What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. (2017)

Inclusive growth is the development of a country with equal chances and without prejudice. All individuals (poor and rich), all geographies, and all economic sectors (agricultural, industry, services) contribute equally to inclusive growth.

Salient features of inclusive growth

1) Skill Development– Employability, health, education, vocational training, and skills of the working age population will determine the demographic dividend. Skill building is crucial.
2) Financial Inclusion – Financial inclusion is crucial for inclusive growth because it encourages saving, which fuels economic growth.
3) Technological Advancement- Industrial Revolution 4.0 is imminent. Depending on how they’re employed, technological advances can reduce or increase inequality. The government has implemented several measures, such as Digital India Mission, so technologically competent people may exploit technology.
4) Economic Growth– India’s economy is among the world’s fastest-growing. Indian economy is slowing due to cyclical and structural difficulties. The goal of achieving a $5 trillion economy by 2024-25 can help India eliminate inequality, improve social spending, and employ everyone.
5) Social Development – Empowerment can be achieved by upgrading social institutions, such as hospitals, schools, and universities.
Investing in social structures will enhance GDP (through fiscal stimulus) and develop a healthy, capable workforce.

Has India been experiencing such a growth process?

1) 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.
2) Due to illiteracy and overdependence on agriculture, India’s employment is low. Over 80% of people labor in the informal economy without social protection, affecting job quality.
3) Around 44% of Indians work in agriculture, but it only contributes 16.5% to the GDP, leading to widespread poverty.
4) 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.


1) 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.
2) Targeting inclusive and equitable growth through innovative partnerships with international organizations, civic society, and private firms are possible.
3) Inclusive growth will aid in the empowerment of disadvantaged and marginalized people, enhance women’s skill development, and increase their standard of living.

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