Page 22 - Policy Economic Report - September 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Inclusive Growth Index (IGI)- UNCTAD

The UNCTAD’s Inclusive Growth Index (IGI) comprehensively measures a country's economic well-being
and inclusivity across four categories: economy, living conditions, equality, and the environment. The IGI
summarizes 27 indicators organized in four categories into a single indicator, thereby offering a
multidimensional perspective on growth that goes beyond traditional economic metrics.

• The first category, economy, encompasses economies’ GDP, national income, power
consumption, employment, and trade using traditional economic indicators.

• The second category, living conditions, focuses on social and health conditions as well as logistics
and finance, using indicators such as the under-five mortality rate, school enrollment, coverage
of essential health services and percentage of people using safely managed drinking water
services.

• The third category, equality, aims to measure equality using indicators such as the income
concentration ratio, gender parity in school enrollment, ratio of female to male employment rate,
difference in female to male labor force participation rate, and others.

• The fourth category, environment, focuses on natural capital protection and energy intensity
using indicators such as carbon dioxide emissions, efficiency of water use and percentage of
terrestrial protected areas.

The IGI is calculated as a geometric average of the indices for the four categories.

The index covers 134 countries representing 95% of the world’s population and 97% of global GDP.
Luxembourg, Norway, and Denmark continue to lead, with only two developing economies
– Singapore and the United Arab Emirates (UAE) – in the top 30. Developing economies show progress.
Singapore, for example, outperforms many developed economies in living conditions, scoring 97.1.
Similarly, Chile, China, Thailand, the UAE, and Uruguay all score above 80 – much closer to the developed
economy median (89.3) than the Global South’s (46.4).

On equality, developing countries like the UEA (91.4), Belarus (87.4), Azerbaijan (73.7) and China (71.4)
surpass or match the developed economy median (73.5), far exceeding the 37.4 median for developing
economies.

India’s story on Inclusive growth

The Union Budget's four priorities for growth: PM Gati Shakti, Inclusive Development, Productivity
Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action and Financing
of Investment – are comprehensive and inclusive, touching on numerous sectors of health, human capital
development, infrastructure, and economic growth.

It lays the foundation for Amrit Kaal and the next chapter of India's growth story, which entails increasing
rural inclusion, as well as the development of a healthy and sustainable future for its residents and cities,
large and small.

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