Inclusive Development, Principles of Inclusive Development

Inclusive development is a multi-faceted concept that focuses on ensuring that economic growth and development processes are equitable, sustainable, and beneficial to all segments of society, particularly marginalized groups. It is an approach that integrates social, economic, and environmental dimensions, aiming to create opportunities for everyone to participate in and benefit from development processes. The concept of inclusive development has evolved over time, influenced by various global events and shifts in development paradigms. In the mid-20th century, development was largely measured by economic growth indicators such as GDP. However, this approach was criticized for neglecting social equity and environmental sustainability. Over the decades, the focus has shifted towards more holistic approaches, integrating human development, social inclusion, and sustainability into the development agenda.

1. Dr. Baranipriya A Assistant Professor of Economics Sri Ramakrishna College of Arts & Science Coimbatore Inclusive development

2. Inclusive development Inclusive development refers to a development approach that aims to ensure that the benefits of economic growth and social progress are shared by all segments of society, including marginalized and disadvantaged groups. The concept emphasizes fairness, equity, and social justice in the distribution of resources, opportunities, and outcomes.

3. Key principles of inclusive development Equity : Ensuring that everyone, regardless of their background, has access to the opportunities necessary for a better quality of life. This includes equal access to education, healthcare, employment, and social services. Participation : Encouraging and facilitating the active involvement of all groups in society, especially those who are often excluded, in decision-making processes. This means that development policies and initiatives should be designed with the input and needs of diverse communities in mind. Sustainability : Fostering long-term development that does not deplete resources or harm future generations. Inclusive development seeks to create sustainable systems that benefit all people, including future generations. Social Protection : Providing safety nets for vulnerable populations, ensuring that they are protected from the adverse effects of economic changes or natural disasters. Gender Equality : Addressing the specific needs and challenges faced by women and girls, ensuring that they have the same opportunities as men and boys to participate in and benefit from development.

4. Development issues Poverty Inequality Education Healthcare Environmental Degradation Food Security Water and Sanitation Employment and Economic Growth Governance and Corruption Urbanization Technological Divide

5. Urban and rural divide: Rural India is facing agricultural backwardness majorly due to declining per capita land availability and yield due to climate change, land degradation, etc. There are significant regional and social disparities between the urban and rural populations and the divide was widened by digital advancement as well. Social issues : Social issues like gender disparity, caste system, and religious disparity are also causing hindrance to inclusive growth. Malnutrition among children is another worry affecting the future of the country.

6. Sustainable Development Goals (SDGs) The Sustainable Development Goals (SDGs) are a set of 17 global goals established by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development. They were created to address the world's most pressing challenges and to promote peace, prosperity, and environmental sustainability for all people. The SDGs are designed to be interconnected, recognizing that actions in one area will affect outcomes in others, and they aim to balance social, economic, and environmental sustainability.

7. The 17 Sustainable Development Goals: No Poverty (Goal 1): End poverty in all its forms everywhere. Zero Hunger (Goal 2): End hunger, achieve food security and improved nutrition, and promote sustainable agriculture. Good Health and Well-being (Goal 3): Ensure healthy lives and promote well-being for all at all ages. Quality Education (Goal 4): Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. Gender Equality (Goal 5): Achieve gender equality and empower all women and girls. Clean Water and Sanitation (Goal 6): Ensure availability and sustainable management of water and sanitation for all. Affordable and Clean Energy (Goal 7): Ensure access to affordable, reliable, sustainable, and modern energy for all. Decent Work and Economic Growth (Goal 8): Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. Industry, Innovation, and Infrastructure (Goal 9): Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.

