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Chapter VII - The Way Forward: Actionable Agenda

There is a dominant trend to think of GDP growth as a factor of investment. This is evident from the emphasis on inviting mega projects and announcing big-ticket investments by all governments. The approach presupposes that investment at top creates trickle down impact on economy leading to higher GDP growth. The result of such a strategy has been patchy. Secondly, mega projects tend to concentrate in a certain geography whereas the population and habitats are scattered all over. Such a growth fails to create growth which is equitable and sustainable.

The current study posits a contrarian view and proposes to imagine GDP growth from bottom-up. If districts are the units of the States, higher GDP growth at District level can create higher aggregate GDP at the State (and National level). Like in rest of India, the GDP in the States is largely contributed by self­ employed, household enterprises and organized and unorganized.

The impact of local administration on economic actors is significant. Districts can achieve higher GDP growth by improving their institutions, increasing female labor force participation, relocating labor from low-paying agriculture to higher-skilled industries, and attracting new investments. Taking them into account, the proposed strategy therefore rests upon these four pillars.