Despite Consistence experience of High growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.

In the Human Development Index rankings released by the United Nations Development Programme, India stood at 130th position out of 180+ countries. On the contrary, India was the fastest-growing economy last year. These two when looked in unison shows clear divergence between growth and human development parameters.

Issues That Make Balanced and Inclusive Development Elusive

Jobless Growth

The services sector contributes more than 50 per cent to the GDP but only around 20 per cent of the population is dependent on it whereas Agriculture which feeds more than 50 per cent of the population contributes only around 15 per cent to the GDP.

It would not be cynical to say that India is witnessing jobless growth resulting in an elusive model of growth wherein a large chunk of the population is left behind in the growth cycle.


Even though the government is spending huge quantum of resources on welfare programmes, the beneficiaries are eluded because of the rampant corruption and lack of transparency in governance.

Stagnation in Agriculture

The stagnation and economic crisis haunting the agriculture has resulted in the derailing of the rural economy. As a result, there has been a divergence between growth and development.

Quality of the Human Resource

Lack of education and pre-requisite skills has resulted in underemployment. As a result people are forced out of the economic development cycle or made mute spectators.

Social Security Net

Often the high out of pocket expenditure for health care or quality education dampers the ability of a large chunk of the population to make a robust contribution to the cycle of growth. Rather they struggle to meet their basic need and live hand to mouth.

High Inequality

As per the latest Oxfam Report which measures inequality, just 1 per cent of the population holds more than 70 per cent of the country’s wealth. One needs resources to create resources. This lack of access to resources makes the growth unbalanced and elusive.

Regional Disparities

Disparities between states, rural-urban areas are making adverse impacts in assuring balanced and inclusive growth.

One Size Fits all Approach

India is the land of diversity clubbed with disparities. The needs and challenges faced by the state of Kerala are largely different than those faced by the state of Bihar. Lack of regional autonomy coupled with one size fits all approach has made the growth elusive and unbalanced.


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