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SOCIAL PROGRESS INDEX: STATES OF INDIA

MAKING SOCIAL PROGRESS MORE INTEGRAL TO THE INDIAN DEVELOPMENT AGENDA

This paper analyses the social progress of twenty-eight Indian states and one Union Territory

(Delhi) for the period 2005–2016 by applying the Social Progress Index framework. The

results will enable the policymakers and businesses to evaluate and benchmark performance

on different social indicators, identify priority areas for improvement and establish the best

practices that can be scaled and emulated.

The objective of this paper is to share the perspective regarding Social Progress Index with

the national and state-level policymakers as well as business executives across India.


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ABOUT THE PROJECT

The project is being conducted by the Institute for Competitiveness, India. The purpose of this

initiative is to complement the economic assessment of India by adopting the Social Progress

Index, a tool that measures social welfare independent of economic performance.

This is being implemented in three phases:

● Phase 1: Analyzing the social progress performance of 28 states and 1 Union Territory in

India.

● Phase 2: Analyzing the social progress performance of 50 cities in India.

● Phase 3: Analyzing the social progress performance of 562 districts in India.

• Phase 3a - Scope involves districts of Goa, Gujarat, Maharashtra, Madhya Pradesh,

Daman and Diu, Chandigarh, Dadra and Nagar Haveli, Delhi, Rajasthan, and

Punjab.

• Phase 3b - Scope involves districts of Andhra Pradesh, Karnataka, Kerala, Tamil

Nadu, Lakshadweep Islands, Puducherry and Andaman & Nicobar Islands.

• Phase 3c - Scope includes districts of Odisha, Bihar, West Bengal, Uttar Pradesh,

Himachal Pradesh, Uttarakhand, Haryana, Sikkim, Jharkhand, Chhattisgarh.

This paper relates to the first phase of the project and presents the results of the BETA

SOCIAL PROGRESS INDEX: STATES OF INDIA.

The Institute plans to launch the final index by the end of 2017 and the purpose of

presenting this paper is to invite the readers to share their feedback and comments on the

proposed Social Progress Index, States of India by July 10th, 2017.

The complete methodological paper can be downloaded from the Social Progress India

website: http://socialprogress.in/

Discussion Paper by:

Institute for Competitiveness, U24/8, DLF Phase 3, Gurgaon - 122002, Haryana, India

Email: [email protected] Contact No.: +91 124 4376676

http://socialprogress.in/

mailto:[email protected]


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KEY FINDINGS FROM THE SOCIAL PROGRESS INDEX, STATES OF INDIA

• All Indian states have made significant improvements on social progress over the last eleven

years. However, there are wide regional variations.

• The analysis reveals that every state has room for improvement as even the high performing

states score low on certain aspects of social progress.

• Economic measures cannot be the sole drivers of decision making. Even though economic

performance is closely related to social progress, economic performance alone does not provide

a complete picture of the society.

• The index identifies country-specific and state-specific issues that can help the change makers at

the national as well as state level in framing policies.

• Social Progress Index framework is closely coherent with Sustainable Development Goals and the

Corporate Social Responsibility activities. It can thus provide a monitoring mechanism to track the

SDG implementation and assist businesses in making CSR investments.


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THE IMPORTANCE OF MEASURING SOCIAL PROGRESS FOR INDIAN STATES

The Indian economy has undergone a major overhaul in the past few decades. A country that was

admonished for its Hindu rate of growth1 until the 1990s has now become the fastest growing major

economy. Per capita income in the period 1991–2016 has increased around 15 times (in terms of current

prices), foreign direct investment inflows grew at three times the world average in the last decade, the

fiscal deficit is decreasing, and inflation is modest.

Laudable economic growth has helped the country to advance its social parameters as well. The poverty

headcount is reduced from 47.8 % (1990) to 21.9 % (2011–12) due to higher social investments in

poverty reduction programs; considerable progress has been made in universalization of primary

education with the current youth literacy rate at 902 %; the focus on maternal and child care has led to

substantial improvements in mortality rates across the country.

Despite these accomplishments, performance in social welfare still lags the economic success that the

country has achieved. Several of India’s peers have been making remarkable social progress even

without such economic prosperity. This mismatch between social and economic progress highlights the need

for India to rethink and act directly on key social and environmental aspects.

A holistic approach towards measuring social developments will help the country to make social progress

more integral to the policymaking process. The Social Progress Index offers one such actionable

framework that can help leaders and change makers to evaluate their performance on social

parameters. (The complete framework is explained in Chapter 2.)

