UPSC CSE 2024/25 GS-3 Mains Module PDF
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Dr. Shivin Chaudhary
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This document is a UPSC CSE 2024/25 GS-3 Mains module on inclusive growth. It includes past year questions (PYQs), discussions on the topic, constitutional provisions related to inclusive growth, and India's performance on various inclusive growth indicators. Provides insights into the challenges and strategies for achieving inclusive growth in India.
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UPSC CSE 2024/25 GS-3 MAINS MODULE By Dr. Shivin Chaudhary Merged PDF Inclusive Growth PYQs 1. W ith a consideration towards the strategy of inclusive growth, thenewcompaniesbill,20...
UPSC CSE 2024/25 GS-3 MAINS MODULE By Dr. Shivin Chaudhary Merged PDF Inclusive Growth PYQs 1. W ith a consideration towards the strategy of inclusive growth, thenewcompaniesbill,2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discussotherprovisionsinthebillandtheirimplications. (2013) 2. Capitalism has guided the world economy to unprecedented prosperity. However, it often encouragesshortsightednessandcontributestowidedisparitiesbetweentherichandthepoor. In this light, would it be correct to believe and adoptcapitalismdrivinginclusivegrowthin India? Discuss. (2014) 3. Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financialinclusionofthepoorersectionof the Indian society? Give arguments to justify your opinion. (2016) 4. Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing thesechallenges. (2016) 5. What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. (2017) 6. It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and sustainability together. Comment on this statement. (2019) 7. Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth and sustainable development. (2020) 8. Is inclusive growth possible under market economy? State the significance of financial inclusionin achieving economic growth in India. (2022) Introduction Inclusive growth is an economic model that ensures the equitable distribution of prosperity benefits across all societal segments, aiming to reduce poverty and inequality by providing meaningful opportunitiesforparticipationandcontribution,regardlessofone'seconomic,political,social,orcultural background. According to the World Bank Inclusive Growth refers both to the pace and pattern of growth, which are interlinked and must be addressed together. Indian model of inclusive growth is based on the philosophy of Sabka Sath, Sabka Vikas, Sabka Vishwas, Sabka Prayas. Rooted in collaborative governance, Indian model of inclusive growth aims to ensure that the benefits of development reach every citizen equally. Constitutional Provisions related to Inclusive Growth Article 38: Mandates the state to foster social order by promoting welfare and minimizing income and status inequalities among people and groups. Article39:Directsthestatetoensureequitabledistributionofresourcesandprevent the concentration of wealth, promoting an adequate livelihood for all. Article 41: Requires the state to provide the right to work, education, and public assistance for unemployment, old age, sickness, and disablement based on its capacity. Article 46: Aims to enhance the educationalandeconomicwell-beingofScheduled astes, Scheduled Tribes, and other weaker sections, protecting them from C exploitation. Article 47: Obligates the state to improve public health and raise the nutrition and living standards of its citizens. India’s Performance on various Inclusive Growth Indicators Indicator ata/Valu D Year/Source e Unemployment Rate 7.6% arch2024,CentreforMonitoringIndian M Economy (CMIE) Labor Force Participation Rate 37% Periodic Labour Force Survey Report (Women) 2022-23 Literacy Rate 77.7% 2017-18, National Statistical Commission Financial Inclusion 60.1% RBI’s Financial Inclusion (FI) Index 2023 Performance w.r.t. Climate 7th Position Climate Change Performance Index Change (CCPI) 2024 Gini Coefficient 0.4197 2022-2023 arameter P escription D ata/Facts D Economic Growth GDP Growth Rate 7.6% in 2023-24, indicating robust economic activity (Source: National Statistical Office) overty P eduction in R ecreased from 29.17% in 2013-14 to 11.28% in D Reduction Multidimensional 2022-23; 24.82 crore people moved out of poverty Poverty (Source: NITI Aayog) uman H Human Development HDI value of 0.644 in 2022, placing India 134th globally Development Index (HDI) (Source: UNDP) Gender Inclusion ocus on Women's F ver 430,000 individuals impacted by SIG's O Empowerment interventions, 62% women; 48% of 52,000+ enterprises women-owned (Source: UNDP) gricultural A Insurance and Credit P radhan Mantri Fasal Bima Yojana (PMFBY) covered Development Inclusivity for Farmers 31.7 million farmers in 2022-23 (Source: UNDP) Education Access Q uality and nrolment rate in primary education reached 96% by E Accessibility of 2023 (Source: Ministry of Education) Education Healthcare Improvements in yushman Bharat scheme covered over 50 million A Accessibility Public Health people by 2024 (Source: Ministry of Health and Family Infrastructure Welfare) Employment Job Creation and Skill Skill India mission trained over 40 million people by Opportunities Development 2023 (Source: Ministry of Skill Development and Entrepreneurship) Social Protection ccess to Social A National Social Assistance Programme expanded to Security Schemes cover 20 million more individuals by 2024 (Source: Ministry of Social Justice and Empowerment) rban U ustainable Urban S mart Cities Mission initiated 100 smart city projects S Development Growth and Smart focusing on sustainable urban planning (Source: Cities Ministry of Housing and Urban Affairs) ural R nhancement of E radhan Mantri Gram Sadak Yojana (PMGSY) P Development Rural Infrastructure connected 95% of habitations by roads as of 2024 and Services (Source: Ministry of Rural Development) nvironmental E reen Energy G ational Solar Mission expanded solar capacity to 40 N Sustainability Initiatives and GW by 2024 (Source: Ministry of New and Renewable Conservation Energy) echnological T Digital Inclusion and Digital India initiative resulted in over 70% internet Advancement Innovation penetration across rural and urban areas by 2024 (Source: Ministry of Electronics and Information Technology) Cultural Diversity reservation and P 'Ek Bharat Shreshtha Bharat' initiative enhanced Promotion of Cultural inter-state cultural exchange (Source: Ministry of Heritage Culture) Income inequality in India Asof2022-2023,thetop1%ofthepopulationinIndiaholds22.6%ofthecountry'sincome and 40.1% of its wealth, which are the highest levels in thecountry'shistory. Thisisalso among the highest shares in the world, higher than South Africa and Brazil. The top 10% of the population holds 77% of the country's wealth, while the bottom 50% onlyhas13%. The90/10ratio,whichmeasurestheratioofthetop10%tothebottom10% of incomes, increased from 6.7 in 2017-18 to 6.9 in2022-23.