Growth and Inclusiveness in Twelfth Five Year Plan

The best book in the market. First edition sold out in two months.
Reprints ordered. To be available on Amazon and Flipkart.
08/03/2014
Subir Maitra/ATI-CSSC
iasstudymat.blogspot.in2

‘Faster, Sustainable, and More Inclusive Growth’.
15/03/2014Subir Maitra/ATI-CSSC iasstudymat.blogspot.in3
 The broad vision and aspirations which the Twelfth Plan seeks
to fulfill are reflected in the above subtitle.
 The Need for Faster Growth
 Rapid growth of GDP is an essential requirement for achieving
this objective. Two reasons why GDP growth is important for
the inclusiveness objective:
 First, rapid growth of GDP produces a larger expansion in total
income and production which, if the growth process is
sufficiently inclusive, will directly raise living standards of a
large section of our people by providing them with employment
and other income enhancing activities.
 Second, rapid growth generates higher revenues, which help to
finance critical programmes of inclusiveness. There are many
such programmes such as Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA), Sarva Shiksha
Abhiyan (SSA), Mid Day Meals (MDMs), Pradhan Mantri Gram
Sadak Yojana (PMGSY), Integrated Child Development
Services (ICDS), National Rural Health Mission (NRHM), and
so on which either deliver benefits directly to the poor and the
excluded groups, or increase their ability to access
employment and income opportunities generated by the growth
process.

Growth Prospects of Twelfth Plan
 The Approach Paper to the Twelfth
Plan had set a target of 9 per cent
average growth of GDP over the Plan
period. But after the Eurozone crisis
triggering a sharp downturn in global
economic prospects, the Twelfth Plan
target growth rate was revised to 8.2
per cent in the Plan period. Two sub-
targets of growth rates are: 4 per cent
for the agricultural sector and 10 per
cent for the manufacturing sector.

Meaning of Inclusiveness
15/03/2014
 Inclusiveness as Poverty Reduction: To ensure
adequate flow of benefits to the poor and the most
marginalised.
 Inclusiveness as Group Equality: Inclusiveness is
not just about bringing those below an official fixed
poverty line to a level above it. It is also about a
growth process which is seen to be ‘fair’ by different
socio-economic groups that constitute our society. The
poor are certainly one target group, but inclusiveness
must also embrace the concern of other groups such
as the Scheduled Castes (SCs), Scheduled Tribes
(STs), Other Backward Classes (OBCs), Minorities,
the differently abled and other marginalised groups.
Women can also be viewed as a disadvantaged group
for this purpose.

08/03/2014

 Inclusiveness as Regional Balance: Another aspect of
inclusiveness relates to whether all States, and indeed all
regions, are seen to benefit from the growth process.
Twelfth Plan pays special attention to the scope for
accelerating growth in the States that are lagging behind.
This will require strengthening of States’ own capacities
to plan, to implement and to bring greater synergies
within their own administration and with the Central
Government. An important constraint on the growth of
backward regions in the country is the poor state of
infrastructure, especially road connectivity, schools and
health facilities and the availability of electricity, all of
which combine to hold back development. Improvement
in infrastructure must therefore be an important
component of any regionally inclusive development
strategy.

 Inclusiveness and Inequality: Inclusiveness also
means greater attention to income inequality. Inequality
must be kept within tolerable limits. Some increase in
inequality in a developing country during a period of
rapid growth and transformation may be unavoidable
and it may even be tolerated if it is accompanied by
sufficiently rapid improvement in the living standards of
the poor. However, an increase in inequality with little or
no improvement in the living standards of the poor is a
recipe for social tensions. Any given level of inequality of
outcomes is much more socially acceptable if it results
from a system which provides greater equality of
opportunity. As a society, we therefore need to move as
rapidly as possible to the ideal of giving every child in
India a fair opportunity in life, which means assuring
every child access to good health and quality education.
Twelfth Plan aims at making substantial progress in this
dimension.
M e a n i n g o f I n c l u s i ve n e s s

15/03/2014
 Inclusiveness as Empowerment: Inclusiveness is
also about empowerment and participation. It is a
measure of the success we have achieved in
building a participatory democracy that people are
no longer prepared to be passive recipients of
benefits doled out by the Government. This brings to
the fore issues of governance, accountability and
peoples participation to much greater extent than
before. This also covers areas like access to
information about government schemes, knowledge
of the relevant laws and how to access justice. The
growing concern with governance has also focused
attention on corruption.

