Economic Growth vs Economic Development

📊 High-Yield Data & Statistical Fact Sheet

Cue Words	Notes
US Nominal GDP (IMF 2025-26)	$30.5 Trillion (#1 Globally).
China Nominal GDP	$19.2 Trillion (#2 Globally).
Germany Nominal GDP	$4.74 Trillion (#3 Globally).
India Nominal GDP	**~$4.15 Trillion, slipped to #6 globally** (IMF, April 2026 WEO) — behind USA, China, Germany, UK (#5, $4.26T), and Japan. **Cause of slippage**: (1) new GDP series with base year 2022-23 lowered the FY26 estimate (~3-4% correction); (2) Rupee depreciated **~11%** against the USD, shrinking the dollar-denominated GDP figure. IMF projects India regaining **4th position by 2027** (~$4.58T) on the back of the fastest real GDP growth (**~6.5%**) among major economies.
Accounting Standard	Formulated under UN System of National Accounts (SNA 2008).
Data Source (MCA-21)	NSO utilizes MCA-21 database (electronic financial filings under MCA) replacing physical factory surveys.
Base Year Shift	NSO Advisory Committee (chaired by Prof. B.N. Goldar) recommended transitioning base year from 2011-12 to 2022-23.
PPI Transition	Ramesh Chand Working Group (NITI Aayog) recommended replacing WPI with Producer Price Index (PPI) to eliminate tax bias and integrate services.
Multidimensional Poverty (MPI)	National MPI (NITI Aayog 2024-25): Reduced to 11.28% (from 29.17% in 2013-14). ~13.5 crore people escaped multidimensional poverty.
World Happiness Report (2026)	India ranks 116th of 147 countries (Finland ranks 1st) — up from 118th (2025) and 126th (2023), a steady improvement.
Global Hunger Index (2025)	India ranks 102nd of 123 countries (Score: 25.8 — still classified as 'Serious', though improved from 105th/127 in 2024).
Human Development Report 2025 (UNDP)	India ranks 130th of 193 countries, up from 133rd (2022 report). HDI value rose to 0.685 (still 'Medium' category, nearing the 0.700 'High' threshold). Life expectancy rose to 72 years; expected years of schooling to 13 years; mean years of schooling to 9 years. Report theme: 'A Matter of Choice: People and Possibilities in the Age of AI'.

1. STRUTTING THE DIVERGENT INDICATORS

Cue Words	Notes
Economic Growth	A quantitative increase in a nation's aggregate output (Real GDP/GNI) over a designated accounting period: **Growth Rate (%)** = [ (**GDPt** − **GDPt-1**) ÷ **GDPt-1** ] × **100**
Economic Development	A multidimensional qualitative process addressing structural transformations, equity, poverty reduction, standard of living, literacy, and environmental sustainability.
Composite Development Index (Rajan Committee, 2013)	Multi-index framework allocating equal weightage to 10 sub-components (MPCE, Education, Health, Amenities, Poverty rate, Female literacy, SC/ST %, Urbanization, Financial inclusion, Connectivity) to rank state underdevelopment.
11th Five-Year Plan Focus	Focuses on "Faster and More Inclusive Growth".
12th Five-Year Plan Focus	Focuses on "Faster, More Inclusive, and Sustainable Growth".

