Inclusive economic growth in India: Issues and challenges Mr. Prashanth Ch.*, Dr. Rao G. Shashidhar** *Assistant Professor, Department of Business Management, Ramappa Engineering College, Warangal-506001, A.P., India **Reader, Department of Commerce, C.K.M. Arts & Science College, Warangal – 506006, A.P., India Abstract In the recent past, the focus of economic policy in India has shifted to issues of equitable growth. This implies that the economy should not only maintain the tempo of growth but also spread the benefits of growth to all sections of the population and geographical regions of the country. In India, where rapid economic growth has become a national goal, analysis of the sources of growth assumes special significance to formulation of the macroeconomic strategy and policies that affect the future growth rate- as well as pattern. This study explains “How has the Indian economy growing after independence. Using the latest data on labour and a model of capital accumulation and productivity growth, we map out GDP growth on India economy until 2050. The present paper analyses the trends and patterns of economic inequality across Indian states since the early 1990s. The basic objective here is to understand the dynamics of growth in the country which is resulting in regional imbalances and propose measures for alleviating the problem. The inter-state inequality in per capita income and consumption expenditure show a clear increasing trend during the first and second phase of structural reform. The composite indices of economic development, constructed based on a select set of indicators exhibit high correlations with that of social development. This is understandable as the capacity of the governments at the state level to make interventions and bring about social transformations is high in relatively developed states. The correlation of economic development with amenities, although statistically significant, is relatively low, which suggests that the problems pertaining to health, education, and access to other amenities cannot be effectively addressed just by focusing on economic development. Top |