Inclusive Growth: An Indian experience
Title of the essay: Inclusive growth: An Indian experience.
Name: Sweta Singh
Category: Undergraduate
INCLUSIVE GROWTH: AN INDIAN EXPERIENCE
ABSTRACT:
The present buzzword for India’s development strategy is inclusive growth. The role of state and market has been crucial in achieving rapid and inclusive growth. “Inclusive growth” means an emphasis towards more equitable distribution of income and building capabilities in terms of attainment of better health and education. The general notion about the success of inclusive growth is little apprehensive. The argument is although the poor are getting richer, the rich are getting richer faster than the poor. This is problematic as it can lead to an uneven distribution of income leading to social unrest. However, such an outcome is not surprising. Globally, economists measure growth as the percentage by which a nation’s output (GDP) has changed over a period of time. Reforms entail unequal payoff to economic agents. People with more skill stand to gain more compared to those with less skill sets. In the present context, the contribution of services sector to national income (GDP) is around 55 per cent, followed by manufacturing (26.4 per cent of GDP) and agriculture sector (18 per cent of GDP). A more equitable income distribution would require a scenario with more people earning their livelihood from agricultural sector and less people earning their livelihood from the services sector.
The present situation, however, is quite the opposite. Around, 58.6 per cent of the Indian population earns its livelihood from agricultural and agricultural-related allied activities (such as cooperatives, fishing, dairies, etc.) compared to less than 10 per cent dependent on organized services sector. What is more worrying is that this inequality is going to increase as the agricultural sector is now growing at an annual rate of 2.6 per cent (from a lower base of 18 per cent growth) compared to services growing
Name: Sweta Singh
Category: Undergraduate
INCLUSIVE GROWTH: AN INDIAN EXPERIENCE
ABSTRACT:
The present buzzword for India’s development strategy is inclusive growth. The role of state and market has been crucial in achieving rapid and inclusive growth. “Inclusive growth” means an emphasis towards more equitable distribution of income and building capabilities in terms of attainment of better health and education. The general notion about the success of inclusive growth is little apprehensive. The argument is although the poor are getting richer, the rich are getting richer faster than the poor. This is problematic as it can lead to an uneven distribution of income leading to social unrest. However, such an outcome is not surprising. Globally, economists measure growth as the percentage by which a nation’s output (GDP) has changed over a period of time. Reforms entail unequal payoff to economic agents. People with more skill stand to gain more compared to those with less skill sets. In the present context, the contribution of services sector to national income (GDP) is around 55 per cent, followed by manufacturing (26.4 per cent of GDP) and agriculture sector (18 per cent of GDP). A more equitable income distribution would require a scenario with more people earning their livelihood from agricultural sector and less people earning their livelihood from the services sector.
The present situation, however, is quite the opposite. Around, 58.6 per cent of the Indian population earns its livelihood from agricultural and agricultural-related allied activities (such as cooperatives, fishing, dairies, etc.) compared to less than 10 per cent dependent on organized services sector. What is more worrying is that this inequality is going to increase as the agricultural sector is now growing at an annual rate of 2.6 per cent (from a lower base of 18 per cent growth) compared to services growing