ABSTRACT
Theconceptofinclusivegrowthhasbecomevitaltoeconomicdevelopmentduetorisingeconomicinequalityanditseffectsonhumanwell-beingandprosperity Inclusivegrowthaseconomicgrowththatisdistributedfairlyacrosssocietyandcreatesopportunitiesforall.Inclusivegrowthisintendedtomeettheobjectivesof inclusivenessandsustainabilitytogether Indiangovernmentalongwiththestategovernmentsandlocalgovernmentsshouldcontinuetofocusoneradicatingpoverty and achieving sustainable development in order to improve the lives of India's people. Through innovative partnerships with an international organization, civil societies, and private companies, inclusive and equitable growth can be targeted. Inclusive growth will help in the empowerment of vulnerable and marginalized populations,improvelivelihoods,andaugmentskill-buildingforwomen.Intheend,inclusivegrowthhastostartfromthegrass-rootlevel,hencetargetingthebasic issuesiskey Nowadays,largenumbersofpeoplearelosingfaithintheirinstitutions.Thistrendcanbereversedifpublicauthoritiesdemonstratethehigheststandards ofintegrityandefficiencyintheirwork,andpromotemoretransparencyandpublicparticipation.
KEYWORDS:Inclusive,Development,Opportunities,Government,InnovativeandPopulation.
INTRODUCTION:
Inclusive growth means economic growth that creates employment opportunitiesandhelpsinreducingpoverty Itmeanshavingaccesstoessentialservicesin healthandeducationbythepoor.Itincludesprovidingequalityofopportunity, empowering people through education and skill development. It also encompassesagrowthprocessthatisenvironmentfriendlygrowth,aimsforgoodgovernance and helps in creation of a gender sensitive society As per OECD (Organisation for Economic Co-operation and Development), inclusive growth is economicgrowththatisdistributedfairlyacrosssocietyandcreatesopportunitiesforall.Theconceptofinclusivegrowthhasbecomevitaltoeconomicdevelopment due to rising economic inequality and its effects on human well-being and prosperity Inclusive growth as economic growth that is distributed fairly across society and creates opportunities for all. Inclusive growth is intended to meet the objectives of inclusiveness and sustainability together Former President Pranab Mukherjee had mentioned that “Inclusive growth should not be a mere slogan but a fundamental driving force for sustainable development.”
Inclusivegrowthfocusesonecologicalfriendlyeconomicgrowthwhichisanecessaryandcrucialconditionforpovertyreductionandsustainability Harnessing the demographic dividend will depend upon the employability of the working age population, their health, education, vocational training and skills. Skill developmentplaysakeyrolehere.Indiaisfacingadualchallengeinskilldevelopment. First, there is a paucity of highly trained workforce. Second, there is non-employmentofconventionallytrainedyouths.AccordingtotheEconomic Survey2017,over30%ofyouthinIndiaareNEET(Notineducation,employment or training). Similarly, UNICEF 2019 reports stats that at least 47% of Indian youth are not on track to have the education and skills necessary for employmentin2030.
FinancialInclusion:
FinancialInclusionistheprocessofensuringaccesstofinancialservicestovulnerablegroupsataffordablecosts.Financialinclusionisnecessaryforinclusive growthasitleadstothecultureofsaving,whichinitiatesavirtuouscycleofeconomicdevelopment.
TechnologicalAdvancement:
TheworldismovingtowardsaneraofIndustrialRevolution4.0.Thesetechnologicaladvancementshavecapabilitiestobothdecreaseorincreasetheinequality depending on the way these are being used. Several initiatives have been takenbythegovernment,eg.DigitalIndiaMission,sothatadigitallyliteratepopulationcanleveragetechnologyforendlesspossibilities.
Technologycanhelptocombatotherchallenges: Agriculture: Moderntechnologycanhelpinmakinganagro-valuechainfrom farmertoconsumermoreefficientandcompetitive.
Manufacturing:Technologycanresolvetheproblemsoffinance,procuringraw materials,land,andlinkageswiththeusermarket.GSTwasmadepossibleonly withthehelpofsoundtechnology
Education:Innovativedigitaltechnologiescancreatenewformsofadaptiveand peerlearning,increasingaccesstotrainersandmentors,providingusefuldatain real-time.
