“High inequality is not just unjust — it is developmentally inefficient.” Examine how rising inequality distorts policy outcomes in India. Evaluate the risk it poses to sustainable human development.
Kartavya Desk Staff
Topic: Inclusive growth and issues arising from it
Topic: Inclusive growth and issues arising from it
Q5. “High inequality is not just unjust — it is developmentally inefficient.” Examine how rising inequality distorts policy outcomes in India. Evaluate the risk it poses to sustainable human development. (10 M)
Difficulty Level: Medium
Reference: DTE
Why the question Based on the 2025 UNDP Human Development Report, which highlights that India loses 30.7% of its HDI due to inequality, prompting debates on efficiency and fairness in development planning. Key demand of the question The question requires examining how inequality weakens policy effectiveness and evaluating its broader impact on India’s long-term human development prospects. Structure of the Answer: Introduction Introduce the inefficiency of inequality using recent HDI loss data and its implications for inclusive growth. Body Show how inequality distorts policy outcomes by enabling elite capture, weakening targeting, and reducing demand for universal services. Evaluate how this distorts sustainable human development through effects on human capital, social cohesion, regional disparities, and climate vulnerability. Conclusion Suggest the need for inclusive, equity-focused policy frameworks that treat redistribution and capability expansion as central to sustainable development.
Why the question Based on the 2025 UNDP Human Development Report, which highlights that India loses 30.7% of its HDI due to inequality, prompting debates on efficiency and fairness in development planning.
Key demand of the question The question requires examining how inequality weakens policy effectiveness and evaluating its broader impact on India’s long-term human development prospects.
Structure of the Answer:
Introduction Introduce the inefficiency of inequality using recent HDI loss data and its implications for inclusive growth.
• Show how inequality distorts policy outcomes by enabling elite capture, weakening targeting, and reducing demand for universal services.
• Evaluate how this distorts sustainable human development through effects on human capital, social cohesion, regional disparities, and climate vulnerability.
Conclusion Suggest the need for inclusive, equity-focused policy frameworks that treat redistribution and capability expansion as central to sustainable development.