Q.8 Analyze the role of the state in promoting inclusive growth in India.

Ans:  Inclusive growth ensures that the benefits of economic development reach all sections of society, particularly the marginalized. The state plays a pivotal role in promoting inclusive growth through policies, programs, and institutional mechanisms aimed at reducing inequalities and fostering equitable development.

Role of the State in Promoting Inclusive Growth

  1. Social Sector Spending: The state invests in health, education, and social security to improve human capital and reduce disparities. Example: The National Health Mission (NHM) and Samagra Shiksha Abhiyan have improved healthcare and education access for marginalized communities.
  2. Poverty Alleviation Programs: Schemes like MGNREGA and PM-KISAN provide livelihood security and income support to the poor. Example: In 2022-23, MGNREGA generated 2.8 billion person-days of employment, supporting rural households.
  3. Direct Benefit Transfers (DBT): DBT ensures targeted delivery of subsidies, reducing leakages and benefiting the needy. Example: The PAHAL scheme saved ₹50,000 crore by eliminating ghost beneficiaries in LPG subsidies.
  4. Promoting Financial Inclusion: Initiatives like Jan Dhan Yojana and PM Mudra Yojana provide banking access and credit to the unbanked. Example: Over 48 crore Jan Dhan accounts have been opened, enabling direct transfer of welfare benefits.
  5. Empowering Marginalized Groups: Special programs for SCs, STs, women, and minorities aim to bridge social and economic gaps. Example: The Stand-Up India scheme provides loans to SC/ST and women entrepreneurs, promoting entrepreneurship.
  6. Infrastructure Development: Investments in rural infrastructure (roads, electricity, water) improve living standards and economic opportunities. Example: The Pradhan Mantri Awas Yojana (PMAY) has constructed over 3 crore houses for the rural and urban poor.
  7. Skill Development and Employment: Skill development programs like Skill India Mission enhance employability and reduce unemployment. Example: The National Apprenticeship Promotion Scheme (NAPS) has trained over 10 lakh youth in various trades.
  8. Agricultural Reforms: Support to farmers through MSP, subsidies, and irrigation projects ensures agricultural growth and rural prosperity. Example: The PM-KISAN scheme provides ₹6,000 annually to small farmers, directly benefiting over 11 crore farmers.
  9. Gender-Responsive Policies: Programs like Beti Bachao Beti Padhao and Mahila E-Haat empower women economically and socially. Example: The Maternity Benefit Program provides financial support to pregnant women, improving maternal health.
  10. Regional Development Initiatives: Special packages for backward regions aim to reduce regional disparities. Example: The Aspirational Districts Programme targets 112 underdeveloped districts for improved healthcare, education, and infrastructure.

The state plays a crucial role in promoting inclusive growth through targeted policies, social sector spending, and empowerment programs. However, challenges like implementation gaps and regional disparities need to be addressed to ensure equitable development for all sections of society.

Keywords: Inclusive Growth , Social Sector Spending , Direct Benefit Transfer (DBT) , Financial Inclusion, Skill Development , Regional Disparities
Value Addition: Case Study: The success of Kerala’s Kudumbashree program in empowering women through self-help groups can be cited as a model for inclusive growth.Global Examples: Learning from countries like Brazil (Bolsa Familia) and South Korea (Saemaul Undong) that have successfully implemented inclusive growth strategiesPolicy Suggestion: Introduce outcome-based budgeting to ensure that funds allocated for inclusive growth programs achieve measurable results.

10 Marks

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