Health: Technologies could transform the delivery of public health servicesextendcarethroughremotehealthservices.
Governance: Technology can cut down delays, corruption, and inefficiency in thedeliveryofapublicservice.
EconomicGrowth:
Indiaisamongthefastest-growingmajoreconomiesintheworld.However,currentlyIndianeconomyisfacingslowdownduetobothcyclicandstructuralchallenges.However,thetargetofbecominga$5trillioneconomyby2024-25can allow India to reduce inequality, increase social expenditure and provide employmenttoall.
SocialDevelopment:
It means the empowerment of all marginalised sections of the population like SC/ST/OBC/Minorities, women and transgenders. Empowerment can be done byimprovinginstitutionsofthesocialstructurei.e.hospitalsespeciallyprimary careintheruralareas,schools,universities,etc.Investmentinsocialstructures willnotonlyboostgrowth(byfiscalstimulus)butwillalsocreateahealthyand capablegenerationtohandlefuturework.
REVIEWOFLITERATURE:
Reviewofrelatedliteraturemakestheinvestigatorfullyawarewiththeprevious workthathasbeendone.Italsoprovidesanopportunityofgaininginsightinto themethod,measures,subjectandapproachesemployedbytheotherresearchers.
Mehrotra,etal.(2009)constructedaFinancialInclusionIndex(FII)tomeasure theleveloffinancialinclusionandthentrytofindouttherelationbetweenfinancialinclusionandeconomicgrowth.Theirargumentisthat,whenpeopleaccess tobankingservicesitbenefitsthemtoparktheirmoneyintheformalfinancial institutions.Thisresultsinhighgrowththroughmultipliereffectswhichinother wordshelpstoachieveaninclusivegrowth.
Chakravarty and Pal (2010) have very recently presented a set of matrices for measuringfinancialinclusion.Inwhattheycallasanaxiomaticapproach,they considerdatafromBecketal.(2007)whichreportedeightindicatorsoffinancial inclusion.Theirworkistwofolds.Inthefirststagetheycalculatedthelevelof financialinclusionin21countriesincludingIndiafordifferentincomegroups. They stated that, to achieve the high level of financial inclusion, the factors of bankingserviceshavecontributedequallytothatsuccess.Atthestatelevel,most ofthestateshaveexperiencedlowfinancialinclusionduringtheperiodof1991 to2001.Interestingly,fortheperiodof2001to2007,theleveloffinancialinclusionhasincreasedinIndianstates.
Chattopadhyay (2011) have studied the efficacy of financial inclusion in West Bengal(WB).Forthat,hehascomparedtheperformanceofWBamongallother IndianstatesandthenasurveyhasbeendoneinselecteddistrictsofWB.Incomparingtheperformances,theWBhasscoredaverylowleveloffinancialinclusion.IntheFinancialInclusionIndex,Maharashtrahasscoredthehighestlevel ofachievementinfinancialinclusion.Hearguedthat,after2005to2006,there hasnotbeenanymeasuresuccessinfinancialinclusion.Consideringthedistrict
levelstudy,itisconfirmedthatfinancialinclusionisnotspeededoveralltherural areas.Moneylenderstilldominantsruralinformalcreditmarket.
METHODOLOGY:
This paper is descriptive in nature. It is mainly based on secondary data and is largelycollectedfromdifferentsourceslikebooks,journals,articles,andperiodicals.
OBJECTIVES:
Themainobjectivesofthispaperisbasedonfollowingheadings:
Ÿ ToexaminetheinclusivedevelopmentofIndiainpresentera.
Ÿ To evaluate the role of Govt. to Development of inclusive Growth of India.
