1. Institute for Human Development
Globalizing India
Dev Nathan
Institute for Human Development
New Delhi
Duke University, USA

2. Why Economic Growth? For itself? As means to human development?
Two measures
Economic development – GDP or GDP per capita
Human development – HDI
Is there a relation between GDP (GNI) and HDI?

3. HDI Three components of HDI Income Educational attainment
Health /nutrition status
Is there a relation between income (GDP) and human development (HDI)?
As component
As instrumental variable

5. GNI and HDI Low HDI – Avg. 0.456 Medium HDI – Avg. 0.630
High elasticity of HDI with respect to GNI (>1)
Medium HDI – Avg
Medium elasticity (0.75 to < 1)
High HDI – Avg
Low elasticity (between 0.50 to 0.75)
Very High HDI – Avg
Very low elasticity

6. HDI of Regions Arab States - 0.641 East Asia and the Pacific - 0.671
Europe and Central Asia
LA and C
South Asia
Sub-Saharan Africa
LDCs

7. Does we need economic growth for human development?
Distinguish between countries at different HDI levels
Need for growth falls with increase in HDI
Our need for growth as instrumental to human development is different from the need of capital to grow

8. Structure of world economy
Developing economies – middle to low income, including emerging economies
Developed economies – high income
Asia, Africa and Latin America
Market of about $12 trillion, or 36 percent of global gross domestic product in 2012, up from 10 percent in 1980

9. Projected Income for India by OECD

10. Size of economies GDP - per capita income and population size
With population more than thrice that of USA, at one-third the per capita income, the Chinese and Indian economies will be larger than that of the US
In PPP terms even earlier

11. Growing Openness of the Indian Economy?

12. Key External Debt Indicators

13. India: Poverty Ratio among Social Groups, 1993-94, 2004-05 and projected to 2015-16