Bharat SainiLast Updated on February 25, 2017 by Bharat Saini
Sabka Saath, Sabka Vikas, Prime Minister Narendra Modi’s slogan is a Government of India policy initiative for inclusive development. Inclusive development is necessary for sustainable development and equitable distribution of wealth and prosperity. Poverty Reduction; Employment Generation; Development of Industrial, Agricultural and Social Sectors; Environment Protection; Equal Distribution of Income and Reduction of Regional Disparities are the important elements of inclusive development.
India’s spectacular economic growth in the last few years has been above 7% per annum and as a consequence country has witnessed increase in disparities and inequalities across regions and social groups and between rural and urban areas specifically in the post-reform period, leading to two faces of India. One prospering which is competing internationally and benefiting from the forces of globalization, technological change, and economies of scale, and the other in contrast suffering, has unacceptably wide swatches of its population who are poor and vulnerable. These two faces of India are both a beacon of hope and a symbol of despair. Merging these two faces is achieving inclusive development and to take the levels of growth to all section of the society and to all parts of the country is the biggest challenge in a democratic country like India with vast diversities.
Rapid and sustained poverty reduction requires inclusive growth that allows people to contribute to and benefit from economic growth
There are strong social, economic and political reasons for achieving broader and inclusive growth. Socially, lack of inclusive growth leads to unrest among many people. There is also economic argument. The measures which raise equity also promote economic growth. In other words, there is no trade-off between equity and growth. Lastly, the political argument is that no government in a democracy can afford to ignore large sections of workers and non-working population.
Sabka Saath, Sabka Vikas meaning ‘Together with all, Development for all’ is a Government of India policy initiative for inclusive development. The slogan was coined by Prime Minister Modi and towards achieving this great vision he has launched Atal Pension Yojana, Beti Bachao Beti Padhao Yojana, Pradhan Mantri Garib Kalyan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Kaushal Vikas Yojana, Pradhan Mantri Suraksha Bima Yojana, Rashtriya Krishi Vikas Yojana, Deen Dayal Upadhyaya Gram Jyoti Yojana, Deen Dayal Upadhyaya Grameen Kaushalya Yojna, Pradhan Mantri Jan Dhan Yojana, Sukanya Samridhi Yojana (Girl Child Prosperity Scheme) and Pradhan Mantri Ujjwala Yojana.
Modi Government came to power on its twin agenda of economic growth and development. India’s economic metrics indicate growth despite the global economic slowdown and contraction in international trade. India’s GDP has accelerated to 7.6 per cent, CPI inflation has decreased to 5.4 per cent, foreign exchange reserves sit at a high of $350 billion and current account deficit has declined by $4 billion since early 2015. A glance at the key policies of the Modi Government in the past two and a half year and their impact on investment and economic growth reveal emphasis on the inclusive development.
The ‘make in India’ initiative was introduced to market India as a manufacturing hub and create jobs for all classes of people as part of agenda of inclusive development. Under the ‘make in India’ initiative, twenty five sectors were identified for focussed intervention and FDI policy was liberalized. As per ratings agency Moody’s, FDI has hit an all-time high in early 2016, highlighting the success of ‘make in India’ initiative. Several big wigs such as Xiaomi, Boeing, Foxconn and Hitachi have caught the make in India wave.
Modi Government has made infrastructure a key priority and this will serve as the backbone for its reforms. Setting up of national investment and infrastructure fund, and development of smart cities, roads and highways, railways, inland waterways and urban areas, are all on the agenda of inclusive development.
Government’s latest move to demonetise high denomination notes will improve its fiscal position. This, in turn, would enable higher capital expenditure by the government and could help over the longer term propel economic growth into double-digit levels. As the black money goes out of the system the money supply will shrink to some degree. This will reduce inflation rate in the absence of any open market interventions by the Reserve Bank of India. The move will benefit the poor in particular as the Prime Minister’s thrust appears to suggest that improvement of government finances after the move will help government push more welfare expenditure for the poor sections of the people. This will be a boost to inclusive development.
The complexities that drive a diverse nation’s growth engine seldom make it possible to pass a clear verdict on whether the Government is a hit or miss in steering the nation in the right direction of inclusive economic growth. Indeed, the Modi Government has successfully traversed some difficult terrains of a stagnating GDP, high CPI and alarming current account deficit, but there are several more miles to go before India realizes its goals of economic development with little room for complacency.
The challenge is to take the levels of growth to all section of the society and to all parts of the country. The best way to achieve inclusive growth is through developing people’s skills, a multifaceted approach towards education and skills development is necessary to achieve growth.
There is a need to have a broad based and inclusive growth or development to benefit all sections of the society.