(Source:WorldInequality Report 2022) Components of Inclusive Growth E conomicInclusion:Enhancingaccesstojobs,markets,andfaircompensationthroughskills training and job creation. Social Inclusion: Ensuring equal access to essentialserviceslikeeducation,healthcare,and housing, particularly for marginalized groups. Institutional Inclusion: Improving governance to be responsive and accountable to all, especially the marginalized and vulnerable. FinancialInclusion:Expandingaccesstofinancialservicessuchasbankingandinsuranceto underserved populations. Technological Inclusion: Reducing the digital divide by ensuring universal access to digital technologies and the internet. GenderInclusion:Achievinggenderequalityinallspheres,allowingequalopportunitiesforall genders. Geographic Inclusion: Promoting equitable development across all regions, addressing disparities in infrastructure and investment. Political Inclusion: Ensuring that everyone has a voice in political processes and policy-making, fostering fair governance. Salient Features of Inclusive Growth E quitableOpportunities:Providesequalmarketaccessandremovesbarriersformarginalized groups. PovertyReduction:Targetspovertythroughsocialsafetynets,jobcreation,andbetteraccess to education and healthcare. Sustainable Development: Focuses on environmentallyfriendly growth strategies. Comprehensive Employment: Creates productive and decent jobs, especially for underprivileged groups. SocialInclusion:Ensuresparticipationofallsocietalgroups,includingwomen,minorities,and the disabled. Regional Balance: Reduces regional disparities ingrowth. Participation and Empowerment: Encourages stakeholder involvement in decision-making processes. Access to Services: Ensures availability of essential services like health, education, and finance to all. Good Governance: Promotes transparency, accountability, and efficiency in public administration. Strategy of Inclusive Growth(Objectives of inclusivenessand sustainability) Strategy of Inclusive Growth (Objectives of inclusiveness and sustainability) conomic E s ignificantlyexpandedfinancialaccess,openingmorethan50crore Inclusiveness bankaccounts.Thisinitiativehashelpedintegrateavastnumberof Indians into the banking system, facilitating better savings, credit availability, and financial security. MSMEs Support: The Micro Units Development & Refinance Agency (MUDRA) continues to empower small businesses by roviding essential credit support, fostering grassroots-level p entrepreneurship and contributing to job creation. ocial S E ducationandSkillDevelopment:TheSkillIndiaMissionaimsto Inclusiveness train hundreds of millions, equipping them with skills relevant to current industrial needs, thus enhancing employability and productivity. Targeted Programs for Disadvantaged Groups: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) supports rural households by providing guaranteed wage employment, thus alleviating rural poverty and empowering communities through consistent income. nvironmental E R enewable Energy Projects: Aligning with the Paris Agreement Sustainability goals, India targets a substantial increase in renewable energy capacity, aiming for 175 GW by 2022, emphasizing the growth in solar and wind energy sectors. Smart Cities Mission: This project plans to develop 100 smart cities across India, focusing on sustainable urban living through innovative and efficient infrastructure and services. conomic E InfrastructureDevelopment:Majorinfrastructureinitiativeslikethe Sustainability Bharatmala and Sagarmala projects enhance connectivity and supporteconomicactivitiesacrossurbanandruralareas,crucialfor holistic economic growth. Agricultural Reforms: The government's focus on stabilizing agricultural income through various supports and reforms aims to reduce dependency on unpredictable monsoon seasons and enhance productivity. Need for Inclusive Growth ccessibility to A T here's acrucialgapintermsofaccessibilityandqualityofcore Public Services public services like healthcare and education, as spending remains low, which affects service delivery. o Health Expenditure: India's spending on health as a percentage of its GDP was2.1%forthefiscalyear2023 according to budget estimates. o Education Expenditure: the allocation fortheeducation and the higher education sector was just about 2.9% of thecountry’sGDPforthefiscalyear2023.Countriessuch astheUnitedStatesandtheUnitedKingdomspends6% & 4.2% of GDP on education. Nutrition and Health India is still facing widespread health problems like malnutrition and undernourishment, especially among marginalized sections such as adolescent girls. o T he latestdatafromtheNationalFamilyHealthSurvey-5 (NFHS-5) offers insights into malnutrition and undernourishmentamongchildreninIndia:Stunting(low height for age)- 35.5%, Wasting (low weight for height)- 7.7%,Underweight children-32.1%. conomic and E T hereissignificantintra-stateandinter-statedisparitiesreflected Social Inequality in the Human Development and Per Capita Income in India, demonstrating the urgent need for policies that foster equitable growth. o In the Human Development Report 2023-24, published byUNDP,Indiaranked134outof193countries,showing poor status of human development in India. o Thereisawidespreadinter-statedisparityintermsofper capita income. In 2020-21 (based on currentprice),Goa toppedthePerCapitaIncomelist(₹4,31,351)whileBihar was at the bottom (₹43,605). gricultural and A The agricultural sector exhibits low growth rates and receives Employment Issues inadequate policy attention. Moreover, employment quality is poor, and there is a trend towards the casualization of labor, which undermines job security and living standards. o Informalization of Jobs: According to the India Employment Report 2024, about 90% of workers are in informal jobs. Additionally, while the share of regular employment had been rising since 2000, it began to decline after 2018. Rural-Urban Divide the gap between rural and urban areas in terms of access to infrastructure, services, and opportunities. o The "Internet in India Report 2023" notes that while ruralIndiahasseenasurgeinactiveinternetusers,their access to digital services like digital payments remains limited, with only about36%ofsuchusersbasedinrural areas. ender & Social G Inclusive growth must address gender disparities and ensure Inequalities equal opportunities for all social groups. o OntheGenderInequalityIndex(GII)2022,Indiaranked at 108 out of 193 countries with a score of 0.437. ustainable S E conomic growth must be sustainable and environmentally Development: conscious.Sustainabledevelopmentisvitalforinclusivegrowth& long-term prosperity. o As of the fiscal year 2023, a substantial 73% of the country's electricity generation still comes from coal and lignite sources. o L ack of sustainable development leads to extreme weather events affecting the poor and marginalized population the most. rade and T E nhancing trade competitiveness and effectively utilizingforeign Investment direct investment and new technologies require a skilled labor force,emphasizingtheneedforimprovededucationandtraining systems. o According to the Human Development Report 2020, only about 20% of India's labor force isclassifiedas "skilled." o As per the India Skill Report 2023 reveals that only 50.3% of the young in the workforce are employable. Inclusive growth and sustainability through inter and intra generational inclusiveness Intra-generational Equity: Intra-generational equity focuses on fairness among different groupswithinthesamegeneration,addressingdisparitiesinaccesstoresources,opportunities, and outcomes. o Examples: ▪ Economic Policies: Progressive taxation and social welfare programs like India's Direct Benefit Transfer (DBT) scheme redistribute wealth to support marginalized groups. ▪ Access to Services: The Right to Education Act ensures free education for children, reducing educational disparities. Inter-generational Equity: Inter-generational equity ensures fairness in resource distribution between current and future generations, vital for sustainable development. o Examples: ▪ Environmental Protection: Sustainable practices like afforestation and renewableenergyprojectspreventresourcedepletion.Forinstance,theNational Solar Mission promotes solar energy use. ▪ Debt and Economic Policies: Fiscal prudence avoids high national debt, preventing future economic burdens. ▪ Climate Change: India's commitment to the Paris Agreement aims to cap emissionsandtransitiontorenewableenergy,ensuringalivableplanetforfuture generations. Associated Challenges H istorical Factors: Historical discrimination against certain social groups has limited their access to education, employment, and healthcare, affecting their social, political & economic mobility. Despite reservation policies post-independence, social upliftment has been minimal and largely confined to limited economic and political successes. Poverty: Despite high growth rates, poverty remains widespread. It affects one’s ability to access various services and resources available to make improvement in their living standards. o Despiteimprovements,Indiastillhasmorethan230millionpeoplewhoarepoorasper the UNDP Multi-dimensional Poverty Index 2023. 11.8% of people in India were multidimensionally poor and deprived of nutrition in 2019/2021. o Indiaranked111outofatotalof125countriesintheGlobalHungerIndex(GHI)2023 highlighting the dire situation of hunger in India. Unemployment: The India Employment Report 2024 highlights that India's youth make up about 83%ofitsunemployed,withthoseholdingatleastsecondaryeducationincreasingfrom 35.2% in 2000 to 65.7% in 2022. Income Inequality: According to Oxfam Report 2023, the top 10% of the Indian population holds 77% of the total national wealth. o 73% of the wealth generated in 2017 went totherichest1%,whilearound670million Indianswhocomprisethepooresthalfofthepopulationsawonlya1%increaseintheir wealth. o 63 million of them are pushed into poverty because of healthcare costs every year - almost two people every second. SocialExclusion:systematicmarginalizationofindividualsorgroupsfromsocietalprocesses, which denies them the opportunities and resources thatarenormallyavailabletomembersof society and which are key to social integration. Certain groups like Scheduled Castes (SCs), Scheduled Tribes (STs), women, and religious minorities often face exclusionfromeconomic, social, and political processes. o Periodic Labour Force Survey (2022-23) indicates that Female Labor Force Participation Rate (FLFPR)is at 37% only. o According to the National Human Rights Commission, about 92% of transgender individuals are excluded from economic activities, often leading to roles in begging or sex work due to job denials despite qualifications. Overdependence on Agriculture & Issue of disguised unemployment: Though India is striving to become the manufacturing hub of the world, a large workforce still depends of Agriculture sectors for their livelihood. o Inthefiscalyear2022-23,agriculturesectorcontributedonlyaround15%toIndia’sGDP (fiscal 2022-23) while providing employment to India’s 45.76% of the total workforce. Jobless Growth: Despite India's GDP growing at anaveragerateofabout7%annuallyover thepastdecade,employmentgrowthhasnotkeptpace,oftenremainingbelow1%accordingto theCentre for Monitoring Indian Economy(CMIE). GovernanceIssues:Corruption,inefficiencyandmal-administrationingovernancehaveledto misuse and misappropriation of resources allocated for the poor andmarginalized,negatively impacting the inclusive growth in India. o