Here is a model answer for the practice question,
structured for a Mains examination (UPSC GS Paper II/III or TNPSC Group 1),
utilizing the specific details from the provided news report.

Question: Discuss the
significance of the “Dravidian Model” of development in the context
of Tamil Nadu’s consistent performance in GSDP growth. How does it balance
social welfare with industrial growth?

Answer:

Introduction

The “Dravidian Model” of development
refers to a socio-economic framework that prioritizes social justice, inclusive
growth, and human development alongside robust industrialization. Its
significance is highlighted by recent data from the Reserve Bank of India
(RBI), which positions Tamil Nadu as the leader in economic growth for the
2024-25 fiscal year. The state registered a Gross State Domestic Product (GSDP)
growth rate of 16%, with the total value of the economy standing at ₹31.55 lakh
crore . This achievement is particularly significant as Tamil Nadu has
surpassed traditionally industrialized states like Maharashtra, Karnataka, and
Gujarat for the third consecutive year.

Significance of the Model in Economic Performance

1.    
Consistent High Growth: The model has fostered resilience, enabling the state to sustain stable
growth over the past three years despite external challenges³. The growth from ₹10.50 lakh crore to ₹31.55 lakh crore
underscores the effectiveness of policy continuity.

2.    
Human Capital as an Asset: A core tenet of the model is treating human capital as the state’s
greatest asset. High economic performance is sustained by equipping the next
generation with skills that differentiate humans from machines, as emphasized
by the state’s focus on education reform to sustain high growth over the next
two decades.

3.    
Broad-based Development: Unlike models focused solely on urban industrial clusters, this model
emphasizes decentralized development, evident in the state’s diverse industrial
base ranging from textiles to advanced manufacturing.

Balancing Social Welfare with Industrial Growth

The “Dravidian Model” operates on the
premise that social welfare and industrial growth are not mutually exclusive
but complementary.

 

1.    
Welfare as an Economic Driver:

Social welfare schemes are designed to increase
purchasing power and economic participation. For instance, the Magalir
Urimai Thittam (women’s rights grant of ₹1,000/month) is not just a dole
but an economic tool. Beneficiaries use these funds for livelihood generation,
such as buying livestock to fund children’s education, thereby stimulating the
local rural economy .

This “bottom-up” approach ensures that
the benefits of growth reach the grassroots, creating a stable social
environment conducive to business.

2.    
Industrial Facilitation &
Responsiveness:

The state maintains a proactive relationship with
industries. For example, the textile industry’s demand for the removal of
import duties on cotton to support MSMEs highlights the active feedback loop
between the government and the manufacturing sector .

Infrastructure projects are prioritized to support this
growth. Recent approvals for ₹1.50 lakh crore worth of road projects and
₹27,000 crore for infrastructure development (including expressways)
demonstrate a commitment to physical capital alongside social capital .

Challenges and Way Forward

While the model has delivered high GSDP, it faces
sustainability challenges.

·        
Environmental Sustainability: Rapid urbanization and groundwater extraction have led to land subsidence
risks in Chennai’s densely populated neighborhoods like Valasaravakkam and
Mylapore, necessitating stricter environmental regulations .

·        
Skill Upgradation: To sustain the 16% growth, there is an urgent need to reform education to
meet the demands of modern industries and bridge the skill gap.

Conclusion

The significance of the Dravidian Model lies in its
ability to achieve a high GSDP growth of 16% without compromising on social
indices. By ensuring that economic gains fund social welfare—which in turn
creates a healthier, more educated workforce—Tamil Nadu has created a virtuous
cycle of development. The state’s goal to attain the top position in all sectors
by 2031 depends on maintaining this delicate balance while addressing emerging
environmental and educational challenges.