Centre needs to extend policy focus beyond 'roti, kapda, makaan', says the office of CEA

NEW DELHI: The Centre needs to extend policy attention beyond "roti, kapda, makaan" (food, clothes, housing) to keep the growth engine up and running, even as equality of opportunity and universal access to basic amenities are non-negotiable as they ensure the dignity of an individual, the office of the chief economic advisor said in a recent publication, titled 'Re-examining Narratives - A Collection of Essays'.

High growth is imperative for a developing country like India, it said, as it increases the size of the pie for shared equitable economic progress.

"For a developing country such as India, where the growth potential is high and the scope for poverty reduction is also significant, the focus needs to continue to be on growing the size of the economic pie rapidly, at least for the foreseeable future," it said.


Citing the CEQ Institute study on India, it said the government's fiscal interventions played a significant role in reshaping income distribution by reducing economic deprivation and inequality.

As per the document, Indian witnessed a decline in inequality of consumption in the decade before the LPG reforms of 1991 due to regulatory distortions and state interference, while the rise in inequality after the 1991 reforms were an outcome of market incentives for entrepreneurship and innovation. "The impact of Covid-19 on inequality has been transitory, with the public distribution system and rise in food subsidy substantially curbing a rise in distress levels," it said.