- Introduction – define inclusive growth.
- Chart out the policy approaches in various dimensions.
- Mention NITI Aayog’s strategy in Vision 75.
Inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all.
According to World Bank’s review of India’s Development Policy, Inclusive Growth policy implementation is facing a dilemma of improving the delivery of core public services, and maintaining rapid growth while spreading the benefits of this growth more widely. Since independence, the govt. has practiced various types of policy measures, of which, a few are discussed below :
Growth oriented policy:
- India’s economic planning started with growth oriented policy. First plan (1951-56) was started with an objective of rapid and balanced growth.
- The second plan (1956-61) also put a thrust on rapid growth of industrialization.
- More recent, twelfth five year plan (2007-12) has blended economic growth with inclusion with an objective of Faster, Sustainable and More Inclusive Growth.
- However, it has failed to emphasize inclusive growth by creating more jobs for low and semi-skilled workers. Growth is not equally shared and in many parts of the country, people still remain poor and disadvantaged in significant proportion.
- The direct intervention is facilitating the Inclusive Growth through legislation, regulation, credit facilitation and providing livelihood security are the forms of direct intervention by the govt.
- Safety nets or anti-poverty measures are the some other ways of direct intervention towards Inclusive Growth.
- Welfare policies like Food subsidies, public distribution of essential commodities, nutrition programs, financial support though micro finance are the ways in which Inclusiveness can be implemented.
Capacity building: Capacity development through training of rural development functionaries is also a mean of capacity building. Increasing efficiency, effectiveness, accountability and transparency are also considered the areas under capacity building initiatives of the govt. For example, if the objective of Department of Rural Development is enhancing the livelihood security of households in rural areas though MNREGA then capacity building for enhancing effectiveness of Gram Sabha is one of the modalities to achieve the objective.
Public Participation: Without public participation at different level of governance, Inclusive Growth remains a distant dream. SHGs promotion is a typical example of public participation for Inclusive Growth. Kerala govt. supported Kudumbasree programme have been successful in women empowerment and reducing poverty. Similar initiative of Andhra Pradesh namely ‘Indira Kranti Pathakam’ is showing a good progress in social mobilization, gender empowerment and rural poverty reduction.
NITI Aayog’s strategy for inclusive growth:
New India @75 vision has the following objectives for the inclusive growth :
- To have a rapid growth, which reaches 9-10% by 2022-23, which is inclusive, clean, sustained and formalized.
- To Leverage technology for inclusive, sustainable and participatory development by 2022-23.
- To have an inclusive development in the cities to ensure that urban poor and slum dwellers including recent migrants can avail city services.
- To make schools more inclusive by addressing the barriers related to the physical environment (e.g. accessible toilets), admission procedures as well as curriculum design.
- To make higher education more inclusive for the most vulnerable groups.
- To provide quality ambulatory services for an inclusive package of diagnostic, curative, rehabilitative and palliative care, close to the people.
- To prepare an inclusive policy framework with citizens at the centre.
Lastly, policy intervention takes place both at micro and macro level. Improving fiscal discipline, trade liberalization, promoting Foreign Direct Investment, privatization, deregulation, tax reforms, labour laws, social safety nets, public expenditure etc. are important for macro policy measures while at the micro level, reducing inequality in income, improving public/social infrastructure, healthcare, education, access to essential services, accountability and transparency, women empowerment, role of civil society organizations, etc are instrument of micro policy which needs to be re-worked.