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Competitiveness Roadmap for India@100

GS Paper 3

Syllabus: Indian Economy/Governance

 

Source: PIB

Direction: Note down a few unique points e.g. 4S principle, other points are mostly common. No need to go in-depth into these academic reports.

 

Context:  Economic advisory council to PM and Institute for competitiveness has released “Roadmap for Better Growth- India @100”, to enable India to become a high-income country by 2047 using sector and region-specific policies based on the 4S principle:

      • Shared Prosperity: Opportunities should be shared across every section of society
        Social Prosperity: i.e. Economic Growth should match social development
      • Sustainable Prosperity: i.e. economic progress should be environmentally sustainable
      • Solid Prosperity: Economic system should be resilient to shocks

 

(How to remember it? Take this analogy: When you move into a new colony, you ‘Share’ something e.g. food or time, in order to ‘Socialise’. Constant socialization makes your friendship ‘Sustainable’ and in the longer term, this sustainable relation becomes ‘Solid’)

 

Challenges to India’s growth and sustainability:

      • Rising inequality
      • Low labour force participation (esp. for women)
      • Growth has not matched job creation (jobless growth)
      • Rising geopolitical and climate change issues

 

Solutions suggested by the report for 4S:

      • Structural Transformation 2.0: Creating new jobs using sector-specific and region-specific initiatives (e.g. PLI for different sectors, Mega food parks for different regions)
      • Convergence of programs and initiatives (including public-private participation)
      • Reduce social and institutional barriers for citizens (g. reducing discrimination in jobs, increasing safety for women, ease travelling experiences e.g. women given free transport in Delhi DTC buses)
      • Enable competition in the market (e.g. greater competition in e-commerce is profitable for citizens)

 

As per the World Bank classification of countries based on income level  (for GNI per capita in current USD)

 

Insta Links

Economic growth Vs Development

Mains Link

Q. “ Economic growth is a precondition for inclusive growth”, Do you agree? Analyse. (250 Words)

 

Prelims Link

Know the basic definition of growth, Development, how we measure them, and various indices for comparing growth and inclusiveness (e.g. MPI, Ginni coefficient)

With the reference of the Indian economy after the 1991 economic liberalization, consider the following statements: (UPSC 2020)

    1. Worker productivity (` per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
    2. The percentage share of rural areas in the workforce steadily increased.
    3. In rural areas, the growth in non-farm economy increased.
    4. The growth rate in rural employment decreased.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 and 4 only

(c) 3 only

(d) 1, 2, and 4 only

Answer: B

After the LPG reforms of 1991, it is inevitable that the rural/agriculture workforce would start shifting towards urban/non-Agri sectors. So 2 is wrong and 3 is correct. The steady transition to urbanization over the years is leading to the decline in the rural share of the population, workforce and GDP of the country. 4 is correct.

 

Economic growth in country X will occur if (UPSC 2013)

(a) there is technical progress in the world economy

(b) there is population growth in X

(c) there is capital formation in X

(d) the volume of trade grows in the world economy

Answer: C

Capital Formation is defined as that part of a country’s current output and imports which is not consumed or exported during the accounting period but is set aside as an addition to its stock of capital goods. It shows a growing economy.