Question

Explain the Planning objective of “Growth with Equity”.

Hint:

Growth means more output of goods and services, and equity means less inequality of income and wealth. The objective is to make sure development benefits all sections of society.

Answer 1

Step 1: Meaning of the two words:
Growth means an increase in the capacity of a country to produce goods and services.
Equity means a fair distribution, that is, a reduction in the inequality of income and wealth.

Step 2: Meaning of the objective:
Growth with equity means that the benefits of economic development reach all sections of society.
It is not enough that national output rises. The gains must also be shared fairly.

Step 3: Why it was a planning objective:
Economists hold that a rise in Gross Domestic Product and an equal distribution of income are equally important.
If only the rich gain from growth, the poor stay poor and the society becomes more unequal.
So ensuring equitable growth was taken up as an important objective of Indian economic planning.

Final Answer:
Growth with equity is the planning objective of raising output while spreading the benefits of development fairly among all sections of society.