Inclusive Growth through Five-year Plans

• The Eleventh five year Plan (2007-12) in India for the first time gave importance to Inclusive growth.

• The Twelfth Five-year plan (2012-2017) was launched with the slogan “Faster, More Sustainable, and More – – – – – – – – – – – – – – – – – – 
• The plan observed Inclusive growth should result in lower incidence of poverty, broad-based and significant improvement in health outcomes, universal access for children to school, increased access to higher education and improved standards of education, including skill development.
• It should also be reflected in better opportunities for both wage employment and livelihood, and in improvement in provision of basic amenities like water, electricity, roads, – – – – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Elements of Inclusive Growth

• Skill development, Empowerment of vulnerable sections, Economic growth, financial inclusion, – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Government Initiative to achieve Inclusive Growth in India 

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA),  Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Ujjwala Yojana (PMUY).

• Pradhan Mantri Awas Yojana (PMAY): This housing scheme aims to provide affordable housing to urban and rural poor, with a focus on economically weaker sections and low-income groups.

• Skill India Mission: skill training and entrepreneurship development programs to bridge the skill gap and promote job creation.

• Digital India: This program aims to transform India into a digitally empowered society and knowledge economy by promoting digital infrastructure, digital literacy, and digital services accessible to all citizens.

• Beti Bachao, Beti Padhao: This campaign seeks to address gender discrimination and promote the education and welfare of the girl child, with a focus on improving the sex ratio and enhancing girl’s access to education.

• Swachh Bharat Abhiyan: This nationwide cleanliness campaign focuses on improving sanitation, constructing toilets, and promoting hygiene practices to enhance health outcomes and quality of life.

• Start-up India: This initiative aims to promote entrepreneurship and innovation by providing support, funding, and incentives to start-ups, facilitating job creation and economic growth.

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): This income support scheme provides direct cash transfers to farmers to ensure a minimum income and address agricultural distress.
• Atmanirbhar – – – – – – – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Challenges in achieving inclusive growth in India

• Service Sector Dominance,  Social Divisions, Unequal Access to Education and Skills, Rural-Urban Disparities, Informal Sector Challenges, Governance and – – – – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Way Forward

• Enhancing education and skills, Promoting financial inclusion, Implementing targeted social welfare programs, Addressing gender inequality, Investing in rural development and agriculture, Strengthening governance and accountability and Encouraging – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Atmanirbhar Bharat Abhiyaan 

Context

Atmanirbhar Bharat Abhiyaan or self-reliant India campaign is the vision of new India envisaged by the Prime Minister to move towards a – – – – – – – – – – – – – – – 

Objective of Atmanirbhar Bharat Abhiyaan

Way Forward 

• Long-term strategy: Develop a regional supply chain-focused approach to ensure future success.
• Openness to free and fair trade: Attract investors based on strengths rather than tariffs, promoting international business investment in India.
• Support for innovation: Foster STEM skills and an innovator-friendly IP regime to drive problem-solving and economic growth.
• Embrace digital and data opportunities: Integrate with major markets, invest in AI and digital tech for economic advancement.
• Prioritize sustainability Incorporate sustainability and human rights into trade agreements for environmental protection and poverty alleviation.
• Stimulate demand through infrastructure spending:Invest in greenfield infrastructure to enhance productivity and benefit – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Global Economic Recession

Context-

Recently IMF Chief Kristalina Georgieva in an interview mentioned that around one-third of the global economy will face a recession in 2023, leading to a slowdown in economic growth compared to previous years. Major economies worldwide are experiencing a decline in growth, contributing to this trend.

Is the world heading towards a global recession? Various viewpoints: 

• World Economic League Table – Global economy topped $100 trillion for the first time in 2022 but will halt in 2023.
• Bloomberg – More than a 1/3 of the world’s economies will collapse (25% possibility that in 2023).
• World Bank – Global economic growth to be 1.7% in 2023 and 2.7% in 2024.
• World Economic Outlook, 2023 – Advanced economies are expected to see a growth slowdown, from 2.7 percent in 2022 to – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Reasons behind current Global Economic Recession 

• China Factor: Zero covid policy, crisis of housing market, evolution of especially contagious SARS-CoV-2 etc. Dependency on China for global supply value chain may cause global economic recession.
• European crisis: EU and Eurozone countries are heading towards a slowdown in the economy. Increasing inflation brought the citizens to protest. 
• American Dilemma: US Federal Reserve has raised its benchmark overnight interest rate to the 5.00%-5.25% range. This signalled that the economy might fall into recession.
• Russia – Ukraine War disrupted global supply chain, pushing towards global– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 

Way Forward 

• Fiscal Stimulus Packages: Increased government spending, tax cuts, or subsidies to stimulate demand and investment to increase consumer spending and encourage businesses to invest. 
• Monetary Policy Measures: Reducing the key interest rates, easing borrowing conditions, and injecting liquidity into the banking system to encourage lending and investment.
• Bank Recapitalization: To ensure that banks have sufficient capital to lend and support economic growth.
• Infrastructure Development: Investments in infrastructure projects to create spill over impacts on the employment sector, reviving growth → long-term positive impact on economic growth. 
• Multilateral cooperation – on areas of common interest like strengthening global value chains, improving resilience, easing price pressures, addressing– – – – – – – – – – – – – – – – – – – – – – – – – – – – – 
• – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –