Approach:

Introduction: Define inclusive growth and quote data related to economic inequality. 

Body:

Heading 1: Rising economic Inequality and its effects on human well-being and prosperity

Heading 2: Challenges: Discuss the persisting hurdles.

Conclusion: Mention how the elements of inclusive growth can be utilized. 

Approach: 

Inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all. Economic inequality is caused by the disproportionate control over resources by the wealthy class. In India, the top 10% holds 57% of the total national income, while for the bottom 50%, that share is just 13% in 2021 (World Inequality Report 2022).

Rising economic Inequality and its effects on human well-being and prosperity:

• Reduced Economic Growth: Economic inequality leads to decreased consumer spending, limited investment opportunities, and poor human capital, as seen in countries like Mexico and Namibia with high inequality and low GDP growth rates.
• Reduced Social Mobility: Health and education disparities prevail in unequal societies. 
• For example, India's Gross Enrolment Ratio for the 18-23 age group is only 27.3 (AISHE 2020-2021).

• Poverty: Around 16% of India's population is multi-dimensionally poor in terms of health, education, and standard of living (Multidimensional Poverty Index 2022).
• Social Developmental Issues: These include gender inequality (GII rank- 122/190), marginalization of communities like SC, ST, and minorities, and child malnutrition (GHI rank- 107/121).

Inclusive growth leading to economic development:

• Reduced Poverty: Inclusive growth directly contributes to poverty reduction by ensuring economic gains reach vulnerable populations.
• Social Stability: It fosters social cohesion by reducing disparities between societal groups.
• Enhanced Human Development: Inclusive growth supports access to education, healthcare, and basic services, leading to a more educated, healthier, and skilled population.
• Sustainable Development: Involving all segments of society in economic activities reduces the risk of leaving certain groups behind, contributing to long-term environmental and social stability.

Promoting inclusive growth is crucial for a sustainable and equitable society. Cooperation among various sectors is essential to prioritize policies and investments in education, employment, social safety nets, infrastructure, regional development, and gender equality for a prosperous and sustainable future.