Read the following passage and answer the item that follows. Answers to these should be based on the passage only.
In recent times, India has grown fast not only compared to its own past but also in comparison with other nations. But there cannot be any room for complacency because it is possible for the Indian economy to develop even faster and also to spread the benefits of this growth more widely than has been done thus far. Before going into details of the kinds of microstructural changes that we need to conceptualize and then proceed to implement, it is worthwhile elaborating on the idea of inclusive growth that constitutes the defining concept behind this Government’s various economic policies and decisions. A nation interested in inclusive growth views the same growth differently depending on whether the gains of the growth are heaped primarily on a small segment or shared widely by the population. The latter is cause for celebration but not the former. In other words, growth must not be treated as an end in itself but as an instrument for spreading prosperity to all. India’s own past experience and the experience of other nations suggest that growth is necessary for eradicating poverty but it is not a sufficient condition. In other words, policies for promoting growth need to be complemented with policies to ensure that more and more people join the growth process and, further, that there are mechanisms in place to redistribute some of the gains to those who are unable to partake in the market process and, hence get left behind.
A simply way of giving this idea of inclusive growth a sharper form is to measure a nation’s progress in terms of the progress, of its poorest segment, for instance, the bottom 20 per cent of the population. One could measure the per capita income of the bottom quintile of the population and also calculate the growth rate of income and evaluate our economic success in terms of these measures that pertain to the poorest segment. This approach is attractive because it does not ignore growth like some of the older heterodox criteria did. It simply looks at the growth of income of the poorest sections of the population. It also ensures that those who are outside of the bottom quintile do not get ignored. If that were done, then those people would, in all likelihood, drop down into the bottom quintile and so would automatically become a direct target of our policies. Hence, the criterion being suggested here is a statistical summing up of the idea of inclusive growth, which in turn, leads to two corollaries: to wish that India must strive to achieve high growth and that we must work to ensure that the weakest segments benefit from the growth.
The author supports policies which will help:
The author explicitly advocates for policies that combine two objectives: achieving sustained economic growth and ensuring the equitable distribution of its benefits. The passage states that "growth must not be treated as an end in itself but as an instrument for spreading prosperity to all." It further emphasizes that "policies for promoting growth need to be complemented with policies to ensure that more and more people join the growth process and, further, that there are mechanisms in place to redistribute some of the gains to those who are unable to partake in the market process and, hence get left behind." This directly supports the idea of developing economic growth while simultaneously redistributing economic gains to the marginalized.
(a) develop economic growth. This option is incomplete. While the author acknowledges that "India has grown fast" and that "it is possible for the Indian economy to develop even faster," the passage clearly states that growth is "necessary for eradicating poverty but it is not a sufficient condition." The author's central argument is for inclusive growth, which requires growth to be complemented by redistribution policies, making this option an insufficient representation of the author's support.
(b) better distribution of incomes irrespective of rate of growth. This option misrepresents the author's stance. The passage highlights that "growth is necessary for eradicating poverty." The author does not suggest prioritizing distribution irrespective of growth; rather, the emphasis is on making growth inclusive and ensuring its benefits are shared. The concept of inclusive growth, as defined in the passage, views growth differently based on how widely its gains are shared, but it does not dismiss the necessity of growth itself.
(d) put an emphasis on the development of the poorest segments of society. While the passage suggests measuring progress by the "bottom 20 per cent of the population" as "a simply way of giving this idea of inclusive growth a sharper form," it clarifies that this is a "statistical summing up of the idea of inclusive growth." The passage also notes that this approach "ensures that those who are outside of the bottom quintile do not get ignored." Therefore, while the poorest segments are a key focus, the author's overall support is for a broader concept of inclusive growth that encompasses both high growth and widespread benefit, not exclusively the development of only the poorest segments.