Nowadays we often read and hear in the news that India's economy is the fastest growing economy in the world.
But do you know that what is developed economy, how it works, what is HDI index?
In today's fast digital age, even news goes viral like songs and YouTube videos. No one has time to go into the depth of the news,
Standard criteria for evaluating a country's level of development are income per capita or per capita gross domestic product, the level of industrialization, the general standard of living, and the amount of technological infrastructure.
Noneconomic factors, such as the human development index (HDI), which quantifies a country's levels of education, literacy, and health into a single figure, can also be used to evaluate an economy or the degree of development.
• Countries with relatively high levels of economic growth and security are considered to have developed economies.
• Common criteria for evaluation include income per capita or per capita gross domestic product.
• If per capita gross domestic product is high but a country has poor infrastructure and income inequality, it would not be considered a developed economy.
• Noneconomic factors, such as the human development index, may also be used as criteria.
• Developing economies are often helped by globalization to reach improved levels of income and increased standards of living.
Developed Economy
The most common metric used to determine if an economy is developed or developing is per capita gross domestic product (GDP), although no strict level exists for an economy to be considered either developing or developed. Some economists consider $12,000 to $15,000 per capita GDP to be sufficient for developed status while others do not consider a country developed unless its per capita GDP is above $25,000 or $30,000. The U.S. per capita GDP in 2019 was $65,111.
For countries that are difficult to categorize, economists turn to other factors to determine development status. Standard-of-living measures, such as the infant mortality rate and life expectancy, are useful although there are no set boundaries for these measures either. However, most developed economies suffer fewer than 10 infant deaths per 1,000 live births, and their citizens live to be 75 or older on average.
A high per capita GDP alone does not confer developed economy status without other factors. For example, the United Nations still considers Qatar, with one of the world's highest per-capita GDP in 2021 at around $62,000, a developing economy because the nation has extreme income inequality, a lack of infrastructure, and limited educational opportunities for non-affluent citizens.1
Examples of countries with developed economies include the United States, Canada, and most of western Europe, including the United Kingdom and France.
The Human Development Index
The UN's Human Development Index (HDI) looks at three standards of living criteria—literacy rates, access to education, and access to health care—and quantifies this data into a standardized figure between zero and one. Most developed countries have HDI figures above 0.8.
With 8-9% growth, it will take 20 years for India to become developed nation
Noting that the achievement of USD 5 trillion economy is a short term "aspirational goal," former RBI Governor C Rangarajan on Saturday said even after that India will still be known as middle income country with per capita income USD 3472.
Rangarajan further said in order to reach the level of an upper middle-income country, it will take another two years and to be classified as a developed country, the per capita income will have to be at a minimum of USD 13,205 and that will take more than two decades of strong growth of between 8 to 9 per cent to achieve it.
But in terms of per capita income, India's rank according to IMF is 142 out of 197 countries.
' Nation first, always first'. We all fundamentally not belive in manipulation in data, corruption etc. But I forgot to share that India ranks 85 among 180 countries in Global Corruption Index!!!!
No country is proven to be good only by statistical numbers, but fundamental honesty is also required in the process of extracting those statistical errors.
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