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Why has economic growth failed to eliminate poverty in India? How has the pattern of growth deepened exclusion, and what shifts are needed to align development with social equity?

Kartavya Desk Staff

Topic: Inclusive growth and issues arising from it

Topic: Inclusive growth and issues arising from it

Q5. Why has economic growth failed to eliminate poverty in India? How has the pattern of growth deepened exclusion, and what shifts are needed to align development with social equity? (15 M)

Difficulty Level: Medium

Reference: NIE

Why the question: Recent data from World Bank and UNDP highlight a disconnect between India’s growth figures and poverty reduction, raising concerns about exclusionary development and structural inequality. Key demand of the question: The question asks for reasons why economic growth has not eradicated poverty, how the current growth model has marginalised certain groups, and what strategic changes are necessary to make development more inclusive. Structure of the Answer: Introduction Briefly highlight the paradox of high GDP growth coexisting with persistent poverty and exclusion in India. Body Why growth hasn’t eliminated poverty: Point out jobless growth, unequal distribution of wealth, and limitations of income-based poverty measures. How growth has deepened exclusion: Mention urban bias, regional disparities, digital divides, and gendered barriers to participation. What shifts are needed: Suggest need for employment-centric growth, progressive fiscal reforms, and decentralised welfare delivery. Conclusion Emphasise the need to recalibrate growth towards capability-building and equity to make poverty truly history.

Why the question: Recent data from World Bank and UNDP highlight a disconnect between India’s growth figures and poverty reduction, raising concerns about exclusionary development and structural inequality.

Key demand of the question: The question asks for reasons why economic growth has not eradicated poverty, how the current growth model has marginalised certain groups, and what strategic changes are necessary to make development more inclusive.

Structure of the Answer:

Introduction Briefly highlight the paradox of high GDP growth coexisting with persistent poverty and exclusion in India.

Why growth hasn’t eliminated poverty: Point out jobless growth, unequal distribution of wealth, and limitations of income-based poverty measures.

How growth has deepened exclusion: Mention urban bias, regional disparities, digital divides, and gendered barriers to participation.

What shifts are needed: Suggest need for employment-centric growth, progressive fiscal reforms, and decentralised welfare delivery.

Conclusion Emphasise the need to recalibrate growth towards capability-building and equity to make poverty truly history.

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