India Ranks 62nd On WEF's Inclusive Development Index
India, on January 22, was ranked at the 62nd place among the emerging economies on the World Economic Forum's Inclusive Development Index, two points below its previous year's ranking of 60. The country was way behind China (26) and Pakistan (47). Norway topped the list of inclusive advanced economies, it was Lithuania that topped the emerging economies list.
The index takes into account and ranks the countries on the basis the living standards, the environmental sustainability and the protection of future generations from further indebtedness. WEF has urged the leaders to urgently move to a new model of inclusive growth and development, saying the reliance on GDP as a measure of economic achievement is fuelling short-termism and inequality.
The 2018 index, which measures the progress of 103 economies on three individual pillars — growth and development; inclusion; and inter-generational equity — has been divided into two parts. The first part covers 29 advanced economies and the second 74 emerging economies. The index has also classified the countries into five sub-categories in terms of the five-year trend of their overall Inclusive Development Growth score — receding, slowly receding, stable, slowly advancing and advancing.
Despite its low overall score, India is among the ten emerging economies with 'advancing' trend. Only two advanced economies have shown 'advancing' trend. Among the advanced economies, Norway is followed by Ireland, Luxembourg, Switzerland and Denmark in the top five. While small European economies dominated the index, Australia (9) was the only non-European economy in the top 10. Of the G7 economies, Germany (12) was ranked the highest. It is followed by Canada (17), France (18), the UK (21), the US (23), Japan (24) and Italy (27). The top-five most inclusive emerging economies are Lithuania, Hungary, Azerbaijan, Latvia and Poland.
Performance is mixed among BRICS economies, with the Russian Federation ranking 19th, followed by China (26), Brazil (37), India (62) and South Africa (69). Of the three pillars that make up the index, India ranks 72nd for inclusion, 66th for growth and development and 44th for inter-generational equity. The neighbouring countries ranked above India include Sri Lanka (40), Bangladesh (34) and Nepal (22). The countries ranked better than India also include Mali, Uganda, Rwanda, Burundi, Ghana, Ukraine, Serbia, Philippines, Indonesia, Iran, Macedonia, Mexico, Thailand and Malaysia. Although China ranks first among emerging economies in GDP per capita growth (6.8 per cent) and labour productivity growth (6.7 per cent) since 2012, its overall score is brought down by lacklustre performance on inclusion, the WEF said.