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Inclusive growth: The case of state balanced growth fund in Tamil Nadu, India

Author: 
Ana Raj, J. and Dr. P. Sumathi
Subject Area: 
Life Sciences
Abstract: 

Indian economy has entered into a new phase of ‘Inclusive Growth’ after the eleventh five year plan of 2007 – 2012. The rising inequality in economic growth has pushed the Planning Commission to consider ‘Inclusive Growth’ for balanced economic development. The concept “Inclusion” should be seen as a process of including the excluded as agents whose participation is essential in the very design of the development process, and not simply as welfare targets of development programmes (Planning Commission, 2007). Inclusive growth entails comprehensive growth, shared growth, and pro-poor growth. The necessity of inclusive growth in India can be stressed with ease while glancing at its Human Development Index (HDI). India’s rank is 130 out of 188 nations, according to UNDP HDI report 2015. Tamil Nadu has been India’s most progressive state and is amongst the top three on several economic and social indicators. Although the State has achieved reasonable levels in terms of Human Development Index, inter-regional disparities within the State, particularly in levels of poverty in its various dimensions, per capita income, literacy, health, and gender related indicators are significant. Recognising the regional disparities in terms of Income, Employment, Health, Education and Gender attainments, the State has formulated a new scheme “State Balanced Growth Fund” to address the inter-district and intra-district disparities. This paper intends to unearth the ground realities of the fund and its impact on the overall development of the state.

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