Inclusive growth is a multi-dimensional concept that facilitates inclusion from a variety of fronts that include:
- Skill Development: Harnessing the demographic dividend will depend upon the employability of the working age population, their health, education, vocational training and skills. Skill development plays a key role here. India is facing a dual challenge in skill development:
- There is a paucity of highly trained workforce
- There is non-employment of conventionally trained youths
According to the Economic Survey 2017, over 30% of youth in India are NEET (Not in education, employment or training).
- Financial Inclusion: Financial Inclusion is the process of ensuring access to financial services to vulnerable groups at affordable costs.
Financial inclusion is necessary for inclusive growth as it leads to the culture of saving, which initiates a virtuous cycle of economic development.
- Technological Advancement: The world is moving towards an era of Industrial Revolution 4.0. These technological advancements have capabilities to either decrease or increase the inequality depending on the way these are being used. Several initiatives have been taken by the government, e.g. Digital India Mission, so that a digitally literate population can leverage technology for endless possibilities. Technology can help to combat other challenges too.
- Economic Growth: India is among the fastest-growing major economies in the world. However, currently Indian economy is facing slowdown due to both cyclic and structural challenges. However, the target of becoming a $ 5 trillion economy by 2024-25 can allow India to reduce inequality, increase social expenditure and provide employment to all.
- Social Development: It means the empowerment of all marginalised sections of the population like SC/ST/OBC/Minorities, women and transgender. Empowerment can be done by improving institutions of the social structure i.e. hospitals especially primary care in the rural areas, schools, universities, etc. Investment in social structures will not only boost growth (by fiscal stimulus) but will also create a healthy and capable generation to handle future work.