Despite Consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.

1. food production = 327 MT | 1. Global Hunger Index = 105/127
2. 3rd largest economy | 3. Per capita Ranking = 134/198 country

Structural Issue

(A) Equitable Human Development

(i) Discrimination and entrenched patriarchy & caste system

(ii) Subsidies instead of Human Capability investment

eg Health expenditure = 1.9% of GDP (vs 2.5% Target)

(iii) High inequality in society eg Oxfam → 1% earn 22% of income

(iv) Corruption and leakages in government spending eg PDS - 40% leakage (NITI Aayog)

(v) Focus on beneficiary creation instead of providing entitlement

(B) Inclusive Human Development

(vi) Inclusion and exclusion error

eg MGNREGA - 20% of most poor are unaware (WB)

(vii) Skewed focus of human development

(viii) Not focusing on structural human development issue

eg Malnutrition, Hunger

(ix) Bias and policy discrimination

Way forward

1. Capability Approach of Amartya Sen → providing entitlements to people → focus on Health & education

2. Conditional cash transfer (conditional UBI) eg Ladli Behna Scheme

3. focus on structural constraint → fighting Malnutrition → social capital to target discrimination

Case Study (1) Bolsa family (Brazil) → Improved HDI Ranking

1. Rural Industrialisation (PURA Model) → Jobs + upliftment

2. Shift from 'Right to food' to 'Right to Nutrition' under NFSA

"We need to shift from short term redistribution to long term social & human capital formation"

• Amartya sen