4. What are the Challenges to Inclusive Growth?

1) Slow economic growth: Since the financial crisis of 2008-09, the global economy has not fully recovered from the recession. This is reflected in growing jobs deficits (both the quantity and quality of new jobs) in many countries, including India.

2) Automation: Robotics and automation will make worker’s skill obsolete at much faster rate. It is estimated that between 400 millions to 800 millions individuals could be displaced by automation and need to find new jobs by 2030 around the world.

3) Wealth concentration: Studies by ILO and other organization have shown that declining share of total GDP that goes to working people through their pay checks.

4) Corruption: The country remains shackled in corruption, red tape, age old social barriers and a puzzling lack of transparency. Tackling corruption in high places, removing the ills of the electoral system, shunning politics of agitations and keeping national interest above petty politics should be the major goals of country’s policy makers.

5) Dependency on agriculture sector: Most of the India’s laborer are engaged in the agriculture sector. While the sector suffers from low growth and underemployment. This also furthers economic inequality.

6) Extreme poverty: One in five people in India live below the national poverty line of $1.90 per day, and more than half of the population lives on less than $3 a day.

7) Informalization of labour: More than 90% of the jobs are in the informal sectors. In the informal sector, workers are effectively excluded from accessing many of the resources they need to make themselves more productive and thereby improve their life chances.