News Highlight
Governments must prioritise human development alongside economic growth to ensure that the benefits of growth are more evenly distributed.
Key Takeaway
- India’s economy is presently one of the world’s fastest expanding.
- However, this expansion has not translated into an increase in the country’s Human Development Index (HDI).
- The HDI is a UNDP-created composite statistical indicator that evaluates and compares the degree of development in various locations worldwide.
- It was introduced in 1990 as an alternative to traditional economic measurements such as GDP.
- It does not take into account the broader components of human growth.
Human Development Index (HDI)
- About
- The UNDP developed the HDI as a composite statistical measure to assess and compare the degree of development in various parts of the world.
- It was introduced in 1990 as an alternative to traditional economic measurements such as GDP.
- It does not take into account the broader components of human growth.
- The HDI measures a country’s average achievement in three areas:
- A long and healthy life
- Knowledge
- A decent standard of living.
Human Development in India
- Human Development Index
- In 2021, India’s HDI rating was 0.633, lower than the global average of 0.732.
- India’s HDI score (0.642) fell in 2020 as well, compared to the pre-Covid level of 2019 (0.645).
- On the 2021 HDI, India was ranked 132nd out of 191 countries and territories.
- Life expectancy
- India’s life expectancy at birth was 67.2 years in 2021.
- Gross National Income
- The gross national income per capita stood at USD 6,590.
- Gender Inequality Index
- India has been ranked 122 on the Gender Inequality Index.
Subnational HDI for India
- The subnational HDI demonstrates that, while some states have made significant progress, others continue to encounter challenges.
- Delhi is ranked first, while Bihar is ranked worst.
- Yet, it is worth noting that Bihar is no longer classified as a low human development state, as it was in earlier HDI assessments.
- The top five HDI-scoring states are Delhi, Goa, Kerala, Sikkim, and Chandigarh.
- Delhi and Goa have HDI ratings that exceed 0.799.
- It places them on par with Eastern European countries with exceptionally high levels of development.
- Among the nineteen states are Maharashtra, Tamil Nadu, Kerala, Haryana, Punjab, Telangana, Gujarat, and Andhra Pradesh.
- They have ratings ranging from 0.7 to 0.799 and are classified as states with strong human development.
Reasons for the wide disparity
- India’s economic growth has been unevenly distributed.
- Almost 77% of Indian wealth is held by the wealthiest 10% of the population.
- Education, healthcare, and basic necessities continue to be a concern.
- Not putting development before economic progress.
- Providing access to high-quality social services, as well as addressing environmental issues.
- India must prioritise human development and employment creation, especially for its youth.
Way Forward
- To achieve a more equitable distribution of the advantages of growth, governments must prioritise human development alongside economic growth.
- This involves a multifaceted approach that includes;
- Addresses income and gender inequality.
- Enhances access to quality social services.
- Tackles environmental challenges.
Conclusion
- With its huge size and population, India can address regional gaps in human development across its states to fully realise its demographic potential.
- India can prioritise human development and employment creation, especially for its youth.
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Content Source: The Hindu