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Indian economy

14 Solved Questions with Answers
  • 2016

    1. How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (2016)

    Globalization means gradual integration of economics through free movements of goods, services and capital. Globalization increased the efficiency of economy multi-dimensionally but one of the major challenges posed by globalization is the growing tendency towards flexible employment and informalisation. The reasons behind the reduction of employment due to globalisation in formal sector are following.

    • Increased automation in industries: Globalization exposed the technology globally which led to replacement of man power with robotics and other technology.
    • Shift from labour intensive industries to technology intensive industries: In India only 2% labour is skilled in comparison to 96% skilled labour in South Korea. Due to arrival of technology, unskilled labour was forced out from formal sector due to incapability of handling the new machines and led to informalisation.
    • Globalization encourages sub contracting of work to the informal sector because of low wage and lost cost of production in informal section. It increased the participation of contract labour in economy and reduced formal sector’s employment.
    • Globalization increased competition among the industries which shifted the employment/industrial units from non-competitive countries to market favoured economics. The shifting of textile industries to the Vietnam, Laos are recent examples of this phenomenon.

    Impact of informalisation on the development of the country

    • Less revenue generation: Due to high informalisation, tax to GDP ratio remains very low. In case of India it is only 16.6% whereas more than 30% in OECD countries.
    • Less coverage of social security schemes: Nearly all government schemes, programmes related to social security benefits are restricted to formal sector. A huge section of population remains out of the ambit of benefits. It ultimately reduces the efficiency of economy.

    This shows how informalisation of labour force has proven detrimental to the development.

  • 2017

    1. Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential? (2017)

    Capital formation is the most important factor that drives the economic development of a nation. It is mainly the transfer of savings from households to the business sector that leads to increased output and economic expansion.

    In India, savings have contributed a lot in the economic development since the Indian economy took off in 1960s and 70s. In the past few decades, it has been around 33% of GDP. However, high savings rate is a necessary condition but not a sufficient one for economic development.

    Many times high savings in isolation does not lead even to capital formation. One also needs sound banking and financial institutions to mobilize the savings of economy. At the same time, presence of entrepreneurship is also critical to convert savings into productive investment. Some other factors that are essential for growth potential are:

    • Infrastructure: Sound infrastructure is needed in terms of good supply of power, electricity, roads, railways and robust means of communication.
    • Ease of doing business: There should be hassle free environment to start and wind up the businesses in the economy. Bureaucratic hurdles in acquisition of land and licenses should also be minimized.
    • Human Resource: Skilled labour force is essential for the improved productive capacity of economy. Capability of human resource depends upon the skills, creativity, abilities and education of the labour force.
    • Technology: It increases the productivity and competitiveness of the economy. Today R&D in every domain is essential to be competitive in the international and domestic market.
    • Government policies: Policies decide the pace and direction of economy. India has introduced GST recently to unify its own economy and remove the cascading effect of taxes at multiple points. India’s performance of Ease of Doing Business Index has also improved by 30 points (100th position in 2017) due to many policy initiatives.
    • Social and political factors: Social factors involve customs, traditions, values and beliefs which contribute to the growth of economy. Political factors such as participation of people in formulation and execution of policies enhance the economic development.

    India which is on the verge of reaping the benefits of demographic dividend, must launch skill development initiatives to utilize the young labour force. It should also improve ease of doing business and create a conducive environment for investment, better export performance to improve productivity of the economy.

  • 2016

    2. Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? (2016)

    Gender budget is concerned with gender sensitive formulation of legislation, programmes and schemes to address gender disparities.

    The rationale for gender budgeting arises from recognition of the fact that national budgets impact men and women differently through the pattern of resource allocation. Women, constitute 48% of India’s population, but they lag behind men on many social indicators like health, education, economic opportunities, etc. Hence, they warrant special attention due to their vulnerability and lack of access to resources. The way Government budgets allocate resources, has the potential to transform these gender inequalities. In view of this, Gender Budgeting, as a tool for achieving gender mainstreaming, has been propagated.

    Therefore number of schemes, programmes specific to women education, women health and skill training should have more weightage then partial allocation of funds for gender specific issues.

    Status of Gender Budget in India

    Gender Budget Statement (GBS) was first introduced in India Budget in 2005-2006. It comprises of two parts.

