Paper-IV

General Studies -III 250 Marks (Technology, Economic Development,

Bio-diversity, Environment, Security and Disaster Management)
• Development, Bio diversity, Environment, Security and Disaster Management.
• Indian Economy and issues rela ng to planning, mobiliza on of resources, growth,
development and employment.
• Inclusive growth and issues arising from it.
• Government Budge ng.
• Major crops cropping pa erns in various parts of the country, different types of
irriga on and irriga on systems storage, transport and marke ng of agricultural
produce and issues and related constraints; e-technology in the aid of farmers
• Issues related to direct and indirect farm subsidies and minimum support prices; Public
Distribu on System objec ves, func oning, limita ons, revamping; issues of buffer
stocks and food security; Technology missions; economics of animal-rearing.
• Food processing and related industries in India- scope and significance, loca on,
upstream and downstream requirements, supply chain management.
• Land reforms in India.
• Effects of liberaliza on on the economy, changes in industrial policy and their
effects on industrial growth.
• Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
• Investment models.
• Science and Technology- developments and their applica ons and effects in
everyday life Achievements of Indians in science & technology; indigeniza on of
technology and developing new technology.
• Awareness in the fields of IT, Space, Computers, robo cs, nano-technology, bio-
technology and issues rela ng to intellectual property rights.
• Conserva on, environmental pollu on and degrada on, environmental impact
assessment
• Disaster and disaster management.
• Linkages between development and spread of extremism.
• Role of external state and non-state actors in crea ng challenges to internal
security.
• Challenges to internal security through communica on networks, role of media
and social networking sites in internal security challenges, basics of cyber
security; money-laundering and its preven on
 Inclusive Growth
“Inclusive Growth and Issues arising out of it”
What do you mean by Inclusive Growth ??
• Including the general mass in the process of development
• A broad based growth ,Shared growth and Pro-poor growth.

• Central Idea of Inclusive growth

o Sharing the Fruits of Socio-Economic development with all sec ons of
the society.
Why ??
• For the elimina on of extreme poverty
• Employment Genera on
• Access to essen al services
• Equality of opportunity
• Skill Building
• Good Governance
• Women empowerment.
 From where you get this idea from ?
1. Approach Paper of 11th FYP
• Laid down Vision and Strategies for Inclusive Growth.
• Vision > the target of 11th FYP > “Not just faster growth but also Inclusive
Growth”.
• Even though the concepts and defini on of IG is not formally illustrated in
the paper there have been some a empts to frame the subject ma er
related to IG.
2. Economic Survey 2007-08
• Presents some understanding of IG
3. Interna onal agencies
• Like UNDP, WB have elaborated the understanding of IG.
• Infact terms like Inclusive growth, Sustainability , Good Governance etc are
made popular by these organisa ons.
• Thus , In the broadest sense -> IG Means -> Inclusion of all sec ons
of the society in the process of development and sharing of its
benefits.
• Therefore IG is not only an Outcome or End but a Process or a
mean in itself.
Theoretical Perspective
Tricle down theory
• Trickle down theory argues that the benefits of growth would automa cally trickle down to bo om. The
theory also asserts that the trickle down is a process that must be le to its natural pace and path; and
forcing it down nay be unproduc ve. The trickle down approach has failed in its desired effects in
the socio-economic development of India.
• According to the theory, the top income earners should be taxed less, so that investment in the market in encouraged;
and goods and prices can be made available to the consumers at low prices. In this way, trickle down theory assumes
the top-to-bo om approach in economic development.
Welfare Economics
• Welfare economics, branch of economics that seeks to evaluate economic policies in terms of their effects on the well-
being of the community. It became established as a well-defined branch of economic theory during the 20th century.
Bo om Up approach
• Bo om-up approach encourages par cipa on of people in the development process. Decentraliza on, local-self
• government and rural development are some of the common prac ces under bo om-up approach. Rural governance
a empts to establish whether decentraliza on of governance is effec ve for achieving inclusive and pro-poor growth.
Public Rela on Approach
• ensure People’s Partnership in Developmental process. Mobiliza on and integra on of masses by way of effec ve
communica on, mo va on strategies and human resource management are some of the strategies under the
approach.
Building block / Pillars of Inclusive
growth
• Equality
• Good Governance
• Decentraliza on
• Accountability and Transparency
• Sustainability
Equality
• Inclusion interalia means the “Equality of Opportunity” for all.
• Inequali es exits in various forms >
• Social Inequality,
• Rural-Urban divide
• Regional Dispari es
• Digital divide
• Gender Inequality
• Inclusive growth and equality are mutually reinforcing .
• ie Without Equality IG can never be achieved and Lack of Inclusive
growth may lead to inequality.
• An OECD report has iden fied that inequality in India has been rising
con nuously which has posed Policy Challenges in promo on of Inclusiveness.
Good Governance
• Governance ------------ Regulatory, Monitoring or Controlling process
which facilitates the delivery of the government services.
• Good Governance  It is an Integrated effort of State,Civil Society and
Ci zens

