Subject: Economy

Economic inequality and the path to shared prosperity have emerged as critical challenges in India's growth story, necessitating a comprehensive understanding of inclusive growth and its implementation.

Key Features of Inclusive Growth

• Broad-based Participation: Ensures opportunities across all sectors of society, focusing on both economic and social inclusion through programs like PM MUDRA Yojana for entrepreneurship development.

• Equitable Distribution: Aims for fair distribution of growth benefits across different income groups, regions, and communities through targeted interventions.

• Employment Generation: Creates productive employment opportunities while focusing on skill development and capacity building through initiatives like PMGDISHA.

• Poverty Reduction: Emphasizes sustained poverty alleviation through multiple channels including social security measures and economic opportunities.

Assessment of India's Inclusive Growth

Positive Indicators

• Poverty Reduction: Significant decline in poverty rate from 52% in 2011-12 to 15.1% in 2023-24, with extreme poverty falling below 1%.

• Reduced Income Inequality: The Gini coefficient has improved from 37.5 in 2011-12 to 29.1 in 2023-24.

• Employment Generation: Unemployment rate decreased to 3.2% in 2023-24 from 6% in 2017-18.

Challenges

• Wealth Concentration: Top 10% holds 65% of nation's wealth while bottom 50% possesses only 6.4% (2023).

• Regional Disparities: Persistent urban-rural divide in access to healthcare, education, and infrastructure.

Measures for Inclusive Growth

Policy Interventions

• Strengthen Public-Private Partnerships (PPPs) in healthcare, education, and infrastructure development.

• Enhance financial inclusion through digital technology and targeted credit schemes.

• Focus on sustainable development by integrating climate resilience into economic planning.

Social Development

• Improve access to quality education and healthcare in underserved areas.

• Promote skill development and vocational training for better employability.

The journey towards inclusive growth requires a multi-dimensional approach combining economic reforms with social empowerment. Success stories like PM MUDRA Yojana and PMGDISHA demonstrate that targeted interventions can create meaningful impact in achieving inclusive growth objectives.