4)Inclusive growth in India requires policy measures to address poverty more than they address income inequality. Critically analyze

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Topic – Inclusive growth and issues arising from it

4)Inclusive growth in India requires policy measures to address poverty more than they address income inequality. Critically analyze

The Hindu

The Hindu

Why this question
Issue of inclusive growth is of paramount importance for India. Both the gini coefficient for india and the poverty figures do not inspire much confidence. In this backdrop, the debate over the direction that policies for ensuring inclusive growth take, becomes critical.

Key demand of the question

The focus of the question is on figuring out whether the policy measures should be directed towards addressing inequality or poverty or whether addressing one would automatically take care of the other. We need to thus analyse, whether the nature, causes and way of addressing poverty and income inequality are similar, whether policy measures can be designed to kill two birds with one stone.

Directive word

Critically analyse –  We need to conclude with  a fair judgement, after analyzing the nature, causes and policy responses of dealing with poverty and income inequality and the interrelationships between them.

Structure of the answer

Introduction – Discuss the relationship between  inclusive growth , poverty and inequality of income. Provide data for India to highlight the magnitude of problem that we have to address.

Body

  • Discuss status quo and past experiences
    • Examine poverty and inequality data in pre reform and post reform period (high growth period and otherwise)
    • Examine urban and rural data
    • The point of this part of your answer should be to establish that addressing one does not necessarily lead to improvement in the other, or it does (your conclusion)
  • Discuss the reasons behind income inequality and poverty and comment whether the reasons behind these issues can be resolved with the throw of a single dice.
  • Discuss some particular inclusive growth policies and assess its impact on poverty and income inequality.
  • Discuss what is a bigger challenge for India and what should be focused upon in the short and long run.

 

Conclusion – Provide a fair judgment which should flow from the summary of your arguments presented above.