ChallengesinAchievingInclusiveGrowth: Poverty:
AspertheMultidimensionalPovertyIndex(MPI)2018,Indialifted271million peoplebetween2005-06and2015-16,withthepoorestregions,groups,andchildren,reducingpovertyfastest.Indiademonstratestheclearestpro-poorpattern atthesub-nationallevel.Still,despitethemassivegains,373millionIndianscontinuetoexperienceacutedeprivations.Additionally,8.8%ofthepopulationlives inseveremultidimensionalpovertyand19.3%ofthepopulationarevulnerable tomultidimensionalpoverty
Unemployment:
AsperthePeriodicLabourForceSurvey(PLFS)ofNSSO,theunemployment rateamongtheurbanworkforcewas7.8%,whiletheunemploymentrateforthe ruralworkforcewas5.3%totalingthetotalunemploymentrateat6.1%.ThequalityandquantityofemploymentinIndiaarelowduetoilliteracyandduetooverdependenceonagriculture.Thequalityofemploymentisaproblemasmorethan 80%ofpeopleworkintheinformalsectorwithoutanysocialsecurity
AgricultureBackwardness:
Around44%ofpeopleinIndiahaveagriculture-relatedemploymentbutitscontributiontotheIndianGDPisonly16.5%whichleadtowidespreadpoverty
IssueswithSocialDevelopment:
Socialdevelopmentisoneofthekeyconcernsforinclusivegrowth.Butitisfacingsomeproblemssuchas:
Ÿ Significantregional,socialandgenderdisparities.
Ÿ Lowlevelandslowgrowthinpublicexpenditureparticularlyinhealth andeducation.
Ÿ Thepoorqualitydeliverysystem.
Ÿ SocialindicatorsaremuchlowerforOBC,SC,ST,andMuslims
Ÿ Malnutritionamongthechildren- Indiaranks102ndinGlobalHunger Index
RegionalDisparities:
RegionaldisparitiesareamajorconcernforIndia.Factorslikethecastesystem, gapbetweenrichandpooretc.contributetotheregionaldisparitieswhichcreate asystemwheresomespecificgroupsholdmoreprivilegesoverothers.Interms ofliteracyrate,Keralaisthemostliteratestatewith93.1%literacy,ontheother hand,literacyrateofBiharisonly63.82%.Intermsofpercapitaincome,Goa's percapitaincomeisRs4,67,998in2018whilepercapitaincomeofBiharisjust one-tenthofthatieRs43,822.
InclusiveDevelopmentIndex(IDI):
In the Inclusive Development Index (IDI) compiled by the World Economic Forum(WEF),Indiaranked62ndoutof74emergingcountriesandwasamong theleastinclusivecountriesinGroupof20(G-20)countries.TheIDIisbasedon theideathatmostpeoplebasetheircountry'sgrowthnotonGDPbutbytheirown standardofliving.Indiaalsodidnotmakeittothetop10mostinclusiveemerginganddevelopingeconomies,whereitsneighboursNepal,ChinaandSriLanka madeamark.Indiaperformeditsbestintermsof“intergenerationalequityand sustainability”, ranking 44th, for which credit can be attributed to its demographicdividend.
SocialProgressIndex(SPI):
Onlyincomeinequalitiesareincludedandotherinequalitieslikesocialinequality,equalityofopportunities,etcareignored.GrossHappinessIndex: Ignores genderneutrality,education,etcHDI:
Theunequaldistributionofwealthisignored.BenefitsofSPI:SPImeasuresthe outcomes of the government measures rather than money spent. It also takes accountofefficiencybywhichmoneyspentbythegovernmenthasbeenused.It ismorecomprehensive.
MeasuresTakenIndiatoAchieveInclusiveGrowth: Severalschemesarebeingimplementedbythegovernmentforinclusivegrowth whichincludesthefollowing: Ÿ
Mahatma Gandhi National Rural Employment GuaranteeAct Scheme (MGNREGA) Ÿ
PrimeMinister'sEmploymentGenerationProgramme(PMEGP) Ÿ
MudraBankscheme Ÿ
Pt.DeenDayalUpadhyayaGrameenKaushalyaYojana(DDU-GKY) Ÿ
Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM) Ÿ
SarvaSikshaAbhiyan(SSA) Ÿ
NationalRuralHealthMission(NRHM) Ÿ
BharatNirman Ÿ
SwachhBharatMission Ÿ MissionAyushman Ÿ
PradhanMantriJanDhanYojana Ÿ
GovernmentisworkingwithNGOsandInternationalgroupingsinpolicymakingeg: Ÿ
DISHAProjectisbeingimplementedinpartnershipwithUNDPforcreating employment and entrepreneurship opportunities for women in India.
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NITIAayog'sStrategyforNewIndia@75hasthefollowingobjectives fortheinclusivegrowth:
To have a rapid growth, which reaches 9-10% by 2022-23, which is inclusive,clean,sustainedandformalized.
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To Leverage technology for inclusive, sustainable and participatory developmentby2022-23.
