What is the Inclusive Development Index [IDI]?

By : Neha Dhyani

Updated : May 26, 2022, 5:28

The Inclusive Development Index [IDI] is an annual economic index introduced by the World Economic Forum (WEF), which has been developed as an alternative to GDP to measure a country's economic growth and development. Generally, the index has three criteria for global economies like Intergenerational Equity and Sustainability, Inclusion, Growth and Development. Through these parameters, the living standard of people and the future blooming of economies is analysed by the World Economic Forum (WEF).

In this article, we will touch upon the key highlights of the Inclusive Development Index [IDI] and analyse India's performance on the basis of this index.

Inclusive Development Index [IDI] - Overview

  1. The latest Inclusive Development Index [IDI] report was released in 2018. According to the recent index, Norway features at the top rank, followed by Iceland and Luxembourg in advanced economies, whereas Azerbaijan, Lithuania and Hungary are among the top emerging economies.
  2. Amongst the G-7 countries, Germany is ranked the highest, whereas Australia is the only non-European economy in the top ten.
  3. Also, there is a decline in poverty in 84% of the emerging economy, whereas there is an increase in poverty in 17 of the advanced economies.
  4. Out of 29 advanced economies, there is income inequality in 20 advanced economies.
  5. Japan is the only Asian country to be in the Advanced Economies ranking.
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How are Inclusive Development Index [IDI] scores given?

The Inclusive Development Index [IDI] is based on three key pillars and their 12 performance indicators. Based on these scores, countries are ranked based on a scale of 1-7. The table below provides an understanding of the pillars and the performance indicators that are used by IDI:

PillarsPerformance Indicators
Growth and Development1. GDP (Per capita)

2. Labor Productivity

3. Employment

4. Healthy Life Expectancy

Inclusion1. Median Household Income

2. Income Gini

3. Poverty Rate

4. Wealth Gini

Intergenerational Equity and Sustainability1. Adjusted Net Savings

2. Dependency Ratio

3. Public Debt (as a share of GDP)

4. Carbon Intensity of GDP

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India's standing globally as per Inclusive Development Index [IDI]

  1. India is ranked 62 amongst the 74 emerging economies.
  2. India is ranked in the emerging economies, with our neighbours performing better. Nepal (22), China (26), Bangladesh (34), Sri Lanka (40), and Pakistan (47) have a score higher than India.
  3. Other South Asian economies such as Malaysia, Thailand, Indonesia and the Philippines also ranked far better than India.
  4. Among G20 economies, India ranks second last.
  5. Poverty has declined in India, but we still rank poorly, with 6 out of 10 Indian living on less than $3.20 per day.
  6. Health life expectancy in India has increased by 3 years to 59.6.
  7. India's best performance is in the 3rd pillar, i.e. Intergenerational Equity and Sustainability. India is ranked 44th in this segment.
  8. Labour productivity and GDP per capita in India have grown over the past five years.
  9. Employment growth in India has slowed and is a factor to look into.

The findings showcase that while India is showcasing growth in GDP rate, life expectancy and other factors, our Inclusive Development Index [IDI] is low mainly due to poor performance in the pillars - Growth & Development and Inclusion. Unlike GDP, IDI measures the level and rate of improvement in socioeconomic progress and is an essential factor to consider when analysing India's standing in the world.

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FAQs on Inclusive Development Index [IDI]

Q.1. What is the Inclusive Development Index [IDI]?

The Inclusive Development Index [IDI] is an annual economic index introduced by the World Economic Forum (WEF), which has been developed as an alternative to GDP to measure a country's economic growth and development.

Q.2. What is the rank of India in the Inclusive Development Index [IDI] 2021?

India is ranked 62 amongst the 74 emerging economies in the Inclusive Development Index [IDI].

Q.3. Currently, how many countries participate in the Inclusive Development Index [IDI]?

In the 2018 Rankings, 28 Advanced Economies and 74 Emerging Economies were considered in the Inclusive Development Index [IDI].

Q.4. What are the indicators of the Inclusive Development Index [IDI]?

The three key pillars of the Inclusive Development Index [IDI] are Intergenerational Equity and Sustainability, Inclusion, Growth and Development.