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Inclusive Growth and Issues Arising From It Lesson-3 Presented By: Roman Saini
In This Lesson Inclusive Growth Problems Before Inclusive Growth In India Challenges And Opportunities
Inclusive Growth The following problems are the major concern for developing countries like India to achieve the inclusive growth Poverty Employment Agriculture .Problems in Social Development .Regional Disparities Poverty In India, proportionally large share of poor is lower castes. Many see the caste system as a system of exploitation of poor low caste groups by more prosperous high caste groups. In many parts of India, land is largely held by owner of the dominant castes that economically exploit low caste landless laborers and poor artisans, all the while degrading them with ritual emphases on their so called god given inferior status.
Inclusive Growth Employment .Raising population at a great speed after Independence showed its impact on employment The unemployment became the big worry to the development of the country . Since poverty is much higher than unemployment, employment is the only source to eradicate poverty. . The country is also facing in employment generation in all sectors, region and for all socio- economic groups particularly for poorer sections of the population, backward regions, lagging sector and SC/ ST/ OBC/ women etc. .
Inclusive Growth Agriculture Traditionally, India is considered as the agriculture based country. As the majority of Indians are engaged in agriculture for employment, the recent development in the other sectors decreased this major's 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 labour productivity in agriculture and the gap between agri and non agri is widening Decline in Yield growth due to land and water problems, vulnerability to world commodity prices, farmers suicides. . . .Disparities in growth across region and crops i.e., growth rate decline more in rainfed areas.
Problems in Social DevelopmentInclusive Growth 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 Some of the problems in social sector are Significant regional, social and gender disparities. .Low level and slow growth in public expenditures particularly on health. Poor quality delivery system Achievement of 130th rank among 189 countries on Human Development Index. Social indicators are much lower for scheduled castes and Tribes. Malnutrition among children is one major problem. .Since BPO brought the multi culture environment in India, this sector is facing under severe pressure due to global recession. Advancements in India is still at lower growth due to the strong influence of culture and regional disparities.
Inclusive Growth Regional Disparities Regional disparities are also a major concern for India due to different culture and tradition. Traditional cultures, caste system and the rich and poor feelings favored some specific groups as a result, the regional disparities raised in India before and after independence. And also due to the development in agriculture and industrial sector some region in India developed fast and some other places still are facing scarcity.
Inclusive Growth Challenges The key component of Inclusive growth strategy included a sharp increase in investment in rural areas, rural infrastructure and agriculture spurts in credit for farmers, increase in rural employment through a unique society safety net and sharp increase in public spending on education and health care. . The government also should go for variety of legislative interventions to empower the disadvantaged. Some of the challenges and opportunities before inclusive growth strategies in India are: Poverty alleviation is one of the big challenges before India Eradication of poverty in India is generally only considered to be a long-term goal.
Inclusive Growth Poverty alleviation is expected to make better progress in the next 50 years than in the past, as a trickle- down effect of the growing middle class. Increasing stress on education, reservation on seats in government jobs and the increasing empowerment of women and the economically weaker section of the society, are also expected to the alleviation of poverty. For agricultural growth, the private players can participate into bridge the gap including providing micro finance. Contract farming, setting up storage facilities for agro- produce, and producing them from farmers.
Inclusive Growth The private sector could also develop heritage sites and tourist spots and encourage the promotion of traditional arts and crafts in joint venture with rural enterprise. . The government of India should also increase its present moratorium on interest payments, lowering of farm credit rates for increase in agriculture growth. . 'Government schemes should target eradication of both poverty and unemployment. Attempt to solve the problem, by providing financial assistance for setting up business, skill honing, setting up public sector enterprises, reservation in government, etc