Economic Growth in India and the Challenges of Inclusiveness

Abdul Jalil


Economic growth is accelerating at a very faster rate in India over the last decades; however the growth is yet to reach the common masses due to various challenges of inclusiveness. Making growth more inclusive through equal distribution of income and wealth is one of the major challenges. Addressing widespread poverty, problems of unemployment, financial exclusions, health and sanitations, infrastructure, etc. are the key challenges for India to achieve inclusive economic growth. To address the challenges, India requires sustainable investment in people, starting from health and education with transport, energy, and financial inclusions of weaker sections of the society. It also requires a review of the poverty reduction programmes, their targeting and efficiency. Rapid growth is not creating enough jobs for the people that pay a living wage or better. It seems employment opportunities are inadequate with the increase in population of India. Institutions, regulation and economic governance need to adapt sustainable economic transformation for India to address its social and economic challenges. The bottlenecks that are bearing down on inclusiveness will have to be addressed for India to continue to contract its major gap in challenges of inclusiveness. The Indian authorities have recently renewed their reform impetus and are working to liberalise foreign direct investment in some of the key areas, to reform the tax system and the delivery of subsidies. These are important measures, however further reforms are  essential for India to make the most of its assets utilizations; a young and dynamic population, an entrepreneurial and increasingly innovative business sector and proximity to one of the most dynamic emerging economies in the world.

Keywords: Economic growth, inclusiveness, poverty reductions, FDI, dynamic population.

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