Economics Playlist
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1
Introduction to Economics
10 topics
2
National Income
17 topics
3
Inclusive growth
15 topics
4
Inflation
21 topics
5
Money
15 topics
6
Banking
38 topics
7
Monetary Policy
15 topics
8
Investment Models
9 topics
9
Food Processing Industries
9 topics
10
Taxation
28 topics
11
Budgeting and Fiscal Policy
24 topics
12
Financial Market
34 topics
13
External Sector
37 topics
14
Industries
21 topics
15
Land Reforms in India
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16
Poverty, Hunger and Inequality
24 topics
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Planning in India
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Unemployment
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Progress
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Chapter 3: Inclusive growth
Chapter Test15 topics•Estimated reading: 45 minutes
Inclusive Growth
Key Point
Inclusive growth is a pattern of economic growth that ensures fairness, equity, and opportunities for all sections of society. It reduces inequalities, promotes participation of marginalized groups, and ensures that growth is sustainable, environment-friendly, and non-discriminatory.
Inclusive growth is a pattern of economic growth that ensures fairness, equity, and opportunities for all sections of society. It reduces inequalities, promotes participation of marginalized groups, and ensures that growth is sustainable, environment-friendly, and non-discriminatory.
Detailed Notes (17 points)
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Introduction
As per OECD, Inclusive Growth is economic growth distributed fairly across society and creating opportunities for all.
As per UNDP, it is a process and an outcome where all groups participate in growth and benefit equitably from it.
In simple words, it means growth that does not leave anyone behind.
Salient Features
Reduction of Inequalities: Narrows gaps between rich and poor, rural and urban, men and women, and across sectors.
Regional Balance: Focuses on reducing regional disparities, ensuring backward areas also develop.
Broad Participation: Involves all sections of society, especially marginalized groups.
Addressing Constraints: Removes barriers faced by excluded groups (SCs, STs, women, differently-abled, minorities).
Non-Discrimination: Fair access to resources, services, and opportunities without bias.
Sustainability: Growth that is environment-friendly, good in governance, and gender-sensitive.
Why Inclusive Growth is Important?
Prevents social unrest caused by inequality and exclusion.
Strengthens democracy and social justice.
Ensures faster poverty reduction.
Improves productivity by utilizing the full potential of the workforce.
Creates a fair and sustainable development path for future generations.
Inclusive vs Non-Inclusive Growth
| Aspect | Inclusive Growth | Non-Inclusive Growth |
|---|---|---|
| Distribution of Benefits | Shared fairly across all groups | Concentrated in hands of few |
| Participation | Broad participation of marginalized groups | Excludes weaker sections |
| Sustainability | Environment-friendly, gender-sensitive | Often exploitative and unsustainable |
| Regional Development | Reduces disparities among regions | Benefits limited to few regions |
Mains Key Points
Inclusive growth is essential for poverty reduction, social justice, and sustainable development.
Focuses on removing structural barriers faced by marginalized communities.
Links economic growth with equity, fairness, and environmental responsibility.
Acts as a foundation for long-term political stability and social harmony.
Prelims Strategy Tips
OECD: Inclusive growth = Fair distribution + Opportunities for all.
UNDP: Inclusive growth = Process + Outcome with equitable benefits.
Key features: Reduces inequality, ensures participation, promotes sustainability.
Elements of Inclusive Growth
Key Point
Elements of Inclusive Growth are the pillars of equitable development, ensuring that economic progress benefits all. These include agriculture development, poverty reduction, and reduction of regional disparities – supported by targeted government schemes and policies.
Elements of Inclusive Growth are the pillars of equitable development, ensuring that economic progress benefits all. These include agriculture development, poverty reduction, and reduction of regional disparities – supported by targeted government schemes and policies.
Detailed Notes (27 points)
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Agriculture Development
Agriculture is vital for rural livelihood. Over two-thirds of rural households depend on it (FAO).
PLFS 2019-20: 75.7% of rural women and nearly 60% of employed women in India are engaged in agriculture.
Challenges: low productivity, limited irrigation, market linkages, and income insecurity.
Key Government Schemes:
PM-KISAN: Direct income support of ₹6000 per year to farmers.
PM Fasal Bima Yojana (PMFBY): Crop insurance against risks like drought/flood.
e-NAM: Online trading platform to connect farmers with markets.
PM Krishi Sinchai Yojana: Irrigation support under motto 'Har Khet Ko Pani'.
Poverty Reduction
Poverty is declining but still significant. UNDP MPI 2022: India had 228.9 million poor in 2020.
415 million people moved out of poverty between 2005-21, poverty incidence fell from 55.1% to 16.4%.
Strategies: welfare programs, skilling, education, and healthcare.
Key Government Schemes:
MGNREGA: 100 days of guaranteed rural employment.
National Food Security Act (NFSA): Subsidized food grains to 80 crore+ people.
Ayushman Bharat (PM-JAY): World’s largest health insurance scheme.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Skill development for youth.
Reduction in Regional Disparities
Uneven growth across states – Kerala and Gujarat more developed, Jharkhand and Chhattisgarh less developed.
Within states too, urban areas often prosper while rural regions lag.
Balanced regional development requires special programs and resource allocation.
Key Government Schemes:
Aspirational Districts Programme (ADP): Targeted development in 112 backward districts.
