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Is pro business pro poor?

Instead, pro prudence is both pro business as well as pro poor. In simple terms, being pro jobs is pro poor. Poor need jobs whether public or private. Public jobs have been on a decline as the government sector has declined in its capacity to produce more and more jobs. Public sector jobs account for a mere 2-3% of total employment in the country. Given the supportive environment, business sector has the capacity to produce more and more jobs that benefit the poor.

Businesses drive economic growth by expanding infrastructure, producing more output, generating higher incomes, contributing more taxes, thus leading to a growth cycle leading to more and more jobs. Former Economist Prime Minister Mr. Manmohan Singh said in the aftermath of the global financial crisis that the best way to lift people out of poverty is only by growth and higher growth. In fact, India saw a declining poverty during its high growth phase.


Pro business should not be understood in the narrow sense of crony capitalism or favouring select businesses. Instead, it should mean expanding businesses for inclusive growth. Mere sloganeering of pro poor policy stance and stated dislike for businesses will take the economy into either slow growth or no growth. On the other hand, a pro business approach aimed at inclusive growth could lead the economy to high growth and lift many of the poor out of poverty. Accordingly, being pro jobs is good both for business and the poor, more so for growth of the economy.

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