Day 16 – Q.1 Inclusion can’t be an afterthought of economic growth. Rather, inclusion is imperative for sustaining high levels of economic growth. Elucidate. 

  • IASbaba
  • December 13, 2022
  • 0
GS 3, Indian Economy, TLP-UPSC Mains Answer Writing
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Inclusion can’t be an afterthought of economic growth. Rather, inclusion is imperative for sustaining high levels of economic growth. Elucidate. 

समावेशन आर्थिक विकास का बाद का विचार नहीं हो सकता। बल्कि, आर्थिक विकास के उच्च स्तर को बनाए रखने के लिए समावेश अनिवार्य है। स्पष्ट करें।


Candidates can start the answer with definition of inclusive growth and link it with economic growth. Need to mention issues with economic growth and trickledown economics and then how to avoid such narrow growth-based perspective with few recent examples.


As per OECD (Organisation for Economic Co-operation and Development), inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all.


Issues with economic growth and trickledown economics:

  • According to the Oxfam Report, in India, the top 1% holds 51.53% of the national wealth, while the remaining 99% make do with almost 48%.
  • The theory of Trickle Down represents an unhealthy obsession with GDP and Growth as the most reliable measure of economic success. The theory believes in the saying ‘One size fit all’.
  • It presumes that large wealth creators will create wealth that will trickle down to the masses. Evidence shows that the approach of increasing the overall size of the pie by reducing taxes at the top and then “redistributing” the wealth has not delivered benefits to people.
  • Wealth has accumulated at the top with regressive tax policies along with deregulation. Government expenditure on social reforms has been reduced.

Inclusion and economic growth must go hand in hand and one leads to another and both leads to a sustainable future:

  • Inclusion of youth in countries economic journey by providing them with skills and employment will contribute greatly in the long-term economic growth and fruits of this dividend can be enjoyed by this generation and generations to come.
  • Women account for 49.5 % of the population of the country and their inclusion in the workforce and economic activities will greatly contribute to the growth and sustainability of the economy.
  • Countries like India should increase public and private investment in their citizens’ capabilities, which is the most important way they can durably lift their rate of productivity growth.
  • Investing in social structures will not only boost growth (by fiscal stimulus) but will also create a healthy and capable generation to handle future work.
  • People would feel more motivated and involved in the benefits of economic growth were allowed to flow into the pockets of lower strata of society.
  • Recently with financial inclusion which is necessary for inclusive growth has led to the culture of saving, which initiated a virtuous cycle of economic development.
  • China reached the levels of human development (health and education), which India is still striving to, 30 years ago when China’s economy was much smaller than India’s is now. Human development provided the foundation for China’s remarkable growth.
  • Schemes like Transformation of Aspirational Districts, BharatNet, Pradhan Mantri Kaushal Vikas Yojana, Mission Antyodaya, National Rurban Mission etc. will help attain Inclusive growth.


Through innovative partnerships with an international organization, civil societies, and private companies, inclusive and equitable growth can be targeted. Meanwhile state governments and local governments should continue to focus on eradicating poverty and achieving sustainable development in order to improve the lives of India’s people.

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