Bharatmala & Sagarmala Projects: Infrastructure connectivity to boost regional growth.
UDAN Scheme: Enhancing regional air connectivity.
PMGSY (Pradhan Mantri Gram Sadak Yojana): Rural roads for connectivity.
Elements of Inclusive Growth with Schemes
| Element | Focus Area | Key Schemes |
|---|---|---|
| Agriculture Development | Productivity, irrigation, market access | PM-KISAN, PMFBY, e-NAM, PM Krishi Sinchai Yojana |
| Poverty Reduction | Food security, employment, health, skill development | MGNREGA, NFSA, Ayushman Bharat, DDU-GKY |
| Regional Disparities | Balanced development, connectivity | Aspirational Districts Programme, Bharatmala, UDAN, PMGSY |
Mains Key Points
Agriculture development is crucial since most rural households depend on it – schemes like PM-KISAN and PMFBY provide direct support.
Poverty reduction achieved through food security (NFSA), employment (MGNREGA), health (Ayushman Bharat), and skills (DDU-GKY).
Regional disparities tackled via Aspirational Districts Programme, infrastructure schemes (Bharatmala, Sagarmala, PMGSY), and UDAN.
Together, these initiatives ensure inclusive, balanced, and sustainable growth in India.
Prelims Strategy Tips
PM-KISAN provides ₹6000/year to farmers in 3 installments.
MGNREGA guarantees 100 days of rural employment.
Ayushman Bharat provides ₹5 lakh health cover per family per year.
Aspirational Districts Programme covers 112 backward districts.
Pillars of Inclusive Growth
Key Point
Inclusive growth is possible only when access to finance, skill enhancement, social development, technology, and sustainability are integrated into policy and practice.
Inclusive growth is possible only when access to finance, skill enhancement, social development, technology, and sustainability are integrated into policy and practice.
Detailed Notes (21 points)
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Financial Inclusion
Ensures that weaker sections and low-income groups (LIGs) can access financial services (bank accounts, credit, insurance, pensions) at affordable cost in a transparent manner.
Builds a culture of saving and investment → creates virtuous cycle of growth and financial security.
Example: Pradhan Mantri Jan Dhan Yojana (PMJDY), Direct Benefit Transfer (DBT), Aadhaar-enabled payment system.
Skill Development
With nearly 2/3rd population in working age group (15–59 years), India’s demographic dividend is huge.
Challenges: shortage of highly trained workforce + lack of jobs for conventionally skilled youth.
Focus on job-oriented skills, vocational training, apprenticeships, and digital skills to boost employability.
Example: Skill India Mission, PMKVY, Startup India providing skilling + employment opportunities.
Social Sector Development
Investment in education, health, sanitation, housing improves standard of living and reduces inequality.
Creates stronger human capital, leading to higher productivity.
Example: Ayushman Bharat (healthcare), Swachh Bharat Abhiyan (sanitation), PM Awas Yojana (housing).
Technological Advancement
Industry 4.0 (AI, IoT, Automation) can either reduce or increase inequality depending on usage.
Focus on digital literacy and access to technology ensures marginalized communities also benefit.
Example: TribesIndia.com helps tribal communities sell products online nationwide.
Sustainable Economic Growth
Inclusive growth must be environmentally sustainable to benefit both present and future generations.
Adoption of green technologies, renewable energy, energy efficiency to reduce carbon emissions.
Example: National Solar Mission, push for electric vehicles, sustainable agriculture practices.
Challenges in Achieving Inclusive Growth
Key Point
Despite several initiatives, India faces major challenges in achieving inclusive growth, such as inequality, jobless growth, skill gaps, digital divide, poor infrastructure, and environmental concerns. Addressing these barriers is critical for ensuring equitable and sustainable development.
Despite several initiatives, India faces major challenges in achieving inclusive growth, such as inequality, jobless growth, skill gaps, digital divide, poor infrastructure, and environmental concerns. Addressing these barriers is critical for ensuring equitable and sustainable development.
Detailed Notes (26 points)
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1. Rising Inequality
Economic growth has been uneven, with benefits concentrated in the hands of a few.
Oxfam (2023) reports that top 1% of Indians own more than 40% of total wealth.
2. Jobless Growth
Growth in India has not created enough quality jobs.
Most employment is in informal sector with low wages and no social security.
Youth unemployment is a major concern, especially among educated graduates.
3. Skill Gaps
Large mismatch between industry needs and workforce skills.
Only a small percentage of workforce has received formal training.
Skilling schemes like Skill India and PMKVY face implementation challenges.
4. Digital Divide
Unequal access to internet and digital technology between urban-rural and rich-poor.
Limits access to education, e-governance, financial inclusion (Digital India, JAM trinity).
5. Regional Disparities
Some states (Kerala, Gujarat, Maharashtra) are far ahead while states like Bihar, Jharkhand, Chhattisgarh lag behind.
This imbalance leads to migration, social unrest, and uneven opportunities.
6. Weak Infrastructure
Rural areas still lack proper roads, electricity, health, and education facilities.
Infrastructure gaps make growth uneven and exclude marginalized regions.
7. Gender Inequality
Female labor force participation remains very low (~25% as per PLFS 2021).
