{"id":216421,"date":"2022-11-29T19:37:10","date_gmt":"2022-11-29T14:07:10","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=216421"},"modified":"2022-11-29T19:37:10","modified_gmt":"2022-11-29T14:07:10","slug":"what-does-inclusion-being-key-to-growth-mean","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-does-inclusion-being-key-to-growth-mean\/","title":{"rendered":"What Does Inclusion Being Key To Growth Mean?"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201cWhat Does Inclusion Being Key To Growth Mean?\u201d <\/strong>published in The Times of India<\/strong>\u00a0on\u00a029th<\/sup> November 2022<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Inclusive Growth<\/strong><\/p>\n

Relevance: <\/strong>problems with inclusive growth and measures to improve it<\/strong><\/p>\n

News:<\/strong> The article discusses the problems faced in achieving inclusive growth at the time of Nehru and measures that can be taken to improve it.<\/p>\n

How did the concept of inclusive growth fail during the Nehru period?<\/strong><\/h5>\n

At the time of Nehru, it was argued that poverty can be reduced by focusing on growth. However, this concept failed to provide the desired result.<\/p>\n

The failure led to the emergence of cottage industry under the title of \u201cNew Economics\u201d which argued that redistribution was the only way to reduce poverty.<\/p>\n

However, this argument does not hold importance as inclusive growth is important for the overall growth of a nation.<\/p>\n

Why is inclusive growth important?<\/strong><\/h5>\n

Growth<\/strong> raises incomes of the poor along with revenues of the government which help the government to launch anti-poverty programmes.<\/p>\n

Inclusive growth<\/strong> is important for the overall growth of a nation and the government should focus on inclusion in its policies and programmes.<\/p>\n

Why did the growth during the Nehru era not achieve the desired result?<\/strong><\/p>\n

India at the time of Nehru was at the early development stage. Therefore, in the early stage of development the most abundant resource of developing countries is labour.<\/p>\n

A country at an early stage can only grow by using the full potential of its labour force.<\/strong><\/p>\n

For example,<\/strong> 68% of the South Korean workforce was employed in agriculture in 1960. This proportion fell to 18% by 1990. In the later decades, industry and services absorbed an additional half of the workforce with real wages rising 8-10% annually.<\/p>\n

However, India under Nehru adopted a development strategy that was centred not on the utilisation of its abundant labour force but on its low capital<\/strong>.<\/p>\n

Indians had a low level of income with a saving rate of just 7-9%. With these low capital resources, the government chose to invest them almost entirely in heavy industries<\/strong> which employed less than 5% of the nation\u2019s workforce.<\/p>\n

Even though, this development strategy created a modern industry, 95% of the workforce was excluded and relied on sectors such as agriculture, cottage and household enterprises.<\/p>\n

Census data<\/strong> show that the proportion of workforce in agriculture remained unchanged at 69. 7% between 1951 and 1971 whereas workers in countries like South Korea became skilled at the same period of time.<\/p>\n

However, with the change in policies, the growth rate in India began to change.<\/p>\n

What changes were brought in India?<\/strong><\/h5>\n

As per the Employment-Unemployment Survey<\/strong>, the proportion of workforce in agriculture fell from 58. 5% in 2004-05 to 48. 9% in 2011-12. These years also saw the annual growth rate reach 8%.<\/p>\n

However, the process of direct inclusion of workforce into the mainstream of the economy remains slow in India compared to other fast-growing economies of Asia.<\/p>\n

What are the concerns?<\/strong><\/h5>\n

Policy-makers focusses on capital and skilled-labour-intensive industries such as automobiles, railways, steel, telecom equipment, IT, finance for output<\/strong> but for employment<\/strong>, they rely on MSMEs which have little capacity to impart skills to their employees.<\/p>\n

Therefore, to grow at 8% or higher rates India must recognise that inclusion is an integral part <\/strong>of rapid growth and only then India\u2019s labour-intensive industries can grow leading to overall development of the nation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article\u00a0\u201cWhat Does Inclusion Being Key To Growth Mean?\u201d published in The Times of India\u00a0on\u00a029th November 2022. Syllabus: GS 3 \u2013 Inclusive Growth Relevance: problems with inclusive growth and measures to improve it News: The article discusses the problems faced in achieving inclusive growth at the time of Nehru… Continue reading What Does Inclusion Being Key To Growth Mean?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-216421","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704841029},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/216421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=216421"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/216421\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=216421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=216421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=216421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}