UPSC Mains Daily Questions » Daily Answer Writing Challenge-28th July

Daily Answer Writing Challenge-28th July

Q1. What does “inclusive growth” mean to you? What are the main obstacles to inclusive growth, and how can they be removed in the current scenario? Explain. (250 words 15 Marks)

Answer:

Introduction:

As per OECD (Organisation for Economic Co-operation and Development), inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all.

Obstacles to inclusive growth :

  • Poverty alleviation: In India, ending poverty is typically only seen as a long-term objective. One in four Indians lives in poverty.
  • Inadequate Human Development: With 550 million young people under the age of 25, we have a workforce ready for the global market. One-third of the Child Nutrition cases in the World are found in India.
  • Rapid growth while making growth more inclusive: Primary medium-term policy challenge for India is not to raise growth from 8 to 10 per cent but to sustain rapid growth while spreading its benefits more widely.
  • Infrastructure Deficit: Huge infrastructure gap which compromises the growth country and Human resource development. As per NITI, $ 4.5 Trillion is needed to invest in Infra till 2040
  • Grey Economy: 90% of the labour force in India is employed in the Informal Economy. Only 5% of the workforce is skilled. This constrains the potential of the economy.
  • Equity: Sections like SC/ST and Minority are lagging in various social indicators. E.g., The literacy rate among SC is 66% as compared to the National Average of 74%
  • Low Women LFPR(Labour Force Participation Rate): It is around 25% and very low as compared to male LFPR, which is at 76 %. This is due to factors like the Perpetuation of Patriarchal notions, women’s safety issues, no gender wage parity, etc.

Measures needed to overcome:

  • Developing a comprehensive strategy is necessary to reduce the prevalence of poverty and inequality with a Focus on Education, Health, Skill Development, and Income Redistribution.
  • It is imperative to take significant actions, such as formulating policies to enhance education, nutrition, and health.
  • Direct tax reforms and labour market changes will have a redistributive impact on the system.
  • Assess the cost-effectiveness of programmes like the National Rural Employment Guarantee Scheme (NREGS), which guarantees 100 days or more of employment at a wage set by the government.
  • All across the nation, changes must be made to close PDS leaks, implement GPS tracking, and activate vigilance committees.
  • Government agencies must conduct research to compile the best methods for putting government programmes into action.
  • Special programmes and initiatives are also required to reintegrate minorities and other marginalised groups, such as the lower caste poor.

All these factors must be taken into consideration if inclusiveness is to be achieved. It will take time to implement the institutional and attitudinal changes that should result from this. The creation of awareness regarding inclusivity and empowerment is necessary.

Note: The headings mentioned in the answer ‘Introduction, Body and Conclusion’ are for the understanding of the learners. Do not add headings in the mains examination while writing the answers.