Gender pay gap, limited access to credit and property rights hinder women's empowerment.
8. Environmental Concerns
Rapid industrialization and urbanization cause pollution, deforestation, and climate change.
Poor bear the brunt of environmental degradation (loss of livelihoods, health issues).
Major Challenges to Inclusive Growth
| Challenge | Impact |
|---|---|
| Rising Inequality | Wealth concentrated in hands of few, social unrest risk |
| Jobless Growth | Youth unemployment, informal sector dominance |
| Skill Gaps | Mismatch between education and industry needs |
| Digital Divide | Excludes rural poor from opportunities |
| Regional Disparities | Uneven growth, migration pressures |
| Weak Infrastructure | Hinders balanced growth and access to services |
| Gender Inequality | Low female participation, gender pay gap |
| Environmental Concerns | Climate risks, loss of livelihoods, health issues |
Mains Key Points
Inclusive growth in India is challenged by inequality, unemployment, and skill mismatches.
Digital divide and regional disparities keep large sections excluded from benefits of growth.
Gender inequality and weak infrastructure reduce inclusivity of development.
Environmental sustainability must be balanced with economic growth to ensure long-term welfare.
Prelims Strategy Tips
Oxfam 2023: Top 1% Indians own >40% of total wealth.
PLFS 2021: Female labor force participation ~25%.
Major barriers: Inequality, jobless growth, digital divide, weak infrastructure.
Way Forward for Inclusive Growth
Key Point
Inclusive growth requires targeted policies in financial inclusion, skilling, social sector investment, technology use, and sustainable development. These measures ensure that economic benefits are equitably distributed and future-ready.
Inclusive growth requires targeted policies in financial inclusion, skilling, social sector investment, technology use, and sustainable development. These measures ensure that economic benefits are equitably distributed and future-ready.
Detailed Notes (21 points)
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Financial Inclusion
Ensuring vulnerable groups like weaker sections and low-income households get access to banking, credit, insurance, and pensions at affordable rates.
Promotes a culture of saving and investment, creating a virtuous cycle of growth.
Example: Jan Dhan Yojana, Direct Benefit Transfer (DBT), Aadhaar-enabled Payment System.
Skill Development
India’s demographic dividend (working-age majority) can only be harnessed through education and skilling.
Challenges: shortage of highly trained workforce + lack of jobs for conventionally skilled youth.
Need for job-oriented vocational skills, apprenticeship programs, and industry-academia linkages.
Example: Skill India Mission, PMKVY.
Social Sector Development
Investment in health, education, sanitation, and housing improves standard of living and reduces inequality.
Improves human capital, leading to higher productivity.
Example: Ayushman Bharat (healthcare), Swachh Bharat Abhiyan (sanitation), PMAY (housing).
Technological Advancement
With Industry 4.0 (AI, IoT, automation), technology can either reduce or deepen inequality.
Focus on digital literacy and affordable access to technology for rural and marginalized groups.
Example: TribesIndia.com – helps tribal communities market their products online nationwide.
Sustainable Economic Growth
Growth must be environmentally sustainable to ensure long-term inclusivity.
Adoption of energy-efficient processes and green technologies to reduce carbon emissions.
Focus on renewable energy, circular economy, and sustainable agriculture.
Way Forward for Inclusive Growth
| Measure | Expected Impact |
|---|---|
| Financial Inclusion | Greater access to banking, credit, insurance for poor |
| Skill Development | Higher employability of youth, harnessing demographic dividend |
| Social Sector Investment | Improved health, education, sanitation, housing |
| Technological Advancement | Bridges digital divide, new opportunities for marginalized groups |
| Sustainable Growth | Green economy, reduced carbon footprint, long-term welfare |
Mains Key Points
Inclusive growth requires expanding financial access, promoting skilling, and social sector investments.
Digital inclusion and technological innovation are key to bridging inequality gaps.
Sustainable growth is essential to balance environment with development.
Policy focus must shift from GDP-centric growth to people-centric growth.
Prelims Strategy Tips
Jan Dhan-Aadhaar-Mobile (JAM) Trinity is key to financial inclusion.
Skill India Mission launched in 2015 to train 40 crore youth by 2022.
India’s demographic dividend window: till 2055.
TribesIndia.com: e-commerce platform for tribal products.
Need for Inclusive Growth
Key Point
Inclusive growth is essential for India to reduce poverty, remove inequalities, improve access to services, and ensure that economic progress benefits every section of society equally.
Inclusive growth is essential for India to reduce poverty, remove inequalities, improve access to services, and ensure that economic progress benefits every section of society equally.
Detailed Notes (23 points)
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Lack of Accessibility to Core Public Services
Public spending on healthcare (1.5% of GDP) and education (4.4% of GDP) is much lower than global standards.
Even where services exist, delivery is often poor and uneven across states and districts.
Example: Many rural areas lack functional schools, doctors, and quality hospitals.
High Prevalence of Malnutrition and Undernourishment
NFHS-5 report: Anaemia rates have increased across all groups – children under 5 years, adolescent girls & boys, and pregnant women.
Every second woman, and 2 out of 3 children (6–59 months) are anaemic.
India also ranks among the highest globally in stunting (low height for age) and wasting (low weight for height).
This reflects poor health outcomes despite GDP growth.
