77 years on, task cut out for building an inclusive India during Amrit Kaal

Only recently India celebrated 77th Independence Day with usual fervour and enthusiasm. Those who were born in 1947 are 77 years old now. They have seen a kind of generational transformation in the country, which now has a population of nearly 140 crore people. One after another democratic governments at the Centre and in the States did their best to ameliorate people’s socio-economic, educational and health woes and succeeded considerably in their efforts.

From day one, as a nation, India has been very particular about inclusive socio-economic and political development, perhaps because of the fact that inclusivity is the guiding principle of our Constitution, which has been strongly firmed up by our founding fathers on the pillars of equality, justice, fraternity and liberty.

Given India’s social diversities, mass inequalities and economic disparities, which we inherited at the time of partition along with monstrous social evils such as caste-based untouchability and discrimination, the initial decades were quite challenging for us. Thankfully, affirmative measures along with welfare schemes played a key role in empowering socially and educationally backwards among us. Untouchability is an offence now. Today, a large chunk of deprived people have become a part of our vibrant middle class. Though they account for a miniscule percentage of the total population, it is time for celebration. Had the pace of upward movement of a vast chunk of the poor population been swift over the years, things would have been entirely different today.

The speed of upgrading and expanding health and education facilities in the public sector needs to be enhanced. Their qualities, accessibility and affordability should be hassle-free. Common people cannot afford quality education and healthcare in the private sector as these are quite expensive. There are nearly 100 crore poor people in the country. The Union Government has decided to provide free-of-cost foodgrain to around 80 crore National Food Security Act (NFSA) beneficiaries for one year from January 1 to December 31 this year. To further strengthen the food grain distribution in the country, the One Nation, One Ration Card (ONORC) has also been implemented.

In an English daily published on August 18, former Reserve Bank of India governor D. Subbarao reiterated "with a per capita income of $ 2,601, we rank 139th in the league of nations." He also wrote that India is the poorest country among BRICS and G20 and added that inequalities are “morally wrong and politically corrosive.”

What spurs them further is the lack of uniformity in the quality and affordability of health and education facilities meant for haves and the have-nots among us. All said and done, we are denying the majority of our children the opportunity to move up the income ladder by depriving them of quality education, which gives them an edge in an extraordinarily competitive market.

The Economic Survey 2022-23 has stated that India is committed to leaving no one behind, and ensuring that the impact and benefits of its growth and progress reach all in its diverse and expansive populace transcending innumerable cultures, languages, and geographies, constituting the real wealth of the country. As a nation we have resolved that by 2030, we will end poverty and hunger everywhere; combat inequalities; build peaceful, just and inclusive society; protect human rights and promote gender equality and empowerment of women and girls and ensure lasting protection of the planet and its natural resources. We have resolved also to create conditions for sustainable, inclusive and sustained economic growth, shared prosperity and decent work for all, taking into account different levels of national development and capacities.

The government’s spending on social services has shown a rising trend since FY16 with a focus on many aspects of social well-being of our citizens. The share of expenditure on social services in the total expenditure of the government has been around 25 per cent from FY18 to FY20. It increased to 26.6 per cent in FY23 (BE). According to the Economic Survey, the social services expenditure witnessed an increase of 8.4 per cent in FY21 over FY20 and another 31.4 per cent increase in FY22 over FY21. The social sector expenditure outlay of the Centre and State governments was 9.15 lakh crore in 2015-16. It has increased steadily to stand at 21.3 lakh crore in FY23 (BE).

Similarly, the share of expenditure on health in the total expenditure on social services increased from 21 per cent in FY19 to 26 per cent in FY23 (BE). The 15th Finance Commission had recommended that public health expenditure of Union and States together should be increased in a progressive manner to reach 2.5 per cent of GDP by 2025.

In keeping with this objective, Central and State Governments’ budgeted expenditure on the health sector reached 2.1 per cent of GDP in FY23 (BE) and 2.2 per cent in FY22 (RE), against 1.6 per cent in FY21. However, there is a need to spend more on the health and education sectors. It should be at least 10 per cent of GDP, since we have to ensure more and more people get higher education and quality healthcare.

At present, our gross enrolment ratio (GER) in higher education is less than 30 per cent, while the share of Out-of-Pocket Expenditure (OOPE) in total health expenditure (THE) has declined from 62.6 per cent to 47.1 per cent but is still on the higher side.

Ensuring financial protection and universal health coverage for citizens is paramount in view of the magnitude of the problem of poverty in the country. As per the report of the UNDP on multidimensional poverty index (MPI) released last October, 16.4 per cent of the population (228.9 million people in 2020) is multi-dimensionally poor while an additional 18.7 per cent is classified as vulnerable to multidimensional poverty (260.9 million people in 2020). The findings of the report pointed out that nearly 41.5 crore people exited poverty between 2005-06 and 2019-21.

A number of measures have been taken to empower the poor holistically. Around 318 Central schemes and over 720 state DBT schemes are notified under Section 7 of the Aadhaar Act, 2016, and various initiatives like Direct Benefit Transfer, Aadhaar Enabled Payment systems, JAM (Jan-Dhan, Aadhaar, and Mobile) trinity and ONORC use Aadhaar for targeted delivery of financial services, subsidies, and benefits. It is estimated that 135.2 crore Aadhaar enrolments have been generated, and 75.3 crore residents have linked their Aadhaar with ration cards. Around 30 crore residents have linked Aadhaar with cooking gas connection for LPG subsidy and 75.4 crore bank accounts are linked with Aadhaar and more than 1500 crore transactions have taken place via Aadhaar Enabled Payment Systems (AePS).

However, gaps in poverty alleviation and wholesome empowerment of 100 crore plus people of the country continue to exist. Without plugging them effectively, we will not be able to ensure a lift with dignity to all. Poverty has far-reaching, and often, detrimental repercussions on individuals, families, communities and societies as a whole. These repercussions span various dimensions of life and can have a profound impact on physical, emotional, and social well-being.

Elimination of poverty requires comprehensive efforts that encompass education, healthcare, social safety nets, employment opportunities, and equitable distribution of resources. Effective poverty reduction strategies aim to break the cycle of poverty and provide individuals and families with the tools they need to lead dignified, healthy, and fulfilling lives. That is the only but the most important challenge we have for Amrit Kaal.

(The writer is a senior journalist, columnist and author. The views expressed are strictly his personal)