Tohaveaninclusivedevelopmentinthecitiestoensurethaturbanpoor andslumdwellersincludingrecentmigrantscanavailcityservices.
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Tomakeschoolsmoreinclusivebyaddressingthebarriersrelatedtothe physicalenvironment(e.g.accessibletoilets),admissionproceduresas wellascurriculumdesign.
To make higher education more inclusive for the most vulnerable groups.
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Toprovidequalityambulatoryservicesforaninclusivepackageofdiagnostic,curative,rehabilitativeandpalliativecare,closetothepeople.
Toprepareaninclusivepolicyframeworkwithcitizensatthecenter
Governmenteffortsforinclusivegrowth:
The government of India has come forth with multiple schemes which address inclusivegrowth:
Mahatma Gandhi National Rural Employment Guarantee Act Scheme: MGNREGAalsoknownasMahatmaGandhiNationalRuralEmployment GuaranteeScheme(MNREGS)isIndianlegislationenactedonAugust25, 2005.TheMGNREGAprovidesalegalguaranteeforonehundreddaysof employmentineveryfinancialyeartoadultmembersofanyruralhousehold willingtodopublicwork-relatedunskilledmanualworkatthestatutoryminimumwage.TheMinistry of RuralDevelopment(MRD), Govt of Indiais monitoring the entire implementation of this scheme in association with stategovernments
Prime Minister's Employment Generation Programme (PMEGP): The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level.At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks. In such cases, KVIC routes government subsidies through designated banks for eventual disbursal to the beneficiaries/entrepreneursdirectlyintotheirbankaccounts.
Mudra Bank scheme: Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched in 2015 for providing loans up to 10 lakh to the non-
Ÿ
corporate, non-farm small/micro-enterprises. These loans are classified as MUDRAloansunderPMMY TheseloansaregivenbyCommercialBanks, RRBs,SmallFinanceBanks,MFIs,andNBFCs.
Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): It aimstoskillruralyouthwhoarepoorandprovidethemwithjobshavingregularmonthlywagesorabovetheminimumwages.Itisoneoftheclustersof initiativesoftheMinistryofRuralDevelopment,GovernmentofIndiathat seekstopromoterurallivelihoods.ItisapartoftheNationalRuralLivelihood Mission (NRLM) – the Mission for poverty reduction called Aajeevika.The scheme will benefit more than 55 million poor rural youth whoarereadytobeskilledbyprovidingsustainableemployment.
This scheme derives importance from its potential to reduce poverty It is also designed to be a major contributor to the Prime Minister's 'Make in India'campaign.
Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM):Themissionwouldaimatprovidingsheltersequippedwith essentialservicestotheurbanhomelessinaphasedmanner Inaddition,the missionwouldalsoaddressthelivelihoodconcernsoftheurbanstreetvendorsbyfacilitatingaccesstosuitablespaces,institutionalcredit,socialsecurity, and skills to the urban street vendors for accessing emerging market opportunities.
Sarva Shiksha Abhiyan (SSA): SarvaShikshaAbhiyan(SSA)istheGovernmentofIndia'sflagshipprogramfortheachievementofUniversalization of Elementary Education (UEE) in a time-bound manner, as mandated by th the86 amendmenttotheConstitutionofIndiamakingfreeandcompulsory EducationtotheChildrenof6-14yearsagegroup,aFundamentalRight.
National Rural Health Mission (NRHM):TheNationalRuralHealthMission(NRHM)waslaunchedin2005,toprovideaccessible,affordable,and qualityhealthcaretotheruralpopulation,especiallythevulnerablegroups.
SwachhBharatMission:Toensurethattheopendefecation-freebehaviors aresustained,nooneisleftbehind,andthatsolidandliquidwastemanagementfacilitiesareaccessible,theMissionismovingtowardsthenextPhase IIofSBMGi.eODF-Plus.ODFPlusactivitiesunderPhaseIIoftheSwachh BharatMission(Grameen)willreinforceODFbehaviorsandfocusonprovidinginterventionsforthesafemanagementofsolidandliquidwasteinvillages.
MissionAyushman: TheAyushmanBharatDigitalMission(ABDM)aims to develop the backbone necessary to support the integrated digital health infrastructureofthecountry ItwillbridgetheexistinggapamongstdifferentstakeholdersoftheHealthcareecosystemthroughdigitalhighways.
