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Need for Inclusion

Need for Inclusion

Achieving inclusive growth in India is no easy feat. In this diverse and democratic nation, a significant portion of the population resides in rural areas, presenting a crucial challenge to integrate them into the broader economic landscape. The primary focus for the Indian government is extending the benefits of growth to all sections of society and every corner of the country. The key to realizing inclusive growth lies in nurturing people’s talents. Government authorities emphasize the need for a well-rounded approach to education and skills development to foster overall progress.

About Need for Inclusion

India, the seventh-largest country in terms of area and second-most populous, lags behind in development compared to its neighbor, China, which is rapidly advancing to become the world’s largest economy. To achieve rapid and sustained poverty reduction, inclusive growth is crucial. According to the Tendulkar committee report, poverty in India stands at 22%, emphasizing the need for growth that involves and benefits a larger part of the population.

  • Inclusive growth is the connection between macro and micro determinants of growth. It requires broad-based growth across sectors, emphasizing the importance of structural transformation for economic diversification and competition.
  • Challenges like low agriculture growth, poor-quality employment, gender inequalities, and regional disparities hinder inclusive growth. Recent protests in Haryana and Gujarat highlight the urgency of addressing issues related to agriculture productivity and employment growth.
  • Informal employment and insufficient skill development hamper productivity, impeding economic growth. Education and healthcare disparities, including gender-based inequalities, highlight the urgency of fostering inclusive growth for women’s empowerment.
  • Distress migration, rooted in regional disparities, poses challenges like housing, sanitation, and safety, underscoring the need to address regional imbalances.
  • Transforming the informal economy into the formal sector requires a focus on financial inclusion, reducing corruption, and promoting transparency.
  • Despite the importance of inclusive growth, poor implementation of schemes due to a lack of political will remains a significant obstacle.
  • India faces challenges in achieving Sustainable Development Goals, as highlighted by the MDG report. Inclusive growth is crucial for sustainable development.
  • While income distribution schemes can temporarily alleviate poverty, they are not a long-term solution. In poor countries, such schemes can strain budgets, and in developed countries, they may not effectively address rising poverty rates.
  • Inclusive growth means economic progress that generates employment opportunities and reduces poverty. It involves providing access to essential health and education services, ensuring equality of opportunity, empowering individuals through education and skill development, and fostering a gender-sensitive and environmentally friendly society.

Read Also: Salient Features of Inclusive Growth

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