The Hindu Business Line : Growth sans equity

Growth without equity is dangerous for any nation. That the country is poised to record over 9 per cent growth this year is good news indeed. But what is worrisome is that the growth process has bypassed the poorer sections. As has been pointed out by many economists, it is unrealistic to expect that growth in the services sector by itself will promote the welfare of all.

The services sector requires manpower possessing education and skill sets. Therefore, employment generation hardly benefits the poorer sections who have little access to any kind of quality education. If we want development to touch the lives of ordinary Indians, certain things need to be done post-haste. First,, the Central Government should introduce a policy that new industries, especially those in the manufacturing sector, can be set up only in or near rural and semi-urban centres. State governments should provide the necessary infrastructure, etc., at these places. The existence of these industries will not only bring employment opportunities to the locals but also bring within their reach basic amenities such as hospitals and good schools.

In addition to schools, polytechnics and industrial training institutes need to be set up in these areas.

One reason for the large-scale unemployment/disguised unemployment in the countryside is that most of the people here do not possess skills which can be used by industries. Also, the Government needs to encourage setting up of more institutes on the lines of the Rural Development and Self Employment Training Institutes (RUDSETIs). All this will, in the long run, ease pressure on agricultural land.

It will be naïve to think that the trickle-down effect of the growth process will take care of the problems. For this, aside from making agriculture a remunerative proposition, the state will have to make conscious interventions in a variety of ways.

G. G.Menon, Udupi