Changing the growth paradigm

Syllabus: GS- III

Subject: Economy

Topic: Growth development and inclusion

Issue: GDP centric approach to growth

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a country within a specific time period.

GDP Centric approach to growth

  • Based on principle of increasing the size of the pie before its redistribution.
  • Replaced “socialist” models concerned with conditions at the bottom.
  • Based on agriculture to industry and then industry to service transition.
  • Also means transition from village to urban area.
  • A fossil fuel based resource intensive economy.


  • Wellbeing of citizens is ignored.
  • Damage to climate and environment
  • Resource intensive GDP race creates a contention in global climate negotiations
  • Persistence of issues like inequality, jobless growth.


  • Local co-operatively developed community driven solution
  • Gandhian models for India’s economic and social progress
  • Leverage the present realities, focusing on rural development (64% the citizens living in rural areas)
  • break free from Western economic theories.
  • Focus on small scale industries and agriculture can lead to inclusive and sustainable growth.
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