Inclusive Development: Strategies

and Challenges for India

Dr. K. Narayanan
Professor
Department of Humanities & Social Sciences, IIT Bombay
knn@iitb.ac.in
 Presentation
• Macro-economic goals
• Meaning and Aspects of Macro-economic, Trade and
Industrial Strategies & Policies
• Development Strategy & Inclusive Growth
• SAP & Globalisation
• Recent Initiatives in the field of financial & social
[including education] inclusion
• Lessons and Implications
 Macro Economic Goals
• Growth and Development
• Full Employment
• Price Stability
Specifically for India
• Poverty Alleviation and Reduction in
Inequality
• Balanced Regional Development
 Macro Economic Policies
• Monetary Policy
• Fiscal Policy
• Trade [including Exchange rate] Policy
• Industrial Policy
• Land Reforms & Policy towards
Agriculture and Rural Development
• Monetary policy
– RBI – regulating money supply for fostering
growth/development and controlling inflation
Fiscal Policy
Finance Ministry – revenue & public
expenditure [development & non-
development], internal debt trap, subsidies,
capital and revenue a/c.
 International Trade
• Open Vs. closed economy model

• Regulating imports and exports

• Regulating exchange rates
• Capital mobility
• Labour mobility
– Services led growth??
 Promoting entrepreneurship
• Training and motivation

• Funding and extending support systems

• Micro finance institutions

 Social Inclusion & Exclusion
• Trickle down effect

• Public Investment

• Subsidies

• Direct measures [targeted PDS]

 NREGA
• No creation of wealth.

• Cash transfer or employment generation

• Include Ecosystem services

 Themes and issues
• Education & Human resource development
– Contribution to development is substantial

– Technology driven solutions

– Primary and Secondary Education
– Improving Enrollment & reach out
– Quality & delivery system
 Where do they stand in the pyramid
?

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 The demand of Education
• What do we intend to teach/ train ?
– Professional Skills
– Entrepreneurial Skills
– Problem solving skills
– Communication skills
– Decision making skills
– Creative Skills

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 What more can we do?
• Social Advantage
• Feeder to Large industries
• Egalitarian Society
• Exchange Earnings
• Mobilization of Local Resources
• Optimization of Capital
• Balanced Regional Development
• Generate Employment
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 Brief background on India
• Education and skill development – role of
State
• Low literacy rate and Incentivising primary
and secondary education
• Gross enrolment ratio in higher education
only 13 % [2007 data]
• Female workforce participation ratio only
28 % [2008 NSS data]
 Demand for Professionals
India will be able to utilize the demographic dividend
meaningfully, only if it equips its workforce with the
appropriate skills
The agriculture sector accounts for about 20% of the
economy. The secondary and tertiary sectors account for
about 25% and 55% respectively
 For the economy to grow at 8% to 9%, it is required that
the secondary and tertiary sectors grow at 10% to 11%,
assuming agriculture grows at 4%.
Hence, large portion of the workforce would continue to
migrate from the primary sector (agriculture) to the secondary
and tertiary sectors.
 Therefore, there is a need to impart skills to the workforce
that is expected to join different sectors in growing
economy.

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 Projected Demand

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 The Goal
• To turn out future effective skilled manpower
• To train students using national & international
exposures so that they can face the challenges of global
competition
• To enable students practice transferable skills so that
they can understand the social, economic, political,
technological and ecological environment of modern
society and their characteristic values
• And above all developing entrepreneurship and develop
solutions on an industry-wide basis.

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 For a better career
• Industry – Academia linkage
• Sector/Industry specific training
• Research exposure
• Conference, workshop and seminar
participations

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 Return on education
• There are several ways to
measure/quantify/assess the return on
education from a learner’s perspective.
• However, , your return on a higher
education is based on how much you want
to push yourself to reach your personal and
professional goals.
 Productivity in educational
institutions
• Needs to be assessed
– How and who will do it?
• Public vs privately funded institutions
• Technical vs non-technical institutions

• Not necessarily for rating of institutions

• Green campuses + reach out
 Institutions are now moving towards
developing specific [including “soft”]
skills and learner-centered teaching

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 Learner – Centered teaching
• Learner-centered teaching posits that teaching and learning are
two sides of the same coin and that the quality of the former
should be judged by the depth and persistence of the latter.
• Among other things, learner-centered teaching pays attention to
the ways in which students process information and organize it
in their brains, because that determines how they will apply the
knowledge in novel contexts.
• It takes into account the student's level of development and
intellectual sophistication, and tries to foster habits of mind that
will build a self-awareness of the student's own learning
process.
• Finally, learner-centered teaching uses assessment not only to
measure learning but also to extend it and to apply it to
authentic tasks.
 How are we trained to think:
International comparison
• Managing the tasks [team effort]– Japan

• Efficiency in work place – the Western

countries

• People centered – China??

• Social values and ethos – India and South

Asia?
 Way forward
• Transparency and accountability

• Using existing [ICT] technologies

• Innovations for informed policy decisions &

improving delivery mechanisms
– Eg., use of Adhaar, cash transfers as against
food subsidy
 Issues and Challenges
• Quantity as well as quality of education and
skill formation
• Managing the large number [how do we
convert the demographic characteristic into a
dividend]
• Public private partnership model??
– Market failure [public good and asymmetric
information]
– Govt. failure [regulatory vs directly control]
 To conclude
• Govt. is still an important player in the
market
– As a regulator
– As a participant in demand and supply
Promoting inclusive development requires good
governance
– Transparancy
– Accountability