Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages short-sightedness and contributes to wide disparities 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.

Impact of liberalisation on social equity :-

(1) The fruits of economic growth has not been equally distributed.

(2) According to RBI report Top 12% in India own 79% of wealth while remaining 88% have the rest.

(3) In agri sector - the benefits of liberalised has remained to large land lords and big farmers.

(4) The businesses in India till a long time have been very restrictive to small industries.

(5) However in recent time government has started focussing on → MSMES, startups etc.

(6) Still schemes like Production Linked Incentives face issue of biasness because of it's eligibility criteria → limited to

• incremental investment
• incremental sale

(7) Private sector investment in social sector has remained very low (< 2%).

(8) India still faces issues like- lack of digital literacy, financial inclusion, etc that hinders social equity.

(9) the expansion of Indian economy has had impact even on the environment eg!- sterlite copper plant.

This has at some places led to distorted development.

Measures for promoting Inclusive economic growth:

Realising the impact of distorted development, government shifted it's focus towards sustainable inclusive development through it's 12th 5 year plan. Various measures taken:-

(1) Promoting Financial inclusion - Through Jan dhan Aadhaar Trinity

(2) Increasing digitisation - through digital India Mission

(3) Focus is on skilling the population eg!- PM-Kaushal Vikas Yojana

(4) Promoting startups & MSMEs through Schemes like - Mudra Yojana.

(5) Promoting women led entrepreneurship, eg!- Stand Up India scheme.