No acche din yet: India’s inclusive growth rank among lowest amid 38 countries

India has been ranked very low, mostly in the bottom half, amongst 112 economies considered for the first of its kind global ranking to find out where countries stand in terms of inclusive growth.

Representational image
Representational image

India has been ranked low on most parameters for inclusive growth and development even as it fares much better internationally when it come to business and political ethics.

The rankings, across different groups of countries in terms of their per capita income levels, the World Economic Forum (WEF) found that most countries are in fact missing major opportunities to reduce income inequality and same is the case with India.

WEF said that the new study, which was conducted over the past two years, seeks to identify the various ways policymakers can drive economic growth and equity at the same time and assesses them on their relative success in implementing these measures.

“Our message is unequivocally that leaders must pursue economic strategies that are at the same time pro-growth and pro-labour,” said the Geneva-based think tank known for its economic conclaves held in different parts of the world including in Davos, Switzerland and in India.

Here’s how the World Economic Forum indicated its benchmark

(Source: World Economic Forum)

India, considered in the lower middle income bracket, has ranked in the bottom half of the 38 countries that make up our lower middle income bracket.

In terms of labour compensation and employment, India got a score of 3.14 on a scale of 1 to 7, with 1 being the worst and 7 being the best score. Within its economic group, India was better than only Mauritania, Yemen, Iran and Pakistan, in terms of labour compensation and employment.

In terms of financial system inclusion, something that the Narendra Modi government has been batting for since their first day in office, India got a score of 2.96, higher than only countries like Nigeria, Tunisia, Ghana.

(Source: World Economic Forum)

India has been given a score of 3.86 on a scale of 1-7 for basic and digital infrastructure — another focus area for the government — ranked below Iran, Tunisia, Jordon, Egypt, and so on, in its category. We came in at rank 31 out of 38 in terms of health services and infrastructure, with a score of 3.78.

Social protection is the bottom of the pit, with a score of 2.15 and the 36th rank on 38 in the segment, higher only than Nigeria and Honduras.

Corruption, however, was a positive, with India ranking 9th from top, indicating lesser corruptive practices compared to other countries in the group. In terms of score, however, it was weak at 3.99 on 7.

WEF said that another area that policymakers in India would need to prioritise improvement would be ‘Asset building and entrepreneurship’, in particular the Small business ownership, where India ranks bottom among its peers at 38th place.

WEF said its first Inclusive Growth and Development Report presents a new framework for assessing countries efforts to foster economic growth that raises the living standards of entire societies.

“Around the world, no bigger policy challenge preoccupies political leaders than expanding social participation in the process and benefits of economic growth,” WEF said while releasing the report that covers 112 economies.

(With agencies)