Measuring Inclusive Growth

  1. Inclusive Development Index (IDI)
    • In the Inclusive Development Index (IDI) compiled by the World Economic Forum (WEF), India ranked 62nd out of 74 emerging countries and was among the least inclusive countries in Group of 20 (G-20) countries.
    • The IDI is based on the idea that most people base their country’s growth not on GDP but by their own standard of living.
    • It gives a measure of inequality based on three parameters:
      • Growth and development
      • Inclusion
      • Inter-generational equity and sustainability.
    • India also did not make it to the top 10 most inclusive emerging and developing economies, where its neighbours Nepal, China and Sri Lanka made a mark.
    • India performed its best in terms of “intergenerational equity and sustainability”, ranking 44th, for which credit can be attributed to its demographic dividend.


  1. Social Progress Index (SPI)
  • It is an aggregate index of social and environmental indicators which includes the following:
    • Basic human need
    • Foundation of well being
    • Opportunity

Limitation of other indices:

  • GDP: It does not include non-market activities- Excludes factors like environment, equality, etc.
  • Gini Coefficient: Only income inequalities are included and other inequalities like social inequality, equality of opportunities, etc. are ignored.
  • Gross Happiness Index: Ignores gender neutrality, education, etc.
  • HDI: The unequal distribution of wealth is igored.

Benefits of SPI:

  • SPI measures the outcomes of the government measures rather than money spent. It also takes account of efficiency by which money spent by the government has been used.
  • It is more comprehensive.


  1. Global Slavery Index
  • It is released by the Walk Free Foundation of Australia.
  • Modern Slavery means a situation where one person has taken away another person’s freedom, to control their body so that they can be exploited.

Factors responsible for modern slavery:

  • Absence of rights
  • Lack of physical safety
  • Access to necessities such as health care, education, food, etc.
  • Pattern of migration

Government actions to reduce modern slavery: India has worked in the right direction by criminalizing trafficking, slavery, forced labour, child prostitution, and child marriage.