Even though India fares much better internationally in business and political ethics, it has fared very low on parameters of inclusive growth and development in a ranking given across different groups of countries in terms of their per capita income levels. In their new study the WEF has found that most countries including India are missing major opportunities to reduce income inequality.
WEF has said that the study, which was conducted over the past two years, seeks to identify the various ways in which policymakers drive economic growth and equity at the same time. The study then assesses them on their relative success in implementing these measures.
“Our message is unequivocally that leaders must pursue economic strategies that are at the same time pro-growth and pro-labour,” said the Geneva-based think tank which is known for its economic conclaves that are held in different parts of the world including in Davos, Switzerland and India.
India has mostly been ranked in the bottom half of the group of 38 countries that make up the lower middle income bracket.
Particularly disappointing is India’s position in terms of Fiscal Transfers where it ranks 37th out of 38. It also ranks very low at the 32nd spot for Tax Code and 36th for social protection.
WEF study also said that policymakers in India need to prioritise and improve in ‘Asset building and entrepreneurship’, especially in the Small business ownership, where India ranks at the last spot among its peers.
However, it is not all bad news for India. India does demonstrate leadership in some areas. In business and political ethics, India ranks 12th, while it ranks 11th in financial intermediation of real economy investment pillar, which suggests that money invested in the economy generally gets directed towards productive uses.
WEF has said that its first Inclusive Growth and Development Report presents a new framework for assessing countries’ efforts to foster economic growth that raises the living standards of its 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 while releasing the report that covers 112 economies.
(With inputs from PTI)