Inclusive Growth and Poverty Reduction: A Case Study of India

AuthorKanwal D.P. Singh
DOI10.1177/0019556117726822
Date01 December 2017
Published date01 December 2017
Subject MatterArticles
Article
Indian Journal of Public
Administration
63(4) 579–594
© 2017 IIPA
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0019556117726822
http://journals.sagepub.com/home/ipa
1 Dean, University School of Law and Legal Studies, GGSIPU, New Delhi, India.
Corresponding author:
Kanwal D.P. Singh, Dean, University School of Law and Legal Studies, GGSIPU, Sector 16, Dwarka,
New Delhi 110078, India.
E-mail: kanwal.als@gmail.com
Inclusive Growth and
Poverty Reduction:
A Case Study of India
Kanwal D.P. Singh1
Abstract
The article surveys the reduction in poverty in India after Independence. It looks
into the idea of development through inclusiveness of all sections of society.
Important elements of inclusiveness and causes for low inclusive growth in India
are explained. The methodologies adopted by Planning Commission of India to
estimate poverty have been analysed. Important committees formed for poverty
estimation in India are discussed. The controversies in India over the calculation
of a poverty line are discussed and shown in tables and in diagrams. It also
discusses the regional disparities in poverty reduction and alleviation of poverty
among various castes and groups. The article goes on to discuss the XIth and
the XIIth Five-Year Plans and the state action towards alleviation of poverty and
promotion of inclusive growth.
Keywords
UNDP, poverty estimation, XI and XII Five-Year Plans, India
Introduction
United Nations Development Programme (UNDP) has described inclusive growth
as ‘the process and the outcome where all groups of people have participated in
growth and have benefited equitably from it’. Inclusive growth works towards
inclusion of all sections of society as recipients and partners in growth and inclusion
of the excluded needs to be embodied in the growth process.1 The term means ‘shared
growth’, or ‘pro-poor growth’. It involves redistribution of income by government
subsidies in favour of targeted groups of people (Jayaraj & Subramanian 2012).
Inclusive growth is a comprehensive growth to slow down the poverty rate and also
initiate participation of people into the development of the country (United Nations
580 Indian Journal of Public Administration 63(4)
Development Programme, 2011). It also involves impartial allocation of resources
to benefit society as a whole. This growth needs to be sustained in the long run and
needs to be spread across sectors (Araar, 2012). Inclusive growth addresses together
the pace and pattern of growth. The inclusive growth approach is mainly aimed at
income redistribution. In poor countries, the burden is more due to limited budgets.
Study conducted by Organisation for Economic Cooperation for Development
(OECD) shows that income redistribution schemes cannot be the only response to
combat poverty even in developed countries (Deaton & Tarozzi, 2000). In India,
governments have introduced several projects, such as Jawahar Rozgar Yojana
(JRY), Integrated Rural Development Programme (IRDP) and Mahatama Gandhi
National Rural Employment Guarantee Act (MGNREGA), etc. to promote inclu-
sive growth. Private sector involvement is necessary to promote inclusive growth in
a country like India due to its enormous size, geographical location and demography
(Duclos, 2009).
In India, gross domestic product (GDP) growth rates have increased and led to
a dichotomy where there are disparities. Some sections of society have benefitted
from globalisation and technological developments and there are other sections
who do not even have exposure to these developments (Government of India,
2013). In India, the majority of population lives in rural areas and bringing them
into the mainstream is the main concern. The challenge for Indian government
is to ensure that growth takes place in all sections of the society, all parts of the
country and in all areas. Main elements are depicted as shown in Figure 1.
Figure 1. Elements of Inclusive Growth
Source: Author’s own work.

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