The World Economic Forum ranked India at 62nd position in the list of emerging economies, while arch-rivals of India i.e. China and Pakistan were ranked at 26th and 47th position respectively. According to the Inclusive Development index shared by the World Economic Forum, Norway continues to be the worlds Number 1 inclusively advanced economy, with Lithuania as the Number 1 of all emerging economies in the world. The Forum announced these rankings during a meet to release the annual index that was attended by PM Modi, President Trump and other leaders.
What does the Index measure when ranking the Emerging Economies?
The index is measured after assessing several parameters, including standard of living, the sustainability of the environment and the measures taken to protect the coming generations from going into a mounting debt.
At the annual meeting, the World Economic Forum encouraged the leaders to shift to inclusive development and growth models. It also stated that using GDP as a measure of growth only leads to inequality and short-term realisation of goals.
Emerging Economies Ranking by The World Economic Forum
Last year, India ranked at number 60 amongst the 79 emerging economies, while China was at number 15 and Pakistan at 52.
The 2018 index, measures the progress made by 103 emerging economies based on 3 parameters:
- Growth and Development
- Equity in terms of inter-generation
This has further been divided into a measure of 29 economies that fall under the ‘advanced’ group and 74 economies as ’emerging’. Although India ranks low, it is one of the top 10 emerging economies that shows an ‘advancing’ graph. Of the 29 advanced economies, only 2 have shown an ‘advancing’ graph.
Since 2012, China has been ranked on top of the list of emerging economies in GDP and growth of labour productivity. The ranking, however, has been greatly affected by poor performance in terms of inclusivity, as reported by the World Economic Forum.
India’s Emerging Economies Trend
- India has been categorized as an ‘advancing’ economy
- In the Inclusivity parameter, India ranks at 72
- In the Growth and Development Parameter, India ranks at 66
- In the equity for inter-generation, India ranks at 44