Inclusive Growth

Syllabus Relevance: UPSC GS 3 - Inclusive Growth and issues arising from it.


Inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all. (OECD)

Dimensions of Inclusive Growth:

How to achieve it? (refer dimensions wali figure)

  • Policy reorientation:
    • Progressive taxation
    • Social spending, on public services such as education, health and social protection
    • Financial inclusion via Prime Mantri Jan Dhan Yojana
    • Eg. Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana
  • Recognize the work done by women in care economy
  • Moving towards productive sectors
  • Increasing agricultural productivity
  • Robust labour protections
  • Institutional and policy support for collective bargaining
  • Development of underdeveloped regions
  • Political Empowerment of Women, weaker sections, etc.

Measures taken to achieve inclusive growth
(mention schemes, policies, etc)

Elements of Inclusive Growth

  • Skill Development
  • Financial Inclusion
  • Technological Advancement: in Agriculture, Health, Education, DM, Governance, Manufacturing, etc.
  • Economic Growth
  • Social Development

Challenges in Achieving Inclusive Growth:

  • Poverty
    • 8.8% of the population lives in severe multidimensional poverty (Multidimensional Poverty Index, 2018)
  • Unemployment
    • 5.8% Unemployment (Periodic Labour force Survey)
  • Agricultural backwardness
    • 44% of people in India have agriculture-related employment but its contribution to the Indian GDP is only 16.5%
  • Issues with social development
    • India ranks 94th out of 107 countries Global Hunger Index (GHI) 2020
  • Regional Disparities
    • Goa’s per capita income in 2018 was 10 times that of Bihar

Conclusion: Through strategic partnerships between various stakeholders such as Govt, international organization, civil societies, pvt sector, etc inclusive equitable growth can be achieved.

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