Which of the following can be said to be essentially the parts of 'Inclusive Governance'? 1. Permitting the Non-Banking Financial Companies to do banking 2. Establishing effective District Planning Committees in all the districts 3. Increasing the government spending on public health 4. Strengthening the Mid-day Meal Scheme Select the correct answer using the codes given below:
Contents18
- A1 and 2 only
- B3 and 4 only
- C2, 3 and 4 only
- D1, 2, 3 and 4
Show answer
Answer: (C) 2, 3 and 4 only
Inclusive governance means making government services and decision-making accessible to all sections of society, especially the marginalized.
District Planning Committees (statement 2) — ensure local participation in planning.
Public health spending (statement 3) — directly benefits weaker sections.
Mid-day Meal Scheme (statement 4) — promotes nutrition and school enrollment among poor children.
Statement 1 (allowing NBFCs to do banking) is a financial sector regulation issue, not about inclusive governance for citizens.
Answer: 2, 3 and 4 only.
Inclusive governance focuses on ensuring government services and decision-making reach all sections of society, especially marginalized communities.
The question tests whether students can distinguish between inclusive governance measures (local participation, public welfare) versus general financial sector reforms that don't directly address social inclusion.
Inclusive Governance Concept
Indian Polity Inclusive Governance
Inclusive Governance: Meaning & Key Principles
Inclusive governance means making government services and decision-making accessible to all sections of society, especially marginalized groups
Focus on participatory planning, social welfare delivery, and reducing exclusion of weaker sections
Distinguished from general governance by emphasis on equity and accessibility rather than just efficiency
Core Concept
Inclusive governance ensures that government policies, services, and decision-making processes reach and benefit all citizens, particularly those who are traditionally excluded or marginalized. Unlike general administrative efficiency, it specifically targets equity and participation.
Key Components
Component | What It Involves | Example |
|---|---|---|
Participatory Planning | Local communities involved in decision-making | District Planning Committees, Gram Sabhas |
Social Service Delivery | Universal access to basic services | Public health, education, nutrition schemes |
Economic Inclusion | Ensuring weaker sections benefit from growth | Employment schemes, skill development |
Political Participation | Representation of marginalized groups | Reservation in local bodies, SHG participation |
Trap: Financial sector reforms like NBFC banking permissions are NOT inclusive governance — they're regulatory policy
Confusion: Inclusive governance ≠ inclusive growth — governance focuses on process and access, growth focuses on economic outcomes
UPSC Pattern: Questions mix genuine inclusive governance measures with general economic policies
District Planning Committees
Indian Polity District Planning Committees
District Planning Committees: Constitutional Framework & Role
Article 243ZD mandates District Planning Committees in every state
4/5th elected members from Panchayati Raj and Municipal bodies, 1/5th co-opted
Consolidates plans of Panchayats and Municipalities into district development plan
Constitutional Basis
District Planning Committees (DPCs) were mandated by the 73rd and 74th Constitutional Amendments under Article 243ZD. They serve as the crucial link between grassroots planning and district-level development coordination.
Composition & Functions
Aspect | Details | Inclusive Governance Role |
|---|---|---|
Composition | 4/5th elected from PRIs & ULBs, 1/5th co-opted | Ensures local body representation |
Chairperson | Elected by DPC members | Democratic leadership |
Key Function | Consolidate Panchayat & Municipal plans | Bottom-up planning process |
Planning Scope | Spatial, sectoral resource sharing | Coordinated development for all areas |
Inclusive Governance Connection
DPCs embody inclusive governance by ensuring bottom-up participatory planning. They prevent top-down imposition of development schemes and guarantee that local priorities reach district planning.
Common Error: Confusing DPC with District Collector's role — DPCs are elected planning bodies, not administrative
Trap: DPCs don't implement schemes — they consolidate and coordinate plans from lower levels
Government Health Spending
Indian Economy government spending on public health
Public Health Expenditure: Inclusive Governance Tool
Public health spending directly benefits weaker sections who cannot afford private healthcare
India spends approximately 1.3% of GDP on public health (among lowest globally)
National Health Policy 2017 targets 2.5% of GDP by 2025
Inclusive Governance Role
Government health spending is a core inclusive governance measure because it ensures universal access to healthcare services. Unlike private healthcare, public health systems specifically target those who cannot afford market-based medical care.
