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Dimensions of Inclusive Growth

Dimensions of Inclusive Growth


  • Equality of opportunity in terms of access to markets, resources, and unbiased regulatory environment are the ends to mean of equality. In-equalities exist in various manners which are social inequalities, rural-urban divide, regional disparities, digital divide etc.
  • To achieve the ultimate goal of Inclusive Growth, we must prioritize equality as its foundational principle. These two concepts go hand in hand, each influencing the other.
  • In the pursuit of Inclusive Growth, we cannot ignore the crucial role played by equality. The absence of equality hampers the realization of Inclusive Growth, and conversely, a lack of Inclusive Growth can contribute to various forms of inequality, whether real or perceived.
  • In the contemporary economic landscape, achieving gender equality stands out as a key ingredient for Inclusive Growth. It has become an essential element that empowers societies and economies.
  • Despite strides in the Indian economy, there’s a concerning trend of retrograding equality on both social and economic fronts. A report from the OECD highlights a continuous rise in inequality in India, presenting significant policy challenges in our efforts to promote inclusiveness.

Good Governance

Good governance results in effectiveness and efficiency, it upholds justice in the rule of law, and accountability and it encourages popular participation, consensus, and equality.

  • The Tenth Plan sees governance as the way we manage processes in society. It’s about creating an environment that helps people improve their skills and provides opportunities for them to realize their potential and have more choices in life.
  • Good governance is like the glue that holds together Inclusive Growth, public administration, and accountability. For instance, if there are issues with the health system, it might be because the Ministry of Health and Family Welfare isn’t being managed well. Good governance ensures that everything works smoothly to achieve the desired outcomes.
  • Good governance provides a shared platform for all parties involved. It brings together different actors and helps in maintaining the socio-economic transformation needed for Inclusive Growth. It’s like a meeting point where everyone collaborates for the common good.
  • Private governance emphasizes the importance of the private sector. It recognizes that businesses play a crucial role in supplying the capital, resources, and skills needed for Inclusive Growth. So, it’s not just about government actions; the private sector also has a part to play in driving positive change.


Empowering local self-governing institutions is one of the delivery mechanisms of the Inclusive Growth. 73rd and 74th amendments of the constitutions are innovation in the field of Indian Polity.

  • Local government, known as Panchayati Raj Institutions (PRIs), needs more authority to play a key role in fostering Inclusive Growth.
  • The eleventh plan introduces a cool-sounding PRI-Empowerment Index to measure progress in this area.
  • Without spreading decision-making power, it’s really tough to put into action policies that benefit everyone.
  • Right now, rural governance isn’t decentralized enough; we need to fix that.
  • There’s not enough money, the right institutions, or clear job assignments for local governments.
  • The central and state governments aren’t always on the same page about programs and welfare plans.
  • The whole system is a bit messy, with different organizations at the national and state levels not quite working together.
  • Accountability and transparency are kind of lacking, and we’re not keeping a close enough eye on things.

Accountability and Transparency

Accountability is answerability towards performance of service delivery. It sets in the responsibility towards the assigned tasks in terms of results and outcome.

    • Accountability is specified both in vertically and horizontally. The former refers to the departmental hierarch in a govt. institutions and the latter refers to the autonomous agencies for check and balances on govt. activities e.g. CAG, PMO etc.
    • Transparency is necessary for efficient delivery of essential public services; it acts as an enabler for citizens in accessing information on demand which helps them in reinstating their claims on government endowments and entitlements meant for them.
    • Lack of accountability and transparency has earmarked the governance in India with red-tapism, bureaucracy and corruption. Govt. has put efforts in multifarious manners to curb the menace. Citizen Charter, Right To Information, Central Vigilance Commission etc. are revolutionary efforts, inasmuch the poor monitoring of their implementation has put a constraint of the efficacy of such ideas.


    In long term, it has been identified that, there has been a gross mismatch between the outcomes of the Indian Economic Planning for Inclusive Growth with respect to environment.

      • While India has experienced rapid economic growth, it’s essential to acknowledge that the well-being of the less privileged has not improved proportionately.
      • The push for Liberalization, Privatization, and Globalization (LPG) has, unfortunately, intensified environmental challenges and widened the gap between rural and urban areas.
      • In discussing Inclusive Growth, it becomes evident that Sustainable Development and Inclusive Growth are interlinked and complementary.
      • Simply put, without incorporating sustainable practices, the execution of Inclusive Growth policies is likely to stumble.
      • Financial Stability: Government initiatives for Inclusive Growth need to be economically viable. Excessive subsidies and a lack of focus on tangible outcomes have contributed to an increasing fiscal deficit.
      • Social Harmony: Consideration must be given to maintaining the unique structures and cultures, especially in tribal areas. Economic development programs sometimes clash with the cultural values of tribal communities, leading to social sustainability challenges.
      • Environmental Responsibility: Long-term planning should prioritize environmental standards. While immediate needs may necessitate intensive fertilizer use, it’s crucial to be mindful of the long-term impact on soil productivity and guard against technology fatigue.
      • To succeed, Inclusive Growth policies need to strike a balance between economic advancement and preserving cultural identities.
      • Financial prudence, cultural sensitivity, and environmental responsibility should be at the forefront of policy decisions for sustainable and inclusive development.

      Read Also: Salient Features of Inclusive Growth

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