The World Economic Forum on Monday ranked India 62nd out of 77 emerging economies on an “inclusive development index”. The organisation said the index measures “the level and rate of improvement in shared socioeconomic progress.”
This is an attempt to overcome the shortcomings of the Gross Domestic Product as a measure of economic development, by focusing on income inequality and median living standards, the World Economic Forum’s report said. The three “pillars” that the report focuses on to measure inclusive development are “intergenerational equity and sustainability”, “economic growth and development” and “economic inclusion.”
India has been ranked lower than China (26th), Pakistan (47th) and two other BRICS members. The forum ranked Russia 19th, Brazil 37th and South Africa 69th on the inclusive development index. However, the organisation also ranked India as a country whose economy was “advancing” in inclusive development.
The report divides the index into advanced economies and emerging economies. Norway is ranked first among advanced economies in inclusive development, but the report says the country’s index is “slowly receding.” Among emerging economies, Lithuania has secured the first rank.
The World Economic Forum’s low ranking for India was released just a day before Prime Minister Narendra Modi reached Davos in Switzerland, where international and corporate leaders have gathered for the World Economic Forum’s annual meeting.