Mal-administrationandmisuseoofhealthcareresourcesduringCOVID-19pandemicled to unavailability of essential healthcare services, often resulting in loss of life of the patients. o India ranked 93 out of 180 countries on the corruption perceptions index for 2023, showing rampant state of corruption prevalent in the country. Social Norms andDiscrimination:Persistentsocialnormsanddiscriminationagainstcertain groupsaffectequalopportunity.Forexample,Culturalnormshavetraditionallyviewedfemales as subordinate to males, leading to restricted educational and employment opportunities for women, thereby perpetuating economic dependence and limited societal roles. Regional Disparities: StateslikeMaharashtraandTamilNadushowhigherGSVAinservices and industry, indicating robust economic activity,whereasstateslikeBiharandUttarPradesh, although rich in agricultural output, lag in industrial and service contributions. Climate Change and Disasters: disproportionately affect the poor and marginalized communities such as Tribals, Slum dwellers, Farmers etc. Climate led displacements have become new normal resulting in further deterioration of condition of poor in India. Human Resource related challenges (Careless and Useless manpower) o S killMismatchandUnderutilizationWorkersinIndiaoftenoccupyjobsunsuitablefor their skill levels, leading to underutilization due to an educational emphasis on rote learning. o Unemployment and Underemployment High unemployment and underemployment persist,especiallyamongyouthandgraduates,astheformalsectorfailstoabsorbnew entrants. o Lack of Vocational Training and Education There's a pronounced gap invocational and technical education that aligns with industry demands, signaling a need for educational reform. o Labor Market Rigidities Stringent labor lawsrestrictemploymentgrowthintheformal sector and encourage reliance on contract labor, resulting in job insecurity and less training investment. o InformalSectorPredominanceAsignificantportionoftheworkforceisemployedinthe informal sector, facing low job security, productivity, and wages. o EconomicandSocialBarriersCasteandgenderdiscriminationlimitaccesstoquality jobs, exacerbating social and income inequalities. o Lack of Entrepreneurial Support Potential entrepreneurial growth is hindered by inadequate support in financing, infrastructure, and mentorship Measure for Inclusive Growth Land Reforms In the early years post-independence, India undertook significant land reforms, including the abolition of zamindari systems and the distribution of land to the landless, aiming to reduce rural poverty and promote agricultural productivity. ublic P E stablished nationwide to ensure food security for all, especially the Distribution poor, by distributing subsidized wheat, rice, sugar, and other System (PDS) essentials. Five-Year Plans Initiated in 1951, these comprehensive development plans have emphasized sectors such as agriculture, education, and health to ensure balanced economic development across regions. 1th Five Year 1 Laid special emphasis on Inclusive Growth for the first time. Plan (2007-12) welfth Five Year T Focuses on Growth which is: Faster, Inclusive, and Sustainable. Plan ationalization N A imed to extend banking services to rural areas, enhancing financial of Banks (1969) inclusion and ensuring that credit was available to the underprivileged and rural sectors of the economy. Green Boosted agricultural productivity in several states, leading to evolution R increased food production and rural employment, thus reducing food (1960s-70s) shortages. omen W E stablishment of bodies such as the National Commission for Women Empowerment (NCW) and the National Council for Empowerment of Women to promote women's rights. ender G R eservation of seats in Local Self Government Institutions to Inclusiveness enhance gender inclusivity. eservation R S eats are reserved for Scheduled Castes, Scheduled Tribes, and Policies Other Backward Castes in educational institutions and government jobs. olitical P R eserved seats in Parliament and State Assemblies for SCs and STs Inclusion to encourage political participation. Minority Welfare C onstitution of Minority Commissions to safeguard the interests of minority communities. id-Day Meal M L aunched to boost school attendance and nutrition among children, Scheme (1995) especially in rural areas. ahatma Gandhi M G uarantees 100 days of wage-employment per year to rural National Rural households whose adult members volunteer to do unskilled manual Employment work. This has been crucial in providing economic security to rural Guarantee Act families. The scheme reserves at least 33% of its benefits for women (MGNREGA, and also focuses on improving irrigation facilities for Scheduled 2005) Castes and Scheduled Tribes. ight to R M andates free and compulsory education to all children aged 6 to 14 Education Act years, aiming to improve literacy and educational standards across (2009) the country. an Dhan Yojana J A ims to increase banking penetration, and ensure access to financial (2014) services such as bank accounts, insurance, and pensions. ake in India M L aunched to encourage companies to manufacture in India and (2014) incentivize dedicated investments into manufacturing. This initiative also focuses on job creation and skill enhancement in various sectors. igital India D L aunched to ensure government services are available electronically, (2015) improving online infrastructure and increasing internet connectivity, especially in rural areas. radhan Mantri P A n initiative aimed at providing affordable housing to the urban poor Awas Yojana by the year 2022 through a credit-linked subsidy scheme. (2015) yushman A program to provide health insurance that covers up to 5 lakh rupees per A Bharat (2018) family per year for secondary and tertiary care hospitalization across public and private empaneled hospitals in India. Recent Initiatives by government for Promoting Inclusive growth Agriculture PradhanMantriKisanSammanNidhi(PM-KISAN):Providesincomesupport(Rs.6000/year) to all landholding farmers' families to supplement their financial needs. Pradhan Mantri Fasal Bima Yojana (PMFBY): A crop insurance scheme to ensure that