1B. HISTORICAL GDP TRAJECTORY & GROWTH PHASES

Cue Words	Notes
Angus Maddison Database — India's Historical GDP Share	- India + China contributed **50.5%** of global GDP in 1000 AD; by 1600 AD combined share rose to 52% (China 29%, India 23%). - India's share fell to **16.1%** by 1820 (early colonialism) and collapsed to just **3%** by 1947, while its share of global trade fell from 33% (1600) to under 3% (1947). - Dadabhai Naoroji's *"Poverty and Un-British Rule in India"* gave India's first national income estimate (1867-68): ₹340 crore, per-capita ₹20/annum.
Colonial 'Drain of Wealth' & Home Charges	**Drain Theory**: Explained by Dadabhai Naoroji, R.C. Dutt; Philip Francis (1776) classified drain into 4 streams — Company investment, inter-presidency remittances, transfer of private income, and transfer of revenue from private trade/investment. **Home Charges** (1858-1947): Official UK transfers covering Company dividends, railway-guarantee interest, army costs, and India Office salaries — ₹10 crore paid 1829-65, rising to £40-50 million/year by the 1930s. 1600-1947: India's per-capita income rose only 12%; Britain's rose 553% over the same period (Maddison).
Hindu Rate of Growth (Raj Krishna, 1978)	- Term describing India's slow **~3.5%** annual GDP growth (per-capita ~1.3%) from the 1950s-1980s under planned economy. - Sixth Plan (1980-85) first broke this pattern via higher govt spending and liberalised import policy.
Post-1991 Growth by Plan Period	- 8th Plan (1992-97): 6.7%; 9th Plan (1997-2002): 5.3%; 10th Plan (2002-07): 7.6% (2002-03 to 2006-07 alone: 8.6% p.a., 2nd fastest globally after China). - Pre-COVID trend growth (2008-09 to 2019-20 avg): 6.5%; FY2019-20 slowed to 4.0% amid structural bottlenecks pre-pandemic.
2008 & COVID-19 Shocks — Policy Response	**2008 GFC**: 3 fiscal stimulus packages totalling ₹1.86 Lakh Crore (3.5% of GDP); RBI injected ~₹5.6 Lakh Crore (~9% of GDP) liquidity. **COVID-19**: GDP contracted 23.8% in Q1 2020-21 (worst among G20), recovering to +0.7%/+2.5% in Q3/Q4; full-year contraction -6.6%. FY2021-22 rebound: +8.7% (Nominal GDP ₹236.65 Lakh Crore vs ₹198.01 Lakh Crore). Sector recovery pattern: Agriculture "Resilient" throughout; Trade/hotels/transport "Still Suffering" (-10.9% vs pre-pandemic trend); Financial/real estate/professional services "Resilient" (+6.6%).

2. THE LANDSCAPE OF GLOBAL & REGIONAL INDICES

Cue Words	Notes
HDI Life Expectancy Dimension	Measured by Life Expectancy at Birth (global limit cap set at 72 years).
HDI Knowledge Dimension	Measured by Mean Years of Schooling (adults 25+) and Expected Years of Schooling (entering children).
HDI Standard of Living Dimension	Measured by Gross National Income (GNI) per capita at PPP USD.
IHDI (Inequality-Adjusted HDI)	Discounts each dimension's average value by its level of internal inequality.
PHDI (Planetary Pressures-Adjusted HDI)	Discounts standard HDI score by per capita carbon dioxide emissions and material footprint.
Global Gender Gap Index (GGGI) 2025	Published by WEF | India Rank: 131st / 148 (down from 129th in 2024), parity score 64.1% (vs global average 68.8%). Women spend ~289 minutes/day on unpaid domestic work (3x men) and earn ~73% of male wages on average.
Gender Inequality Index (GII)	Published by UNDP | India Rank: 102nd / 172 (2023 data, Score: 0.403) — improved from 108th (Score 0.437) in the 2022 report.
World Happiness Report	Published by UN SDSN | India Rank: 126th.
World Inequality Report 2026	Top 10% capture 58% of national income; Bottom 50% capture 15%. Top 10% hold 65% of national wealth; Top 1% holds ~40%.
4 Pillars of Human Development (Mahbub ul Haq)	**Pillars**: (1) **Equity** (equal access to opportunities), (2) **Sustainability** (inter-generational resource access), (3) **Productivity** (capability building), (4) **Empowerment** (freedom to act).
HDI Tier Thresholds (UNDP)	**Very High**: **≥ 0.800** | **High**: **0.700 – 0.799** | **Medium**: **0.550 – 0.699** (India category) | **Low**: **< 0.550**.
Gender Development & Inequality Indices	**Gender Development Index (GDI)**: Ratio of female-to-male HDI values published by UNDP. **Gender Inequality Index (GII)**: Measures loss of potential due to inequality across 3 dimensions: (1) *Reproductive Health* (MMR & Adolescent Birth Rate), (2) *Empowerment* (Parliamentary seats & Secondary education), (3) *Labour Market Participation*.
World Happiness Report (6 Variables)	Published by UN SDSN based on Gallup World Poll across 6 variables: (1) GDP per capita (PPP), (2) Social support, (3) Healthy life expectancy, (4) Freedom to make life choices, (5) Generosity, (6) Perceptions of corruption.
Gross National Happiness (GNH - Bhutan)	Coined by King Jigme Singye Wangchuck (1970s). **4 Pillars**: (1) Good Governance, (2) Sustainable Socio-Economic Development, (3) Cultural Preservation, (4) Environmental Conservation (33 indicators across 9 domains). **Indian State Adaptations**: **Madhya Pradesh** (1st state, 2016) and **Andhra Pradesh** (2nd) set up dedicated *Happiness Departments*. Delhi launched the *Happiness Curriculum* (2018).
OECD Better Life Index & PQLI	**OECD Better Life Index**: Evaluates well-being across 11 topics (Housing, Income, Jobs, Community, Education, Environment, Civic Engagement, Health, Life Satisfaction, Safety, Work-Life Balance). **Physical Quality of Life Index (PQLI)**: Developed by Morris D. Morris (1970s). Average of 3 statistics: (1) **Basic Literacy Rate**, (2) **Infant Mortality Rate**, (3) **Life Expectancy at Age 1**.
WEF Inclusive Development Index (IDI)	Published by WEF evaluating progress on 3 pillars: (1) Growth & Development, (2) Inclusion, (3) Inter-generational Equity.
World Bank Country Classification (PCI USD)	**Low Income**: **< $1,005** **Lower-Middle Income**: **$1,006 – $3,995** (India's classification at ~$2,500) **Upper-Middle Income**: **$3,996 – $12,235** **High Income**: **> $12,235**
Inclusive Growth Features & Elasticity	**Features**: Reduction of vertical (income class) and horizontal (caste/gender/region) inequalities; balanced 3-sector growth. **Poverty Elasticity**: Higher elasticity of poverty reduction (lifts poor out of poverty faster than growth alone). Combines trickle-down with direct targeted welfare.

