Importance Of Inclusive Growth

Inclusive growth is a concept that advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society.

The definition of inclusive growth is a direct linkage between the macroeconomic and microeconomic factors of the economy and economic growth. The microeconomic aspect captures the importance of structural transition for economic diversification and competition, while the macroeconomic aspect refers to changes in economic aggregates or totals such as the country’s gross national product (GNP) or gross domestic product (GDP), total productivity, and aggregate factor inputs.

Inclusive growth means giving importance to equal access to opportunities; and that unequal opportunity

In a democratic country like India, bringing 600 million people living in rural India into the impact circumference of the growth policies and reducing differences in urban and rural India is the biggest concern. The challenge is to take the levels of growth to all sections of the society and to all parts of the country to make it growth for everyone. One of the best ways to attain inclusive growth is through developing people’s skills. While it is quite evident that inclusive growth is important for achieving the equity objective, what is, perhaps, not so obvious is, why inclusive growth is now receiving this importance to sustain the growth momentum. Majority population living in rural areas, it is often identified with the agriculture sector. However, it is the unorganized non-farm sector that is increasingly absorbing most of the labour force. This sector has huge potential for growth once there is required investment in infrastructure ensuring linkage to markets and easier access to assets and skills. Introduction of appropriate technology, skills, and easier access to credit, especially start-up capital, apart from facilitating market development, can make this segment an expanding base for self-sustaining employment and wealth generation and also foster a culture of creative and competitive industry. Entrepreneurial growth and development has to be encouraged and enhanced by having an enabling healthy competitive environment and easy availability of finance for newer projects and