“Digital economy expansion coexists with deepening poverty and informalisation of labour”. Suggest pathways to reconcile technological progress with inclusive development.

Topic: Inclusive growth and issues arising from it

Q5. “Digital economy expansion coexists with deepening poverty and informalisation of labour”. Suggest pathways to reconcile technological progress with inclusive development. (10 M)

Difficulty Level: Medium

Reference: NIE

Why the question

The paradox of rapid digital expansion alongside persistent poverty and labour informalisation, and to suggest policy pathways for inclusive digital-led growth.

Key demand of the question

The question requires explaining why digital growth has coexisted with poverty and informalisation, and then suggesting actionable pathways that align technological progress with social and economic inclusivity.

Structure of the Answer:

Introduction
Begin with a brief fact or contrast about India’s rapid digital growth and persistence of poverty/informal labour.

Body

• Coexistence: Show reasons like digital divide, gig economy precarity, automation-induced job losses, casualisation, and stagnant wages.
• Pathways: Suggest measures like universal access, gig worker security, skilling, labour law safeguards, and inclusive innovation policies.

Conclusion
End with a forward-looking note on embedding equity into digital growth as essential for Viksit Bharat.