Distinguish between the Human Development Index (HDI) and Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth?
Distinguish between the Human Development Index (HDI) and Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth?
The HDI measures average achievements in health, education and income, but ignores inequalities within society. The IHDI adjusts HDI by accounting for distributional inequalities, thereby reflecting the actual level of human development experienced by people.
India's IHDI reveals a stark 30.7% loss in human development potential due to inequality, highlighting the critical gap between average progress and inclusive growth.
Distinguishing HDI and IHDI
| Aspect | HDI | IHDI |
|---|---|---|
| Methodology | Average achievements in health, education, living standards | HDI adjusted for inequality using Atkinson index |
| Data Approach | Country-level aggregated data | Distribution-sensitive analysis |
| Focus | Overall development level | Inclusive development outcomes |
HDI Framework
- Measures life expectancy at birth, mean years of schooling, and GNI per capita
- Provides snapshot of average human development
- India ranks 130th globally with HDI of 0.685 (2023)
HDI Framework
IHDI Enhancement
- Incorporates inequality penalties across all three dimensions
- Reveals actual development distribution among population
- India's Inequality-Adjusted Human Development Index (IHDI) dropped to 0.475, reflecting a significant loss due to disparities in health, education, and income, despite its overall HDI improving to 0.685 in the 2023-2024 Human Development Report.
IHDI Framework
India's Performance Analysis
Regional Disparities
- Kerala leads with highest HDI while Bihar lags.
- Gender inequality contributes significantly to IHDI reduction
- Caste-based disparities further widen development gaps
Sectoral Variations
- Health inequalities: Rural-urban divide in maternal mortality
- Educational gaps: Digital divide affecting online learning access
- Income distribution: Top 1% holds 22% of national wealth
IHDI as Superior Indicator of Inclusive Growth
Comprehensive Assessment
- Captures "leave no one behind" principle of SDGs
- Reflects impact of schemes like PM-JAY and Samagra Shiksha
- Identifies beneficiaries left out of development process
Policy Relevance
- Guides targeted interventions through Aspirational Districts Programme
- Supports National Education Policy 2020 implementation
- Informs Ayushman Bharat coverage expansion strategies
Development Planning
- Enables monitoring of SDG 10 (Reduced Inequalities)
- Facilitates evidence-based resource allocation
- Supports PM Gati Shakti infrastructure planning
IHDI's inequality-adjusted approach makes it indispensable for India's pursuit of inclusive growth, ensuring development benefits reach every citizen across socio-economic strata.
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