UPSC Mains 2025 · GS III · Q1 · 10 marks · 150 words

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 ?

हिन्दी में

भारत के विशेष सन्दर्भ में मानव विकास सूचकांक (एच डी आई) तथा असमानता-समायोजित मानव विकास सूचकांक (आई एच डी आई) में भेद कीजिए। आई एच डी आई को समावेशी संवृद्धि का एक बेहतर सूचक क्यों समझा जाता है ?

Inclusive GrowthMacroeconomic Indicators

How a topper answered the closest question

Toppers wrote this one in a test series: “Explain the concept of inclusive growth and its key indicators. How does it go beyond mere economic growth in measuring a nation's progress?”

ApsaraAIR 192 · CSE 2024 · 149 wordsTheir whole copy

Opening · a definition

Inclusive growth involves fair distribution of opportunities to all sections of the society (as per OECD)

Body · points and prose

Diagram
- Key Indicators - Good Governance - Inclusion of Vulnerables - Agricultural development - Employment opportunities & Skilling - Gender Equality - Digital literacy - Financial inclusion

Beyond mere economic growth :

(1) Aims at the development of society as a whole by providing equal opportunities Eg: Reservation policy in educational institutions, Infrastructural development for Divyangs.

(2) Aims in creating employment opportunities Eg: MUDRA loan for MSME Skill India program.

(3) Fostering gender equality brings better economic & social outcomes. Eg: - 128th constitutional Amendment Bill - Priority sector lending by Banks to women

(4) Helps in bringing the population into financial structure Eg: PM-Jan Dhan Yojana Ayushman Bharat Scheme

(5) Helps in better resource distribution & allocation. Eg: DBT of MNREGA wages.

(6) Ensures socio-economic & political opportunities for all

Close · a way forward

Eg: Local self government.

Thus the concept of inclusive growth plays a major role in 'Minimum government & maximum governance' helping to achieve NITI Aayog's goal of INDIA @75.

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Source: UPSC, Civil Services (Main) Examination 2025, General Studies Paper III, Q1. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.