Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Inclusive growth, social justice and income inequality


From UPSC perspective, the following things are important :

Prelims level : NA

Mains level : Inclusive growth, Social justice


  • Key findings of the World Inequality Report 2022 related to India: National Income: In India, the top 10% and top 1% hold respectively 57% and 22% of total national income.

What is inclusive growth?

  • Organization for Economic Co-operation and Development (OECD) defines Inclusive growth as the economic growth that is distributed fairly across society and creates opportunities for all. It refers to ‘broad-based’, ‘shared’, and ‘pro-poor growth’.

What is social justice?

  • Social justice is the view that everyone deserves equal economic, political and social rights and opportunities. Social workers aim to open the doors of access and opportunity for everyone, particularly those in greatest need.

Meaning of Inclusiveness

  • Inclusiveness is a concept that encompasses equity, equality of opportunity, and protection in market and employment transitions and is, therefore, an essential ingredient of any successful growth strategy.

Need of inclusive growth

  • Complete development: India is the 7th largest by area and 2nd by population and 12th largest economy at market exchange rate. Yet, India is away from the development.
  • Income inequality: Low agriculture growth, low quality employment growth, low human development, rural-urban divides, gender and social inequalities, and regional disparities etc. are the problems for the nation.
  • Human development: Reducing poverty and inequality and increasing economic growth are the main aim of the country through inclusive growth.

Need of social justice

  • Equality: We should shift from equality of outcomes to equality of opportunities.
  • Peace and Order: If the majority disregards smaller sections in the community, it drives them to rebellion.
  • Dignity: To ensure life to be meaningful and liveable with human dignity.
  • Mitigate Sufferings: It is a dynamic device to mitigate the sufferings of the poor, weak Dalits, tribal and deprived sections of the society.
  • Human Resources: It will help in the conservation of human resource by provision of health and education facilities.
  • Freedom to form political, economic or religious institutions: It will help to eradicate the challenges of caste system, untouchability and other discrimination in the society.

Challenges before inclusive growth and social justice

  • Wage Gap: When it comes to wages in the workplace, there is a noticeable differentiation between men and women. According to the American Association of University Women (AAUW), in 2018, the gender pay gap from men and women for the same job was 82 percent. Stated simply, women make 82 percent of what men make doing the same work. This can be further broken down into a pay gap for minority men and women.
  • LGBTQ Oppression: When it comes to oppression and human rights, individuals of the Lesbian, Gay, Bisexual, Transsexual and Queer (LGBTQ) community face several forms of social injustice and oppression. For example, same sex marriages are outlawed in some states and countries. Additionally, transsexual students often face discrimination and bullying within school settings.
  • Education System: Globally, steps are being made to close the education gap between male and female students. However, there are still several areas around the world where girls may never set foot into a classroom at all. UNESCO notes that more than nine million girls never go to school, compared to only six million boys in areas of Africa.
  • Child Welfare: Social workers and human rights activists are working tirelessly to combat issues relating to children and their welfare. Despite their efforts, there are still several problems children face that are harmful to their health and mental wellbeing.
  • Forced Child Labour: Laws are in place around the world to ensure a safe work environment for children. These laws were drafted from historically harsh and dangerous working conditions for children. While many would like to believe that child labour is a thing of the past, it persists in some areas around the globe.
  • Child Abuse and Neglect: Thousands of children globally are being neglected. They’re also being physically, sexually and emotionally abused. The World Health Organization (WHO) reports that as many as a quarter of adults have been abused as children. This abuse has both social and economic impacts that include mental health problems.

Government measures to address this challenge

  • SETU(Self Employment and Talent Utilization)
  • Skill India
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • Pradhan Mantri Jan Dhan Yojana
  • MUDRA (Micro Units Development and Refinance Agency)Bank

Way forward

  • Equality of opportunity is the core of inclusive growth, and the inclusive growth emphasises to create employment and other development opportunities through rapid and sustained economic growth, and to promote social justice and the equality of sharing of growth results by reducing and eliminating inequality of opportunity.

Mains question

Explain the term inclusive growth in brief. How we can achieve social justice through inclusive growth?

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