General Knowledge

What is Inclusive Growth? What are the Issues and Challenges Faced in India?

Inclusive Growth in India is a wider concept that creates equal opportunities for economic participants during economic growth, with benefits for all sections of the society.

Dimensions of Inclusive Growth in India


  • Employment Generation
  • Agricultural Development
  • Social Sector Development
  • Equal Distribution of Income
  • Environmental Protection
  • Reduction in Regional Disparities
  • Industrial Development
  • Poverty Reduction
  • Inclusive of Growth Equality
  • Inclusive of Empowerment
  • Provide Education and Increase Skill Set

Our government has devoted a lot of time and energy to focus on inclusive growth. Inclusive growth really implies a bottom-up rather than a top-down approach. The idea is not to create more billionaires but to make millions of people move at the next level of the economic pyramid.

So, this means that we must increase our spending in rural areas, we must build roads, improve skills, education, agriculture, electrification, and connectivity.

The government needs to invest more in rural areas; As their income increases, even prosperity increases, that leads to the demand for new products and services.

Many people see rural India as a market, but we should see an opportunity to increase their income; As soon as we increase their income, a market will automatically be created, but the government must first meet their basic needs such as food, clothing, housing and education, safety, water, health, employment, and business opportunities.

Inclusive Growth in India Issues and Challenges


There are 3 important issues and challenges in achieving inclusive growth in India.

1) Disparity

  • The disparity between -> Rich and Poor
  • The disparity between -> Urban and Rural
  • The disparity between -> Educated and Uneducated

We have to decrease this disparity, we can never get rid of it but we can narrow it substantially.

2) Demography

We have 550 million young  people below 25 age, we have the ready workforce for the world, everything we do today must focus on this population, we need to provide them nutrition food, skills and job opportunities to grow.

We have to create 10-15 million jobs every year but it is a difficult task for only Government, so we have to create more entrepreneurs in rural areas.

3) Development


(a) Expansion

Expansion is happening every day in developing countries like India, but perhaps not happening at the pace we would like. We have roads but we need more roads likewise we need to expand energy, infrastructure, facilities, etc.

(b) Excellence

Leaving of our top 5 or 10% quality of our education, our services, our governance, is really not that so great, we must collectively work towards improving quality in everywhere

(c) Equity

We need to make sure that the poorest to the poorer can indeed get the best education, health, jobs, and other facilities.

We must focus on affordability, scalability and sustainability. We have a large potential market for which we can find affordable solutions.

And more, we must protect our environment, the policies put in place by the government that must not harm the environment, because we must protect for the next generations, otherwise it becomes selfish and people cannot live in these conditions.

Also, read the best article – Economic Planning in India

Challenges for policy formulation and implementation


Inclusiveness stands on the main four pillars through the GDP growth, these following factors are the key to frame policies.

i) Opportunity

The main objective of inclusive growth is to generate opportunities through which the standard of living will automatically increase. Therefore, when formulating the policy and at the time of implementation, the creation of opportunities should not only focus on the poor, otherwise we cannot achieve inclusiveness.

ii) Capability

Even though the employment opportunities created for the people, they should have the skill set of work that they actually needed. Only by providing education and training, we can increase their capabilities, in turn, helps to be a part of the country’s economy which leads to living a better life.

iii) Accessibility 

Inclusive access guarantees that everyone can participate, and take control of the activities and services provided by the government.

Everyone means parents, youth, elderly people, people with disabilities, people with having less mobility, or people who do not understand the world around them.

Example: Financial access, Digital access, etc.

iv) Security

Security is also an important policy area in inclusive growth. Growth must also guarantee the safety of people by reducing corruption, providing quality health services, providing insurance to people, so that, after his death or retirement his family should be safeguarded by generating income for women’s safety, children’s education, etc.

In the same way, many security measures must be taken into account when developing a policy.

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