[Solved] Despite Consistent experience of High growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive. ( UPSC GS-2 Mains 2019)

India is the fastest-growing trillion-dollar economy in the world and the sixth-largest with a nominal GDP of $2.61 trillion. India is poised to become the fifth-largest economy overtaking the United Kingdom by 2019 as per the IMF projection. Despite consistent high growth, India has failed to redistribute its earned resources uniformly among its citizens which can be reflected in its human development index in which it ranked 130th out of 180 countries which is very dismal for the sixth largest economy of the world. Lack of financial inclusion is the main reason behind poor human development in India Reasons behind low indicator of human development in India despite high growth

• Concentration of land resources in few hands due to British land revenue policies such as permanent settlement and non-implementation of land reform policies in a better way led to divergence of Indian society before and after independence.

 • Policies which were adopted after independence such as those during green revolution which benefitted large farmers causing intra-regional disparities and were concentrated to few regions causing inter- regional disparity thus government fails to sustain the process.

 • Government efforts to develop backward areas by setting large scale industries in backward areas too could not work due to corruption and lack of implementation of corporate social responsibility norms.

 • Banks before nationalization were private owned property of few industrialists who used them as their private purse. Further, it was used a political tools to please supporters of ruling political elite.

 • Despite these facts, government policies were somehow socialist in nature which too faded away after adoption of new economic policies of 1991.

 • After reformation in economy, in lure of rapid development, government provided more impetus to economic growth than financial inclusion. This came in the form of concessions to industrial class openly in the name of policy. Industrialization too occurred heavily in few areas such as Gujarat, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh further aggravating interregional disparity, • The nexus of political class with industrialists resulted in large scale corruption which started from Harshad Mehta scam and reached its zenith at 2G, CWG and coal-gate scam.

 • Further, the common man was far from four essential amenities required for financial inclusion namely banking, credit, insurance and investment. Only 53% of the population had bank accounts prior to 2014 and had no insurance and credit facilities available to them. Despite priority sector lending norms by central bank amount of loan disbursed too few corporate outnumbered vulnerable section of society by huge margin.

 Steps taken by government to fill the gap

 • Government through various schemes has tried to fill the persisting economic gap in the country.

 Pradhan Mantri Jan dhanyojna led to revolution in banking sector. It led to large scale opening of bank accounts along with an health and accidental insurance cover under Ayushman Bharat Yojana and Pradhan Mantri Suraksha BimaYojna respectively.

 • Further, credit under MUDRA, Startup India and Stand up India schemes was provided to various sections of society.

 • Old Age pension cover under Pradhan MantriVayoVandanaYojana to elderly citizens, under Pradhan mantriShram Yogi Mandhanyojna to unorganized working class, under Pradhan MantriKisanMandhan scheme to farmers and Pradhan MantriLaghuVyapariMandhan to small business men were provided.

HDI Dimensions and Indicators:

 The 2010 Human Development Report revised the HDI formula using data and methodologies that were not available in most countries when the first HDI was published in the 1990 Human Development Report. The HDI was calculated in 2010 using the following indicators: ● Health – Life expectancy at birth

 ● Education – expected years schooling for school-age children and average years of schooling in the adult population

 ● Income – measured by Gross National Income (GNI) per capita (PPP US$)

 Why India still goes with the lowest indicators, because of following issues: ● The UN report says that an unequally growing economy leads to a low HDI.

 ● Due to lesser spending on health nearly 1.3% of GDP, India shares a huge burden of NCDs & other diseases.

 ● Out of pocket expenditure, lack of awareness, focus on curative rather than preventive.

 ● Low insurance penetration all these causes high IMR & MMR. Thus India scored poorly in life expectancy

 ● Prevalent discrimination in society holds the women, disabled & other marginalised sections to enroll in schools & colleges.

 ● People opt for informal employments earlier in the life due to poverty thus resulting in exodus from schools & colleges.

 ● Huge population is a burden on India. Though Economic reforms, distributive policies of government have resulted in increase in Per capita income, though the increase in insignificant due to huge population.

 ● Unemployment, lack of infrastructure, skills. Rising NPAs catch the growth, thus there is a reduction in per capita income.

 ● One key source of inequality is the gap in opportunities, achievements and

 empowerment between women and men. The average HDI for women in the world is

 six per cent lower than that for men owing to women’s lower income and educational attainment.

 The success of India’s national development schemes like Beti Bachao Beti Padhao, Swachh Bharat, Make in India, and initiatives aimed at universalizing school education and health care, will be crucial in ensuring that the upward trend on human development accelerates and India achieves the key principles of the Sustainable Development Goals so no one is left behind,”

Way Forward

 • Government must ensure entitlement and develop basic necessities in form of Rights based approach.

 • Government should focus in improving capabilities.

 • Involvement of Corporate social responsibilities to develop rural based enterprises.


 Various steps taken by government under various schemes to ensure financial inclusion and social security i.e. is still to reap its benefits. Also pace of growth is steady and it is moving forward. However, corruption and crony capitalism are yet the biggest challenges in front of inclusive growth strategy. To fight it, India must redistribute its resources equally among different sections of society. It becomes essential for government India which hosts world’s 14.5 % malnourished and hungry people to implement these steps effectively in order to attain sustainable development goals by 2030.

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