Essay on Poverty in India

1030 Words Jun 7th, 2014 5 Pages
Poverty, Rural Development and Inclusive Growth
Group 07

Poverty, Rural Development & Inclusive Growth
In this report we would be focusing on Sustainable Inclusive Growth
Background
Post independence a combination of protectionist, import substitution and Fabian social democratic – inspired policies governed India. Economy was characterized by extensive regulation and public ownership of large monopolies. Owing to economic liberalization in 1991, the country moved to a market based economy and slowly established itself as the world’s fastest growing economies when it reached its highest recorded GDP growth rate of 9%. However there has been significant debate, around liberalization as an inclusive economic growth strategy.
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There is also a huge scope for economy wide productivity gains from the migration of low value-added agricultural workers which constitute more than half of the workers to modern industrial and service sectors where employment levels are rising as can be seen from the figure below: Workforce and GDP contribution by sector
In order to fully reap the benefits of the demographic dividend and support a return to high and more inclusive growth, India needs to renew its commitment to sound macroeconomic policy and implementation of reforms. These efforts will have to be undertaken at all levels of governance, education, energy and resources, telecom and technology, infrastructure, healthcare, financial inclusion, and business model innovation, public – private partnership to build an inclusive India.
Some Key Focus Areas
Promoting Financial inclusion
India’s financial system has weathered the global crisis better than a number of countries and developed considerably since then. New private banks have been allowed to enter with most interest rates liberalized .However more is needed to make the financial sector stronger and more efficient and to ensure optimal allocation of

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