Previous Year Question
Which of the following can aid in furthering the Government’s objective of inclusive growth?
Promoting Self-Help Groups.
Promoting Micro, Small and Medium Enterprises.
Implementing the Right to Education Act.
Select the correct answer using the code given below:
1 only
1 and 2 only
2 and 3 only
1, 2 and 3
Correct Answer: D
Detailed Solution
Inclusive growth is economic growth in which the resulting income, employment and opportunities reach broad sections of society. Its purpose is not merely to increase GDP but also to provide equitable access to education, finance, entrepreneurship and livelihoods.
Statement 1 is correct. Self-Help Groups (SHGs) connect rural women and poor households with small savings, group-based credit, banking services and livelihood activities.
SHGs:
Improve access to formal banking and credit.
Reduce dependence on moneylenders.
Increase women’s income and decision-making power.
Support micro-enterprises and local employment.
Build social capital and collective bargaining capacity among poor households.
Thus, SHGs advance inclusive growth through financial inclusion and women-led development.
Statement 2 is correct. Micro, Small and Medium Enterprises (MSMEs) generate substantial employment with comparatively limited capital. They expand industrial and service activities to small towns, rural areas and less-developed regions.
MSMEs promote entrepreneurship, regional balance, exports, ancillary industries and local supply chains. Their development prevents economic opportunities from remaining confined to large corporations and metropolitan areas.
Statement 3 is correct. The Right of Children to Free and Compulsory Education Act, 2009 established a legal right to free and compulsory elementary education for children aged 6 to 14 years. It gives effect to Article 21A of the Constitution.
Education:
Builds human capital and productivity.
Helps break the intergenerational cycle of poverty.
Expands employment and income opportunities for disadvantaged groups.
Strengthens social and economic mobility.
Therefore, all three measures assist inclusive growth.
Current status (2026)
All three arrangements remain active:
SHGs receive bank credit, livelihood support and assistance for women-led enterprises through the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission. More than 10 crore rural women have been mobilised into the SHG network.
Under the revised MSME classification, the limits are ₹2.5 crore investment/₹10 crore turnover for Micro, ₹25 crore/₹100 crore for Small and ₹125 crore/₹500 crore for Medium enterprises.
The RTE Act remains in force; the National Education Policy, 2020 has not repealed it. The constitutional and statutory right of children aged 6–14 years continues.
Thus, all three remain important instruments of inclusive growth.