• Good governance is the core of the essen al public services.

• It is the mechanism for Integra ng IG ,Public Administra on, and
Accountability towards envisaged outcome.
• Eg:- Problems in Health infra may be an impediment to Inclusive growth and
can o en be traced back to poor governance of Ministry of Health.
• Governance is not only the forte of the State, Private governance has also a
remarkable role to play in taking Inclusive Growth ahead.
Decentralization
• Decentraliza on is the process of redistribu ng or dispersing func ons, decision
making powers accompanied by delega on of required authority at all levels of
organisa on even if they are located far away from the power centre.
• Decentraliza on is the bo om up approach.
• Decentraliza on of the rural governance is cri cal for achieving IG.
• Empowering local self-governing ins tu ons is one of the delivery mechanisms of
IG
• 73 and 74 amendments of the cons tu on are innova on in the field of
rd th

Indian Polity.
• However the present level of decentraliza on, the Ins tu onal structure is
inadequate.
• This inadequacy of decentraliza on can be reduced by democra zing the
ins tu ons of local self government.
• Following are the deficiencies in decentraliza on that
limit the IG poten al
i. Lack of Finance
ii. Divergence in central and state approaches in programs
and welfare schemes.
iii. Incoherence in organiza on at na onal and state level.
iv. Poor accountability, transparency and monitoring
mechanisms.

