{"id":971,"date":"2024-04-24T04:19:54","date_gmt":"2024-04-24T04:19:54","guid":{"rendered":"https:\/\/iasquest.com\/?p=971"},"modified":"2026-02-11T19:18:56","modified_gmt":"2026-02-11T19:18:56","slug":"paper-iv-general-studies-iii-technology-economic-development-biodiversity-environment-security-and-disaster-management-12","status":"publish","type":"post","link":"https:\/\/kingmakersiasacademy.com\/current-affairs\/paper-iv-general-studies-iii-technology-economic-development-biodiversity-environment-security-and-disaster-management-12\/","title":{"rendered":"PAPER-IV General Studies-III: Technology, Economic Development, Biodiversity, Environment, Security and Disaster Management"},"content":{"rendered":"\n

\u25cf Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
\u25cf Inclusive growth and issues arising from it.<\/strong><\/p>\n\n\n\n

Q2. Achieving high economic growth and reducing inequality simultaneously can only be achieved with improvements in human development and poverty reduction. Comment.<\/p>\n\n\n\n

The World Inequality Lab’s paper<\/strong> on income and wealth inequality in India sheds light on the widening economic disparities within the country. Despite India’s status as the fifth-largest economy globally<\/strong>, its human development indicators rank lower than several neighbouring nations<\/strong>, indicating a failure of economic growth to translate into inclusive development.
Income inequality in India:<\/strong>
\u25cf In 2022-23, India’s top 1% received 22.6% of national income,<\/strong> while the top 0.1% earned nearly 10%.<\/strong>
\u25cf Wealth distribution is highly skewed, with the top 1% owning 40.1% of wealth<\/strong>, rising since 1961.<\/strong>
\u25cf India’s wealth gap tripled between 1961 and 2023<\/strong>, though less extreme than Brazil or South Africa.
\u25cf Inequality surged after the 1991 reforms,<\/strong> reversing the declining trend seen until 1980, impacting growth and poverty reduction efforts.<\/strong>
State-wise comparison of inequality:<\/strong>
\u25cf States with sustained high growth (over 7% GSDP per year) are advanced in human development, <\/strong>including Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Gujarat, Punjab, and Delhi.<\/strong>
\u25cf States with lower Human Development Index<\/strong> rankings, such as Jharkhand, Chhattisgarh, Bihar, Madhya Pradesh, Odisha, Uttar Pradesh, and Rajasthan<\/strong>, recorded growth rates below 5% post-liberalization.<\/strong>
Human development in India:<\/strong>
\u25cf India ranks 134 out of 193 countries in the Human Development Report 2023-2024, lower than Sri Lanka, Bhutan, and Bangladesh, despite being the fifth largest economy.
\u25cf Economic growth hasn’t translated into human development growth.
\u25cf Economic inequality reduces India’s HDR score by 31.1%<\/strong>, indicating the need for comprehensive poverty reduction measures.
Achieving the twin objectives :<\/strong>
\u25cf Achieving the twin objectives of robust economic growth and reduced inequality demands a multifaceted approach.<\/strong>
\u25cf Prioritising human development<\/strong> through investments in education, healthcare, and social welfare is imperative. States with high growth rates, such as Kerala and Tamil Nadu<\/strong>, have demonstrated the correlation between human development and sustained economic progress.
\u25cf Policies must address structural inequalities<\/strong> by promoting equitable distribution of resources and opportunities. Initiatives like land reforms, progressive taxation,<\/strong> and targeted welfare programs can help mitigate disparities and uplift marginalised communities.
\u25cf Fostering an environment conducive to job creation<\/strong> and skill development is crucial for inclusive growth. Sustainable employment opportunities enable individuals to escape poverty traps and contribute to economic prosperity.
\u25cf Human development should take precedence over economic growth for inclusive growth.<\/strong><\/p>\n\n\n\n

Conclusion: <\/strong>Addressing income and wealth inequality in India requires concerted efforts aimed at holistic development. By prioritising human development, implementing equitable policies, and promoting inclusive growth, India can aspire to achieve both economic prosperity and social justice.<\/p>\n\n\n\n

Source The Hindu
https:\/\/epaper.thehindu.com\/ccidist-ws\/th\/th_chennai\/issues\/80475\/OPS\/G3ECN9IKQ.1+GLHCN9R75.1.html<\/a><\/p>\n