8. Reduced Inequality (Goal 10): Reduce inequality within and among countries. Sustainable Cities and Communities (Goal 11): Make cities and human settlements inclusive, safe, resilient, and sustainable. Responsible Consumption and Production (Goal 12): Ensure sustainable consumption and production patterns. Climate Action (Goal 13): Take urgent action to combat climate change and its impacts. Life Below Water (Goal 14): Conserve and sustainably use the oceans, seas, and marine resources for sustainable development. Life on Land (Goal 15): Protect, restore, and promote sustainable use of terrestrial ecosystems, manage forests sustainably, combat desertification, and halt and reverse land degradation and halt biodiversity loss. Peace, Justice, and Strong Institutions (Goal 16): Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels. Partnerships for the Goals (Goal 17): Strengthen the means of implementation and revitalize the global partnership for sustainable development.

9. Industrial Policy Industrial Policy is the set of standards and measures set by the Government to evaluate the progress of the manufacturing sector that ultimately enhances economic growth and development of the country . Objectives of Industrial Policy to maintain a sustained growth in productivity; to enhance gainful employment; to achieve optimal utilisation of human resources; to attain international competitiveness; and to transform India into a major partner and player in the global arena.

10. Industrial Policy Resolution, 1948 It declared the Indian economy as Mixed Economy Small scale and cottage industries were given the importance The government restricted foreign investments Industries were divided into 4 categories Exclusive monopoly of central government(arms and ammunitions, production of atomic energy and management of railways) New undertaking undertaken only by state(coal, iron and steel, aircraft manufacturing, ship building, telegraph, telephone etc.) Industries to be regulated by the government(Industries of basic importance) Open to private enterprise, individuals and cooperatives(remaining)

11. Industrial Policy Resolution, 1956 (IPR 1956) This policy is also known as the Economic Constitution of India It is classified into three sectors Schedule A – which covers Public Sector (17 Industries) Schedule B – covering Mixed Sector (i.e. Public & Private) (12 Industries) Schedule C – only Private Industries Industrial Policy Statement, 1977 This policy was an extension of the 1956 policy. The main was employment to the poor and reduction in the concentration of wealth. This policy majorly focused on Decentralisation It gave priority to small scale Industries It created a new unit called “Tiny Unit” This policy imposed restrictions on Multinational Companies (MNC).

12. Industrial Policy Statement, 1980 The Industrial Policy Statement of 1980 addressed the need for promoting competition in the domestic market, modernization, selective Liberalization, and technological up-gradation. The policy laid the foundation for an increasingly competitive export-based and for encouraging foreign investment in high-technology areas. New Industrial Policy, 1991 Larger roles were provided by L – Liberalization (Reduction of government control) P – Privatization (Increasing the role & scope of the private sector) G – Globalisation (Integration of the Indian economy with the world economy ) The government allowed Domestic firms to import better technology to improve efficiency and to have access to better technology. The Foreign Direct Investment ceiling was increased from 40% to 51% in selected sectors. The maximum FDI limit is 100% in selected sectors like infrastructure sectors. Foreign Investment promotion board was established. It is a single-window FDI clearance agency. The technology transfer agreement was allowed under the automatic route. Phased Manufacturing Programme was a condition on foreign firms to reduce imported inputs and use domestic inputs, it was abolished in 1991.

13. Financial Markets A financial market is a word that describes a marketplace where bonds, equity, securities, currencies are traded. Few financial markets do a security business of trillions of dollars daily, and some are small-scale with less activity. These are markets where businesses grow their cash, companies decrease risks, and investors make more cash.

14. Money Market The money market is a market for short-term funds, which deals in financial assets whose period of maturity is up to one year. It should be noted that money market does not deal in cash or money as such but simply provides a market for  credit instruments such as bills of exchange, promissory notes, commercial paper, treasury bills, etc.  These financial instruments are close substitute of money. These instruments help the business units, other organisations and the Government to borrow the funds to meet their short-term requirement.

15. Capital Market Capital Market is an institutional arrangement for borrowing medium and long-term funds and which provides facilities for marketing and trading of securities. So it constitutes all long-term borrowings from banks and financial institutions, borrowings from foreign markets and raising of capital by issue various  securities such as shares, debentures, bonds, etc . 

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