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Introduction
Since independence, significant improvement in Indias economic and social development. In the post-reform (since 1991) period, India has done well in some indicators such as balance of payments, resilience to external shocks, service sector growth, significant accumulation of foreign exchange, Information technology (IT) and stock market, improvements in telecommunications etc. GDP growth was around 8 to 9% per annum in the period 2004-05 to 2007-08. Investment and savings rates were quite high 32 to 36%.
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Poverty
Income poverty and non-income poverty We concentrate here on income poverty The official poverty lines are anchored to a fixed commodity basket corresponding to the poverty line (Rs.49.09 per person per month at 1973-74 prices for rural areas and Rs.56.64 for urban areas). The suggested rural commodity basket by the Expert Group contained 2400 kcal per capita per day in rural areas and the urban food basket had 2100 kcal per capita per day in 1973-4. For subsequent years, poverty line is updated with consumer prices.
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India adopted two pronged approach -- Growth approach: all three sectors contribute agriculture, industry and services. -- Direct approach : Safety nets or anti-poverty program -- Self employment program. (womens groups), wage employment program, food subsidies, nutrition programs for children, old age and maternity benefits -- Public Distribution System Subsidized food. -- National Rural Employment Guarantee Scheme (NREGS) Giving 100 days of wage employment to the poor.
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Long term factors: Steeper decline in per capita land availability. Shrinking of farm size Slow reduction in share of employment (still 55%) Main problem is low labour productivity in agriculture. Gap between agri. and non-agri. is widening. We should blame non-agriculture (industry and services) for not absorbing workers from agriculture.
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Social Development
In social sector, significant achievements in education and health. However, Human development index rank is 127 out of 170 countries. Social indicators are much lower for Scheduled castes and Scheduled tribes. Malnutrition among children is one major problem (46% of children suffer from malnutrition.
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Regional Disparities
Significant Regional Disparities in India. Per capita income : Highest per capita income Rs.16,679 in Punjab; lowest per capita income state Rs.3557 in Bihar. Female infant mortality varies from 12 in Kerala to 88 in Madhya Pradesh. Female literacy varies from 43.6% in Bihar to 93.3% in Kerala.
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Regional Disparities
Inter-state disparities in the growth of Gross State Domestic Product (GSDP) increased in the post-reform period compared to the eighties. In general, richer states grew faster than the poorer states. Causes for disparities; Investment in physical and human capital Technology Institutions including governance
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Environment
Degradation of land, water. Increase in pollution levels. Challenges of climate change. Consumption patterns of rich. Higher economic growth should not lead to decline in our environment.
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Conclusion
There is a need to have a broad based and inclusive growth to benefit all sections of society and improve economic growth. We have examined issues and challenges in five elements of inclusive growth (poverty and employment, agriculture, social sector, regional disparities and environment). It is more challenging for the country to achieve inclusive growth than getting 8 to 10 per cent growth in GDP.
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Conclusion
There are strong social, economic and political reasons for achieving broader and inclusive growth. Socially, lack of inclusive growth leads to unrest among many people. There is also an economic argument. The measures which raise equity also promote economic growth. Lastly, the political argument is that no government in a democracy can afford to ignore large sections of workers and non-working population. If it is not inclusive it can generate very severe social tensions. Thus, politically, for having a stable and democratic society one needs to have inclusive growth.
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