Economic and Social Inequalities
Large disparities exist both between states and within states.
Rising income inequality: The richest 10% hold 77% of India’s wealth (Oxfam report).
Causes: Crony capitalism, inheritance-driven wealth, weak redistribution policies.
Poor states with low public service delivery (like Bihar, Jharkhand) lag behind developed ones (like Kerala, Gujarat).
Uneven Economic Growth across Sectors and Regions
Agriculture’s share in GDP has declined sharply, while services sector contribution is growing.
Many regions (metros, coastal states) have grown faster compared to hinterland states.
This creates a rural–urban divide and regional imbalance.
Demand for Skilled Labour
Globalisation, FDI inflows, and technological changes (automation, AI, Industry 4.0) demand a highly skilled workforce.
India faces skill gaps: conventional skills are not sufficient for new-age jobs.
Labour laws often discourage formal employment, leading to 'casualization' of labour (short-term, insecure jobs without social security).
Example: IT sector and manufacturing demand high skill, but majority of workforce is still in low-skill agriculture and informal jobs.
Inequality in India
Key Point
Inequality refers to the unequal distribution of income, wealth, status, rights, and opportunities among individuals or groups. In India, inequality exists both in economic and social terms, affecting development and inclusivity.
Inequality refers to the unequal distribution of income, wealth, status, rights, and opportunities among individuals or groups. In India, inequality exists both in economic and social terms, affecting development and inclusivity.
Detailed Notes (15 points)
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Definition of Inequality
United Nations: Inequality = condition of being unequal, especially in terms of status, rights, and opportunities.
Types of Inequality
Economic Inequality: Unequal distribution of income and opportunities within society.
Example: Wealth concentrated in a small section while majority struggle with poverty.
Social Inequality: Unequal access to resources based on social categories like caste, religion, gender, ethnicity, etc.
Example: Women facing wage gaps, caste-based discrimination in education and jobs.
Status of Inequality in India (Oxfam 2023 Report)
Top 5% of Indians hold over 60% of the nation’s wealth.
Bottom 50% of the population owns only 3% of wealth.
Between 2012–2021, top 1% gained 40% of the wealth generated in India.
Gini Coefficient (income inequality index) rose from 0.32 in 1983 → 0.36 in 2019.
Key Concepts
Gini Coefficient: Statistical measure of inequality (0 = perfect equality, 1 = perfect inequality). Higher values indicate greater inequality.
Lorenz Curve: Graph showing share of income earned by different population groups. The farther it bends away from the equality line, the greater the inequality.
Economic vs Social Inequality
| Aspect | Economic Inequality | Social Inequality |
|---|---|---|
| Meaning | Unequal income and wealth distribution | Unequal access based on caste, religion, gender, etc. |
| Example | Richest 5% own 60% of wealth | Caste discrimination, gender wage gap |
| Impact | Widening rich-poor gap | Marginalisation of weaker communities |
Prelims Strategy Tips
Gini Coefficient is the most used tool for inequality measurement (0 = equality, 1 = inequality).
Oxfam 2023: Top 5% Indians hold 60% wealth, bottom 50% hold just 3%.
Lorenz Curve is graphical representation of inequality.
Reasons for Inequality in India
Key Point
Inequality in India arises due to a mix of historical, social, and economic factors. It is reinforced by wealth concentration, dependence on agriculture, poor social safety nets, and unequal access to opportunities.
Inequality in India arises due to a mix of historical, social, and economic factors. It is reinforced by wealth concentration, dependence on agriculture, poor social safety nets, and unequal access to opportunities.
Detailed Notes (20 points)
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Historical Reasons
Discrimination against marginalized groups (like lower castes, tribal communities, women) limited their access to education, healthcare, and jobs for centuries.
This historical disadvantage continues to affect opportunities in the present.
Wealth Accumulation
Concentration of Wealth: A small group controls most wealth, passing advantages to their children, perpetuating inequality.
Inadequate Land Reforms: Many families remain landless or own small plots, making them vulnerable to poverty.
Crony Capitalism: Nepotism, favoritism, and corruption help the wealthy and connected accumulate more wealth, leaving others behind.
Dependence on Agriculture
Nearly 45% of Indians still depend on agriculture, but agriculture’s share in GDP is shrinking.
This mismatch keeps rural populations poor compared to urban populations that benefit from services and industry.
Tax Policy
Heavy reliance on indirect taxes (like GST) affects rich and poor equally.
Poor households spend a larger share of their income on taxed goods, worsening inequality.
Rural-Urban Divide
Rural areas lack job diversification, industries, and infrastructure.
Urban regions attract investment and better wages, widening the income gap.
Lack of Inclusive Growth Policies
Skewed Distribution: Benefits of economic growth are often cornered by urban elites and specific industries.
Regressive Taxation: Policies sometimes favor the wealthy instead of reducing inequality.
Weak Social Safety Nets: Insufficient welfare schemes mean the vulnerable have no cushion during crises (e.g., pandemic).
