Davos, Jan 17: India has been ranked 60th among 79 developing economies, even lower than Chi and Pakistan, in the World Economic Forums latest inclusive development index (IDI) report. The WEF’s Inclusive Growth and Development Report 2017, released here on Monday, said that most countries were missing major opportunities to raise economic growth, as well as reduce inequality at the same time, because the growth model and measurement tools require significant readjustment. “India, with a score of only 3.38, ranks 60th among the 79 developing economies on the IDI, despite the fact that its growth in GDP per capita is among the top 10 and labour productivity growth has been strong.” “Poverty has also been falling, albeit from a high level,” the report said.
The IDI is based on 12 performance indicators, and evaluation is based on three key parameters of Growth and Development, Inclusion and Intergeneratiol Equity, and Sustaibility. While India is placed at the 60th spot, among its neighbours Chi is ranked 15th, Nepal is 27th, Bangladesh is ranked 36th and Pakistan is closest ahead of India at 52nd.
Lithuania tops the list of 79 developing economies that also features Azerbaijan and Hungary at second and third positions, respectively.
Others countries in the top ten are Poland (fourth), Romania (fifth), Uruguay (sixth), Latvia (seventh), Pama (eighth), Costa Rica (ninth) and aChile (10th).
The report also noted that India’s debt-to-gross domestic product (GDP) ratio is high, raising some questions about the sustaibility of government spending.
“In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative,” the Intertiol Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) update released in Washington on on Monday. In its first projection on India post the demonetisation of high value currency, the World Bank has also lowered the country’s GDP growth estimate for this fiscal to 7 per cent, from the 7.6 per cent estimate made in June last year. US firm Fitch Ratings has also reiterated its late November downgrading of India’s growth outlook. (IANS)