Public Health & Inclusion
Aspect | How It Promotes Inclusion | Key Programs |
|---|---|---|
Primary Healthcare | Basic services in rural/remote areas | ASHA workers, PHCs, CHCs |
Maternal Health | Free delivery, prenatal care | Janani Suraksha Yojana |
Child Health | Immunization, nutrition support | Mission Indradhanush, ICDS |
Disease Treatment | Free/subsidized treatment for poor | Ayushman Bharat, TB/AIDS programs |
Why Health Spending Matters
Equity: Reduces healthcare disparities between rich and poor
Access: Reaches remote areas where private healthcare is absent
Affordability: Prevents medical bankruptcy among vulnerable families
Prevention: Focus on public health measures benefits entire society
Key Point: Health spending is inclusive governance because it directly serves marginalized sections, not just general welfare
UPSC Focus: Questions often test understanding of why health spending qualifies as inclusive governance
Mid-Day Meal Scheme
Indian Polity Mid-day Meal Scheme
Mid-Day Meal Scheme: Nutrition & Inclusion Strategy
World's largest school feeding program covering over 12 crore children
Dual objective: improve nutrition and increase school enrollment among poor children
Supreme Court mandated in 2001, made statutory under RTE Act 2009
Inclusive Governance Tool
The Mid-Day Meal Scheme exemplifies inclusive governance by addressing multiple barriers that prevent poor children from accessing education — hunger, malnutrition, and opportunity cost of sending children to school instead of work.
Scheme Benefits & Inclusion
Benefit | Target Group | Inclusive Impact |
|---|---|---|
Free Cooked Meals | Primary & upper primary students | Reduces hunger barrier to education |
Nutritional Standards | Malnourished children | Addresses protein-energy malnutrition |
School Enrollment | Poor families | Economic incentive to send children to school |
Social Integration | All caste/class children | Children eat together, reducing discrimination |
Multiple Objectives
# Mid-Day Meal Scheme
## Educational Goals
- Increase enrollment
- Reduce dropout
- Improve attendance
- Enhance learning
## Nutritional Goals
- Address malnutrition
- Provide 1/3rd daily nutrition
- Micronutrient supplementation
## Social Goals
- Gender equity
- Caste integration
- Employment for women
- Community participationKey Connection: Mid-day meals qualify as inclusive governance because they remove barriers for marginalized children to access education
Not Just Welfare: It's governance tool because it enables participation in education system, not just provides food
NBFC vs Banking Distinction
Indian Economy Non-Banking Financial Companies
NBFCs & Banking: Regulatory Framework Distinction
NBFCs cannot accept demand deposits (current/savings accounts) — key difference from banks
Allowing NBFCs to do banking is financial sector policy, not inclusive governance measure
RBI regulates both but with different prudential norms and restrictions
Why Not Inclusive Governance
Permitting NBFCs to do banking is a regulatory and competitive policy issue within the financial sector. It doesn't directly address governance accessibility or participation of marginalized sections in government processes.
NBFC vs Bank Comparison
Aspect | Banks | NBFCs | Key Restriction |
|---|---|---|---|
Deposit Taking | All types including demand deposits | Only term/time deposits | No current/savings accounts for NBFCs |
Payment System | Part of payment & settlement system | Limited payment services | Cannot issue cheques |
Reserve Requirements | CRR & SLR applicable | No CRR, limited SLR | Lower regulatory burden |
Deposit Insurance | DICGC coverage available | No deposit insurance | Higher depositor risk |
Major Trap: Don't confuse financial sector reforms with inclusive governance — they serve different policy objectives
UPSC Pattern: Options mixing genuine governance measures with economic/regulatory policies to test conceptual clarity