Key Causes of Inequality in India
| Cause | Explanation |
|---|---|
| Historical Discrimination | Marginalized groups denied equal access to education, jobs, healthcare |
| Wealth Concentration | Wealth remains with a small elite, inherited by their next generations |
| Agricultural Dependence | Large workforce in low-income agriculture while GDP share shrinks |
| Tax Policy | Heavy reliance on indirect taxes burdens the poor |
| Rural-Urban Divide | Lack of infrastructure and jobs in rural areas widens income gap |
| Weak Social Policies | Absence of strong welfare schemes and inclusive policies increases inequality |
Measuring Inclusive Growth
Key Point
Inclusive growth cannot be measured only by GDP. Alternative indices like Inclusive Development Index, Social Progress Index, and Financial Inclusion Index help capture broader aspects such as equity, sustainability, social welfare, and access to financial services.
Inclusive growth cannot be measured only by GDP. Alternative indices like Inclusive Development Index, Social Progress Index, and Financial Inclusion Index help capture broader aspects such as equity, sustainability, social welfare, and access to financial services.
Detailed Notes (22 points)
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Inclusive Development Index (IDI)
Developed by the World Economic Forum as an alternative to GDP.
Assumes that people measure progress by their living standards, not just by GDP.
Based on three parameters and 12 indicators:
1. Growth and Development (4 indicators)
2. Inclusion (4 indicators)
3. Intergenerational Equity and Sustainability (4 indicators).
India ranked 62nd out of 74 emerging economies, and was the least inclusive among G-20 countries.
Social Progress Index (SPI)
Focuses on outcomes of government measures, not just the money spent.
Measures efficiency – how effectively public spending improves people's lives.
Captures social welfare like health, education, rights, and environment.
Financial Inclusion Index (FI-Index)
Developed by RBI in 2021, published every year in July.
No fixed base year; it is comprehensive and dynamic.
Covers five sectors: Banking, Investments, Insurance, Postal, and Pension.
Composite FI-Index for 2022 improved to 56.4 (from 53.9 in 2021), showing gradual progress in financial inclusion.
Limitations of Other Indices
GDP: Excludes factors like pollution, income inequality, and well-being.
Gini Coefficient: Considers only income inequality, ignoring social inequalities and opportunities.
Gross National Happiness Index: May overlook aspects like gender neutrality and detailed economic measures.
Human Development Index: Ignores income distribution and inequality, despite measuring health, education, and income.
Comparison of Inclusive Growth Indices
| Index | What it Measures | Limitations |
|---|---|---|
| Inclusive Development Index | Growth, inclusion, sustainability across generations | Does not cover all social dimensions |
| Social Progress Index | Outcomes of public spending on welfare | Does not capture income directly |
| Financial Inclusion Index | Access to banking, insurance, pensions, investments | Still evolving, does not reflect quality of access |
| GDP | Monetary value of goods and services | Ignores inequality, environment, welfare |
| Gini Coefficient | Income inequality | Ignores social or opportunity inequality |
Measures Taken by India for Inclusive Growth
Key Point
Since Independence, India has taken multiple measures to promote inclusive growth, focusing on rapid yet equitable development. NITI Aayog’s New India @75 vision highlights inclusivity in education, health, urban development, and technology-led growth.
Since Independence, India has taken multiple measures to promote inclusive growth, focusing on rapid yet equitable development. NITI Aayog’s New India @75 vision highlights inclusivity in education, health, urban development, and technology-led growth.
Detailed Notes (32 points)
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NITI Aayog’s New India @75 Vision
Aim: Rapid growth of 9-10% by 2022-23 which is inclusive, clean, sustained and formalised.
Technology to be leveraged for sustainable and participatory development.
Urban inclusivity: Ensure urban poor, slum dwellers and migrants can access basic city services.
Inclusive schools: Focus on infrastructure like accessible toilets, fair admissions, and inclusive curriculum.
Inclusive higher education: Special focus on vulnerable groups.
Inclusive healthcare: Ambulatory services providing diagnostic, curative, rehabilitative and palliative care close to people.
Government Initiatives: Short-term vs Long-term Policies
# Short-term Policies
Aim to supply essential goods and services to the marginalised sections immediately.
Examples: Food and nutrition programmes, healthcare and sanitation schemes, housing, and drinking water provisions.
# Long-term Policies
Aim to make the population self-reliant in the long run.
Examples: Poverty alleviation schemes, education programmes, skill development, vocationalisation of education.
Policy Approaches Since Independence
# Growth Oriented Policy
First Five Year Plan (1951-56): Balanced and rapid growth.
Twelfth Plan (2012-17): Faster and more inclusive growth.
Concern: Growth has not been equally shared, leading to rising inequality.
# Direct Intervention
Use of legislation, regulation, credit assistance, livelihood security.
Post-1991 reforms: Government shifted from regulator to facilitator.
Focus on financial inclusion (e.g., PM Jan Dhan Yojana).
# Capacity Building
Skill development, entrepreneurship, and rural training.
Improve efficiency, accountability, and transparency in governance.
# Welfare Schemes
Targeted schemes for disadvantaged groups.
Examples: Food subsidies, nutrition schemes, scholarships for SC/ST/minorities, PM Jan Aarogya Yojana.
# Public Participation
Participation of citizens in governance is crucial.
Examples: Atal Bhujal Yojana (community-based groundwater management), SHGs, Kerala’s Kudumbashree for women empowerment.
Prelims Strategy Tips
NITI Aayog’s New India @75 vision emphasises inclusivity in education, healthcare, and technology.
