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), developed by the United Nations Development Programme (UNDP), measures overall human development by combining indicators of health, education, and income. To account for disparities within societies, the Inequality-adjusted Human Development Index (IHDI) was introduced, which adjusts HDI values based on inequality in the distribution of these dimensions.

Body

Difference between HDI and IHDI

• HDI: Measures average achievements in life expectancy, education, and per capita income, but does not reflect inequalities among different social groups.

• IHDI: Adjusts HDI by considering inequality in health, education, and income, thus reflecting the actual distribution of human development.

• India’s Context: While India’s HDI has improved due to economic growth and social programs, the IHDI shows a lower score because of persistent inequalities based on gender, region, caste, and income.

Why IHDI is a Better Indicator of Inclusive Growth

• Captures distributional disparities in development outcomes.

• Highlights inequalities affecting marginalized groups.

• Encourages policies focused on equitable access to health, education, and economic opportunities.

Conclusion

Thus, while HDI reflects average human development, IHDI provides a more realistic picture by incorporating inequality. It is therefore a better indicator for assessing inclusive and equitable development in countries like India.