However, challenges like unemployment reaching an all-time high (Periodic labor force survey), low female labor force participation rate, disguised employment in agriculture sector and lack of opportunities in manufacturing sector have laid bare the promise of inclusion. As per Oxfam report, 10% Indian hold 77% of the total national wealth.

To address above challenges and achieve the goals of inclusive growth, government has taken following steps:

1. Giving political representation: In India, constitutional provisions and political developments have helped in increasing the representation of backward sections of the society. The government schemes are designed to provide inclusive development as otherwise people can vote out the government. E.g., recently passed Nari Shakti Vandan Adhiniyam (Women’s Reservation Bill).
2. Satisfaction of food, health and nutritional needs: Expanded coverage of public distribution system under National Food Security Act 2013, universal immunization programme, and similar other initiatives in social sector are example of inclusive growth as these measures have helped the country move towards zero hunger, and in developing better human capital; PMGKAY to provide relief to vulnerable sections of society during COVID pandemic.
3. 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. Samagra Siksha Abhiyan has been launched to address gaps in achieving universal education.
4. Good Governance: Corruption affects growth of businesses, and undermines equitable redistribution 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.
5. 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, which initiates a virtuous cycle of economic development.

India has come a long way in its development journey, but the challenges of inclusive growth still remain. Improvement in public health and education facilities, providing industry-oriented skills, development of backward area (with schemes like Aspirational District Programme etc.), giving due importance to environment etc. will help in making the growth process more inclusive