UPSC IAS - 2011

Which of the following can aid in furthering the Government's objective of inclusive growth? 1) Promoting Self-Help Groups 2) Promoting Micro, Small and Medium Enterprises 3) Implementing the Right to Education Act Select the correct answer using the codes given below:

Year Asked: 2011

A
1 only
B
1 and 2 only
C
2 and 3 only
D
1, 2 and 3

Correct Answer

D. 1, 2 and 3

Detailed Explanation

The correct answer is D, all three statements. Inclusive growth means growth whose benefits reach the poor and the excluded through employment, income and access to services. Each of the three levers works on that.

  • Statement 1 (correct): Self-Help Groups bring the rural poor, especially women, into savings and credit. Under the National Rural Livelihoods Mission (earlier SGSY), SHGs act as a bridge to bank finance and micro-enterprise.
  • Statement 2 (correct): MSMEs are among the largest non-farm employers and draw heavily on semi-skilled labour and local entrepreneurs. The MSMED Act, 2006 gave them a statutory definition and support framework, so they spread growth beyond large metros.
  • Statement 3 (correct): The Right to Education Act, 2009 (in force from April 2010) makes free and compulsory education for children aged 6 to 14 a fundamental right under Article 21A. Education is the basic input for social and economic mobility.

Core concept: inclusive growth rests on opportunity and capability, not just on GDP. For Mains GS-II and GS-III, link this to welfare schemes, financial inclusion and human development.

Trap: aspirants often treat the statements as unrelated schemes and pick A or B by assuming RTE is only a social-sector law with no bearing on growth. Ask what each one does for the excluded, and all three qualify.

This question appeared in UPSC Prelims 2011 GS Paper-1.

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