PradhanMantriJanDhanYojana:PMJDYisNationalMissionforFinancialInclusiontoensureaccesstofinancialservices,namely,basicsavings& deposit accounts, remittance, credit, insurance, pension in an affordable manner Under the scheme, a basic savings bank deposit (BSBD) account canbeopenedinanybankbranchorBusinessCorrespondent(BankMitra) outlet,bypersonsnothavinganyotheraccount.
DISHA Project is being implemented in partnership with UNDP for creating employmentandentrepreneurshipopportunitiesforwomeninIndia.
Howcanwebuildtheskillsoftomorrow'sworkforce?
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Howcanwesupportrisk-takingandentrepreneurshipwhilesafeguardingjobquality,collectivebargaining,andsocialprotection?
Howdoweintegratethegrowingnumberofmigrantstoenhancesolidarity,performance,andcohesioninoursocieties?
Intheend,inclusivegrowthhastostartfromthegrass-rootlevel,hencetargeting the basic issues is key Nowadays, large numbers of people are losing faith in theirinstitutions.Thistrendcanbereversedifpublicauthoritiesdemonstratethe highest standards of integrity and efficiency in their work, and promote more transparencyandpublicparticipation.
SuggestionsforInclusiveDevelopmentofIndia:
First, countries should increase public and private investment in their citizens' capabilities,whichisthemostimportantwaytheycandurablylifttheirrateof productivitygrowth.Second,governments,togetherwithemployers'andworkers' organizations, should upgrade national rules and institutions relating to work.Theseinfluencethequantityanddistributionofjobopportunitiesandcompensation,andthusthelevelofpurchasingpowerandaggregatedemandwithin theeconomy Third,countriesshouldincreasepublicandprivateinvestmentin labor-intensiveeconomicsectorsthatgeneratewiderbenefitsforsociety These includesustainablewater,energy,digital,andtransportinfrastructure,caresectors,theruraleconomy,andeducationandtraining.
CONCLUSION:
Indian government along with the state governments and local governments shouldcontinuetofocusoneradicatingpovertyandachievingsustainabledevelopmentinordertoimprovethelivesofIndia'speople.Throughinnovativepartnerships with an international organization, civil societies, and private companies,inclusiveandequitablegrowthcanbetargeted.Inclusivegrowthwillhelp intheempowermentofvulnerableandmarginalizedpopulations,improvelivelihoods,andaugmentskill-buildingforwomen.
REFERENCES:
I. Chattopadhyay,S.K.,(2011)FinancialInclusioninIndia:AcaseStudyofWestBengal, RBIWorkingPaper
II. Mehrotra,N.etal.,(2009).FinancialInclusion:AnoverviewNationalBankforAgricultureandRuralDevelopment,DeptofEconomicsAnalysis&Research:Occasional Paper–48,Mumbai.
III. Charkravarty, S.R. and Pal, R., (2010) Measuring financial inclusion:AnAxiomatic Approach,IGIDR,WorkingPaper
Way
forward: India's economic growth has not been well reflected in the real-time development on the ground which pushes back the aim to achieve complete inclusive growth.Morestepsneedtotakeformakinginclusivegrowththetargetofdevelopment.Issueslikesocialandregionaldisparity,ruralandurbandivide,malnutrition, poverty, etc, are being addressed via various schemes and projects but need more impetus. Growth as we know it doesn't work for all and is putting everyone'swell-beingatrisk.Weneedtodevelopnewandimprovedmodelsand focusonensuringgrowthimproveslives.Peoplewouldfeelmoremotivatedand involved if the benefits of economic growth were not allowed to flow into the pocketsofarichminority Thiscanbeachievedbyafewsimplerstepslike:
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Makingourtaxsystemsfairerandmoreeffective
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Ensuringpeoplecanearnthewagestheyneedtothrive
Creatingabusinessenvironmentthatattractsnewfirmsandboostscommunities
Onaglobalscale,somesocialgroupsandterritories,eveninrichcountries,have been left out for decades and need support. With the right policies and investments in essential public services, we can build more cohesive societies and bridgethedividesthatthreatenourfutureprosperity Mostimportantly,weneed to anticipate the radical changes induced by globalization, digitalization, and demographicshiftandtargetthembyansweringquestionslike: