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What structural challenge has India faced in achieving inclusive growth since the 1991 reforms?
Question

What structural challenge has India faced in achieving inclusive growth since the 1991 reforms?

A.

Excessive government intervention in private industries

B.

Disparities in regional development and rural-urban divide

C.

Decline in service sector output

D.

Over-reliance on the agricultural sector

Correct option is B

The Correct Answer is: (b) Disparities in regional development and rural-urban divide
Explanation:
Since the 1991 economic reforms, India has witnessed rapid GDP growth, led by liberalization, privatization, and globalization. However, one of the major structural challenges has been the growing inequality between regions and urban and rural areas.
While urban centers and states like Maharashtra, Gujarat, Karnataka, and Tamil Nadu benefited significantly from investments and infrastructure, many rural areas and poorer states like Bihar, Jharkhand, and Odisha lagged behind. 
Information Booster:
  • NITI Aayog and 14th Finance Commission push for cooperative federalism

  • The urban-rural divide persists in terms of education, health, income, and employment.

  • Schemes like Aspirational Districts Programme, PMGSY, and Digital India aim to reduce these gaps.

  • India’s Gini coefficient, a measure of inequality, has shown a rising trend.

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