    • Part A reflects women specific schemes i.e., those which have 100% allocation for women.
    • Part B reflects Pro-women schemes i.e., those where at least 30% of allocation is for women.
    • India’s Gender Budgeting efforts stand out globally because they have not only influenced expenditure but also revenue policies (like differential rates in property tax rates).
    • Gender Budgeting efforts in India have encompassed knowledge building and network; institutionalize the process, capacity building and chance capability.
    • Gender Budgeting Cells (GBC) as an institutional mechanism has been mandated to be set up in all Ministries/Departments. But there are only a few ‘big budget’ women exclusives schemes of Ministry of Women and child Development like the Nirbhaya Fund and Beti Bachao, Beti Padhao campaign.

    Even though India has made significant strides in gender budgeting, it still leaves a lot to be achieved for real empowerment of women, towards which government should work earnestly.

  • 2017

    2. Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports. (2017)

    A key lacuna in India’s growth has been slow growth of manufacturing in labour-intensive sectors and concentration in capital intensive manufacturing sectors like auto parts, chemicals, software and pharmaceuticals. None of these sectors employ low-skilled workers in large numbers.

    The movement of workers out of agriculture into export oriented manufacturing industry has been especially slow due to requirement of a certain level of skill which is absent amongst most labourers – resulting in jobless growth. Lack of ease of doing business in India due to labour market rigidities, tax uncertainties, impediments to entrepreneurial growth have further hindered the expansion of a labour-intensive export manufacturing in India.

    Measure to Promote Labour-Intensive Exports

    • Ease Labour Law regulations such as wide-ranging and complex laws, mandatory contributions by low-paid workers, and lack of flexibility in part-time work etc. The government’s decision to rationalise around 38 Labour Acts by framing 4 labour codes is a positive step in this regard to encourage exporters to hire more labour.
    • Promoting Labour-Intensive Sectors like apparel sector, leather and footwear also have high export potential.
    • Uninterrupted and Cheap Power Supply for labour-intensive manufacturers, who operate on low profit margins and for whom high electricity costs can be a make or break issue.
    • Promoting the Role of SMEs as labour intensity of SMEs is four times higher than that of large firms by providing adequate state support. MUDRA Bank should be promoted for this.
    • Skill development to fill the gap of semi-skilled and skilled workers that manufacturers in India face frequently.

    Further, the tax rationalisation under GST as well as the push for Entrepreneurship under Start-Up India and Stand Up India can also provide a suitable and favourable environment for labour-intensive exporters.

  • 2016

    3. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor section of the Indian society? Give arguments to justify your opinion. (2016)

    Financial inclusion means providing financial services such as basic bank accounts , deposit and saving facility at very low cost to poor section of society or to those who are not having access to banking sector so that they can also enjoy basic banking facilities and they can be integrated with formal banking system.

    In this direction Pradhan Mantri Jan Dhan Yojna(PMJDY) was started with a wide vision to provide access to banking facilities to those people who are not having any bank accounts or still unbanked from formal banking sector. The necessity of PMJDY in financial inclusion is because of following reasons:

    • According to census report of 2011 out of total population only 58.7 percent population have access to banking services remaining 42%. PMJDY would bring in those who have been left behind by mainstreaming banking services and would reduce the role of money lenders.
    • Under this scheme people would get basic bank accounts with insurance facility and an additional facility of overdraft. Thus they would avail benefit offered by banks and facilities provided by government and will be able to develop small savings habits, and which will enhance capital formation, resulting in increased economic development of country.
    • Banks are now opening bank accounts with zero balance and providing facilities to poor and unbanked section of society so that they can also get maximum benefits from banking sector.
    • Debit card facility is also very helpful to poor people where they can withdraw money at any time and at any place.
    • Under PMJDY bank accounts can be opened with a single document (Easy KYC Norms), this will encourage uneducated customers who hesitate to go to banks just because of lengthy documentation process.

    The PMJDY is playing its role in great manner by ensuring mass participation of people and providing them low cost financial services and banking facilities, still there is need to impart financial knowledge and awareness among people about benefits of banks and basic banking facilities. But just opening accounts would not fulfil the desired goals of financial inclusion because of idle banks accounts which only increase expenses of banks. Real benefits would go to people when people will use these accounts. Demonetisation helps in a great way in this direction.

