“INCLUSIVE GROWTH: Imbalance between Political Fantasy & Business Sustainability”

India’s post 1990’s economic growth has made it one of the world’s fastest growing economies in the world. Its GDP growth rates of up to about 9% in the last few years is historically unparalleled except by the neighbouring China. With the rapid growth rates, however, come new challenges and new questions. One such challenging question concerns the spread of the benefits of growth across different segments of society.

To ensure that growth has been well distributed, India’s Planning Commission has made Inclusive Growth their explicit goal in the eleventh five-year plan. The concept of Inclusive Growth  has  dominated  discussions  across  India.  Its  popularity  has  sparked  intense discussions among politicians, economists, policymakers and the general public.

In addition, Inclusive Growth has been the focus of studies by bilateral and multilateral aid agencies such as the UN, World Bank, Asian Development Bank, Foundations such as the ICICI  Foundation,  NGOs,  and  Civil  Society  Organizations  alike.  For  instance,  UNDP recently                 called     “What     is     Inclusive     Growth”    the     “million     dollar     question.” Despite all the attention that Inclusive Growth has received in the last few years, there lacks a precise and agreed upon definition of the term. Overall, the literature is divided between two concepts a) whether the benefits reach the poor and b) whether the benefits reach the poor proportionately more than it reaches the non-poor.