• Without decentraliza on it is a daun ng task to implement the

IG based policies.Therefore govt has to evolve,delegate and
decentralize the administra on.
 Accountability and Transparency
• Accountability is the answerability towards the performance of the service
delivery.
• Accountability is specified both in Ver cally and Horizontally
• Ver cally > Refers the departmental hierarchies in a govt ins tu on.
• Horizontally > Autonomous agencies for the check and balance on govt ac vi es.Eg:-
CAG
• Transparency is necessary for the efficient delivery of essen al public services.
• It acts as an enabler for the public in accessing informa on on government
endowments and en tlements meant for them.
• Lack of accountability and transparency has earmarked the governance with Red
tapism and corrup on.
Govt has put efforts in mul farious manners to curb the menance.
• Ci zen Charter,RTI,CVC etc are revolu onary efforts
Sustainability
• In long run it has been iden fied that ,there has been a gross
mismatch between the outcomes of Indian economic planning for
Inclusive growth with respect to environment.
• Although Indian economy has witnessed a rapid economic growth
there has been a decline in the environment and standard of living of
the poor.
• LPG has put a sheer pressure on the environment and created a rural-
urban divide.
• Sustainability and Inclusive growth cannot be achieved in isola on
and they supplement each other.
• Without adop ng a sustainable prac ce in IG the implementa on of
IG policies is bound to falter.
Sustainability is required in the following levels while making out
policy framework for IG.
• Financial Sustainability
 IG programmes and policies of the govt should be financially viable.
 Excess subsidy and lack of outcome orienta on is causing increasing Fiscal
Deficit.
• Social Sustainability
 Means the need to maintain and sustain specific structure and Culture.
 Esp In Tribal areas where developmental programs for economic growth
came in conflict with cultural sen ments of tribal popula on.
• Enviromental Sustainability
 In the long run,the environmental standards must not be jeopardized while
in pursuit of Inclusive growth..
 Eg:- Use of excess fer lizer has created a unique problem of soil deple ons.
 Models of Inclusive Growth
• Inclusive growth is not the sole responsibility of the state
• The goals of IG can be realized if state and non-state actors work in
tandem.
• There are some models of IG which are currently adopted by Govt,
Pvt agencies and NGOs.
• Some of them are
• Financial Inclusion
• Corporate social responsibility
• Inclusive marke ng
Financial Inclusion
• It is a model of Inclusive growth
• Include the unbanked populace into formal banking system by
providing financial services at very low cost.
• To unlock its growth poten al of hitherto unbanked popula on of
the country.
• By thre expansion of
• Banking Infra
• Opening of new branches
• Zero Frills accounts
• Banking Correspondents
• Small Banks ,Payment Banks
• Micro ATMs,White Label ATMs
• PMJDY,APY. etc
 Corporate Social Responsibility (CSR)
• It is a model of IG
• Corporate Social Responsibility (CSR) is referred as a corporate ini a ve to
assess and take responsibility for the company's effects on the environment and
impact on social welfare and to promote posi ve social and environmental
change.
• Every company Pvt Ltd or Public Ltd which either has a net worth of 500Cr. Or a
turnover of 1000Cr or net Profit of 5Cr needs to spend at least 2% of its average
net profit for the immediately preceding three financial years on CSR ac vi es.
• Every qualifying company requires spending of at least 2% of its average net
profit for the immediately preceding 3 financial years on CSR ac vi es
• Any of the ac vi es men oned in the Schedule VII of the Companies Act 2013.
• Only ac vi es in India and Preference would be given to local areas and areas
around a company operates.
• Ac vi es that can be undertaken by a company to fulfil its CSR
obliga on include
Eradica ng > Hunger,Poverty,Malnutri on
Promote > Educa on, Healthcare , Gender Equality.
Se ng Up > Homes for Women,Orphans and senior ci zens
Ensure > Env.Sustainability, Ecological Balance , Animal Welfare etc.

• CSR is a management concept whereby companies integrate social and

environmental concerns in their business opera ons and interac ons with
their stakeholders.
• CSR has become a part of the corporate policy of the Indian Industries
• CSR has a prominent role in complemen ng the quest for IG.
//Read More :- About CSR ; Companies Act Amendment 2019 ; Inje
Srinivas Commi ee Recommenda on.
Inclusive Marketing
• e-Chaupal of ITC.
• It is an ini a ve of ITC Limited to link directly with rural farmers via the Internet
for procurement of agricultural and aquaculture products like soybeans, wheat,
coffee, and prawns.
• e-Choupal tackles the challenges posed by Indian agriculture, characterized by
fragmented farms, weak infrastructure and the involvement of intermediaries.
• The programme installs computers with Internet access in rural areas of India
to offer farmers up-to-date marke ng and agricultural informa on.
• Since the introduc on of e-Choupal services, farmers have seen a rise in their
income levels because of a rise in yields, improvement in quality of output, and
a fall in transac on costs. Even small farmers have gained from the ini a ve
• Farmers can get real- me informa on despite their physical distance from
theMandis
Issues related to Inclusive growth
1. Growth Vs Development
2. Poverty /Defining Poor
3. Fiscal Deficit
4. Ill effects of LPG
5. Social Injus ce
6. Infrastructure
7. Low technology and Innova on
Policy approaches for Inclusive Growth
• As far as the policy framework is concerned the Government lacks a
suitable policy vis-à-vis Inclusive growth.
• Nonetheless the Government has experimented with various models of IG.
• From Independence onwards Government has been prac sing various
types of policy measures ,few are discussed below.

