India low on inclusive growth, development: World Economic Forum
Geneva: The World Economic Forum (WEF) has ranked India globally towards the lower end on most of the parameters indicative of inclusive growth and development, although the country fares much better on the scale business and political ethics.
India has mostly been ranked in the bottom half of the 38 countries that make up our lower middle income bracket, in the first such global rankings issued by the Switzerland-based think tank.
Areas where India ranks low include fiscal transfers, where it ranks 37 out of 38, on “tax code” at 32nd, and 36th on social protection.
WEF said another area that policymakers in India would need to prioritise improvement would be “Asset building and entrepreneurship”, especially in the sphere of “Small business ownership”, where India ranks at the bottom at 38th place.
WEF, however, said India demonstrates leadership in other areas like corruption and rents, where it comes 8th.
India ranks 12th in business and political ethics, while it ranks 11th on the “Financial intermediation of real economy investment pillar”, which is an indicator of the fact that money invested in the economy generally gets directed towards productive uses.
Ranking countries in terms of their per capita income levels, the World Economic Forum found that most countries are missing major opportunities to reduce income inequality, which is also the case with India.
“Our message is unequivocally that leaders must pursue economic strategies that are at the same time pro-growth and pro-labour,” WEF, which organises the noted economic conclave in Davos, Switzerland, said while releasing the report here.
It said the new study, conducted over the last two years, seeks to identify the various ways policymakers can drive economic growth and equity at the same time – and assesses them on their relative success in implementing them.
WEF said its first Inclusive Growth and Development Report covering 112 economies presents a new framework for assessing countries’ efforts to foster economic growth that raises the living standards of entire societies.
“Around the world, no bigger policy challenge preoccupies political leaders than expanding social participation in the process and benefits of economic growth,” WEF said.