Lok Sabha Question No. 3517 (UNSTARRED), answered on 2018-03-16
Subject: Inclusive Growth
Ministry: FINANCE
Asked by: R. PARTHIPAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 3517

TO BE ANSWERED ON 16 MARCH, 2018

## INCLUSIVE GROWTH

## 3517. SHRI R. PARTHIPAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is planning to promote inclusive growth by encouraging labour-intensive sectors that will create more jobs, effectively implementing the social protection schemes and investing in agriculture;
- (b)  if so, the details thereof;
- (c)  whether the domestic economy enables wealthy elite to accumulate vast wealth even millions of people struggle to survive on poverty pay:
- (d)  if so, the details thereof; and
- (e) the steps taken by the Government to improve the situation and wealth disparity?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON RADHAKRISHNAN)

(a)  to  (b) Achieving  inclusive  growth  has been one of  the main priorities of the Government.  For promoting  inclusive  growth,  the  Government  is  implementing  various  programmes/schemes  for creating  better  employment  opportunities,  strengthening  social  infrastructure  and  providing  basic amenities like water, electricity, roads, sanitation and housing for covering all sections of population. Various  schemes  such  as  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Act  Scheme (MGNREGA),  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Pradhan  Mantri Rojgar Protsahan Yojana, Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deendayal Antyodaya YojanaNational Urban Livelihoods Mission (DAY-NULM)  are being implemented by the Government in both rural and urban areas of the country which aim to create directly  and  indirectly  additional  employment  opportunities  to  reap  the  benefits  of  the  demographic dividend.The Union Budget 2018-19 has announced various measures to provide maximum livelihood opportunities in the rural areas by spending more on livelihood, agriculture and allied activities and construction  of  rural  infrastructure.  The  strategies  include  promoting  labour-intensive  sectors  by encouraging agro-based industries, and Medium, Small and Micro Enterprises (MSMEs). Focus has also been given to growth of labour intensive textile sector.   For social protection, under Ayushman

Bharat,  the  National  Health  Protection  Scheme,  has  been  proposed  in  the  Union  budget  2018-19 which  is  expected  to  cover  over  10  crore  poor  and  vulnerable  families  (approximately  50  crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for  secondary and tertiary care hospitalization. The Union budget has also proposed an increase in the volume of Institutional credit for Agriculture to the tune of Rs. 11 lakh crore during 2018-19.

(c)  to  (d)    The  data  on  household  consumption  expenditure  collected  by  National  Sample  Survey Office (NSSO) is among the prominent proxy measures used to capture economic inequality. As per the latest NSSO data available (2011-12) on Household Consumer Expenditure, the Gini coefficient (measuring the inequality between different expenditure classes of the population) in rural areas has remained almost the same in 2004-05 and 2011-12 at 0.27 and 0.28 respectively. In the urban areas, the Gini coefficient has increased marginally from 0.35 in 2004-05 to 0.37 in 2011-12.

(e) Reducing inequalities  is  high  on  the  agenda  of  the  Government.  Several  initiatives  have  been taken up by the Government of India to eliminate poverty, inequality and to empower the marginalized sections of the society by expanding the social security net through Pradhan Mantri Suraksha Bima Yojana (Accident Insurance), Atal Pension Yojana (Unorganized Sector) and Pradhan Mantri Jeevan Jyoti Yojana (Life Insurance) and institutional support for entrepreneurship with the help of MUDRA Bank,  to  provide  microfinance  to  entrepreneurs  in  rural  hinterland  of  India  and  a  National  Hub  for SC/ST entrepreneurs has been created to support the entrepreneurs belonging to the marginalized communities.  Apart  from  providing  the  social  security  net  and  institutional  credit  support  to  the marginalized sections of the society, the Prime Mantri Jan Dhan Yojana is operational that strives to achieve financial inclusion by ensuring that the economically weaker sections have access to bank accounts. According  to  Economic  Survey  2017-18,  utmost  priority  to  social  infrastructure  like education, health and social protection is being given by the Government to engineer an inclusive and sustainable growth in India.

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