farmers are financially supported in the event of failed crops due to natural calamities. Agricultural Mechanization: Provides financial assistance and subsidies for the purchaseof various agricultural machinery and equipment, encouraging modern farming techniques and increasing farm output and efficiency. Healthcare Ayushman Bharat Pradhan MantriJanArogyaYojana(PMJAY):Offershealthinsuranceto over 500 million uninsured Indians, covering several medical procedures. NationalHealthMission:Aimstoprovideeffectivehealthcaretoruralpopulationswithafocus on accessibility, affordability, and quality. Telemedicine Initiatives: Under the Digital India umbrella, these initiatives aim to bridge the rural-urban health divide by linking remote areas via telemedicine for consultations and treatments. National Programme for Health Care of the Elderly (NPHCE): An initiative focused on providing specialized and comprehensive healthcare to the elderly. Education National Education Policy (NEP) 2020: Overhauls the Indian educational system to make education more holistic, flexible, and aligned with the needs of the 21st century. Samagra Shiksha Abhiyan: An integrated scheme for school education extending from preschool to senior secondary levels to ensure inclusive and equitable quality education. PMeVidyaInitiative:acomprehensiveefforttocentralizeandstreamlinealldigital,online,and broadcast educational resources, ensuring accessibility to quality education across diverse geographies and demographics. SWAYAMInitiative:promotesinclusivegrowthbyprovidingfreeonlinecoursesacrossvarious subjects from school to postgraduate levels, ensuring that quality education is accessible to everyone, regardless of their location or economic status. Skill Development Skill India Mission: Targets skilling over 400 million people across India to make them employable and economically productive. Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Encourages aptitude towards employable skills by providing monetary awards and certification. Digital and IT Digital India: Aims to transform India into a digitally empowered society with a focus on electronic public services. BharatNet: Seeks to connect rural areas with high-speed internetnetworkstopromotedigital inclusivity. C ommon Service Centres (CSCs): These are access points for delivery of essential public utility services, social welfare schemes, healthcare, financial, education, and agriculture services, apart from a host of B2C services to citizens in rural and remote areas of the country. UMANG App (Unified Mobile Application for New-age Governance):providesaccesstoa wide range of government services from Central, State, and Local Government bodies and other citizen-centric services. Financial Inclusion Jan Dhan Yojana: A nationwide scheme to ensure access to financial services, like banking savings & deposit accounts, remittance, credit, insurance, and pension. MUDRA Yojana:Providesloanstomicroandsmallenterprisesoperatinginthenon-corporate small business sector. Urban Development SmartCitiesMission:Focusesondeveloping100smartcitiesacrossIndiatopromotecities that provide core infrastructure, give a decent quality of life to their citizens, and applysmart solutions to improve services and infrastructure. Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Aims at transforming urban living conditions through infrastructure upgrades and improved service delivery in cities. Energy and Environment Ujjwala Yojana: Provides LPG connections to BPL households to promote the use of clean fuels. Solar Charkha Mission: Promotes green energy by setting up solar charkha clusters, which provide sustainable employment and reduce the carbon footprint. International Solar Alliance:topromoteinclusivegrowthbyfacilitatingwidespreadaccessto affordable,cleansolarenergy,therebyenhancingenergysecurityandsustainabledevelopment across its member countries. India's Nationally Determined Contributions (NDCs) under the Paris Agreement: also promoteinclusivegrowthbyfosteringjobcreationingreenindustriesandensuringsustainable development that benefits all sectors of society. Employment and Entrepreneurship Startup India: Supports entrepreneurship among the youth by simplifying the process of starting a company and providing various incentives. Pradhan Mantri Employment Generation Programme (PMEGP): Aims to generate self-employment opportunities through the establishment of micro-enterprises. Financial Inclusion Status of Financial Inclusion Banking Services Account Ownership: The Pradhan Mantri Jan-Dhan Yojana has significantly expanded banking access, with over 51 crore accounts opened and a total deposit balance of Rs. 2,08,855 crore as of November 2023. UsageofAccounts:Despitethehighnumberofaccounts,about4.30croreremaininactive with zero balance, highlighting challenges such as financial literacy and actual usage. Digital Payments G rowth in Digital Transactions: Digital transactions, particularly through UPI, haveseen massive growth, increasing from 92 croretransactionsinFY2017-18to8,371croreinFY 2022-23. Credit Accessibility CredittoVulnerableGroups:Accessremainslimitedforsmallfarmers,entrepreneurs,and low-income households, with some support from microfinance institutions and NBFCs. Microcredit Schemes: Government initiatives like the Mudra Yojana are crucial, consistently disbursing substantial funds to support small businesses annually. Insurance and Pension Insurance Coverage: As of 2023, insurance penetration in India is 4% of GDP, with life insurance at 3% and non-life insurance at 1%. This reflectssteadybutslowgrowthinthe sector, with substantial room for improvement to match global averages Pension Schemes: Coverage remains notably sparse, particularly among informal sector workers, highlighting a significant area for policy enhancement. Significance of financial Inclusion Household Welfare: Improved service access in rural areas enhances income management and savings. Entrepreneurship: Fintech innovations increase access to financialservices,crucialforsmall businesses Women'sEmpowerment:Policiesaimtoboostfinancialawarenessamongwomen,supporting economic independence. Financial Stability: Enhanced customer