Ethical wealth creation is way forward


The survey has said that India should continue on the path of ethical wealth creation for economic development as it will help lift millions of poor out of poverty, especially after the Covid-19 pandemic.

“Given India’s stage of development, India must continue to focus on economic growth to lift the poor out of poverty by expanding the overall pie,” the Survey said. This, it said, will enable redistribution since economic growth and inequality converge in terms of their effects on socio-economic indicators in India.



“When we look at the impact of growth versus inequality on poverty reduction, about 85% reduction in poverty happens through growth versus 15% that comes from inequality,” chief economic advisor Krishnamurthy Subramanian said on Friday while presenting the Survey.

The Survey noted that both inequality and economic growth—as reflected in the income per capita at the state level—have a positive impact on a range of socio-economic indicators, including health, education, life expectancy, infant mortality, birth and death rates, fertility rates, crime, drug usage and mental health, in the Indian context, as opposed to developed economies.

“Unlike in advanced economies, economic growth and inequality converge in terms of their effects on socio-economic indicators in India,” the Survey said, adding that poverty alleviation through growth must remain the economic focus.





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