Inclusive Growth & G-20 Initiatives

Context:

The G-20 leaders’ Declaration emphasised the role of technology in bridging digital divides and promoting inclusive and sustainable development. 

More on News:The G20 endorsed both the voluntary G20 Framework for Digital Public Infrastructure Systems and India’s proposal to establish a Global Digital Public Infrastructure Repository. 

• The Indian G20 presidency has placed inclusivity at the forefront of its agenda, seeking to amplify public concerns within high-level discussions.

About Inclusive growth:

• Inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all. 
• 4 pillars of inclusive growth include:  
  • Inclusivity, Equity , Sustainability and Wellbeing (WISE)                         

Elements of Inclusive growth & G-20 Initiatives:

Inclusive growth is a multi-dimensional concept that facilitates inclusion from a variety of fronts that include:

• Skill Development: Harnessing the demographic dividend will depend upon the employability of the working age population, their health, education, vocational training and skills. Skill development plays a key role here. 
  • For Example: National Skill Development Corporation (NSDC) showcased its transformative initiatives in skill development, higher education, and international employment opportunities at the G20 “Future of Work” exhibition in Bhubaneswar,

• Financial Inclusion: Financial Inclusion is the process of ensuring access to financial services to vulnerable groups at affordable costs. According to a G20 Global Partnership for Financial Inclusion (GPFI) report prepared by the World Bank, which highlights that the JAM (Jan Dhan, Aadhaar, and Mobile) trinity has been instrumental in increasing the financial inclusion rate from 25 per cent in 2008 to over 80 per cent of adults in the past six years.
• Technological Advancement: This refers to the continuous improvement and innovation in technology, leading to the development of new products, services, and processes that enhance productivity, efficiency, and quality of life.
  • The G20 endorsed both the voluntary G20 Framework for Digital Public Infrastructure Systems and India’s proposal to establish a Global Digital Public Infrastructure Repository. 
  • It also recognized the One Future Alliance initiative aimed at helping low- and middle-income countries with DPI.
• Economic Growth: Economic growth can favour inclusive growth when it is structured and managed in a way that ensures the benefits are broadly shared among different segments of population by creating jobs, reducing poverty and inequality.
  • The G-20 Declaration established the importance of startups and SMEs as key engines of sustainable economic growth and innovation. The G20, for the first time, had a dedicated Startup20 summit under India’s Presidency. 

Challenges in Achieving Inclusive Growth:

• Unemployment: As per the Periodic Labour Force Survey (PLFS) of NSSO, the unemployment rate among the urban workforce was 7.8%, while the unemployment rate for the rural workforce was 5.3% totaling the total unemployment rate at 6.1%. 
  • The quality and quantity of employment in India are low due to illiteracy and due to over-dependence on agriculture.
• Agriculture Backwardness: Around 44% of people in India have agriculture-related employment but its contribution to the Indian GDP is only 16.5% which leads to widespread poverty.
• Regional Disparities:  Regional disparities are a major concern for India. Factors like the caste system, gap between rich and poor etc. contribute to the regional disparities which create a system where some specific groups hold more privileges over others. 
  • For Example: In terms of per capita income, Goa’s per capita income is Rs 4,67,998 in 2018 while per capita income of Bihar is just one-tenth of that i.e. Rs 43,822.
• Poverty: As per the Multidimensional Poverty Index (MPI) 2018, India lifted 271 million people between 2005-06 and 2015-16, with the poorest regions, groups, and children, reducing poverty fastest. India demonstrates the clearest pro-poor pattern at the subnational level. 
  • Still, despite the massive gains, 373 million Indians continue to experience acute deprivations. 

Way Forward:

• Investing in human capital & physical infrastructure:  Countries should increase public and private investment in their citizens’ capabilities, which is the most important way they can durably lift their rate of productivity growth. 
• Skill Development: The best way to achieve inclusive growth is through developing people’s skills. 
  • The flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme was launched in 2015  to provide short-term training, skilling through ITIs
• Education: The working of existing government schools should be improved as a matter of priority. There is also a need to expand and modernise teacher-training facilities.
  • For Example: “Malviya Mission” to set up a nation-wide ecosystem for faculty development.
• The Indian government along with the state governments and local governments should continue to focus on eradicating poverty and achieving sustainable development in order to improve the lives of India’s people. 

News Source: Livemint