3. SECTORAL COMPOSITION SHIFT & ORGANISED VS UNORGANISED ECONOMY

Cue Words	Notes
GVA Share by Sector — Long-Run Shift (NSO)	**1950-51**: Agriculture 51.8% | Industry 14.2% | Services 33.3%. **1990-91**: Agriculture 29.0% | Industry 26.5% | Services 44.2% (services overtook agriculture as largest by 1980-81: Services 38% vs Agri 36.1%). **2021-22**: Agriculture 18.6% | Industry 28.6% | Services 52.8%. Industry's GVA share rose from ~17% (1950-51) to 29% (2021-22).
Agriculture & Employment Snapshot	Agriculture employs ~54.6% of workforce (Census 2011) but contributes only ~17.8% of GVA (2019-20) — the core productivity-employment mismatch. Net sown area: 139.4 million ha; gross cropped area: 200.2 million ha; cropping intensity 143.6% (Land Use Statistics 2016-17).
Agricultural Revolutions — Field & Leader	**Green** (Agriculture, M.S. Swaminathan, 1966-78) | **White/Operation Flood** (Milk, Verghese Kurien, 1970-96) | **Blue** (Fish & Aqua) | **Yellow** (Oilseeds) | **Golden** (Fruits/Horticulture) | **Pink** (Pharma/Onion/Prawns) | **Silver** (Eggs) | **Round** (Potato) | **Grey** (Fertilisers) | **Evergreen** (Overall agri. production, M.S. Swaminathan, 2014-22).
Organised vs Unorganised Sector (NCEUS Definition)	**NCEUS**: Unorganised sector = unincorporated private enterprises owned by individuals/households, proprietary or partnership basis, with **fewer than 10 total workers**. **Organised**: Governed by Factories Act, Bonus Act, PF Act, Minimum Wages Act; fixed salary, job security, employer PF contribution. Agriculture is the largest unorganised sector — accounts for >90% of all unorganised labour (~93.4% of the ~40 crore-strong unorganised workforce).
Sunrise Sectors	Green Energy, Fintech, IT, Electronics, Pharma, Automobiles, Healthcare, Infrastructure, Retail, Processing Plants.

