Inclusive Growth: Growth and Issues Arising from it | UPSC Notes

By K Balaji|Updated : June 27th, 2022

Inclusive growth is an economic term that signifies a large population's raised standards of living. Inclusive growth is an important factor from the standpoint of political issues, as inactive inclusive growth may lead to adverse political outcomes. Inclusive growth is a part of the economic subject for UPSC Prelims and Mains exams.

Table of Content

What is Inclusive Growth?

According to the definition given by UNDP, inclusive growth can be defined as "the process and result of all groups of people participating in the organization of growth and benefiting equitably from it." This means that growth can be considered inclusive if it includes all the sections of society as the beneficiaries.

Introduction to Inclusive growth

  • Inclusive growth can be considered as the holistic growth of a society that provides them with the best option for livelihood and employment.
  • Beneficiaries of inclusive growth are provided with access to the services important for living, like good health, quality education, equal opportunities at the workplace, and the empowerment of women through education and skill development.
  • According to the OECD, inclusive growth is defined as economic growth that is distributed fairly across society and creates an opportunity for all.
  • Inclusive growth always focuses on environmentally friendly growth and good governance that helps create a gender-sensitive society.

Elements of an Inclusive growth

There are various elements that contribute to inclusive growth. Let's have a look at them.

Skill Development

  • According to the economic survey, in 2017, more than 31% of you in India were not in education, employment, or training.
  • In fact, a UNICEF report said that more than 45% of youth in India are not interested in grabbing the quality education and necessary skills for employment.
  • It can be fairly believed that India has the challenge of providing proper skill development to its workforce due to the scarcity of highly trained workers and providing employment opportunities for conventionally trained workers.

Technological Development

Today we are stepping into the era of the industrial revolution. We have options in the field of technology. Advancements in this technology can either increase or decrease inequality. That depends on the way it is being used. There have been a number of initiatives taken by the government of India.

Digital India Mission:
One of these is the digitally literate population, which will be able to leverage the economy to seize fewer opportunities as a result of the digital India mission. The Digital India mission aims to provide digital literacy to the population so that it can utilize technology to the fullest of its potential.

Agriculture:
The inclusion of modern technology in the agriculture field will be of great help to the farmers in the field to produce high-quality crops.

Education:
Students getting familiar with technology in their earlier stages of schooling, like smart board learning and computers, will help them to learn the technology fast.

Social Development

  • Talking about technology in terms of social development includes the marginalized population like the SC, ST, OBC, women, and transgenders, and provides them with the best technology options to learn new things.
  • To provide them with adequate working space, new schools, colleges, and various social structures such as hospitals and offices can be established.

Government Schemes to promote Inclusive Growth

To promote inclusive growth at its best, the government has initiated some projects and schemes-

  • The Digital India program
  • Pradhanmantri Jivan Yojana Jyoti Bima
  • Dhanmantri Jivan Suraksha Yojana
  • Atal Pension Yojna
  • MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
  • Self-Employment and Talent Utilization (SETU)
  • Kisan Card
  • The Pradhanmantri Krishi Sinchai Yojana

Challenges for Inclusive Growth

No task is easy in its first steps. There are many challenges to achieving the goal of inclusive growth in a country. These challenges include the

  1. Poverty - Although several steps have been taken by the government of India, more than 300 million Indians suffer from poverty.
  2. Unemployment - Due to the lack of skills and education, employment is still a serious problem.
  3. Agriculture Backwardness - The agricultural field is not flourishing the way it should be due to declining soil degradation, climate change, and scarcity of water.
  4. Regional disparities - The cast system and regional disparities contribute to the wealth gap and are key contributors to regional disparities.

Measures to achieve Inclusive Growth

The Indian government has taken some big and equitable measures to promote inclusive growth. They want to prepare an inclusive policy framework with citizens at the center. These measures are-

  • Prime Minister Employment generation program
  • National Rural Health Mission
  • Bharat Nirman
  • Mission Ayushman
  • Sarv Shiksha Abhiyan
  • National Urban Livelihood Mission
  • Government is actively working with NGOs and International groupings in policy making. Projects like DISHA are being implemented. DISHA is being implemented in partnership with the UNDP with the aim of creating entrepreneurial opportunities and employment.
  • NITI Aayog has started working on the Strategy for New India@75 which has the following objectives for inclusive growth:
  • Rapid growth (9-10% by 2022-23) that is inclusive, sustainable, and clean.
    • Technological inclusion for sustainable, participatory and inclusive development by 2022-23.
    • Work to ensure that the subjugated of the society (migrants, slum dwellers and urban poor) are included in city services.
    • Make schools more inclusive by addressing and working on barriers that are related to the physical environment (accesible toilets), admission process, and curriculum.
    • Make higher education accessible and inclusive for the subjugated groups.
    • Provision for top-notch ambulatory services for best rehabilitative, diagnostic and curative care.

Inclusive Growth UPSC

Inclusive growth UPSC topic is a very important part of the economic Syllabus of UPSC Prelims Exam. Every year a question is asked about inclusive growth UPSC topic and hence it becomes important to learn the topic from the perspective of current affairs as well as the economics subject.

You can click here to get the economics notes for UPSC as well as the economics books to study for UPSC Mains.

Download Inclusive Growth UPSC Notes PDF

Inclusive Growth UPSC Prelims Question- 2010

Question. Inclusive growth as enunciated in the Eleventh Five Year Plan does not include one of the following:

A) Reduction of poverty

B) Extension of employment opportunities

C) Strengthening of capital market

D) Reduction of gender equality

Answer- Option C

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FAQs on Inclusive Growth

  • Inclusive growth can be defined as the growth which includes all the segments of society as the beneficiaries of the scheme policies of the Government and living a quality life.

  • Some important elements of inclusive growth could be skill development, financial development, technological development, economical development, and social development.

  • The approach to inclusive growth is planning how holistic growth can be achieved with the broad outcome of shared prosperity.

  • Inclusive growth in society is very important as it creates opportunities for education, skill development, and employment and helps further in removing poverty.

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