  • 2017

    3. Examine the development of Airports in India through joint ventures under Public – Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard. (2017)

    Management of few of the airports through joint ventures under PPP model is transforming civil aviation sector in India. Build-Operate-Transfer (BOT) projects were awarded to private players for Greenfield airports at Bangalore and Hyderabad.

    India’s decision to invite private players such as GMR and GVK has improved the passenger’s experience. It has led to better efficiency and capacity of airline operators. This has also resulted in massive dividend to the State-owned Airports Authority of India. Modernisation of ports in India has improved the local and national economy and perception of India is changing in the global market.

    Private airports are making large profits due to increased traffic, higher aeronautical charges and other non-aero revenue opportunities. However there are concerns of higher charges on airlines and passengers. Cities like Chennai, Kolkata and Goa are not able to attract enough passenger and cargo services due to lack of commercial orientation of AAI.

    PPP model in development of airport is creating following challenges for the authorities:

    • There is absence of regulatory framework for the entire aviation sector.
    • There is lack of clarity over the degree of risk transfer to the private players in areas such as asset condition, construction cost, operation risk, non-insurable risk etc.
    • Lack of clarity is also evident in concessional agreement, revenue sharing and tariff structure framework.
    • The projects are also delayed due to land acquisition, cost overruns, long gestation periods and lack of funding and investment.

    All requisite steps are being taken to address the various challenges in this field. AAI is being suggested to improve its organizational capabilities. Alternate funding options are also being explored through combinations of equity, soft loans and grants. All these steps will help India to develop world class facilities in civil aviation by 2020.

  • 2016

    4. What are ‘Smart Cities’? Examine their relevance for urban development in India. Will it increase rural-urban differences? Give arguments for ’Smart Villages’ in the light of PURA and RURBAN Mission. (2016)

    A ‘smart city’ is an urban region that is highly advanced in terms of overall infrastructure, sustainable real estate, communications and market viability. It is a city where information technology is the principle infrastructure and the basis for providing essential services to residents.

    In recent times, the increasing burden on urban settlements raises concern related to sustainable development. To tackle these problems such as high urban poverty level, environmental degradation, inadequate basic services, relevance of Smart Cities has increased which provide smart solutions.

    E-Governance and Citizen Services: It will help in making citizen centric service delivery system, which will enhance the efficiency of public authorities.

    Smart Waste Management: Waste management is one of the major problems in urban settlement. Smart waste management like separation of solid waste at source level and use of eco-friendly waste disposal techniques, would avoid the problems like urban floods situation.

    Smart Health: Tele-medicine would reduce the pressure on medical facilities due to use of ICT in health facilities.

    Mobility system: Smart transport is also one of the main features that address the core issue in urban settlement. Many other areas such as, education, communication, electricity, renewable energy would also be addressed by the Smart Cities.

    High development in urban cities and less emphasis on development in rural areas has increased the rural-urban difference because of lack of opportunities in rural areas. In such a scenerio ‘Smart villages’ concept of Shyama Prasad Mukherjee Rurban Mission would focus on development of rural area from multi-directions. To ensure a standard of development several components have been included in Smart Village concept such as skill development training linked to economic activities, agro-processing, storage and warehousing facilities, digital literacy, sanitation, provision of piped water supply, solid and liquid waste management etc.

  • 2016

    5. Justify the need for FDI for the development of the Indian economy. Why there is gap between MoUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India. (2016)

    Foreign Direct Investment (FDI) refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy.

    The growth of FDI in India will boost the economic growth of the country. FDI in an economy helps in relaxing the domestic savings constraints. It helps to overcome the foreign exchange barrier thereby increases capital flow and provides risk-sharing capital financing. It furnishes the funds needed for the full utilization of the existing production capacity.

    It promotes efficiency and productivity through international competition of superior quality products. It provides access to the superior technology, superior managerial skills and bigger markets.

    A remarkable inflow of FDI in various industrial units in India will boost the economic life of our country. It can also ensure a number of employment opportunities by aiding the setting up of industrial units in various corners of India.