PM Jan Dhan Yojana is India’s flagship initiative for financial inclusion.
Kudumbashree (Kerala) is a classic example of women’s empowerment through SHGs.
Sustainable Development
Key Point
Sustainable Development means meeting present needs without compromising the ability of future generations to meet their own needs. It integrates economic growth, environmental protection, and social justice.
Sustainable Development means meeting present needs without compromising the ability of future generations to meet their own needs. It integrates economic growth, environmental protection, and social justice.
Detailed Notes (28 points)
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Origin of Sustainable Development
1972: Concept first discussed at United Nations Conference on Human Environment (Stockholm).
1987: Brundtland Report 'Our Common Future' introduced the famous definition of sustainable development and linked economy, environment, and social inclusion.
1992: Earth Summit (UNCED, Rio de Janeiro) – Adopted Rio Declaration with 27 principles of sustainable development, including precautionary principle and polluter pays principle.
Concept of Sustainable Development
Balance between consumption of natural resources and their conservation.
Economic growth is necessary for welfare, but it must not cause irreparable damage to the environment.
Development should be long-term, environmentally safe, and socially fair.
Principles of Sustainable Development
# 1. Living within Environmental Limits
Using natural resources responsibly so that they can regenerate.
Example: Using solar and wind energy instead of depleting coal reserves.
# 2. Integrated Decision-Making
Policies must align economic, social, and environmental goals.
Example: A new industry must create jobs but also control pollution.
# 3. Good Governance
Decisions should be democratic, transparent, inclusive, participatory, and accountable.
Example: Public consultations before approving a large dam project.
# 4. Responsible Use of Science
Scientific evidence should guide policy-making.
Example: IPCC climate reports influencing global climate agreements.
Key Doctrines
# Precautionary Principle
If there is a risk of severe or irreversible damage, preventive steps should be taken even if full scientific certainty is lacking.
Example: Ban on harmful pesticides when evidence suggests long-term health damage.
# Polluter Pays Principle
Those who cause pollution should bear the cost of managing it, not society at large.
Example: European Union’s Emissions Trading Scheme where carbon-emitting industries must pay for their emissions.
Prelims Strategy Tips
Brundtland Report (1987) gave the famous definition of sustainable development.
Earth Summit 1992 (Rio) adopted 27 principles including Precautionary & Polluter Pays.
Polluter Pays Principle: First applied widely in EU’s carbon trading system.
Millennium Development Goals (MDGs)
Key Point
The Millennium Development Goals (MDGs) were 8 international goals set by the United Nations in 2000, to be achieved by 2015. They focused on poverty reduction, education, health, gender equality, environment, and global cooperation.
The Millennium Development Goals (MDGs) were 8 international goals set by the United Nations in 2000, to be achieved by 2015. They focused on poverty reduction, education, health, gender equality, environment, and global cooperation.
Detailed Notes (40 points)
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Background
MDGs were adopted from the United Nations Millennium Declaration (2000).
Signed by 189 member states, including India.
Provided measurable targets for poverty, health, education, gender, and environment.
Timeframe: 1990 (baseline) to 2015 (target year).
8 Millennium Development Goals
1. Eliminate extreme poverty and hunger.
2. Achieve universal primary education.
3. Promote gender equality and empower women.
4. Reduce child mortality.
5. Improve maternal health.
6. Combat HIV/AIDS, malaria, and other diseases.
7. Ensure environmental sustainability.
8. Develop a global partnership for development.
India’s Achievements
# 1. Poverty & Hunger
1990 Poverty Headcount Ratio (PHCR) = 47.8%. Target for 2015 = 23.9%.
In 2011-12, PHCR was 21.9% (target achieved).
Malnourishment declined to 40% in 2015, but target was 26% (not achieved).
# 2. Universal Primary Education
Primary enrolment and completion rates improved significantly.
Male youth literacy ~94.8% and female youth literacy ~92.5% (close to universal literacy).
# 3. Gender Equality
Representation of women in Parliament: only 12.24% in 2015 (far below 50% target).
Progress made in school enrolment, but political empowerment lagged behind.
# 4. Child Mortality
Under-5 mortality rate (U5MR) declined from 125 per 1,000 (1990) to 49 (2013).
Target = 42 per 1,000. India was moderately on track.
# 5. Maternal Health
Maternal Mortality Ratio (MMR) dropped from 437 per 100,000 (1990) to 167 in 2009.
Target = 109 per 100,000 by 2015. Progress made but target not achieved.
# 6. Combating Diseases
HIV, malaria, and tuberculosis prevalence declined steadily.
India broadly on track in this area.
# 7. Environmental Sustainability
Forest cover increased to 21.23% (addition of ~5871 sq. km).
Protected areas covered 4.83% of land area.
# 8. Global Partnership
India became an important development partner.
Extended technical, economic, and intellectual cooperation to other nations.
