India has contributed most to global prosperity growth, says new report
By UK India Business Council (UKIBC)
According to a new report, India has made the biggest contribution to global prosperity growth over the last decade
Mumbai, India
A new report, conducted by the Legatum Institute, an international London-based think tank, titled the ‘Global Prosperity Index,’ has found India to be the single biggest contributor to growth in global prosperity.
According to the Legatum Institute, prosperity gives a “far truer picture of the life chances for the world’s population, and the performance of nations, than any Index of GDP alone could hope to.” Considering wellbeing – as well as traditional indicators such as wealth – the Prosperity Index has found that India has seen “rapid growth in prosperity over the past decade.”
The report says, “India’s contribution to global prosperity is due to a combination of a large population and fast prosperity growth, enabling it to lift many millions from poverty onto the road to prosperity.”
Underpinning this growth has been Prime Minister Modi’s wide ranging liberalising economic reforms, which are helping to better integrate India into the global economy. Examples of such reforms include e-government programmes to cut red tape and corruption, which, together with a new bankruptcy law, which have all helped to boost business and consumer confidence.
In addition to this, the introduction of the world’s largest economic reform, the Goods and Services Tax next April, will be a major step towards creating a genuine single market across India’s 29 States.
Other successes highlighted in the report include the Digital India Programme, launched in 2014 to improve internet connectivity, which has driven a 4% rise in fixed broadband subscriptions. The ease of resolving insolvency has improved by 19% since a globally comparable bankruptcy law was established and the ease of starting a business increased by 21% after the number of days required to start a business dropped from 38 in 2007 to 29 in 2015.
Harriet Maltby, Head of Policy at the Legatum Institute said, “India’s prosperity growth has been strong, and together with China, has been responsible for 40% of global prosperity growth over the past decade. With strong performance in Governance, and in Economic Quality, India is well placed to improve its prosperity well into the future. A particular focus on improving education, health, and safety could see India make even greater prosperity gains over the next ten years.”
These findings mirror those found in the UK India Business Council’s ‘Modi Government Progress Report,’ released earlier this year. Our report found that because of Modi’s reforms, 60% of UK companies operating in India were looking at increasing investments over the next five years.
The 10th Legatum Prosperity Index™ covers 149 countries, and was published this month by the Legatum Institute, an international think tank based in London.
To download the UK India Business Council Modi Government Progress Report, please click here
