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Inclusive growth means supporting higher employment levels and rewarding wages in a state or country. In developing countries, the criteria to determine inclusive growth are slightly different. It is more about gaining a niche in new sectors and technologies.
Inclusive Growth
One of the main aims of the government is to promote inclusive growth. The policies are prepared in a way that they address the failures to develop each sector and population holistically. The policy settlement deals with structurally different issues for developed and developing countries.
Inclusive growth contributes to the quality of life of an individual, which in turn creates positive effects on the progress of a society. The Organisation for Economic Co-operation and Development (OECD) has identified two fundamental dimensions for inclusive growth for regions in industrial transition. Successful transition means investing in places that are left behind. One of the dimensions is to identify the importance of adopting a territorial approach, and the second is to enable the industry to transition.
It has been observed that all regions and cities are not equally developed, and there exists a more significant divide between developed and underdeveloped regions. The main aim and challenge for attaining inclusive growth is to ensure that each region is on the path of development.
Because of the uneven spread in the development of various regions, there is increased economic vulnerability and inequality of opportunities. A policy approach focused on inclusive growth is essential to avoid further labour market extremism in industrial transition.
Issues Deterring Inclusive Growth
- Low incomes and high unemployment: This is one of the biggest deterrents in promoting inclusive growth. Long-term unemployment creates economic hardship that affects society.
- Lack of Opportunities: Lack of opportunities can also create mental and physical health problems.
- Decline of Traditional Manufacturing: One of the interrelated deterrents observed with high unemployment is a decline in traditional manufacturing.
- Social Exclusion: The risk of social exclusion, poverty, and inequality is another issue in attaining inclusive growth.
Government’s Initiative to Promote Inclusive Growth in India
As per UNDP, over the last 15 years, India has made significant development in terms of economic growth. As per the data, more than 271 lakhs people came out of poverty.
Our government is actively promoting inclusive growth and has taken various initiatives to attain this. Some of the government’s initiatives to promote inclusive growth are:
- Promoting livelihood by agriculture: The government is working on promoting areas for local means of livelihood such as agriculture. Apart from various policies launched under this initiative, Rashtriya Krishi Vikas Yojna focuses on state governments preparing agricultural plans at the district level. Another important initiative has been to support the farmers by introducing a minimum support price (MSP). The government also focuses on farmers’ friendly policies for better irrigation facilities.
- Promoting Industry: The Indian government has aimed to promote industrial development in all parts of the country. Various rebates and benefits are given to the industrial undertakings in regions such as the Northeast, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand. The main aim is to promote industrial growth in these regions.
- Promoting Infrastructure: Our government is rigorously working on providing good quality infrastructure, especially in the backward areas. It is the most crucial requirement for achieving faster growth and ensuring investments in backward regions. Hence, the government is working on connecting these regions by building roads, ensuring power availability at a stable voltage and frequency, water for irrigation, well-connected routes through railways and airways. Telecommunications services also play an essential role in developing any region, and various initiatives are taken to provide the same in such areas.
- Promoting Education and Skill Development: One cannot ignore the need and importance of education for the development of a region. Therefore, the government has launched various schemes to promote the same. Sarva Sikhsha Abhiyan and the Midday Meal Scheme are some of the notable ones. The right to receive an education was also made a fundamental right. Efforts are being made to improve the quality of education delivered.
- Health and Nutrition: Only a healthy population can positively contribute to an economy’s growth. Both central and state governments are working in this area to improve people’s overall health and nutrition. Efforts are being made to reduce infant mortality, and various ASHA workers are religiously working in this direction.
- Women Empowerment and Child Rights: One cannot expect development if a significant section of society is left out and inequality prevails. Empowerment and growth of women are primary markers of development in a country. Hence, our government is working on empowering women through various schemes. Children are often subject to violence and cruelty. Therefore various laws are implemented to protect their rights.
How can we Promote Inclusive Growth in India?
We as a society also play an active role in determining the success or failure of any initiative taken by the government. We can support inclusive growth by supporting various policies and working toward a direction that promotes inclusive growth. Every action counts.
Conclusion
Promoting inclusive growth and being able to sustain it is a precondition for any fair and inclusive transition. It is important to ensure that opportunities are created for the people living in the areas lacking in development and ensuring good working conditions are provided. The ultimate result of all these efforts would be a smooth region transition and sustainable development. Industrial transition in any region or country can only become successful when everyone can enjoy the benefits through inclusive growth.
