Inclusive Growth of India: a Study of the Informal Sector in India
Inclusive Growth in India: An Introduction
India’s post 1990’s economic growth has made it one of the world’s fastest growing economies in the world. Its GDP growth rates of about 9% in the last few years are historically unparalleled except by the neighbo ring China. With the rapid growth rates, however, come new challenges and new questions. One such challenging question concerns the spread of the benefits of growth across different segments of society. To ensure that growth has been well distributed,
India’s Planning Commission has made Inclusive Growth their explicit goal in the eleventh five-year plan. The concept of Inclusive Growth has dominated discussions across India. Its popularity has sparked intense discussions among politicians, economists, policymakers and the general public. In addition, Inclusive
Growth has been the focus of studies by bilateral and multilateral aid agencies such as the UN, World Bank, Asian Development Bank, Foundations such as the
ICICI Foundation, NGOs, and Civil Society Organizations alike. However, Inclusive
Growth should not be confused with Poverty Reduction Strategy Papers
(PRSP).Despite all the attention that Inclusive Growth has received in the last few years, there lacks a precise and agreed upon definition of the te rm. Overall, the literature is divided between two concepts; whether the benefits reach the poor and whether the benefits reach the poor proportionately more than it reaches the non-poor. By the first definition, India may have performed quite remarkably i n the last two decades, although the magnitude is hotly debated. By the second definition, India’s performance against inclusive growth seems more lackluster.
Gini coefficient indicates that income inequality in India has increased from 0.209 in 1980-81 to about 0.257 in 2005-06 both at an overall level as well in almost all
of the states both for urban and rural areas . There are evidences suggesting that growth in the lower
India’s post 1990’s economic growth has made it one of the world’s fastest growing economies in the world. Its GDP growth rates of about 9% in the last few years are historically unparalleled except by the neighbo ring China. With the rapid growth rates, however, come new challenges and new questions. One such challenging question concerns the spread of the benefits of growth across different segments of society. To ensure that growth has been well distributed,
India’s Planning Commission has made Inclusive Growth their explicit goal in the eleventh five-year plan. The concept of Inclusive Growth has dominated discussions across India. Its popularity has sparked intense discussions among politicians, economists, policymakers and the general public. In addition, Inclusive
Growth has been the focus of studies by bilateral and multilateral aid agencies such as the UN, World Bank, Asian Development Bank, Foundations such as the
ICICI Foundation, NGOs, and Civil Society Organizations alike. However, Inclusive
Growth should not be confused with Poverty Reduction Strategy Papers
(PRSP).Despite all the attention that Inclusive Growth has received in the last few years, there lacks a precise and agreed upon definition of the te rm. Overall, the literature is divided between two concepts; whether the benefits reach the poor and whether the benefits reach the poor proportionately more than it reaches the non-poor. By the first definition, India may have performed quite remarkably i n the last two decades, although the magnitude is hotly debated. By the second definition, India’s performance against inclusive growth seems more lackluster.
Gini coefficient indicates that income inequality in India has increased from 0.209 in 1980-81 to about 0.257 in 2005-06 both at an overall level as well in almost all
of the states both for urban and rural areas . There are evidences suggesting that growth in the lower