Growth and Poverty Reduction as Complimentary Processes An Approach to Inclusive Growth

Financial reforms in India introduced in the year 1991 have increased the growth rate of economy of the country. However reforms have not succeeded in reducing poverty. Recently public debate is going on in the country with two streams of thought; one led by Prof. Jagdish Bhagwati, focusing on growth and another led by Nobel Laureate Amartya Sen focusing on social spending. Though the debate is of comparatively recent origin; it is observed that both the approaches have been almost alternatively tried during various Five Year Plan Periods after independence. However both the approaches tried in isolation have not resulted in desirable reduction in poverty. This paper brings out that both approaches are complimentary and need to be implemented simultaneously with cluster approach to development. The debate mentioned above is explained with a focus on Inclusive Growth. Broad outline of the road ahead towards inclusive growth is suggested.