Inequality-adjusted Human Development Index: States in India

Mungila Hillemane, Suryanarayana, Ankush Agrawal, and Seeta Prabhu (2011). "Inequality-adjusted Human Development Index: States in India" Paper presented at the 8th annual conference of the HDCA, 6-8 September 2011, the Hague, the Netherlands.

The UNDP Human Development Report (HDR) for 2010 entitled The Real Wealth of Nations: Pathways to Human Development focuses specifically on inequalities in human development attainments across countries. To quantify the potential loss because of such inequalities, the Report introduces three new indices, viz., Inequalityadjusted Human Development Index (IHDI), Gender Inequality Index and Multidimensional Poverty Index. The Government of India (GoI) has been concerned about rising inequalities and uneven distribution of the benefits of growth. Accordingly, the thrust of the XI Five Year Plan (2007-12) was on ‘Inclusive Growth’. The forthcoming XII Five Year Plan is expected to deepen and sharpen the focus on inequalities. In view of the above and the ongoing process of seeking inputs into the XII Plan Approach Paper, this paper presents a methodology and estimates for the Inequalityadjusted HDI for the Indian states. Given the policy emphasis on globalization and inclusive growth, the proposed methodology presents HDI and Inequality-adjusted HDIs with reference to international goalposts. The paper is organized as follows: Section 2 describes the estimator and database used. Section 3 reports on the estimates and implications. The final Section concludes.
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