economy · Global trends

India the third largest economy

India … one of the fastest growing economy

India one of the oldest democracy and the third largest economy in the world ranked very low in the latest human development UN report. UN rated India 131 in the 188 countries surveyed. Neighboring countries like Pakistan, Bhutan and Nepal were also rated low in this latest report by the UN. India like many other Asian countries has been in a developmental arrest for many decades due a combination of political, social and economic challenges. 

India has made no improvement in its ranking over the previous year, despite the Human Development Report for 2015 noting that foreign direct investment favors countries such as China and India. India’s Human Development Index rank in 2014 was also 131.

However, 63 per cent Indians were “satisfied” with their standard of living in 2014-15, the latest report found.

Human Development Index (HDI):

The Human Development index is a measure of economic development and economic welfare. The Human Development Index examines three important criteria of economic development (life expectancy, education and income levels) and uses this to create an overall score between 0 and 1.

  1. Life Expectancy Index. Average life expectancy compared to a global expected life expectancy..
  2. Education Index
    1. mean years of schooling
    2. expected years of schooling
  3. Income Index (GNI at PPP)
Components of HDI (Ketan Deshpande Anoka Minnesota MN)
India’s HDI rank value in 2015 stood at 0.624, which had increased from 0.580 in 2010. Its life expectancy at birth stood at 68.3 years in 2015 and the Gross National Income (GNI) per capita USD 5,663, the report said.

On the perception of feeling safe 69 per cent answered “yes”, while on freedom of choice, 72 per cent female responders answered they were “satisfied” as compared to 78 per cent for male.

India’s score for overall life satisfaction was 4.3 on a scale of 1-10, according to the report.

Per the report top HDI countries are:


Top 10 HDI Countries (Ketan Deshpande Minnesota MN)

On perceptions about government, 69 per cent said they had trust in the national government for the 2014-15 period while 74 per cent said they had confidence in the judicial system.

It lauded measures like the National Rural Employment Guarantee Program taken in India to generate employment.

“Creating jobs through a public works program targeted at poor people can reduce poverty through income generation, build physical infra- structure and protect poor people against shocks. The National Rural Employment Guarantee Program in India and the Rural Employment Opportunities for Public Assets Program in Bangladesh are prime examples.”

The report noted that increasing clean energy investments in India by 1.5 per cent of GDP a year for 20 years will generate a net increase of about 10 million jobs annually in the country, after factoring in job losses from retrenchments in the fossil fuel industries.



The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.

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