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?

The Human Development Index (HDI) measures average achievements in health, education and income, whereas the Inequality-adjusted Human Development Index (IHDI) discounts these achievements according to their unequal distribution across the population. IHDI is considered a better indicator of inclusive growth because: Looks beyond averages: Rising national income may coexist with malnutrition, poor schooling or low longevity among disadvantaged groups; IHDI penalises such divergence. Captures multidimensional inequality: It considers unequal outcomes not only in income but also in health and education, which determine capabilities and intergenerational mobility. Reveals quality of growth: India’s substantial HDI–IHDI gap indicates that economic gains have not translated proportionately into broadly shared human-development outcomes. Improves comparison: It distinguishes countries having similar HDI values but different levels of concentration and deprivation. Guides targeted policy: Dimension-wise losses can support better allocation towards public health, foundational learning, nutrition and social protection.