protectionframeworks stabilize the financial markets. EconomicOutput:AsignificantimprovementintheFinancialInclusionIndexindicatesbroader financial service utilization. Poverty Reduction: Achieving an 80% financial inclusion rate has significantly impacted poverty and inequality reduction. Digital Advancements: Digital financial services growthsupports the Digital India initiative. Formal Financial Channels: Improved formal financialinfrastructurereducesdependenceon informal services. Government Services: Efficient direct benefit transfers and grievance redress mechanisms improve service delivery. Financial Literacy: Enhanced toolsandapproachesarebeingdevelopedtoimprovefinancial literacy, particularly in digital services. AgriculturalandMicrofinanceSupport:Financialinclusionsupportsagriculturaldevelopment and strengthens MFIs. Economic Recovery and Sustainability: Financial inclusion aids in economic recovery and promotes sustainable development through better regulation and technology use. Strengths Government Initiatives: The Pradhan Mantri Jan-DhanYojanahassuccessfullyopenedover 51 crore accounts, drastically improving banking access across India. Similarly, the Mudra Yojana has effectively extended credit to small enterprises, disbursing significant funds annually. Technological Integration: Digital platforms like the Unified Payments Interface (UPI) have transformed banking, facilitating billions of transactions and significantly enhancing user engagement across various demographics. Challenges Financial Literacy: Financial literacy remains low, especially in rural areas, limiting effective utilization of financial services. The need for tailored educational programs is acute to bridge this gap. R ural Penetration: Despite the growth in digital banking solutions, the physical banking infrastructureinremoteareaslags,impactingthedeliveryoffinancialserviceswherebranches and ATMs are still crucial. Gender Gap: Financial inclusion rates for women trail those of men, underscoring persistent socio-economic barriers. Initiatives like the Bharatiya Mahila Bank and targeted microfinance projects are in place, but greater efforts are needed. Quality of Services: The reliability and quality of financial services in semi-urban and rural areas are problematic, with frequent service disruptions and inadequate customer support diminishing trust and usage. Analysis of PM-JDY as a tool for financial inclusion of Poor of Indian Society Achievements: Financial Inclusion: o Over 50 crore accounts opened as of August 2023, with deposits totaling over ₹1.75 lakh crore. o Millions of previously unbanked individuals, especially in rural areas, now have access to banking. Direct Benefit Transfers (DBT):Crucial for DBT initiatives,ensuring subsidies and welfare benefits are directly credited to beneficiaries, reducing leakage and corruption. Financial Literacy:Programs educate the poor on banking,savings, and financial products, increasing awareness and participation in the formal financial system. Insurance and Pension Schemes: o Account holders eligible for Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), providing accidental and life insurance. o Linked with Atal Pension Yojana (APY) to promote retirement savings among unorganized sector workers. Challenges and Limitations: Dormant Accounts:Many PMJDY accounts remain inactive,raising concerns about their actual utilization. Limited Access to Credit:Credit disbursement to PMJDYaccount holders is limited, with banks perceiving them as high-risk due to low income and lack of credit history. Operational Challenges:Issues like biometric authenticationfailures, inadequate physical banking infrastructure, and connectivity problems in remote areas persist. Financial Literacy Gaps:Significant gaps remain,with many account holders lacking the understanding to fully utilize available financial services. Exclusion of the Ultra-Poor:The ultra-poor, oftenlacking necessary documents or minimal required balance, still find it difficult to open and maintain accounts, leaving them excluded from formal financial services. Inclusive Growth through CSR Provisions Addressing Social Inequalities: CSR activities targeting hunger, poverty, and malnutrition address basic human needs, reduce social inequalities, and enhance the quality of life for marginalized communities. ▪ Tata Chemicals: Their "Okhai" initiative supports rural artisans, reducing povertyand improving living standards. ▪ Reliance Foundation: Their nutrition projects have benefited over 2 million children and mothers, reducing malnutrition rates. Promoting Education and Skills Development: By investing in education and vocational training,companieshelpbuildaskilledworkforce,improveemployability,andpromoteeconomic inclusion. ▪ Infosys Foundation: They have built libraries, funded schools, and provided scholarships, benefiting over 13,000 students annually. ▪ Larsen & Toubro (L&T):Theirvocationaltrainingcentershaveequippedover50,000 youth with employable skills. E mpowering Women and Promoting Gender Equality: CSR initiatives focusing on gender equalityandwomen'sempowermentcontributetosocialinclusionbyprovidingopportunitiesfor women to participate in economic activities. ▪ Hindustan Unilever’s Project Shakti: Empowers rural women by training them to become micro-entrepreneurs. ▪ PepsiCo: Their programs have reached over 50,000 women, offering training in agriculture, business skills, and leadership. Environmental Sustainability: CSR projects promoting environmental sustainability ensure economicdevelopmentdoesnotcomeatthecostofenvironmentaldegradation,benefitingboth current and future generations. ▪ ITC Limited: Their projects focus on watershed development, afforestation, and sustainable agriculture, benefiting over 6 million farmers. ▪ Wipro: Their sustainability initiatives include reducing carbon footprint and water conservation. RuralDevelopment:Supportingruraldevelopmentprojectshelpsbridgetheurban-ruraldivide, promoting balanced regional development and ensuring that growth benefits rural areas. ▪ Mahindra & Mahindra: Their "Project Hariyali" has planted over 18 million trees, improving rural landscapes and providing