Inclusive Growth: Concept and Impact on Poverty and Inequality

**1. Definition of Inclusive Growth:

• Equitable Economic Growth: Inclusive growth refers to economic development that benefits all sections of society, ensuring that the fruits of progress are shared broadly. It focuses on reducing disparities in income and opportunity.

**2. Impact on Poverty Reduction:

• Employment Generation: Initiatives like PM Mudra Yojana provide financial support to small businesses and entrepreneurs, creating jobs and reducing poverty by fostering self-employment.

**3. Reduction in Inequalities:

• Social Safety Nets: Programs such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) offer a safety net for rural workers, improving income stability and reducing regional disparities.

**4. Recent Examples:

• Digital Inclusion: The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to increase financial inclusion by providing bank accounts to the unbanked, enabling access to banking services and social benefits.

Conclusion: Inclusive growth ensures that economic benefits reach marginalized groups, reduces poverty, and addresses social inequalities, thereby contributing to a more equitable society.