India’s Progress on MDGs
| Goal | Target for 2015 | India’s Achievement |
|---|---|---|
| Poverty | Reduce PHCR to 23.9% | Achieved 21.9% |
| Hunger | Reduce malnutrition to 26% | Reached 40% (Not achieved) |
| Primary Education | Universal enrolment | Literacy 92-95% |
| Gender Equality | 50% women in parliament | 12.24% achieved |
| Child Mortality | 42 per 1000 | 49 per 1000 (Moderate progress) |
| Maternal Health | 109 per 100,000 | 167 per 100,000 (Not achieved) |
| Diseases | Decline in HIV, malaria, TB | On track |
| Environment | Increase green cover | Forest cover 21.23% |
| Global Partnership | Strengthened cooperation | India became donor and partner |
Sustainable Development Goals (SDGs)
Key Point
The Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by UN member states in 2015 as part of the 2030 Agenda for Sustainable Development. They aim to end poverty, protect the planet, and ensure prosperity for all by 2030.
The Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by UN member states in 2015 as part of the 2030 Agenda for Sustainable Development. They aim to end poverty, protect the planet, and ensure prosperity for all by 2030.
Detailed Notes (30 points)
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Background
Origin: At the UN Conference on Sustainable Development (Rio+20), Rio de Janeiro, June 2012.
Outcome Document: 'The Future We Want' launched the process of creating SDGs.
Adoption: Officially adopted at the UN Sustainable Development Summit, September 2015.
Framework: 2030 Agenda for Sustainable Development with 17 Goals and 169 targets.
Support: UN Department of Economic and Social Affairs (UN-DESA) provides technical support and capacity building.
Key Features of SDGs
Global in nature, applying to both developed and developing countries.
Integrated approach—linking economic growth, social inclusion, and environmental sustainability.
Goals cover poverty, hunger, health, education, gender equality, clean water, clean energy, decent work, innovation, reduced inequalities, climate action, and peace.
Timeframe: 2015–2030.
Builds on Millennium Development Goals (MDGs) but more comprehensive with broader targets.
17 Sustainable Development Goals
1. No Poverty.
2. Zero Hunger.
3. Good Health and Well-being.
4. Quality Education.
5. Gender Equality.
6. Clean Water and Sanitation.
7. Affordable and Clean Energy.
8. Decent Work and Economic Growth.
9. Industry, Innovation, and Infrastructure.
10. Reduced Inequalities.
11. Sustainable Cities and Communities.
12. Responsible Consumption and Production.
13. Climate Action.
14. Life Below Water.
15. Life on Land.
16. Peace, Justice, and Strong Institutions.
17. Partnerships for the Goals.
Comparison: MDGs vs SDGs
| Aspect | MDGs (2000–2015) | SDGs (2015–2030) |
|---|---|---|
| Number of Goals | 8 Goals | 17 Goals |
| Targets | 21 Targets | 169 Targets |
| Focus | Developing countries | All countries (developed + developing) |
| Approach | Mainly social sectors (health, education) | Integrated: economic, social, environmental |
| Timeframe | 2000–2015 | 2015–2030 |
Mains Key Points
SDGs focus on inclusiveness, sustainability, and global partnership.
They go beyond MDGs by addressing environment, inequality, and governance.
India integrates SDGs in planning through NITI Aayog’s indices and state-level action.
Challenges: financing, climate change, inequality, and monitoring progress.
Importance: Long-term vision for balanced growth, social justice, and environmental sustainability.
Prelims Strategy Tips
SDGs adopted in 2015 at UN Sustainable Development Summit.
17 Goals + 169 Targets; Timeframe: 2015–2030.
SDGs are universal, unlike MDGs which focused on developing countries.
India’s progress is tracked by NITI Aayog through SDG India Index.
Green GDP & Energy Efficiency in India
Key Point
Green GDP is an adjusted measure of GDP that accounts for environmental costs like resource depletion and pollution. India, through policies like Ujjwala, PAHAL, and Bureau of Energy Efficiency initiatives, is working towards inclusive and sustainable growth.
Green GDP is an adjusted measure of GDP that accounts for environmental costs like resource depletion and pollution. India, through policies like Ujjwala, PAHAL, and Bureau of Energy Efficiency initiatives, is working towards inclusive and sustainable growth.
Detailed Notes (25 points)
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Green GDP
Introduced by UN Handbook in 1993.
Definition: GDP adjusted for environmental degradation, natural resource depletion, and biodiversity loss.
Formula: Green GDP = GDP – (Cost of environmental damage + Resource depletion).
Importance: Encourages sustainable policies by showing the ‘real’ cost of growth.
Example: If GDP grows by building industries but forests are destroyed, Green GDP deducts the value of destroyed forests.
Energy Access Challenges
Large disparity between rural and urban households.
Rural households rely heavily on non-commercial biomass (firewood, dung cakes) → causes indoor air pollution and health hazards.
NSSO 2011-12: 81% of rural households and 59% of urban poor households depend on firewood.
Initiatives:
Pradhan Mantri Ujjwala Yojana: Provides LPG connections to poor households, reducing smoke-related health issues.
PAHAL (DBTL): Direct Benefit Transfer for LPG subsidies, reducing leakages. Recognized by Guinness Book of World Records.
Energy Efficiency
Concept: Using less energy for same output → lowers costs, reduces emissions.
Energy Conservation Act (2001) established Bureau of Energy Efficiency (BEE).
# Energy Efficiency Programmes:
1. Standards & Labelling (2006): Star rating (1–5 stars) for appliances to guide consumers on energy efficiency.
2. SMEs: Energy-saving demonstration projects in textiles, bricks, food clusters.
3. Buildings:
Energy Conservation Building Code (ECBC): Minimum efficiency standards for new commercial buildings.
