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The demand side of inclusive growth

By Dr. Samuel Paul & Dr. Kala Seetharam Sridhar; published in Business Standard, March 7, 2013.

Why is Tamil Nadu, with a large lower caste population, among the toppers in the growth rankings, and Uttar Pradesh, with its strong Dalit mobilisation movement, at the bottom? According to the latest Economic Survey, Uttar Pradesh (UP) is among the states with the slowest growth rates. When Indian states are ranked based on the population below the poverty line for 2009-10, UP ranks second from the bottom – at 39.4 per cent rural poverty and 31.7 per cent urban poverty. Tamil Nadu (TN) is among the top four states – at 21.2 per cent rural poverty and 12.8 per cent urban poverty. While faster growth in TN has contributed to its poverty reduction, there is strong evidence to show that social mobilisation that energises the demand side has led to more inclusive growth in the state. Here, we focus on the demand factor arising out of social mobilisation and how that can aid inclusive growth. [Read full article here]

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