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Introduction:

As per OECD, inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all. When economic growth of a country benefits all sections of the population, reduces poverty and creates employment opportunities for all, the growth is said to be inclusive.

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Salient features of inclusive growth

• 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.
• Financial Inclusion – Financial inclusion is crucial for inclusive growth because it encourages saving, which fuels economic growth.
• Technological Advancement– Depending on how they’re employed, technological advances can reduce or increase inequality. The government has implemented several measures, such as Digital India Mission, to exploit technology to reach out to millions deprived on multiple fronts.
• Social Development – Empowerment can be achieved by upgrading social institutions, such as hospitals, schools, and universities. Investing in social structures will enhance GDP and develop a healthy, capable workforce.

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Has India been experiencing such a growth process?

• 373 million Indians live in poverty. In addition, 8.8% of the population lives in extreme multidimensional poverty and 19.3% are vulnerable to it.
• India’s employment is low: Due to illiteracy and with over 80% of the labour force in the informal economy without social protection, there is a dearth of jobs, especially quality jobs. As per PLFS, India experiences an unemployment rate of ~6%.
• Overdependence on agriculture: Around 44% of Indians work in agriculture, but it only contributes 16.5% to the GDP, leading to widespread poverty.
• Social system: The caste system, the wealth gap, and other factors lead to regional disparities, which result in a society where some particular groups have more privileges than others.

Measures for inclusive growth:

• For these, the following measures have been initiated:
• Mahatma Gandhi National Rural Employment Guarantee Act Scheme (MGNREGA) for reducing rural unemployment.
• Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) for skill development.
• Sarva Siksha Abhiyan (SSA) for universal basic literacy.
• National Health Mission (NHM) for improving health of the people so that they stay as an asset rather than a liability on the State.
• Targeting inclusive and equitable growth through innovative partnerships with international organizations, civic society, and private firms are possible.

Conclusion:

Inclusive growth will aid in the empowerment of disadvantaged and marginalized people and increase their standard of living. In order to enhance the lives of the Indian people, the Indian government, state governments, and local governments should continue to focus on eradicating poverty and attaining sustainable development.

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