4. HDI ORIGINS, THE PMF DEBATE & THE PSU RATIONALE (Ramesh Singh Framing)

Cue Words	Notes
HDI's Original 1990 Architecture (First HDR)	First **Human Development Report** (1990) team led by **Mahbub ul Haq** and **Inge Kaul** (UNDP); original HDI used only 3 equally-weighted parameters: (1) Standard of Living (real per-capita income at PPP), (2) Knowledge (2/3 weight: adult educational attainment; 1/3 weight: school enrolment), (3) Life Expectancy at birth. Original (pre-2010) UNDP tiering: **High** 0.800–1.000 | **Medium** 0.500–0.799 | **Low** 0.000–0.499 — a 3-tier scale, distinct from today's 4-tier system. **LSE Satire (1999)**: An intellectual critique index by London School of Economics scholars, using idiosyncratic proxies (e.g., lock sales as an inverse burglary/'peace of mind' indicator), controversially ranked **Bangladesh as the most developed country**, with USA/Norway/Sweden ranked lowest — illustrating the normative/value-judgment problem in defining "development."
Gross National Happiness (GNH) — Bhutan's Founding & Results	Bhutan has officially followed **GNH since 1972** (4 pillars: higher real per-capita income, good governance, environmental protection, cultural promotion/spiritual values) as an alternative to pure HDI. **UNDP study (Stefan Priesner, 2005)** on Bhutan's 1984–98 period found: life expectancy rose by **19 years**; gross school enrolment reached **72%**; literacy rose from **17% to 47.5%**. UN adopted Bhutan's call for a holistic GNH-style development approach in 2011, endorsed by **68 countries**.
Prime Moving Force (PMF) Debate: Agriculture vs Industry	India chose **Industry** (not Agriculture) as PMF post-independence — despite lacking capital, technology, skilled manpower, and infrastructure prerequisites — driven by: (1) avoiding the "backwardness" stigma attached to agriculture-led growth (dominant WB/IMF ideology until the 1990s), (2) WWII-proven link between industrial base and defence capability, (3) a socio-political consensus favouring modernisation/scientific temper over "traditional" agrarian life. China, by contrast, chose Agriculture as PMF (1949), using agricultural surplus to fund 1970s industrialisation. **2002 Policy Reversal**: The **Tenth Plan (2002-07)** officially declared **Agriculture as the PMF**, reasoning it would simultaneously solve (a) food security via export surplus, (b) poverty alleviation via higher rural incomes, (c) the "market failure" problem (65%+ of population then earned only ~18.5% of GDP from agriculture, starving industrial goods of a mass market). **Supporting Policy Package (2000s)**: New Agriculture Policy (2000); National Agricultural Insurance Scheme (1999-2000); EXIM Policy 2002-07 (empirically, a 1% rise in agri-exports adds ~₹8,500 crore to the sector); Second Green Revolution (2004, ₹50,000 crore initial corpus); Bharat Nirman (2005, 6-item rural infrastructure push).
Core Industries & the PSU Rationale (Historical Base 2004-05)	**8 Core Industries** (post-1950s expansion of the original 6 'basic/infrastructure industries' — Iron & Steel, Cement, Coal, Crude Oil, Oil Refining, Electricity — plus Natural Gas & Fertiliser): combined weight **37.90%** in the IIP (Base 2004-05=100). Individual weights: Electricity 10.32%, Steel 6.68%, Petroleum Refinery 5.94%, Crude Oil 5.22%, Coal 4.38%, Cement 2.41%, Fertiliser 1.25%, Natural Gas 1.71%. **5-Fold PSU Rationale (why India built a giant public sector)**: (1) Infrastructure Needs (power/transport/communication needed heavy capital+tech unavailable to private sector), (2) Industrial Needs (the 6 basic industries required for industrialisation), (3) Employment Generation (PSUs as "trickle-down" jobs + reservation-policy vehicle), (4) Profit funding the Social Sector (PSU dividends meant to finance public goods — education, health, water), (5) Enabling Rise of the Private Sector (PSU-built infrastructure/basic-industry base was to seed downstream private industrialisation).

