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 ?

Same dimensions

Both use life expectancy, schooling and GNI per capita (PPP), combined as a geometric mean.

Inequality discount

The IHDI cuts each dimension by its Atkinson inequality measure, so it equals the HDI only under perfect equality.

India's gaps

India's loss comes from uneven schooling, incomes and health across gender, caste and region, even as life expectancy reached about 72 years. HDR 2025 also flags low female labour force participation.

Shared gains

Inclusive growth means gains for every group; the IHDI rises only when the bottom catches up, while the HDI can rise on concentrated gains.

Policy targeting

Its dimension-wise losses show whether health, learning or livelihoods need priority.

With poverty data

Read with NITI Aayog's MPI, which fell from 55.3% in 2005-06 to an estimated 11.28% in 2022-23, it tests whether outcomes are also converging.

Limits

It relies on surveys and misses overlapping deprivations, so it complements the HDI.