Analysing Where India Stands in the G20
Source: The Hindu
For Prelims: G20, G7, GDP, European Union (EU)
For Mains: Comparision of Socioeconomic metrics of India with Other G20 Countries
Highlights of the Article
Human Development Index (HDI)
Gross Domestic Product (GDP)
Labour force Participation Rate (LFPR)
Women in Parliament
Context:
On September 9 and 10th 2023, India hosted the 18th G20 Summit in New Delhi, focussiong on the theme 'One Earth, One Family, One Future'
UPSC EXAM NOTES ANALYSIS
1.G20
The G20, or Group of Twenty, is an international forum for governments and central bank governors from 19 countries and the European Union (EU).
It was established in 1999 in response to the financial crises of the late 1990s, with the aim of promoting international economic cooperation and stability.
The G20 serves as a platform for high-level discussions and policy coordination on a wide range of global economic issues.
The G20 is a powerful forum for international cooperation. The G20 leaders have taken a number of important initiatives to promote global economic growth and stability. These initiatives include the following:
- The G20 Financial Stability Board (FSB), which was created in 2009 to oversee the global financial system and prevent another financial crisis.
- The G20 Framework for Strong, Sustainable, and Balanced Growth, which was adopted in 2010 to promote economic growth and development.
- The G20 Green Growth Action Plan, which was adopted in 2014 to promote sustainable economic growth
The G20 is divided into five regions:
- Americas: Argentina, Brazil, Canada, Mexico, and the United States.
- Asia: China, India, Indonesia, Japan, Republic of Korea, Saudi Arabia, South Africa, and Turkey.
- Europe: France, Germany, Italy, Russia, and the United Kingdom.
- Oceania: Australia.
- The European Union is also a member of the G20
| Region | Countries |
|---|---|
| Americas | Argentina, Brazil, Canada, Mexico, United States |
| Asia | China, India, Indonesia, Japan, Republic of Korea, Saudi Arabia, South Africa, Turkey |
| Europe | France, Germany, Italy, Russia, United Kingdom |
| Oceania | Australia |
| European Union | European Union |
2. GDP per Capita of India and Other Countries
- According to the World Bank, the GDP per capita of India in 2023 is estimated to be $2,388.62 in nominal terms and $9,073 in PPP terms.
- Nominal GDP is the value of all goods and services produced in a country in a given year, expressed in the currency of that country. PPP GDP is the value of all goods and services produced in a country in a given year, adjusted for the cost of living.
- The GDP per capita of India is low compared to other developed countries. However, it has been growing steadily in recent years.
- In 2010, the GDP per capita of India was $1,320 in nominal terms and $3,717 in PPP terms. This means that the GDP per capita of India has more than doubled in the past 13 years.
2. Human Development Index (HDI)
- The Human Development Index (HDI) of India is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country scores higher HDI when the lifespan is higher, the education level is higher, and the per capita income is higher.
- The HDI of India in 2021 was 0.633, which puts the country in the medium human development category. India's HDI has been increasing steadily over the past few decades, but it is still significantly lower than the HDI of developed countries.
3.Women in Parliament
- The representation of women in the Indian Parliament has been increasing in recent years. However, India still has one of the lowest proportions of women in Parliament in the world.
- In the 17th Lok Sabha (2019-2024), there are 81 women MPs, comprising 14.5% of the total strength of 543 MPs. This is an increase from 11.6% in the 16th Lok Sabha (2014-2019).
- The number of women MPs has increased steadily over the years. In the 1st Lok Sabha (1952-1957), there were only 22 women MPs, constituting 4.4% of the total strength. This number increased to 41 in the 14th Lok Sabha (2004-2009), constituting 8.1% of the total strength
- India's rank slipped from 15 in 1988 to 18 in 2022
- The representation of women in the German Parliament has been increasing in recent years. In the 2021 Bundestag, 34.8% of the members are women, up from 31.2% in the 2017 Bundestag. This is still below the global average of 25.5%, but it is a significant improvement
- The representation of women in the South African Parliament has been increasing in recent years. In the 6th Parliament (2019-2024), women make up 44.2% of the members, up from 35.9% in the 5th Parliament (2014-2019). This is the highest proportion of women in Parliament in South Africa's history
4. Labour Force Participation Rate (LFPR)
- The labor force participation rate (LFPR) is the percentage of the working-age population that is either employed or actively looking for employment.
- It is calculated as the number of people employed or actively looking for employment divided by the total working-age population.
- The LFPR can be used to measure the health of an economy. A high LFPR indicates that there are a lot of people working, which can lead to economic growth. A low LFPR indicates that there are a lot of people who are not working, which can lead to economic stagnation.
- The labor force participation rate (LFPR) in Germany is 75.3%, which is higher than the global average of 63.5%. This is due to a number of factors, including the young age structure of the population, the high level of education, and the low unemployment rate.
- The labor force participation rate (LFPR) of India is 47.8%, which is lower than the global average of 63.5%. This is due to a number of factors, including the young age structure of the population, the low level of education, and the high unemployment rate.
5. Conclusion
India needs to catch up on many parameters when compared to other G20 Countries
Despite these challenges, India is a rapidly growing economy. The country's GDP has been growing at an average rate of 7% per year for the past few decades. This growth has helped to reduce poverty and improve the standard of living for many Indians.
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Practice Questions
1.Discuss the GDP trends and economic growth rates of G20 countries, highlighting the variations and factors contributing to their economic performance.
2.Examine income inequality within G20 countries, its implications for socio-economic development, and policies aimed at addressing this issue.
3.Analyze the employment situation, labor force participation rates, and unemployment rates in G20 nations. Discuss the challenges and opportunities in the labor market.
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