Sabka saath; sabka vikas'

Modi’s inclusive growth agenda needs more reforms to succeed

- Tushar K. Mahanti

As if the slogan ‘Sabka saath; sabka vikas’ (Along with all, development for all)” was not fully expressing his concern for the country’s poor, Prime Minister Narendra Modi has come out with another charming phrase “ease of living”. This one is exclusive; the earlier slogan has travelled Indian political agenda, although in different words, for years and evoked mixed reactions from cynicism to optimism. These are beautiful phrases and Modi’s dramatic orating prowess spreads an illusory web. An average Indian likes to believe in him

Optimism apart, what has been done to achieve an inclusive growth, nay, development for all? India seems to have depended largely on the trickle-down effect of growth so far to benefit the poor who were not direct participants of economic growth. But despite this, high growth has helped to reduce the percentage of people living below the prescribed poverty line. The proportion of people living below the poverty line came down from 37.2% in 2004-05 to 21.9% in 2011-12.

Good progress by any standard, but India still has the largest number of poor people. According to a 2015 World Bank report, ‘Taking on Inequality’, India has the most number of people, some 224 million, living below the international poverty line of $1.90 a day

How to bring this figure further down? Modi’s ‘ease of living’ slogan probably has the answer. Ease of living, in a way refers to inclusive growth that does not stop at raising income of the poor or by proving with time-bound employment opportunities.

According to the World Bank, “rapid and sustained poverty reduction requires inclusive growth that allows people to contribute to and benefit from economic growth. Inclusive growth refers both to the pace and pattern of growth, which is considered, interlinked, and therefore in need to be addressed together”.