Despite Consistent experience of High growth, India
still goes with the lowest indicators of human
development. Examine the issues that make
balanced and inclusive development elusive.
Despite Consistent experience of High growth, India
still goes with the lowest indicators of human
development. Examine the issues that make
balanced and inclusive development elusive.
Subject: Indian Economy and Development
India's paradox of high economic growth coupled with poor human development indicators represents a critical development challenge. The country's GDP growth rate of 7.2% contrasts sharply with its 134th rank in the Human Development Index (2023), highlighting the disconnect between economic progress and social development.
Key Issues Affecting Balanced and Inclusive Development
Structural Challenges
- Income Inequality: The Gini coefficient of 0.410 indicates significant income disparity, with wealth concentrated among a small percentage of the population.
- Rural-Urban Divide: Disparity in consumption patterns between rural (Gini coefficient 0.237) and urban areas (0.284) reflects uneven development.
- Regional Imbalances: Varying poverty levels across states create development gaps, affecting overall national progress.
Social Sector Inadequacies
- Healthcare Access: Despite schemes like Ayushman Bharat, out-of-pocket health expenditure remains high, impacting poverty levels.
- Educational Disparities: The National Education Policy 2020 aims to address quality education gaps, but implementation challenges persist.
- Gender Inequality: Limited female participation in workforce (LFPR of 23%) hampers inclusive growth.
Governance and Implementation Issues
- Policy Implementation Gap: Poor last-mile delivery of welfare schemes affects intended beneficiaries.
- Infrastructure Bottlenecks: Inadequate physical and social infrastructure in rural areas limits access to basic services.
- Resource Allocation: Insufficient public spending on social sectors affects human development outcomes.
Economic Factors
- Jobless Growth: High GDP growth not translating into proportionate employment generation.
- Informal Sector Dominance: Large unorganized sector workforce lacks social security benefits.
- Financial Inclusion: Despite Jan Dhan Yojana, meaningful financial services remain limited for many.
The recent National Multidimensional Poverty Index (2023) shows improvement, with significant poverty reduction between 2015-16 and 2019-21. However, the path to balanced development requires addressing these structural issues through targeted interventions like PMJAY, Skill India, and Digital India, while ensuring effective implementation and monitoring mechanisms. The focus should be on creating a more equitable society through inclusive policies and robust social protection systems.
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