Social Justice and Economic Growth: A Dual Approach for India

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• October 27, 2025
• Economy, law & rights
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New Delhi, India, 2025 — As India continues its journey toward becoming a $5 trillion economy, a crucial question emerges: how can the nation balance robust economic growth with the pressing need for social justice? This dual approach—ensuring equitable opportunities while fostering rapid development—is seen as the key to unlocking India’s true potential in the global arena.

Recent discussions at the National Policy Forum 2025, attended by policymakers, economists, and civil society leaders, emphasized that social justice and economic growth are not mutually exclusive but complementary goals.

The Economic Case for Social Justice

1. Bridging Inequality for Sustained Growth

India’s growing economic disparity threatens its long-term growth trajectory.

• Fact: According to Oxfam India’s 2024 report, the top 1% of Indians hold 40.5% of the nation’s wealth, while the bottom 50% owns just 3%.
• Impact: Such inequalities reduce consumer spending power and create socio-economic instability, stifling growth.

2. Investing in Human Capital

Inclusive policies in education and healthcare contribute to a more skilled and healthier workforce, driving productivity.

• Example: The Samagra Shiksha Abhiyan expanded access to quality education for 34 million rural children in 2024, preparing them for future job markets.
• Fact: A World Bank study (2024) found that every rupee invested in healthcare yields ₹4 in economic returns through improved productivity.

Policies That Marry Growth and Equity

1. Targeted Welfare Programs

Welfare schemes focusing on marginalized communities contribute to social stability and economic participation.

• Example: The PM-KISAN Scheme, which provided ₹6,000 annually to 11.5 crore small and marginal farmers in 2024, boosted rural consumption.
• Impact: Increased rural demand strengthens industries like FMCG and agriculture, fostering economic growth.

2. Infrastructure for All

Developing inclusive infrastructure ensures equitable access to resources and opportunities.

• Fact: The Union Budget 2025 allocated ₹2.5 lakh crore for rural road connectivity under the Pradhan Mantri Gram Sadak Yojana, improving access to markets and services.

3. Affirmative Action in Employment

Policies promoting diversity in workplaces contribute to broader economic and social benefits.

• Example: The Startup India Seed Fund Scheme reserves 20% of its funding for women-led and SC/ST-founded enterprises, fostering inclusive entrepreneurship.

Challenges on the Path

1. Balancing Privatization with Public Welfare

While privatization boosts efficiency, it often sidelines public welfare priorities.

• Example: Critics argue that the privatization of public sector banks may limit access to affordable credit for rural entrepreneurs.

2. Regional Disparities

Economic growth remains concentrated in urban centers, leaving rural and backward regions behind.

• Fact: Maharashtra, Tamil Nadu, and Gujarat contribute over 35% of GDP, while states like Bihar and Jharkhand lag significantly (NITI Aayog, 2024).

3. Implementation Gaps

Leakages and inefficiencies in welfare programs hinder their full impact.

• Fact: A CAG report (2024) revealed that 18% of funds allocated to rural development schemes remain unutilized annually.

Global Lessons for India

1. Scandinavian Model of Inclusive Growth

Countries like Sweden and Norway balance economic prosperity with strong social welfare programs, offering universal healthcare and free education.

• Lesson for India: Strengthening public services can reduce inequality while sustaining growth.

2. China’s Poverty Alleviation Success

China’s targeted poverty eradication lifted 770 million people out of poverty in four decades.

• Lesson for India: Focused interventions and efficient implementation can yield transformative results.

Expert Opinions from the National Policy Forum

Dr. Raghuram Rajan, former RBI Governor, emphasized the need for long-term strategies:

“Inclusive policies aren’t just ethical; they’re smart economics. A skilled, healthy, and equitable workforce is essential for sustained growth.”

Civil rights activist Harsh Mander noted:

“Social justice ensures that India’s development is not just fast but fair. It’s a path that benefits all, not just a few.”

The Way Forward: A Dual Approach

1. Expanding Social Safety Nets

Strengthen welfare programs to reduce disparities, focusing on rural development and marginalized communities.

2. Promoting Sustainable Development

Integrate environmental sustainability into economic policies to ensure long-term benefits for all sections of society.

3. Empowering Local Governance

Decentralize governance through initiatives like the Panchayati Raj, ensuring grassroots participation in decision-making.

Conclusion: A Balanced Vision for India

India stands at a crossroads, where the pursuit of economic growth must be balanced with the commitment to social justice. By embracing a dual approach that prioritizes equity alongside efficiency, the nation can ensure a future that is not only prosperous but also inclusive.

As the world watches, India has the opportunity to showcase how democracy, capitalism, and social justice can work together to build a more equitable and sustainable future.