The Global Social Progress Index Scorecard for India, as shown in Figure 1, sheds light on India’s

absolute and relative performance. The absolute analysis presents the indicator performance and

component scores at a 0-100 scale. Relative analysis examines country performance relative to a group

of comparator countries with similar resources (measured in terms of GDP per capita) and derives

strengths and weaknesses accordingly (red - weakness, yellow - neutral, green - strength).

1 The Hindu rate of growth refers to the low annual growth rate of the planned economy of India before the liberalisations of 1991. 2 World Bank Data, 2015


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Figure 1: Social Progress Index Scorecard of India, 2016

Source: Social Progress Imperative, Global Social Progress Index 2016

On an absolute basis, India performs fairly well on certain parameters, for example, the affordability of

housing, political rights, and gender parity in basic education; there is room for improvement when the

country is analysed on tolerance and inclusion, pollution, and health.

On a relative basis, India’s scores are well within the range of expected scores for all the three

dimensions i.e. Basic Human Needs, Foundations of Wellbeing and Opportunity. It outperforms its peers

on tackling corruption and providing the citizens with political rights. On the other hand, the country can

learn from its peers in devising strategies for a healthy ecosystem and providing access to information.

However, these country-level insights are not sufficient to devise a useful plan of action within India as

conditions vary significantly across the country.

India is well-known for its diversity. As a country with large population, it presents endless varieties of

physical features, cultural patterns, religions, and languages. Considering its diversity and heterogeneity,


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it becomes difficult for policy makers to formulate policies as the needs and problems of people differ

according to geography, economic status, religion, and social position. There is, therefore, an increasing

need for data-driven regional insights that can foster inclusive growth.

Region-specific insights are valuable as they help policy makers to understand these diverse needs and

inform relevant policies needed to identify priorities and drive progress. For instance, the literacy rate in

India stood at 74.04 % in 2011. While such performance is very low and suggests the need to focus

more on expanding access to knowledge, there are wide regional disparities. For example, the literacy

rate of Kerala was 93.91 % while Bihar was at 63.8 %.

While a wealth of information is publicly available at the regional level across a wide range of

measures including climate change, safety and security, education, and health, a holistic measure to track

a region’s performance across all these dimensions is missing.

The Social Progress Index can address this need by applying a robust and credible framework and

methodology, to provide detailed data-driven insights on different dimensions of social progress.

The analysis of social progress at the regional level has the following key benefits:

● It provides a credible and robust measure of social progress for Indian states, and can be

applied to cities and districts, to benchmark performance, identify priority areas for improvement,

and best practices that can be scaled and emulated.

● It enables policy makers to formulate strategies for inclusive growth and prioritize public

investments based on the real needs of the citizens.

● It provides value-added inputs to business leaders on the different geographies and sectoral

needs, giving them a sense of direction on planning and spending their CSR budgets.


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Box 1: The Beyond GDP Debate

The world was in the midst of an upheaval from the Great Depression when the idea of National Income Accounting was proposed by Simon Kuznets. National income accounting (the best-known system of which is gross domestic product - GDP), an estimate of the final goods and services produced in a country. an estimate of the final goods and services produced in a country, was developed to provide a window to the economic performance of a region, at a time when the world faced economic realities very different from those of today. The aim was to move away from a rudimentary set of data to a uniform set of national accounts, a purpose that GDP served well. Its use as a global measure of progress was further strengthened at the Bretton Woods Conference (1944) and since then, GDP has become the de facto language of countries’ progress worldwide.

For the last several decades, the predominant focus of all countries has been on maximizing growth rates and economic performance with the underlying belief that such gains will trickle down to societies’ and people’s welfare. There is no denying that economic growth has helped nations to grow and has lifted millions out of poverty. However, it is now widely accepted that focus on the economic scorecard does not bring prosperity to all realms of societies’ wellbeing.

The trade-off between the twin objectives of development process, i.e., economic growth and

social progress, has long been a ubiquitous debate. However, it is increasingly being

challenged by the notion that although important, economic growth is not sufficient for achieving

the welfare of societies. It may, or may not, lead to social progress.

In the countries that have seen consistent GDP growth, the fundamental question surfaces

whether the sole focus on economic performance is the correct approach to drive and assess

prosperity. There is also perhaps a mismatch between how governments define and measure

progress and citizens’ perception. For everyday lives of people success is about living long and

healthy lives, while feeling safe, and having freedom to make life choices without restrictions.

This is yet another piece of evidence that a model of development based solely on economic

performance is incomplete.

