Tuesday, 16 October 2018

Is Gross Domestic product Growth Necessary or Inclusive Growth of Masses in General and Downtrodden in Particular or Both?

Is Gross Domestic product Growth Necessary or Inclusive Growth of Masses in General and Downtrodden in Particular or Both?

The economic health of any nation is indicated by few indicators. One such indicator is GDP. GDP Gross Domestic Product is the monetary measure of all the finished goods and services produced within a country in specific time duration. It looks into private and public consumption, investment, private inventories, government outlays, paid-in construction costs and the foreign balance of trade in which the exports are added and imports are subtracted. It also depicts the standard of living of the citizens of the nation. GDP can be referred to as the father of economic indicators. It is through this parameter that the big horses of the business industry determine their next move. Based upon GDP growth, businesses decide whether to expand or contract the production and other related activities. Even the government makes crucial decisions of regulating the stagnant economy by throwing money in it or to slow down an over-heated economy. All the countries measure GDP for undermining the many facets of economy. However, GDP doesn't broadly take hold of overall or individual economic welfare. 

Is Gross Domestic product Growth Necessary

In a developing country like India where the economy is divided between the rich and the poor, GDP cannot be assumed to be the only parameter necessary. In India, a large chunk of the population is living below poverty line, many people lack basic necessities of life. With globalization increasing the GDP nation, there is still lack of employment opportunities for the skilled people. Does being part of a nation whose GDP growth rate is increasing enough to pursue a quality life especially for the poor, SCs/STs, other backward castes (OBCs), minorities and women and which seeks to provide equality of opportunity to all. Apart from GDP of the nation, inclusive growth of masses in general and particularly downtrodden is the need of the hour. These excluded sections of the society needs to be brought into the mainstream to reap the benefits of faster economic growth. Inclusive growth is the economic growth which aims to create employment opportunities and in return produce poverty. Inclusions which are envisioned in inclusive growth encompass equal opportunities for all, empowering the people of the country through education and skill development. Inclusions also strive for gender sensitive society, good governance and environment friendly growth in all aspects of life for all the citizens of the country. The best part of the inclusion is the fact that it takes into account the whole society including the por. To ensure inclusive growth of the country, the government has made serious efforts to increase employment opportunities by coming up with programs like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) which provides necessary jobs for the poor, henceforth improving the standard of living of the people. It has also checked upon the skill migration such that skilled workers do not shift to another country for job opportunities. Apart from this, other programs like Sam Siksha Abhiyan (SSA), National Rural Health Mission (NRHM) and Bharat Nirman etc. are ensuring improvement in the fields of education, health and infrastructure thereby making the growth more inclusive. 

India is stepping the ladder of growth quickly. There has been a remarkable growth in Indian economy over the years, but when compared to other countries in terms of human development index (HDI), India still lags behind significantly. Apart from this, India also needs to buckle up in terms of indicators like poverty unemployment and regional differences. It is time now that India bases its economic growth on inclusion by increasing participation of people and sharing the benefits of growth process. The gap between rural and urban should be reduced; discrimination based on gender and aiming for higher level of indicators like HDI will ensure inclusiveness within the system. 

The fact that GDP of the country is utmost important cannot be denied. India is on an upsurge when it comes to economic growth. Indian economy is growing from strength to strength. IT industry in the country has grown manifold, thus creating employment opportunities. With more than half of India’s GDP coming from the service sector, many developed states in the country are facing shortage of unskilled labors. This shortage is a direct repercussion of better earning opportunities in relatively poorer states.

GDP and inclusive growth are two sides of the same coin. Both are necessary and dependent upon another. With a better inclusive growth of the country, the GDP growth will be overall; where GDP growth describes the financial economic growth of the country, the inclusive growth describes how the population in general especially the downtrodden are growing. It is like if the owner of any business is growing, then the workers working for that business should also grow at the same rate. With inclusive growth on the track, the GDP of the country can touch the skies. Today, Indian economy is market led and entrepreneurs are mushrooming at a faster rate there by creating employment opportunities and attracting foreign companies to invest in their ideas. Financial inclusion in Indian economy is also serving as a catalyst to economic growth. 

Today, India's financial health is robust which is depicted in terms of purchasing power in the hands of individuals, Indian consumption story, record breaking auto sales, increasing spending in holidaying and entertainment, regular and increasing flow of foreign funds, takeover of global giants by Indian companies and so on This is a sign that inclusive growth is slowly being imbibed in the country. If GDP and inclusive growth walks hand in hand for coming years too, India will be on the verge of becoming a developed nation where the individual will be growing along with the nation. Thus, it is important that citizens of the country also grow in all the spheres along with the country in terms of economic and inclusive growth.

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