5. IPR 1948/1956, LICENSE RAJ MECHANICS & THE 1991 CRISIS BY THE NUMBERS

Cue Words	Notes
Industrial Policy Resolution (IPR) 1948 — 4-Way Schedule	**State Monopolies**: Arms/ammunition, atomic energy, railways (exclusive Govt. monopoly). **Basic Industries**: Coal, iron & steel, shipbuilding, aircraft, telephone/telegraph/wireless, mineral oils — under Central control but existing private players allowed to continue. **Regulated Industries**: Automobiles, heavy machinery, chemicals, fertilizers, sugar, paper, cement, textiles — Govt. regulated pricing/quantity. **Private Industries**: All remaining industries left open to private sector and cooperatives — laid the foundation of the "mixed economy."
Calcutta vs Bombay School (1950s Planning Debate)	**Calcutta School (P.C. Mahalanobis)**: Capital-intensive, public-sector-led heavy industrialisation (steel, machinery) — won out and shaped the 2nd FYP; also called the Mahalanobis model. **Bombay School (C.N. Vakil & P.R. Brahmanand)**: Advocated deploying surplus/disguised-unemployed rural labour into low-capital "wage goods" production (clothes, toys, bicycles) for quick returns — the road not taken. **IPR 1956**: Reserved **17 industries** exclusively for the public sector (iron & steel, mining, machine tools, heavy electricals), divided into Schedule A/B/C.
License Raj — 5 Stated Purposes & MRTP Act Timeline	Licensing (under the **Industries (Development & Regulation) Act, 1951**) aimed to: (1) create planned investment patterns, (2) counteract monopoly/wealth concentration, (3) maintain regional balance, (4) protect small-scale producers, (5) encourage optimum plant scale & technology. **MRTP Act 1969**: Business groups with combined assets **> ₹20 crore** declared a "monopoly" and barred from expansion. Limit raised **5x to ₹100 crore** by Rajiv Gandhi govt. (mid-1980s); scrapped entirely in **September 1991** (Narasimha Rao govt.). **Small-scale reservation**: First formal SSI definition in 1955; 47 items reserved in 1967, rising to **over 800 items** by March 1987 — de-licensed to nil by April 2015.
1965-69 Vulnerability & the 1966 Devaluation Episode	Two monsoon failures (1965-66) + 1962/1965 wars pushed fiscal deficit to 7.3% of GDP (1966-67); forex reserves fell to $340 million (1964-65) — under 2 months of import cover. US suspended aid and the PL-480 food-aid agreement post the 1965 Indo-Pak war; rupee devalued 36.5% under Indira Gandhi (mid-1960s) — but partial liberalisation was reversed, leading to bank nationalisation (1969), MRTP Act (1969), insurance nationalisation (1972), coal nationalisation (1973), and FERA (1973).
1991 BoP Crisis — Precise Numbers	By June 1991: forex reserves down to ~$1 billion (under 2 weeks of imports); short-term debt ~$6 billion (of which $2bn rolled over every 24 hours); NRI deposit outflows >$10 billion. Govt. pledged 67 tonnes of gold as collateral to the Union Bank of Switzerland and Bank of England (April-July 1991) to raise >$600 million. Pre-crisis (1990-91): fiscal deficit 8.4% of GDP, current account deficit 3.1%, inflation 17%.
1991 Tax & Trade Reform — Specific Rate Cuts	Max marginal personal income tax: 56% → 40%. Corporate income tax (listed companies): 51.75% → 46%. Customs duty (average): ~200% → 65%. Foreign equity: automatic approval up to 51% in 34 industries (beyond that, Govt. approval needed); FERA 1973 replaced by FEMA 1999. Rupee devalued ~24% in July 1991; moved to market-based (floating/managed-float) exchange rate in March 1993 — full convertibility on current account, partial on capital account.
Short-Term Reform Impact (1991-94)	Inflation: 17% (Aug 1991) → ~8.5% within 2.5 years. Forex reserves: $1.2bn (June 1991) → >$15bn (1994). GDP growth: 1.1% (1991-92) → 4% (1992-93). Fiscal deficit: 8.4% → 5.7% (1992-93). Exports more than doubled (1990-91 to 1993-94).
Long-Term Impact: Poverty & Inequality	Poverty headcount (Planning Commission): 36% (40.7 cr, 1993-94) → 27.5% (35.5 cr, 2004-05); Tendulkar estimate: 21.9% (26.9 cr) in 2011-12. Gini coefficient (NCAER, rural+urban income): 0.52 (2004-05) → 0.55 (2011-12) — poverty fell faster but inequality rose post-reform. China-India comparison: China's 1978 per-capita income was lower than India's; by the 2010s it was ~5x India's, attributed to China's bottom-up, agriculture-first reform sequencing (1978, Deng Xiaoping) vs India's top-down, industry/services-first 1991 reforms that bypassed agriculture.