Nations across the world need to focus on fulfilling the needs of their citizens, i.e., providing

them with adequate food, addressing security concerns, developing a public healthcare system,

building a society that is free from biases. For such an approach to inclusive development, the

world needs a measurement model that moves beyond the idea of GDP; a framework that can

equip leaders and change makers to make social progress more integral to national

performance.


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THE SOCIAL PROGRESS INDEX

The Social Progress Index focuses on what matters to societies and people by giving them the tools to

better understand and seize opportunities and building blocks to enhance and sustain the quality of their

lives, and create the conditions to reach their full potential.

It was developed in collaboration with a team of scholars led by Professor Michael E. Porter of Harvard

Business School. National and city leaders across Latin America and the European Commission’s

Directorate General for Regional and Urban Policy are using the index for agenda setting, policymaking,

and prioritizing how to mobilize resources and measure impact.

FRAMEWORK OF THE INDEX

Guided by a group of academic and policy experts, the Social Progress Index follows a conceptual

framework that defines social progress as well as its key elements. In this context, social progress is

defined as the “capacity of a society to meet the basic human needs of its citizens, establish the

building blocks that allow citizens and communities to enhance and sustain the quality of their lives,

and create the conditions for all individuals to reach their full potential.”

The framework outlines three broad categories of social progress, referred to as dimensions, emerging

from the above definition of social progress:

● Basic Human Needs;

● Foundations of Wellbeing; and

● Opportunity.

Each of these dimensions is further broken down into four underlying components (see Figure 2).

The most important step in designing the index is to select the appropriate indicator set that represents

the components under each dimension. Apart from the criteria that the data should be publicly available,

principles of the index guide the choice of a relevant set of indicators. The set of unique design

principles that allow an exclusive analysis of social progress and help the Index stand out from other

indices are:

● including social and environmental indicators only;

● measuring outcomes, not inputs3;

● relevant to all societies;

● an actionable tool to drive change.

3 The index does not consider input indicators, such as spending on a particular policy area, such as education, or healthcare.


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Figure 2: Social Progress Index Framework

The Index represents the first comprehensive framework for measuring social progress that is independent

of economic performance. As a complement to traditional measures of economic performance, such as

income, the Social Progress Index provides a better understanding of the relationship between economic

gain and social progress. In contrast, other indices such as the Human Development Index combine

economic and social indicators. Our objective is to utilize a clear yet rigorous methodology that isolates

the non-economic dimensions of social performance.

The Index offers a systematic, empirical foundation for governments, businesses, civil society and

communities to prioritise social and environmental issues, and benchmark performance against other

countries, regions, cities and communities to inform and drive public policies, investments, and business and

community decisions.


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SOCIAL PROGRESS INDEX: CAPTURING THE SPIRIT OF THE SDGS

The Sustainable Development Goals (SDGs) are an ambitious commitment by the world’s leaders to

improve the wellbeing of the world’s citizens and ensure environmental sustainability by 2030. One

hundred and sixty-nine targets grouped in 17 goals set out a universal and an unprecedented agenda

which embraces economic, environmental and social aspects of the wellbeing of societies.

However, it also poses a difficult challenge of defining and measuring success. With 17 goals, 169

targets and 230 indicators the SDGs might perhaps be difficult to grasp, understand, and of course,

difficult to measure. Therefore, a framework which can allow anyone to capture the totality of the

SDGs—improved wellbeing and advanced environmental sustainability—while not dwelling on the

individual details of every indicator is the need. A framework that can be understood and used by

everyone—policymakers, businesses, civil society and the general public.

The Social Progress Index offers such a well suited rapid-assessment approach to help capture the spirit

of the SDGs. Unlike the SDGs, which are by definition a list of goals rather a conceptual model, the

Social Progress Index has been designed and tested over a number years to provide an aggregate

assessment of performance. Having a general framework that can be aggregated in a single number

that can be tracked over time is useful as it can enhance public understanding and engagement. There is

a strong coherence between the SDGs and the Social Progress Index (Figure 3). It can, therefore, support

SDG implementation playing a complementary role to the official monitoring systems that are being put

in place. It may be instrumental for the nation as a whole as well as individual states and territories in

achieving their SDGs targets.

Figure 3: SDGs and Social Progress Index

NutritionandBasicMedical

Care

WaterandSanitation

Shelter

Personal

Safety

PersonalRights

PersonalFreedomandChoice

Tolerance

andInclusion

AccesstoAdvancedEducation

AccesstoBasicKnowledge

AccesstoInformation

HealthandWellness

Environ-mentalQuality


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SOCIAL PROGRESS INDEX: FACILITATING CSR INVESTMENTS

The idea of Corporate Social Responsibility (CSR) is not new to the Indian companies. Previously, CSR in

India was seen as a philanthropic activity. It was an action that was performed by many businesses, but

the impact was not measured. However, as the idea gained momentum globally, many companies started

reporting their activities.

