Question 1 · 10 marks · 163 words written
Analyse the factors that have contributed to India's inclusive economic growth in the past decade.
Opening · a figure
India has become from 18th largest economy to the 4th largest economy globally in the past decade with rise in per capita income as well.
Factors that have contributed to India's inclusive economic growth:-
Body · points
Increase in employment and opportunity to people.
Rise in labour force participation (LFPR) ratio from 40% (in 2015) to 60% in 2024.
Women empowerment, nudge to women to work and contribute to economy. Female LFPR increased from 23% to 41%.
Help to the manufacturing sector specially MSME (Mudra Loan)
Increase in capital formation and investments
Challenges / limitations:-
Stagnant nature of Manufacturing sector with just ~20% to the GDP. (less labour intensive sector)
Huge income inequality
Ref: OXFAM report
- Huge wealth inequality: top 1% own 40% of wealth, top 0.1% own 30%, top 0.01% own 22% and top 0.001% own 16%.
Close · a way forward
Way forward: We need inclusive growth (not trickle down approach). Need of the hour is skill development and employment opportunity.