The Standpoint

Understanding Inclusive Growth

By
Anukampa Gupta

Prime Minister Manmohan Singh often says that the benefits of economic growth should not be restricted to a select few. After the results of 2009 Lok Sabha elections, he reiterated, “People have voted for equitable development.” Interestingly, equitable development for the Congress has been the idea of inclusive growth promoted by schemes such as the NREGA and the farm loan waiver.

The big question is - what should inclusive growth really mean?

Is it just about waving massive loans, getting rural people into labour work and doing nothing about ensuring a better life for them and reducing economic disparity?

This write-up tries to answer the questions raised above.

The argument that the farm loan waiver and the NREGA don’t deliver clear economic benefits is acceptable to a great extent. These are schemes which do not root-out poverty or economic disparity but only cure symptoms of these processes.

Having said this, one must appreciate the fact that the government has, through the NREGA, efficiently engaged segments of rural populace, in building community assets and providing bare minimum to those who were previously getting nothing. And the ‘buffer’ created due to this active engagement, which might be questioned for its long term credentials, should be efficiently utilized to go beyond the NREGA- to think about policies and mechanisms that promote real inclusive growth.

‘Real inclusive growth’ can only be defined as which gives aspirational satisfaction to Bharatwasis. It can only be achieved when the State proves the fact that their role is not restricted to digging and they have greater identity and say in the ‘idea that is India’.

Again, real inclusive growth can only be accomplished when the tacit policy of ‘non-touchability’ towards the agriculture sector (and farmers) is ceased to be practised. If we can get ourselves to stop believing that agriculture has been the bane of Indian economy and instead look at it with a vision of converting it into the biggest Indian industry, economic development of rural India can be taken to a whole new level. And with increasing threats of food insecurity and distorted economics falling flat on the ground- best agricultural practices should be employed to call for the rise of ‘Indian Agricultural Industry’.

Further, till the time our education system keeps on producing a brigade of the exploited and another of the exploiter- in the form of a non-uniform/uncommon schooling system- inclusive growth will remain a very distant dream.

Inclusive growth is not about loan wavers and 100 days of work- it’s a much bigger concept. It stands on the principle of equality. Equality, in terms of access to health care, educational opportunities and even to something as basic as clean drinking water.