1. Growth Oriented Policy

2. Direct Interven on
3. Capacity building
4. Welfare schemes
5. Public par cipa on.
 Growth Oriented Policy
• India’s economic planning started with growth oriented policy
• First plan was started with an objec ve of rapid and balanced
growth.
• Second plan put a thrust on rapid growth of Industrializa on.
• 12th FYP has blended economic growth with Inclusion with an
objec ve of “Faster, Sustainable and more Inclusive growth”.
Growth is not equally shared and in many parts of the country
people s ll remain poor and disadvantaged in significant
propor on.
 Direct Intervention
• Facilita ng Inclusive growth through Legisla on,regula on,
Credit facilita on and providing livelihood security are the forms
of direct Interven on by the govt.
• Orienta on of administra ve machinery is transformed from
Regulator to Facilitator.
 Capacity building
• Skill development is basically capacity development.
• However capacity development is not limited to skill development.
• Training of rural development func onaries is also a mean of capacity
building.
• Crea ng Job and marke ng demand is not the only criteria of
capacity building .But
• Increasing efficiency
• Effec veness
• Accountability
• Transparency are also considered the areas under capacity building
ins tu ons of the government.
 Welfare schemes
• The approach in welfare scheme -> Op mal alloca on of
resources and access to essen al services.
• For different types of beneficiaries (Women,Children,BPL )
Central and State Government have come up with customized
welfare schemes.
• The ways in which welfare schemes are Implemented
• Food Subsidies
• Public Distribu on of essen al commodi es.
• Nutri on Programmes
• Financial Support through microfinance
 Public Participation
• Without public par cipa on at different level of governance IG
remains a distant dream.
• Govt is encouraging the public par cipa on in a mul farious ways in
which common man must show an affirma ve and pro-ac ve
response.
• SHGs promo on is a typical example of public par cipa on for IG.
• SHGs programmes have yielded good results in south Indian states
par cularly in Kerala and AP
• Kerala government supported Kudumbasree programme and that
have been successful in women empowerment and reducing poverty.
• Lastly, Policy interven on takes place both at Micro and Macro levels.

Macro level Micro level

• Improving FD • Accountability and
• Trade liberaliza on Transparency
• Promo on of FDI • Women Empowerment
• Priva za on • Access to essen al services
• Deregula on • Reduce Income inequality
• Tax reforms • Improve Public /Social Infra
• Labour laws
• Social safety nets
• Public expenditure etc
 Conclusion
• Economic growth has failed to be inclusive enough.
• This failure is a ma er of unwillingness and short sightedness.
• The policies framed with lot of enthusiasms, face challenges of proper
implementa on, monitoring and accountability.
• This is the central issue towards IG.
• Strategies should be produc ve and result oriented
• The onus of IG must be shared by all channel partners – State,Civil society
organisa ons and ci zens.
• Eg:- CSO can work with PRI in rural areas to make social development schemes more efficient.
• Finally there is a lack of convergence in policy
• The policy framework has to be transformed giving primacy to the common man.
• Discuss financial inclusion as a mean to inclusive growth. Discuss
associated issues also ?
• Discuss social inclusion as a mean to inclusive growth.Discuss how far
we achieved this objec ve and also discuss associated issues
• With a considera on towards the strategy of inclusive growth, the
new Companies Bill, 2013 has indirectly made CSR a mandatory
obliga on. Discuss the challenges expected in its implementa on in
right earnest. Also discuss other provisions in the Bill and their
implica ons. (200 words) [2013]
• Capitalism has guided the world economy to unprecedented
prosperity. However, it o en encourages short-sightedness and
contributes to wide dispari es between the rich and the poor. In this
light, would it be correct to believe and adopt capitalism for bringing
inclusive growth in India? Discuss.[2014]
• Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing
unbanked to the ins tu onal finance fold. Do you agree with this for
financial inclusion of the poorer sec on of the Indian society? Give
arguments to jus fy your opinion.[2016]
• What are the salient features of ‘inclusive growth’? Has
India been experiencing such a growth process? Analyse
and suggest measures for inclusive growth. (250 words,
15 marks) [2017]

• It is argued that the strategy of inclusive growth is

intended to meet the objec ves of inclusiveness and
sustainability together. Comment on this statement.
(Answer in 250 words)15