Strategies for Inclusive Growth

To avoid the middle-income trap, India must prioritize inclusive growth, focusing on producing essential goods that cater to the broader population instead of just a wealthy minority. Dr. Rathen Roy recommends enhancing production capabilities in less economically developed states by leveraging local skills to create jobs and reduce regional disparities. For example, shifting textile production to states with available labor but currently higher wages can create equitable economic opportunities and reduce reliance on costly subsidies. By improving accessibility to essentials like food, healthcare, and education, India can create a more balanced economy and work towards a higher income status.