    According to the World Bank’s Ease of doing Business Index, Indian Economy is less attractive because of infrastructural bottlenecks such as availability of electricity, dealing with construction permits; registering property; getting credit; protecting minority investors; paying taxes; trading across borders corruption, strict labour laws etc. Other than these reasons, difficult of exit policy, red tapism, bureaucratic inertia, political deadlock play great role in maintaining gap between MoUs signed and actual FDIs in Indian economy.

    Land acquisition for industry is contentious in India, particularly when the purchaser is foreign. Concerns about the control of natural resources by foreign companies have stymied efforts to liberalize foreign investment

    The world's fourth-largest steelmaker by output POSCO signed a preliminary agreement to build the $5.3 billion facility, with capacity to produce 6 million tons a year. Posco dropped the project because of deteriorating market conditions and delays in securing mining rights.

    Insolvency and Bankruptcy Code, Ease of doing business, establishment of Special Economic Zone, Labour laws reforms can help in attracting FDIs in Indian economy.

  • 2017

    5. What are the reasons for poor acceptance of cost-effective small processing unit? How the food processing unit will be helpful to uplift the socio-economic status of poor farmers? (2017)

    India being an agricultural country offers ideal conditions for development of  emerging food processing industry. Easy availability of raw materials, changing lifestyles in urban and rural areas and favourable fiscal policies are giving a push to this sunrise sector.

    But small processing unit in India are suffering from many challenges such as-

    • Infrastructure: Small processing units cannot invest heavily in infrastructural support such as grading, packaging, cold storage, warehousing, logistics, supply chains etc. They rely on the common facilities in these activities.
    • Manpower: Skill shortage is hampering the competitiveness of this sector. There are few institutes which provide adequate training to the labour force in this sector.
    • Seasonality and perishability: Most of the agricultural products such as fruits, vegetable, fisheries etc are highly perishable and thus increase the vulnerability of the entrepreneurs to wastage of commodities. The supply of raw materials is also seasonal in nature.
    • Credit: Although the industry has been included in the priority sector lending, there are inherent risks involved in small enterprises.
    • Competition: Increasing investment in the sector has led to intense competition which has adversely impacted the operating profitability of the units.
    • Technology: Value addition is the key factor in the food processing but India still lacks the universalisation of robust technology in this sector.

    Food processing industry plays an important role in uplifting the socio-economic status of poor farmers through following ways:

    • By providing a vital link between the agriculture and manufacturing sectors, it reduces the wastage of agricultural raw materials and increases shelf life of food products. This helps farmers to sell more in the long run.
    • It links farmers to the agricultural market and provides them better income especially for horticultural products.
    • Farmers can also earn more through more exports as value addition increases the competitiveness of products in the international market.
    • It provides employment opportunities in sectors such as packaging, sampling, logistics and other non-farm activities. Thus it helps farmers to shift from farming to non-farming activities and have better lifestyles.

    India must leverage all the available resources to emerge as a leader in food processing sector. It has come out with SAMPADA scheme, Mega Food Park Schemes, Value Addition Centres, Irradiation facilities etc. to promote this sector. However more needs to be done to enable small farmers to benefit from these initiatives.

  • 2016

    6. Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges. (2016)

    In India employability of labour force is too low in comparison to developed countries that restricts the use of manpower. Only 2% labour force has certified skill in India in comparison to 70% in Britain and 96% in South Korea. It is one of the main reason of the presence of useless manpower in India.

    Due to high informalisation of Indian economy, a large section is left behind from the ambit of various social security and welfare schemes that is the reason for the presence of careless (caredless) manpower.

    Following measures can be taken up for facing these challenges

    Skill training programmes. Skill India programme and Pradhan Mantri Kaushal Vikas Yojna would build a strong force of skilled labour force with certified skills according to standards of National Occupational Standards (NSO).

    Gender Respective Budget (GRB): GRB would focus on neglected section of the Indian Society in providing education, health care, and skill trainings. Wider implementation of schemes specific to women such as Sukanya Samriddhi Yojana, Janani Suraksha Yojana would empower women.

    Primary education quality should be enhanced because due to lack of elementary education, Skill training programmes cannot be used to their full potential. The peculiar top heavy structure of India’s education profile, neglecting basic education and attaching priority to higher education, starkly captures the elitist bias in the implementation of India’s education policy.

