Inclusive Growth: Issues, Elements, Challenges, Inclusive Growth UPSC

By BYJU'S Exam Prep

Updated on: November 14th, 2023

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. In simple words, Inclusive Growth means economic growth that reduces poverty and creates various employment opportunities. Inclusive growth strategies aim to ensure that everyone has access to the resources and opportunities they need to succeed.

Inclusive growth is increasingly recognized as a key policy objective for governments and organizations around the world, as they want to create more sustainable and equitable societies. In this article, we will explore the concept of inclusive growth, its Issues, Challenges importance, and the policies that can be used to achieve it.

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.

Inclusive Growth UPSC Notes

This concept is based on the belief that growth alone is not enough to improve the lives of all citizens and that it must be accompanied by policies that ensure the benefits of growth are shared by everyone.

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

To achieve inclusive growth, it is essential to identify and understand the key elements that contribute to it. we will explore some of the critical elements of inclusive growth and their importance in creating sustainable development in society.

Skill Development:

  • Skill development is one of the elements of Inclusive Growth. 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 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:

Another element of Inclusive Growth is 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.

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. Agriculture can play a crucial role in achieving inclusive growth by providing employment opportunities and increasing the income of rural populations.

With digital education being introduced, students are getting familiar with technology in their earlier stages of schooling, like smart board learning and computers, which will help them to learn the technology fast. With the advancement of technology, the education system in India is changing at a rapid pace.

Social Development

Talking about technology in terms of social development includes the marginalized population like the SC, ST, OBC, women, and transgenders, and it 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

Inclusive growth is a key driver of economic development, and governments around the world have implemented various schemes to promote it. some of the government schemes aimed at promoting inclusive growth are mentioned below.

Challenges for Inclusive Growth

While there has been progress made in achieving Inclusive Growth in many countries, there are still numerous challenges that must be addressed such as:

  • Poverty – Although several steps have been taken by the government of India, more than 300 million suffer from poverty in India.
  • Unemployment – It is one of the major challenges for Inclusive Growth. Due to the lack of skills and education, unemployment is still a serious problem.
  • Agriculture Backwardness – The agricultural field is not flourishing the way it should be due to declining soil degradation, climate change, and scarcity of water.
  • Regional disparities – The caste system and regional disparities contribute to the wealth gap and are key contributors to regional disparities. It is another challenge for Inclusive Growth.

Measures to Achieve Inclusive Growth

India, as a developing nation, has made significant progress in recent years toward achieving economic growth, but there remains a large gap in terms of the distribution of wealth and resources. In order to address this challenge, the Indian government has implemented various measures aimed at promoting Inclusive Growth.  We have mentioned the main measures taken by the government to achieve Inclusive Growth below.

  • Prime Minister Employment Generation program
  • National Health Mission
  • Bharat Nirman
  • Mission Ayushman
  • Sarv Shiksha Abhiyan
  • National Urban Livelihood Mission
  • The government is actively working with Non-governmental Organizations and International groupings in policy-making to achieve Inclusive Growth. 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.

Inclusive Growth UPSC

Civil Services Exam tests the candidate’s understanding of India’s economy, social and political structure, and e-governance system. Inclusive Growth refers to a growth process that is inclusive of all sections of society, particularly the marginalized and vulnerable sections. UPSC aspirants need to understand the importance of inclusive growth in the context of India’s development and the challenges the country faces in ensuring the equitable distribution of resources and opportunities. Candidates need to learn the topic from the perspective of current affairs as well as the economics subject.

Inclusive Growth UPSC Questions

Question 1: Which of the following is NOT a characteristic of inclusive growth? a) Equitable distribution of benefits b) Sustainable development c) Rapid economic growth d) Reduction of poverty and inequality

Answer: c) Rapid economic growth

Question 2: Inclusive growth focuses on which of the following? a) Only economic growth b) Only social development c) Both economic growth and social development d) None of the above

Answer: c) Both economic growth and social development

Question 3: Which of the following is a key challenge for achieving inclusive growth? a) Addressing regional disparities b) Increasing foreign aid c) Encouraging monopolistic practices d) Promoting elitism

Answer: a) Addressing regional disparities

Question 4: Inclusive growth can be promoted through which of the following? a) Reducing government expenditure b) Increasing taxation c) Encouraging entrepreneurship and innovation d) Decreasing public investments in infrastructure

Answer: c) Encouraging entrepreneurship and innovation

UPSC Notes
Delimitation Commission Uniform Civil Code
FATF Statue of Equality
Gig Economy National Health Mission
Goods and Services Tax Minimum Support Price
World Trade Organisation Gangayaan Mission
Shanghai Cooperation Organisation Poverty in India
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