India has been ranked at 60th position among 79 developing economies with a score of only 3.38 in the Inclusive Development Index (IDI) of the World Economic Forum (WEF).
- WEF released its ‘Inclusive Growth and Development Report 2017’ on January 16, 2017 in Davos, Switzerland. The list has been topped by Lithuania among the 79 developing countries.
- Besides the developing economies, the WEF also released the Inclusive Development Index of the advanced economies. The list has been topped by Norway among 30 advanced economies.
- For the overall measurement of the economic development the index uses three pillars—Growth and Development, Inclusion and Intergenerational Equity, and Sustainability. IDI scores are rated on a scale of 1-7.
Top 10 developing economies in IDI
Top 10 Advanced Economies in IDI
Key Aspects of the Report
India has been placed below to neighboring countries including China as well as Pakistan and even in BRICS nation though the GDP per capita of the nation is among the top 10.
- Russia-13, China-15, Nepal-27, Brazil-30, Bangladesh-36, Pakistan-52
- The report finds that most of the countries fail to utilize the opportunities for raising the economic growth and reduce inequality at the same time in the respective nation because of the use of traditional tool of growth and measurement.
- It also notified that despite the rate of unemployment is not as high as in other countries, but the rate of educational enrollment is comparatively low along with the quality.
- It also stated that though Poverty level has been reduced in India but the debt-to-GDP ratio is quite high.
- India is working well in terms of access to finance for business development and real economy investment but still the rate of creation of new business is far-away due to corruption, underdeveloped infrastructure etc.
- The report suggested that India needs a more progressive tax system to raise capital for expenditure on infrastructure, healthcare, basic services, and education.
- Britain ranks one of the worst countries for employment opportunities, pay, living standards and social inclusion among the advanced economies.
About the Inclusive Development Index
The “Inclusive Development Index,” is released by the World Economic Forum to assess the living standard of the economies.
- The Index measures 109 countries for inclusive development. Out of these countries, 30 are considered advanced economies and 79 are taken as developing countries.
- Advanced and developing economy IDI scores are not comparable due to difference in the poverty level of the two economies.
- The results are based on 12 key performance indicators of inclusive development under three pillars: Growth and Development, Inclusion and Intergenerational Equity, and Sustainability and rated on a scale between 1-7.
Growth and Development
- GDP per capita
- Labor Productivity
- Healthy life expectancy
- Net income inequality
- Poverty rate
- Wealth inequality
- Median income
Intergenerational Equity and Sustainability
- Adjusted net savings
- Carbon intensity of GDP
- Public Debt
- Dependency ratio