    These are some measures that would increase the employability and productivity of manpower in India.

  • 2016

    11. Give an account of the current status and the targets to be achieved pertaining to renewable energy sources in the country. Discuss in brief the importance of National Programme on Light Emitting Diodes (LEDs). (2016)

    The Ministry of New and Renewable Energy has revised its target of renewable energy capacity to 1,75,000 MW till 2022, comprising 1,00,000 MW Solar, 60,000 MW Wind, 10,000 MW Biomass and 5,000 MW Small Hydro projects.

    Currently the installed capacity of renewable energy in India is 48.85 GW of which the contribution from solar, wind and biopower is 5.8GW, 25 GW and 4.5 GW respectively. The steps taken by government to support and increase the share of renewable energy in India’s power matrix and to achieve the new target are:

    • Enactment of a national offshore wind energy policy.
    • Govt plans to set up a trading platform for clean energy to help states buy, sell and trade renewable-based power.
    • 10-year tax exemption for solar energy projects.
    • Govt has outlined new guidelines which allow states to use its unproductive and non-agricultural land for solar parks.

    In order to make Energy Efficiency a high priority National Programme on Light Emitting Diodes (LEDs) has been initiated. The importance of National Programme on Light Emitting Diodes (LEDs) is following.

    • It aims to install LED bulbs for domestic and street-lighting in 100 cities across India by March 2016.
    • LED bulbs will be distributed in a phased manner.
    • LED bulbs have a very long life, almost 50 times more than ordinary bulbs, and 8-10 times that of CFLs, and therefore provide both energy and cost savings in the medium term. It will help in saving of energy around 24 crore units every year.

  • 2017

    11. One of the intended objectives of Union-Budget 2017-18 is to ‘transform, energize and clean India’. Analyze the measures proposed in the Budget 2017-18 to achieve the objective. (2017)

    Budget in India is a socio-economic document that reflects the aims and aspirations of the government and people of India.

    The initiatives in the Budget 2017-18 can be discussed under following heads –

    1. Transforming India

    • It concerns with those policies of the government that seek to transform the governance of the country and improve the quality of life of people.
    • The budget has focused on upgrading the infrastructure of railways, roads, rivers, airports, telecommunications and energy sector. But railways in India need comprehensive reforms as it is evident from recurrent accidents in different parts of the country. 
    • Greater allocation for DeendayalAntyodaya Yojana is relevant in context of skilling India and reaping the benefits of demographic dividend in India.
    • Rationalisation of tribunals is a positive step towards securing rule of law and effective delivery of justice.
    • Tax administration is to be reformed through the strategy of RAPID (Revenue, Accountability, Probity, Information and Digitalisation). This strategy will help to plug tax avoidance at various levels and increase revenue of the government.

    2. Energizing India

    • There is focus on uplifting the conditions of various sections of society especially the youth and the vulnerable.
    • The conditions of farmers are to be improved through settling the arrears under the FasalBima Yojana, setting up Micro Irrigation Fund and widening the coverage of National Agricultural Market (e-NAM). However perishables are yet to be denotified from APMC acts by the states and model law to regulate contract farming has not come in public domain.
    • Mission Antyodaya will be strengthened to bring one crore households out of poverty by 2017. But there are no effective measures to better target the beneficiaries under this scheme.
    • Different initiatives for development of youth has been proposed such as SANKALP, next phase of STRIVE, extension of Pradhan Mantri Kaushal Kendras etc. But to energize youth of the country, robust IT infrastructure is a necessity which is hampering the learning outcomes in schools, colleges and skill development schemes.

    3. Clean India

    • It entails removing the evils of corruption, black-money and non-transparent political funding.
    • Digital economy is being strengthened through initiatives like JAM trinity, BHIM app, Financial Inclusion Fund, Amending Negotiable Instruments Act etc. But not much has been done to protect the digital payments and transactions from cyber frauds and thefts and accessibility to computers or mobiles is limited to few.
    • To bring transparency in the funding of political parties the limit of donation through cash has been fixed at Rs. 2000/- from one person and electoral bonds will also be issued in future.

    The budget envisions to ‘transform, energize and clean India’ but it will not be materialized unless there is effective implementation of policies. Therefore the institutions to execute policies must be rejuvenated and a sound mechanism for the monitoring and evaluation of policies should also be established.