sustainable livelihoods. ▪ Aditya Birla Group: Their initiatives in healthcare camps, education programs, and infrastructuredevelopmenthavetransformedthelivesofover7.5millionpeopleinrural areas. Impact of Capitalism and Neo Liberal Policies (LPG reforms) in Inclusive Growth Positive Impacts Economic Growth o GDP Growth: India's GDP growth for 2022-23 was 7.0%,with projections for 2023-24 at 7.6%, indicating sustained robust performance. o Foreign Direct Investment (FDI): Although specificfigures for 2023 are not available, ongoing economic momentum suggests a positive environment for foreign investment. Job Creation: The IT and service sectors expandedsignificantly, with services like finance and real estate growing by 12.2% in early 2023, reflecting strong job creation potential. Infrastructure Development: The National InfrastructurePipeline, with plans to invest $1.4 trillion by 2025, supports sustained economic growth and regional job creation. Health and Education: Spending in these crucial sectorsremains below 3% of GDP each, with potential for increase aligned with ongoing economic growth. Negative Impacts Income Inequality and Regional Disparities o Wealth Distribution: The richest 1% of Indians own40.1% of national wealth, indicating extreme wealth concentration, much higher than in countries like the US or Brazil. o Access to Services: Disparities are evident in healthcareand education, with millions unable to afford necessary healthcare, pushing many into poverty annually(Oxfam International). Labor Market Issues o Precarious Employment: A significant portion of theworkforce in the informal sector lacks job security and social benefits, impacting economic stability. o Gender Disparities: Women face higher unemploymentand underemployment, often in insecure and lower-paying jobs(Oxfam International). Environmental Concerns o R esource Depletion and Pollution: Overexploitation of resources and inadequate urban planning have led to severe environmental degradation, particularly in urban areas like Delhi. Way Forward E nhance Educational Access and Quality: Fully implement the National Education Policy, focusing on vocational training, instruction in vernacular languages, and strengthening school complexes. o Expand digital education platforms like SWAYAM andDIKSHAtoimproveeducational outreach, particularly in remote areas. Increase Social Welfare Funding: Boost social welfare spending by utilizing funds from disinvestment proceeds. Foster partnerships with the civil society and corporate sector to enhance contributions to social programs. Expand E-Governance and Digital Services: Accelerate the deployment of digital infrastructure to ensure that services like e-Learning, e-Governance, and telemedicine are accessibleintheremotestpartsofthecountry.Example:Thee-Sanjeevaniplatform'ssuccess in providing healthcare solutions remotely. BridgingRural-UrbanDivide:Tobridgetherural-urbandivideforinclusivegrowthinIndia,key strategiesincludeimprovinginfrastructurelikeroadsanddigitalconnectivity,enhancingaccess to quality education and healthcare, and supportingruraleconomiesthroughagriculturalhubs and MSME development. o Household Consumption Expenditure Survey of 2022-23highlightsthatrural-urban divide in MPCE (Monthly Per Capita Consumption Expenditure) has decline considerably. o Withinruralandurbanareas,theconsumptionofthelowest5%oftheMPCEpopulation grew at a faster rate than the top 5%, pointing to a decline in economic inequality. Address intra-generational and inter-generational issues of equity: Inclusive growth in India necessitates addressing both intra-generational and inter-generational equity. o Intra-generational equity refers to fairness among individuals within the same generation, focusing on reducing disparities in current populations. For ex: disparity between urban and rural populations in terms of access of various services and opportunities. o Inter-generational equity looks at fairness across different generations, ensuring that future generations inherit a sustainable world. For example, the current exploitation of natural resources compromises the ability of future generations to meet their needs. Reform Key Sectors: Undertake systemic reforms in labor laws, agriculture, and land acquisition in a manner that respects democratic consensus and promotes fair practices. o Encourage states to adopt model agricultural laws that increase farmers' income and provide more market freedom. Support Innovation and Research: Enhance funding and policy support for startups and research institutions. Establish innovation hubs and incubators in collaboration with leading academic institutions and industry leaders. Promote Employment Generation: Incentivize sectors with high employment potential like manufacturing and services through subsidies, taxbreaks,andinfrastructuresupport.Support small and medium enterprises (SMEs) through easier credit facilities and market access. Strengthen Social Protection Programs: Extend and deepen the reach of MGNREGA and the Public Distribution System to cover more vulnerable populations. o ImprovehealthcarecoverageunderschemeslikePMJAYtoincludemorediseasesand higher reimbursement for medical expenses. Drive Financial Inclusion: Expand the reach of financial services to unbanked areas, promoting schemes like Pradhan Mantri Jan Dhan Yojana. o Leverage technology to provide mobile banking services, ensuring that financial products are accessible to all. Empower Women Economically: Implement and enforce policies that support women’s participation in the workforce, such as equal pay, maternity benefits, and anti-discrimination laws. o Promote women-led enterprises through dedicated financial products and marketing platforms. o Utilize successful models like Kerala’s Kudumbashree, a community-based women empowerment project, as a template for other states. Modernize Agriculture: Support precisionagriculturetechniquesandsustainablepracticesto increase productivity. Improve rural infrastructure like roads and storage facilities to reduce post-harvest losses. Inclusive Governance: Enhance citizen participation, boost transparency, and combat corruption. Strengthen local