6. GLOSSARY: SPATIAL & SUSTAINABLE GROWTH CONCEPTS

Cue Words	Notes
Agglomeration Economy	A localised economy where many firms/industries/services cluster near each other, gaining cost reductions and efficiency from proximity (shared infrastructure, labour pools, suppliers).
Circular Economy	An industrial system designed to be restorative/regenerative — replaces "end-of-life" disposal with restoration, shifts to renewable energy, eliminates toxic inputs, and designs out waste through superior product/system design.

7. FUNDAMENTALS CHECK — CLASSICAL GROWTH & DEVELOPMENT THEORIES

Cue Words	Notes
Growth Is Necessary But Not Sufficient for Development	Economic Growth (quantitative rise in output) can occur without Economic Development (qualitative improvement in living standards, equity, and structural transformation) — e.g., growth concentrated in a few sectors/regions with rising inequality. Development, however, is rarely possible without underlying growth. Hence: growth is necessary but not sufficient for development.
Rostow's Stages of Economic Growth (1960)	W.W. Rostow proposed a linear 5-stage model: (1) Traditional Society (subsistence agriculture, limited technology), (2) Preconditions for Take-off (emerging banking/infrastructure, external trade), (3) Take-off (rapid industrialisation, rising investment rate, key leading sectors), (4) Drive to Maturity (diversified industrial base, technology diffusion), (5) Age of High Mass Consumption (durable-goods/services-led consumption economy).
Balanced Growth Theory (Ragnar Nurkse)	Nurkse argued underdeveloped economies are trapped in a "vicious circle of poverty" (low income → low savings → low investment → low productivity → low income) on both supply and demand sides. Prescribed simultaneous, coordinated investment across many industries/sectors so that each creates demand for the others' output, breaking the vicious circle via balanced expansion of the market.
Unbalanced Growth Theory (Albert Hirschman)	Countered Nurkse: developing economies lack the capital/entrepreneurial resources for balanced across-the-board investment. Advocated deliberately unbalanced investment in strategic "leading" sectors (esp. infrastructure/core industries) to create linkages — backward linkages (demand for inputs) and forward linkages (supply to downstream users) — that induce private investment elsewhere via deliberately created shortages/imbalances.
Big Push Theory (Rosenstein-Rodan, 1943)	Argued that small, piecemeal investments fail in underdeveloped economies due to indivisibilities and external economies; a large, simultaneous ("big push") wave of investment across complementary industries is needed to cross the threshold into self-sustaining growth — conceptually the intellectual precursor to Nurkse's balanced-growth doctrine.
Sustainable Development vs Development	**Development** focuses on raising current output, income, and living standards. **Sustainable Development** (Brundtland Commission, 1987: *Our Common Future*) is development that **"meets the needs of the present without compromising the ability of future generations to meet their own needs"** — explicitly embeds inter-generational equity and environmental limits, which plain "development" does not require.

8. NATIONAL INCOME AGGREGATES: GCF, GFCF, ICOR, GVA, GNP & DEFLATOR MECHANICS

Cue Words	Notes
GCF, GFCF & ICOR	**GCF (Gross Capital Formation) = GFCF + Valuable Metals + Change in stock/inventory**. **GFCF (Gross Fixed Capital Formation)** = machinery + equipment + building + cultivated biological resources + Intellectual Property. **GFCF ≈ 30%** (of GDP, roughly). **ICOR = Change in Capital / Change in Output**. **Higher ICOR ⇒ lower productivity**. **Investment = Production of Capital Goods**.
Savings in India	**Household Savings** — **largest portion (59%)**. Held mostly in the form of **physical assets, followed by financial assets and gold**.
GVA — Definition & Price Variants	**GVA = value of output − value of intermediate consumption**; a measure of the contribution to GDP made by an individual producer, industry or sector. It is the **main entry on the income side of the nation's balance sheet ⇒ represents the supply side**. **GVA at Factor Cost (FC)** ⇒ does **not** include any taxes. **GVA at Basic Prices = GVA at FC + (Production taxes − Production subsidies)**. **GVA at Market Prices = GVA at Basic Prices + (Product taxes − Product subsidies)**. Corresponding chain: **FC + Net Production Taxes = Basic Prices**; **Basic Prices + Net Product Taxes = Market Prices**.
GNP	**GNP = GDP + NFIA (Net Factor Income from Abroad)**. GNP is **both a quantitative and a qualitative concept** — since it also accounts for the **quality of human resources** of citizens. **India's GNP is always less than GDP** ⇒ since Indians abroad generate less income compared to foreigners operating in India. **GNP measured from April 1 to March 31**.
GDP Deflator	Covers the entire range of goods & services produced in the economy. Available on a quarterly basis (when GDP data is released). Ratio of Nominal/Real GDP. Calculated by the CSO. (Older attribution; the CSO has since been merged with the NSSO into the NSO under MoSPI — see the NSO fact below.)
Total Factor Productivity (TFP)	**GDP divided by the weighted average of labour and capital input**. Gives **real output growth**.