  • 2017

    12. “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate? (2017)

    Industrial policy 1991 set out directions for industrialisation in an economy that began its journey in liberalisation. It dealt with liberalising licensing and measures to encourage foreign investments. However, Industrial growth rate could not match the pace with the overall growth of GDP.

    Constraints to industrial growth

    • Inadequate infrastructure: Physical infrastructure in India suffers from substantial deficit in terms of capacities as well as efficiencies. Lack of quality of industrial infrastructure has resulted in high logistics cost and has in turn affected cost competitiveness of Indian goods in global markets.
    • Restrictive labour laws: The tenor of labour laws has been overly protective of labour force in the formal sector.
    • Complicated business environment: A complex multi-layered tax system, which with its high compliance costs and its cascading effects adversely affects competitiveness of manufacturing in India.
    • Slow technology adoption: Inefficient technologies led to low productivity and higher costs adding to the disadvantage of Indian products in international markets.
    • Inadequate expenditure on R&D and Innovation: Public investments have been constrained by the demands from other public service demands and private investment is not forthcoming as these involve long gestation periods and uncertain returns.

    Recently Department of Industrial Policy and Promotion (DIPP) has proposed various changes in industrial policy that will focus on increasing the industrial growth rate in following manner -

    • The new policy aims to attract $100 billion of FDI in a year, up from $60 billion in 2016-17, it will also aim at retaining investments and accessing technology.
    • The policy aims to harness existing strengths in sectors like automobiles and auto-components, electronics, new and renewable energy, banking, software and tourism.
    • The policy also aims to create globally scaled-up and commercially viable sectors such as waste management, medical devices, renewable energy, green technologies, financial services to achieve competitiveness.
    • The policy will also push for reforms to enhance labour market flexibility with an aim for higher job creation in the formal sector and performance linked tax incentives.

  • 2017

    13. What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyse and suggest measures for inclusive growth. (2017)

    Inclusive growth is economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society. The salient features of inclusive growth are:

    Participation: People are able to participate fully in economic life and have greater say over their future. People are able to access and participate in markets as workers, consumers and business owners.

    Equity: More opportunities are available to enable upward mobility for more people. All segments of society, especially poor or socially disadvantaged groups, are able to take advantage of these opportunities.

    Growth: An economy is increasingly producing enough goods and services to enable broad gains in well-being and greater opportunity. Economic growth and transformation is not only captured by aggregate measures of economic output (such as GDP), but must include and be measured by other outcomes that capture overall well-being.

    Stability: Individuals, communities, businesses and governments have a sufficient degree of confidence in their future and an increased ability to predict the outcome of their economic decisions.

    Sustainability: Economic and social wealth is sustained over time, thus maintaining inter-generational well-being. Economic and social wealth comprises of a set of assets that contribute to human well-being, including human produced (manufactured, financial, human, social) and natural capital.

    India’s economy continues to grow at an impressive rate, with projected annual GDP growth of 7.5% in 2017-18. As GDP per capita has more than doubled in last ten years, extreme poverty has declined substantially.

    • Access to education has steadily improved, and life expectancy has risen.
    • Financial inclusion has got a major boost with the expansion of rural banks and schemes like Jan-DhanYojna, incorporation of Information and Communications Technology (ICT) (JAM Trinity).
    • Job, education and food entitlement schemes like MGNREGA, RTE and Right to Food are also helping in deepening the growth further.

    However India still is home to largest number of poor and malnourished children. Recent reports are suggesting huge income concentration in the hands of few. With looming agrarian distress and jobless growth, inclusive growth is still a distant dream for India.

    According to WEF report, India has been ranked 60th among 79 developing economies, below neighbouring China and Pakistan, in the inclusive development index.

    Measures for inclusive growth

    • Equity of access to quality basic education including basic financial literacy. Ex: RTE
    • Ensuring quality health and sanitation facilities by making health a fundamental right.
    • Gender parity measures through political representation, women reservation.
    • Measures focused on social security benefits and gender parity, for ex., through gender budgeting.
    • Creating employment opportunities through Make in India, Skill India etc.

    Through these measures inclusive growth can be ensured and the Gandhian dream of reaching to the last man standing in the row can be achieved.

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