Eco-Niwas Samhita (2018): Energy code for residential buildings.
4. Industries:
Perform, Achieve, Trade (PAT) Scheme: Assigns energy reduction targets to industries. Extra savings converted into tradable Energy Saving Certificates (ESCerts).
5. UJALA Scheme (2015): Promotes use of affordable LED bulbs nationwide, reducing energy demand.
Comparison: Conventional GDP vs Green GDP
| Aspect | Conventional GDP | Green GDP |
|---|---|---|
| Focus | Economic output only | Economic + Environmental costs |
| Environment | Ignored | Accounted (degradation, resource use) |
| Policy Impact | Encourages growth at all costs | Encourages sustainable growth |
| Example | Building factories increases GDP | Deducts cost of deforestation in GDP |
Mains Key Points
Green GDP highlights real cost of growth by deducting environmental damage.
Energy efficiency ensures sustainable development while meeting energy needs.
Programmes like PAT, ECBC, and UJALA reduce energy intensity of economy.
Challenges: Rural energy dependence on biomass, rising emissions, and need for clean technology adoption.
Way forward: Strengthen renewable energy, expand financial inclusion in energy access, periodic review of energy codes.
Prelims Strategy Tips
Green GDP = GDP – Environmental Degradation – Resource Depletion.
India’s Ujjwala Yojana & PAHAL improve clean energy access.
PAT Scheme + UJALA are flagship energy efficiency programmes under BEE.
Schemes for Inclusive Growth in India
Key Point
Inclusive Growth requires policies that ensure equitable access to finance, jobs, agriculture, skills, and technology. The Government of India has launched several flagship schemes across these domains.
Inclusive Growth requires policies that ensure equitable access to finance, jobs, agriculture, skills, and technology. The Government of India has launched several flagship schemes across these domains.
Detailed Notes (24 points)
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Financial Inclusion Schemes
Pradhan Mantri Jan Dhan Yojana (PMJDY): Provides universal banking services with zero-balance accounts, RuPay debit cards, and overdraft facility.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Life insurance of ₹2 lakh at a premium of ₹330 per year.
Pradhan Mantri Suraksha Bima Yojana (PMSBY): Accidental insurance of ₹2 lakh at a premium of ₹12 per year.
Atal Pension Yojana (APY): Pension scheme for unorganised workers ensuring lifelong financial security.
Pradhan Mantri Mudra Yojana (PMMY): Provides collateral-free loans up to ₹10 lakh to small businesses under Shishu, Kishor, and Tarun categories.
JAM Trinity (Jan Dhan, Aadhaar, Mobile): Enables direct transfer of subsidies and benefits to beneficiaries, reducing leakages.
Employment and Inclusive Growth
MGNREGA: Provides 100 days of guaranteed wage employment to rural households.
Skill Training for Employment Promotion among Urban Poor (STEP-UP): Enhances employability of urban poor through skill development.
Swaran Jayanti Shahari Rozgar Yojna (SJSRY): Provides employment to urban poor through training and self-employment support.
Agriculture and Inclusive Growth
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): Aims to achieve ‘Har Khet Ko Pani’ and improve water-use efficiency (‘More crop per drop’).
National Agriculture Market (e-NAM): Online trading platform for transparent agricultural marketing.
National Food Security Act (NFSA): Provides subsidised food grains to nearly two-thirds of India’s population.
Technology and Inclusive Growth
Digital India Programme: Aims to transform India into a digitally empowered society and knowledge economy. Includes BharatNet, e-Governance, and Digital Literacy initiatives.
Skill Development and Inclusive Growth
National Skill Development Mission: Umbrella framework for skill training initiatives across sectors.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides industry-relevant skill training with certification.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Focuses on skill development and employment for rural youth.
Pradhan Mantri Vidya Lakshmi Karyakram: Provides education loans and scholarships to students through a single online portal.
Self-Employment and Talent Utilisation (SETU): Supports startups and innovation-driven entrepreneurship.
Atal Innovation Mission (AIM): Promotes innovation, incubation centres, and Atal Tinkering Labs in schools.
Schemes for Inclusive Growth – At a Glance
| Domain | Key Schemes |
|---|---|
| Financial Inclusion | PMJDY, PMJJBY, PMSBY, APY, PMMY, JAM Trinity |
| Employment | MGNREGA, STEP-UP, SJSRY |
| Agriculture | PMKSY, e-NAM, NFSA |
| Technology | Digital India |
| Skill Development | NSDM, PMKVY, DDU-GKY, Vidya Lakshmi, SETU, AIM |
Mains Key Points
Inclusive growth in India requires bridging rural-urban divide via finance, jobs, agriculture, skills, and technology.
Schemes like PMJDY and MUDRA enhance financial inclusion.
MGNREGA provides social security and rural demand push.
Skill programmes like PMKVY & DDU-GKY make youth employable.
Digital India & AIM boost innovation and tech inclusiveness.
Prelims Strategy Tips
JAM Trinity is key enabler of DBT (Direct Benefit Transfer).
MGNREGA provides 100 days of guaranteed employment.
PMKSY aims for 'More crop per drop' (efficient irrigation).
Digital India + AIM promote technology-driven inclusive growth.
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