Independence Day hopes

The paper says to ensure widespread benefits from economic growth, a combination of policies is essential.


To ensure widespread benefits from economic growth, a combination of policies is essential. PHOTO: THE STATESMAN

August 17, 2023

NEW DELHI – This Independence day should be about looking forward to India’s K-shaped growth projection that highlights the diverging economic paths of different segments of society. While certain sectors and groups thrive, others face challenges. It is important for policies to ensure that benefits are widespread and disparities are addressed. Sectors such as technology, e-commerce, healthcare, renewable energy and digital services look promising. These industries have shown resilience and adaptability, attracting investment and driving innovation. Traditional manufacturing, hospitality, tourism, and small-scale retail have faced challenges, particularly during uncertain times like the Covid-19 pandemic. These industries often rely on physical presence and face-to-face interactions, making them more vulnerable to disruptions. Efforts to modernise and adapt are crucial for their recovery and sustained growth. To ensure widespread benefits from economic growth, a combination of policies is essential.

Policies that improve access to quality education, vocational training, and skill development can empower individuals to participate in diverse sectors of the economy. Establishing strong social safety nets, including healthcare, unemployment benefits and poverty alleviation programmes can protect vulnerable populations during economic fluctuations. Investing in physical and digital infrastructure can create jobs, enhance connectivity and stimulate economic activity across regions. Providing targeted support to MSMEs can foster entrepreneurship, employment generation and economic growth in local communities. Expanding access to banking and financial services can enable underserved populations to save, invest and participate in economic activities. Focusing on agriculture and rural development can uplift rural economies, reduce migration to urban areas and address urban-rural disparities. Ensuring digitization efforts reach all segments of society can bridge the digital divide and provide equal access to online services and opportunities. Implementing labour market policies that balance job security with flexibility can encourage job creation and protect workers’ rights. Encouraging research and innovation across sectors can lead to the development of new industries, job opportunities and sustainable growth. Integrating environmental considerations into policies can promote sustainable growth, create green jobs and mitigate negative impact on the environment.

To address disparities and ensure that those left behind by K-shaped growth are not excluded, specific policies are needed. Offering skill training and upskilling programmes can equip individuals with the capabilities needed to participate in emerging sectors and bridge the skills gap. Promoting economic activities in underdeveloped regions through targeted incentives and infrastructure projects can reduce regional disparities. Implementing policies that make housing more affordable can help low-income families secure stable living conditions and enhance their quality of life. Promoting gender equality through policies that ensure equal pay, combat gender-based violence, and support women’s participation in the workforce can help address disparities. Engaging local communities in decision-making processes and involving them in development projects can lead to more inclusive growth. By combining these strategies and tailoring them to the unique challenges of different segments of society, governments can work towards reducing disparities and promoting more inclusive growth. That should be the goal going forward.

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