Empowering the whole humanity

Inclusive growth refers to the pace and distribution of economic growth. It gradually creates opportunities for all segments of the population and assigns the dividend of increased prosperity, both in monetary and non-monetary terms, equally among the sections of the society. It can be observed that for many countries, people have not witnessed an increase in their income over the years. The gap between the rich and the poor only seems to be widening, with those at the top of the hierarchy capturing the ‘lion’s share’ of growth. The major concern at this point is primarily the rising inequality in earning and in wealth, but money is only one facet that contributes to well-being.  In just about every area, this economic well-being would also rely on aspects like education, life expectancy and employment prospects.

A concern for India

The current growth process in India have not been reaching all the segments of people equally which has led policy adviser to prescribe ‘inclusive growth.’ But, this term which is relatively in a new concept in macroeconomics, does not have a unique explanation or meaning. India had been ranked 60^th among the 79 developing economies, below neighboring China and Pakistan in the inclusive development index. This inclusive development index provides a more complete measure of economic development than GDP growth alone. It has three strong pillars being Growth and Development, Inclusion and Intergenerational Equity and Sustainability. One of the main concerns for India is in relation to its sustainability. Rapid and sustained poverty reduction would require inclusive growth which would permit people to contribute and benefit from economic growth.

Challenges of Inclusive Growth for India

India expanding business to a global scale and is growing at a remarkable rate. Still, India is far from reaching its true potential. The country remains shackled in corruption, traditional social hurdles and lack of transparency. It is witnessed that growth does not happen uniformly across most of the sections and a large portion of the society remain outside the purview. There are several social, political and economic factors that would have to be tackled to sustain a high rate of economic growth. The Indian society must introspect issues like child labor, women empowerment and removal of caste barriers. Another major challenge would be the spread of corruption in the country which causes the weakening economic status in India.

Assessment

Many intellectuals accentuated that inclusive growth is required for sustainable development and unbiassed distribution of wealth. For India, it is a tough task to accomplish inclusive growth. In a democratic country, most the population living in rural India and bringing them to the mainstream would be the main concern. The challenge for the Indian government would be taking the level of growth to all the sections of the society. The best way to establish inclusive growth is by appointing the right man for right job by incorporating education and skill development.

The provisions for productive employment, especially the rural non-farmer, access to productive assets such as land, would be critical to lift the poor out of the poverty trap and provide a stimulus to economic growth. Women’s access to valued resources, such as decent jobs and higher education can also have positive implications for growth. Thereby, empowering and supporting women over time, can prove to be a rapid catalyst to socio-economic growth.