INCLUSIVE GROWTH

INCLUSIVE GROWTH
INCLUSIVE GROWTH
Inclusive growth basically means, Broad based growth, shared growth, and pro-poor growth.








A/c to Oxford Dictionary word Inclusive means "not excluding any section of society"
Now let have a brief look on what all these meant for


PaticularsMeant for

Broad Based GrowthGrowth of broad spectrum of things or people

Shared GrowthFocus on income distribution scheme

Pro-poor GrowthWelfare of the poor

Relative Pro-poor Growth - if and only if the incomes of poor people grow faster than those of the population as a whole, i.e., inequality declines.

Absolute Pro-poor Growth - can be the result of direct income redistribution schemes, for growth to be inclusive, productivity must be improved and new employment opportunities created.


Inclusive Growth


* Inclusive growth is defines as a growth process which yields broad based benefits & ensures equality of opportunity for all.

* Inclusive growth is broad based & implies an equitable allocation of resources with benefits accruing to every section of society.

* Inclusive growth is aimed at poverty reduction, human development, health & provides opportunity to work & be creative.

* The allocation of resources must be focused on the indented short & long terms benefits & economic linkage at large & not equitable mathematically & some regional & population criteria.
Characteristics of Inclusive Growth



Need for inclusive growth -

* Inclusive growth is necessary for sustainable development & equitable distribution of wealth & prosperity.

* In India (Democratic Country) bringing 600 million people living in rural India into the mainstream is the biggest concern.




Factors encouraged India to concentrate more on inclusive growth


* India is the 7th largest country by area & 2nd by population, 12th largest economy at market exchange rate & 4th largest by PPP. Yet, India is far away from the development of the neighborhood nation (China)

* The exclusion in terms of low agriculture growth, low quality employment growth, low human development, rural urban divides, gender & social inequalities & regional disparities etc are the problems for the nation.

* Reducing of poverty & other disparities & raising of economic growth.

* Level of scientific literacy of political leadership in India is very low.

* Corruption in India amounts to over 10% of GDP.

* High ratio of child labor.

* Low literacy level

* Urgent need to change out dated philosophies & allegations in economic reforms by the politicians & opposition parties in India

* Achievement of 9% of GDP growth for country as a whole is one of the boosting factor to give importance to inclusive growth.

* Inclusiveness target to

* Income & poverty

* Education

* Health

* Women & children

* Infrastructure

* Environment

Elements of Inclusive Growth

According to MMS, the key components of the inclusive growth strategy included a sharp increase in investment in rural areas, rural infrastructure & agriculture spurt in credit for farmers, increase in rural employment through a unique social safety net & a sharp increase in public spending on education & health care.

5 interrelated elements of Inclusive Growth are:








Others elements are -


* Achievement of 119th rank among 170 countries on HDI.

* Social indicators are much lower for SC & STs.

* Malnutrition among children.

* Economy is facing under savior pressure due to global recession.

* Increase in regional disparities.

Problems before Inclusive growth strategies in India

Poverty


* Poverty Line 356.35 Rs. or appx. $7 per month in rural areas.

* The World Bank estimates that 456 million Indians (42% of the total Indian population) now live under the global poverty line of $1.25 per day (PPP).

* However, this also represents a significant decline in poverty from 60 percent in 1981 to 42 percent in 2005, although the rupee has decreased in value since then, while the official standard of 538/356 rupees per month has remained the same = Income Inequality

* On the other hand, the Planning Commission of India uses its own criteria (based on Tendulkar committee)


PercentExisting MethodologyTendulkar Methodology

RuralUrbanCombinedRuralUrbanCombined

1993-9437.332.436.050.131.845.3

2004-0528.325.727.541.825.737.2





In 2011-12, India had 270 million persons below the Tendulkar Poverty Line as compared to 407 million in 2004-05, that is a reduction of 137 million persons over the seven year period.




Employment

Employment considered as one of the big problems for inclusive growth in India.
For India real picture would be like -
Increase in Population = increase in unemployment =ceased development of country= increased in poverty= increase in illiteracy= overall fall in GDP growth

Unorganized employed people in India are around 85%. Workers in this sector do not have social security. The generation of productive employment for labor force in the economy, as employment is a key to inclusive growth is the toughest task for the country. The country is also facing in employment generation in all sectors, regions and for all socio economic groups particularly for poorer sections of population, backward regions, lagging sectors and SC/ST/OBC/women etc.

Agriculture

Traditionally, India is considered as the agricultural based country. The recent developments in the other sectors decreased this major sectors growth. Some of the problems in Indian agriculture are:


* Long term factors like steeper decline in per capita land availability, shrinking of farm size

* Slow reduction in share of employment.

* Low labor productivity in agriculture and the gap between agri. and non-agri. iswidening.

* Decline in yield growth due to land and water problems, vulnerability to world commodity prices, farmers suicides.


* Disparities in growth across regions and crops, i.e., growth rate declined more in rain fed areas.

* Thus these problems became the hurdles in the key area for the economic development of the nation, i.e., agriculture.

Problems in Social development

Social development is also one of the key concerns in inclusive growth. Social development also facing some problems, which is making the path critical to inclusive growth in the country, these are:

* Significant regional, social and gender disparities

* Low level and slow growth in public expenditures particularly on health

* Poor quality delivery systems

* Social indicators are much lower for scheduled castes and scheduled tribes.

* Malnutrition among children is one major problem.

* Since BPO brought the multi culture environment in India, this sector is facing under seviour pressure due to global recession.

* Social advancements in India is still at lower growth due to the strong influence of culture and regional disparities


Regional Disparities

Regional disparities are also a major concern for India due to different culture and traditions.
Traditional culture + Caste system +Rich & poor feelings = Increased regional disparities

Some of the regional disparities problems are:


* Per capita income is highest at Rs.16679 in Punjab and lowest per capita income is at Bihar with Rs.3557.

* Female infant mortality varies from 12 in Kerala to 88 in Madhya Pradesh.

* Female literacy varies from 33.6% in Bihar to 88% in Kerala.

* Richer states grew faster than the poorer states

Challenges before inclusive growth strategies in India

Poverty alleviation
Agriculture growth
Unemployment
Child labor
Social development
Education

Initiative of Govt. of India towards Inclusive growth

Rural Infrastructure (Bharat Nirman)
Employment (MGNAREGA)
Regional Development (Backward district development Plan)
Education (Sarva Shiksha Abhiyan)
Rural Health (NRHM)
Urban Infrastructure (National urban renewal Mission)












Bibliography
http://en.wikipedia.org
http://www.ijacl.org
http://www.factualworld.com
http://www.lawyersclubindia.com
http://planningcommission.nic.in
http://www.economictimes.com
http://www.hindu.co.in
http://www.isidelhi.org.in

by Priyanka Chauhan