As per OECD, inclusive growth is economic growth distributed fairly across society and creates opportunities for all.
Inclusive Growth Promoting Inclusiveness
Expands economic opportunities with focus on education, health, skilling, and access to markets. Eg- PM-JANMAN for tribal inclusion.
Balanced regional growth with targeted interventions.
Income security – Social protection systems like MGNREGA, NFSA, PM-KISAN reduce vulnerability and support inclusive livelihoods.
Strengthens financial inclusion – Eg- PM Jan Dhan Yojana opened 500 million+ bank accounts
Equality of Opportunity – Eg- the Rights of Persons with Disabilities (RPwD) Act, 2016
Ayushman Bharat: Provided free healthcare to 23 crore people.
Inclusive Growth Ensuring Sustainability
Affordable and clean energy (SDG 7) – PM Ujjwala Yojana distributed 10 crore LPG connections
Encourages sustainable consumption and production patterns (SDG 12). Eg- Mission LiFE
Supports protection of natural resources-forests, soil, and biodiversity (SDG 15). Eg: Compensatory Afforestation Funds
Sustainable Livelihoods – Promotes climate-resilient agriculture, water conservation, and diversified livelihoods.
Institutional Sustainability (SDG 16, SDG 17) through decentralisation, cooperative federalism and data-driven governance. Eg- Aspirational Districts Programme.
Interlinking between Inclusiveness and Sustainability
Inequality weakens long-term economic growth
Environmental degradation hits the poorest hardest – Eg- Disaster induced Migration
Inclusive growth strengthens environmental stewardship
Sustainable livelihoods reduce vulnerability
Intergenerational equity depends on both
Challenges to Inclusive Growth under a Market Economy
Rising inequality– Eg- the top 1% control 40% of net personal wealth.
Regional disparities due to unequal investment and infrastructure. Eg- BIMARU States
Jobless growth – Service sector contributes 55% of GDP but employs less than 30% workforce
Weak social protection for informal workers (over 85% of India’s workforce).
Market failures in public goods. Eg- Digital Apartheid in Education
Way Forward
Capability Approach (Amartya Sen) – increase Education and health spending to 6% and 2.5% of GDP respectively
Strengthen progressive taxes, wealth taxes and targeted subsidies to reduce income inequality and expand welfare spending.
Align national policies with Paris Agreement targets
Universalise social security, pensions, maternity benefits, and unemployment allowance
A nexus approach towards sustainability and inclusiveness is needed for ‘Sabka Saath, Sabka Vikas.’