self-governments and engage marginalized groups in policy-making. o The Union Budget 2024 prioritizes inclusive developmentasitsforemostgoal,oneof the seven key objectives for the"Amrit Kaal"period. o Itaimstopromoteinclusivegrowthforyouth,women,farmers,OBCs,ScheduledCastes and Tribes, thedifferentlyabled,economicallyweakersections,andothermarginalized groups. Private Sector Engagement: Promote Corporate Social Responsibility (CSR) that targets inclusive growth. Motivate private sector investment in community development and social initiatives. Sensitization and Awareness: Increase public understanding and sensitivity towards inclusivity and equality. Implement campaigns and educational programs to challenge stereotypes and discrimination. We need I.N.C.L.U.S.I.V.E. growth I - Inclusion of all (SDG 10: Reduced Inequalities): Emphasizing social, economic, and political inclusion of all irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic status, supported by "Pradhan Mantri JanDhan Yojana"for financial inclusion. N - Nutrition and food security (SDG 2: Zero Hunger): Addressing hunger and promoting sustainable agriculture through initiatives like the"National Food Security Act." C-Careforhealth(SDG3:GoodHealthandWell-being):Enhancinghealthcareaccessibility and quality through "Ayushman Bharat" and "Mission Indradhanush" for vaccination coverage. L - Learning opportunities (SDG 4: Quality Education): Ensuring inclusive and equitable quality education and promoting lifelong learning opportunities via "S arva Shiksha Abhiyan" and "Skill India." U - Upliftment of women (SDG 5: Gender Equality): Promoting gender equality and empowering all women and girls through "B eti Bachao, Beti Padhao" and the "Nirbhaya Fund." S - Sustainable economic growth (SDG 8: Decent Work and Economic Growth): Encouraging sustained, inclusive economic growth and full and productive employment with " Make in India" and supporting youth employment through "N ational Youth Empowerment Scheme." I-Inequalityreduction(SDG10:ReducedInequalitiesagain):Focusingonempoweringand promoting the inclusion of all, especially marginalized groups such as SC, ST, OBC, and minorities, with laws like the "Scheduled Castes andTribes (Prevention of Atrocities) Act." V - Viable urban development (SDG 11: Sustainable Cities and Communities):Aimingto make cities inclusive, safe, resilient, and sustainable with the "Smart Cities Mission" and improving housing conditions through "Pradhan MantriAwas Yojana." E - Equitable justice and strong institutions (SDG 16: Peace, Justice, and Strong Institutions):Promotingpeacefulandinclusivesocieties,providingaccesstojusticeforall,and buildingeffective,accountableinstitutionsatalllevelsthrough"DigitalIndia"andoversightby the"Central Vigilance Commission." orld Economic Forum (WEF) on Promoting Inclusive Growth W WorldEconomicForumrecommendedfollowingthreestepstopromotesocialinclusionandeconomic growth: CapacityBuilding:Governmentsshouldenhancetheskillsoftheircitizenstofosterpublicand private investment, crucial for boosting productivity growth sustainably. Labor Regulation Modernization: It is important for governments to update labor laws and cooperate with employer and worker groups. This impacts employment, compensation distribution, purchasing power, and overall economic demand. InvestmentinSocialBenefits:Governmentsneedtoincreasepublicandprivateinvestments in labor-intensive sectors suchassustainableinfrastructure,water,electricity,digitalplatforms, transportation, healthcare, and education. This will provide widespread social advantages. ITI Aayog on Achieving Inclusive Growth N NITI Aayog in its Strategy for New India @75 provided a blueprint for achieving inclusive growth in India. Key recommendations are- To have an inclusive development in the cities to ensure that urban poor and slum dwellers including recent migrants can avail city services. Tomakeschoolsmoreinclusivebyaddressingthebarriersrelatedtothephysicalenvironment (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. Conclusion India's commitment to inclusive growth aligns with Sustainable Development Goals, constitutional values, and national policies like 'Sabka Saath Sabka Vikas', targeting a poverty rate reduction to about 5%. This progress reflects robust policy initiatives across states such asUttarPradesh,Bihar, and Madhya Pradesh, significantly lifting millions from multidimensional poverty. Looking ahead, continued efforts towards economic equity and social welfare are key to achieving sustainable and inclusive development for all citizens. International Best Practices of Inclusive Development Singapore’s Skill’s Future initiative: focuses on continuous learning wherecitizensreceive credits to attend courses that improve their job prospects. o This program supports career transitions and upskilling, adapting to technological changes and global economic shifts. S ocial Business and Entrepreneurship (Bangladesh): The concept of social business popularized by Nobel Peace Prize laureate Muhammad Yunus in Bangladesh, focuses on solving social problems through business techniques, including microfinance and social entrepreneurship. o These businesses reinvest profits to expand their reach and improve the community, promoting sustainable economic development. South Korea’s extensive investment in digital infrastructure and education: ensures widespread internet access and technological literacy. o The government supports programs to ensure elderly citizens and other vulnerable groupsarenotleftbehindinthedigitalera,promotingparticipationandaccesstodigital services. Conditional Cash Transfers (Brazil and Mexico): Programs like Brazil’s Bolsa Famíliaand Mexico’s Oportunidades provide financial aid to poor families under the condition that they comply with certain requirements, such as ensuring children attend school and receive vaccinations. o These programs have significantly contributed to reducing child labor, improving educational outcomes, and enhancing health conditions among the poorest populations. Germany’ssocialurbandevelopmentprogramsfocusonrevitalizingunderdevelopedareas without displacing local populations. o Theseinitiativespromote
