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UPSC Mains 2025Question 1General Studies 3Economy150 words

Distinguish between the Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth? (Answer in 150 words)

Model answer & approach

- Distinguish between the Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth? (Answer in 150 words)
Introduction
The Human Development Index (HDI) and Inequality-adjusted Human Development Index (IHDI) are both measures developed by the UNDP to assess a country’s overall development beyond economic growth, but they differ in how they account for inequality.
Body
1. HDI: HDI measures development based on three dimensions — health (life expectancy), education (mean and expected years of schooling), and income (GNI per capita). However, it reflects average achievements, ignoring inequality among different social groups.
2. IHDI: The IHDI adjusts the HDI for inequality in distribution of these dimensions. When inequality rises, IHDI falls, showing the loss in potential human development due to disparities.
3. India’s Case: India’s HDI (2023) is around 0.644 (rank ~134), but its IHDI drops significantly because of disparities in gender, region, and caste, especially in education and health access.
Conclusion
IHDI is a truer measure of inclusive growth as it reflects not only development levels but also how equitably the benefits are shared, guiding policy toward equity-centered progress.
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