08/03/2014

Eleventh Plan Achievements on Inclusive Grow th
15/03/2014

Eleventh Plan Achievements on Inclusive
Growth
15/03/2014

08/03/2014

15/03/2014

Question-Answer Session
15/03/2014
1. Real national income
denotes
(a) national income at
constant prices
(b) per capita income
(c) national income at current
prices
(d) net factor income

15/03/2014
Answer to Qs.1
(a) national income at
constant prices

08/03/2014

15/03/2014
2. The overall aim of Indian
planning is best described by
which of the following
(a) agricultural development
(b) regional development
(c) growth with justice
(d) industrial development

15/03/2014
Answer to Qs. 2.
(c) growth with
justice

15/03/2014
3. Rapid increases in the price level
during periods of recession or high
unemployment are known as:
(a) inflation
(b) stagnation
(c) slump
(d) stagflation

15/03/2014
Answer to Qs. 3.
(d) stagflation

15/03/2014
4. In an economy, “absorption” means
(a) difference between disposable
personal income and household
consumption
(b) total domestic spending by
households, firms and governments on
goods and services, both domestic and
foreign
(c) the resources that firms set aside to
replace used equipment and generally
to strengthen their financial position
(d) aggregate real savings

08/03/2014

15/03/2014
Answer to Qs. 4
(b) total domestic spending by
households, firms and
governments on goods and
services, both domestic and
foreign

15/03/2014
5. Real GDP is a measure of a
country’s
(a) wealth
(b) money
(c) economic transactions
(d) physical output

15/03/2014
Answer to Qs. 5
(d) physical output

08/03/2014

15/03/2014
6. The government increases
government spending to try to
reduce unemployment. This is an
example of:
(a) laissez faire
(b) monetary policy
(c) fine tuning
(d) automatic stabilisers

15/03/2014
Answer to Qs. 6
(c) fine tuning

15/03/2014
7. Self-sufficiency in food, in the true sense of freedom from
hunger, has not been achieved in India in spite of a
threefold rise in food grains production over 1950 to 1990.
Which of the following are the reasons for it?
A. the green revolution has been restricted to small pockets
of the country;
B. the cost of food is too high compared to the earnings of
the poor;
C. too much emphasis is laid on wheat and rice compared to
the coarse grains;
D. gains of the green revolution have largely accrued to the
cash crop rather than food crops.
(a) A, B and C
(b) A, B and D
(c) A, C and D
(d) B, C and D

15/03/2014
Answer to Qs. 7
(a) A, B and C

15/03/2014
8. Which of the following policies would not
be expected to reduce the frictional
unemployment rate?
(a) Reducing the duration of full employment
insurance benefits
(b) Increasing statutory minimum wages
(c) Providing relocation subsidies to
unemployed workers
(d) None of the above policies would work to
reduce frictional unemployment

15/03/2014
Answer to Qs. No. 8
(b) Increasing statutory minimum
wages

08/03/2014

15/03/2014
9. The economic significance of a
depreciation of a country’s real
exchange rate is
(a) that there has been a gain in the
country’s competitiveness
(b) that absolute purchasing power
parity has increased
(c) that it leads to arbitrage resulting in
an appreciation of the real exchange
rate in the future
(d) all of the above.

15/03/2014
Answer to Qs. No. 9
(a) that there has been a
gain in the country’s
competitiveness

15/03/2014
10. An increase in the nominal of GDP by 6%
can correspond to
(a) a decrease of real GDP by 4% and an
increase of prices by 10%
(b) an increase of real GDP by 9% and an
(c) an increase of real GDP by 5% and a
decrease of prices by 1%
(d) a decrease in real GDP by 3% and an

15/03/2014
Answer to Qs. No. 10
(a) a decrease of real GDP by
4% and an increase of prices
by 10%
Growth rate of nominal GDP = Growth
rate of real GDP+the inflation rate

You may visit my blog for my earlier
lectures and study materials
iasstudymat.blogspot.i
n
You may also join FB Group ‘Economic
and Social Development in India’
created by me:
https://www.facebook.com/groups/econo
micandsocialdevelopment/
You may also write to me at:

Growth and Inclusiveness in Twelfth Five Year Plan

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (17)

Ähnlich wie Growth and Inclusiveness in Twelfth Five Year Plan

Ähnlich wie Growth and Inclusiveness in Twelfth Five Year Plan (20)

Mehr von Dr. Subir Maitra

Mehr von Dr. Subir Maitra (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Growth and Inclusiveness in Twelfth Five Year Plan