9. WELFARE & DEVELOPMENT MEASURES: GNH, HDR INDEX FAMILY, MPI DIMENSIONS & DALY

Cue Words	Notes
GNH — Source Additions (Methodology & Ranking)	**4 Pillars**: Good Governance, Sustainability, Cultural preservation, Environmental conservation. **Coined by Jigme Singye Wangchuck (4th King of Bhutan) in the 1970s**. Constructed on a robust multidimensional methodology known as the **Alkire-Foster method** (a special technique for measuring poverty or wellbeing). **UNSDSN World Happiness Report, 2019: India = 140/156**. *(Older figure; superseded by the World Happiness Report ranks recorded in the fact sheet and Section on welfare indices above.)*
HDR — 5 Indices	The Human Development Report carries 5 indices: HDI, Inequality-Adjusted HDI (IHDI), Gender Development Index (GDI), Multidimensional Poverty Index (MPI), and Gender Inequality Index (GII).
HDI — Dimension/Indicator/Range Table (as transcribed)	Dimensions Indicators Min. India Max. Dimension Indices 1. Health Life expectancy at birth 20 68.3 85 yrs Life expectancy index 2. Knowledge (for ≥ 25 yrs) Mean years of schooling 0 6.3 yrs 15 Education index 3. Standard of living Expected years of schooling / Combined Enrollment Ratio 0 11.7 yrs 18 Education index GNI per capita 100 — 75,000 GNI index (GDP per capita ×) (Cells partially OCR-truncated in the source; transcribed as-is. India's dimension values here are older HDR-vintage figures — see the current HDR row in the fact sheet above.)
Gender Development Index (GDI)	**GDI = Female HDI / Male HDI**. Uses the **same standards as HDI** ⇒ Health, Education, Living Standards.
Multidimensional Poverty Index (MPI) — Dimensions & Deprivation Indicators	Dimension Indicator Deprived if living in the household where... Health Nutrition An adult under 70 years of age or a child is undernourished. Health Child mortality Any child under the age of 18 years has died in the five years preceding the survey. Education Years of schooling No household member aged 10 years or older has completed six years of schooling. Education School attendance Any school-aged child is not attending school up to the age at which he/she would complete class 8. Standard of living Cooking fuel The household cooks with dung, wood, charcoal or coal. Standard of living Sanitation The household's sanitation facility is not improved (according to SDG guidelines) or it is improved but shared with other households. Standard of living Drinking water The household does not have access to improved drinking water (according to SDG guidelines) or safe drinking water is at least a 30-minute walk from home, round trip. Standard of living Electricity The household has no electricity. Standard of living Housing Housing materials for at least one of roof, walls and floor are inadequate: the floor is of natural material and/or the roof and/or walls are of natural/rudimentary materials. Standard of living Assets The household does not own more than one of these assets: radio, TV, telephone, computer, animal cart, bicycle, motorbike or refrigerator, and does not own a car or truck.
Disability Adjusted Life Years (DALY)	Expresses **premature mortality and disability**. Made up of: **Years of Life Lost (YLL)** ⇒ premature death before average life expectancy; and **Years of Life Lived with Disability (YLD)**. **DALY = YLL + YLD** — portrays the **total health loss** a person experiences during their life. **1 DALY = loss of 1 year of full health**.
Mathew Effect	**Middle classes tend to be the main beneficiary of social benefits and services targeted at the poor**. "Rich get richer, poor get poorer."