Still the need was felt to bring a set of large businesses under the umbrella of CSR. The Companies Act in

2013 formally introduced Corporate Social Responsibility guidelines which made it mandatory for

certain companies to spend at least 2 percent of their average net profits.

Figure 4: CSR and Social Progress Index

However, the statistics indicate that more than 50 % of the firms fail to do so. The primary reason that

stands out for non-compliance with the law is the unawareness regarding which areas to invest in. The

Social Progress Index address that challenge by bringing out insights about the needs of the people in

different regions. It can thus be helpful for the companies to identify key focus areas where investments

can be made (see Figure 4 for CSR and Social Progress Index mapping).


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SOCIAL PROGRESS INDEX, STATES OF INDIA: RESULTS

Based on extensive research and consultation with relevant stakeholders, we propose a framework for

measuring Social Progress Index for the States of India, as presented in Figure 5. It includes 54 indicators

which based on publically available sources of public authorities.

Figure 5: Social Progress Index, States of India Indicator Framework


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COUNTRY-LEVEL ANALYSIS

The consolidation of the state-level results4 helps in assessing India’s national performance across all

aspects of social progress. This provides an opportunity to identify components that are more advanced

than others, which can help inform nationwide policies, strategies, and actions.

Overall, on a scale 0-100 (0 worst case scenario, 100 best case scenario) the country scores 54.90 on

the Social Progress Index. Breaking down this average across dimensions and components, we find that

there is wide variation in the country’s performance across different facets of social progress (Figure 6).

At the dimension level, the country scores highest at 63.06 on Basic Human Needs, followed by 52.34 on

Foundations of Wellbeing, and lowest at 49.31 on Opportunity.

Figure 6: Social Progress Index, States of India: Country-Level Analysis

Basic Human Needs capture the aspects of social progress that are vital for human survival. Closer

analysis of the four components that form the dimension—Nutrition & Basic Medical Care, Shelter, Water

& Sanitation, and Personal Safety—reveals that three of them score above the national average, while

Nutrition & Basic Medical Care seems to be lagging. At the component level, the country performs best on

Water & Sanitation (84.37). This reflects important progress in an area that has been a focus of the

Global Goals as well as the Indian Government. Nutrition & Basic Medical Care (44.64) seems to be the

greatest challenge that the nation needs to address. The high levels of mortality and low levels of

children’s nutrition are issues that need immediate attention.

4 A measure of the country’s average level of social progress is developed by weighting each state’s score by population and summing across all states. The results different to the Global Social Progress


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Foundations of Wellbeing encompasses the services that help citizens in improving their quality of life.

Among the four components that form the dimension—Access to Basic Knowledge, Access to Information &

Communication, Health & Wellness, and Environmental Quality—the scores are lowest in Access to

Information & Communication (35.41). This is due to low access to television and the internet in the

country. The states perform best on Health & Wellness (68.89), but the analysis also reveals that obesity

is a growing issue in India. Out of 29 regions under study, 11 have average obesity rates of more than

20%. The nation needs to address this concern soon.

Opportunity encompasses Personal Rights, Personal Freedom and Choice, Inclusion, and Access to

Advanced Education. The lowest performing area is Access to Advanced Education (37.25). The

advanced education ecosystem in India has a lot of challenges that are clearly reflected by the low

average scores. The gross enrolment ratio in higher education is not only less than that of developed

economies (less USA) but also than developing economies like China. The best performance in the

dimension is achieved by the states in securing the freedom of citizens (67.12).

STATE-LEVEL ANALYSIS

ABSOLUTE ANALYSIS The absolute analysis presents the state scores at the overall, dimension and the component level scaled

from 0 to 100, with 100 being the score for the best-case scenario, and 0 the worst case. This helps in

comparing and ranking of states.

India’s states’ scores (see Table 1) range from a high of 60 to a low of 40. The results show that while

there are considerable differences between states, there are no significant over- or underperforming

outliers. Even though the scores are tightly clustered between 44.89 and 68.09, there is immense scope of

improvement.

Table 1: Social Progress Index, States of India, 2016 results

State Score

Andhra Pradesh 56.13

Arunachal Pradesh 55.24

Assam 48.53

Bihar 44.89

Chhattisgarh 56.69

Delhi 60.17

Goa 63.39

Gujarat 56.65

Haryana 57.37

Himachal Pradesh 65.39

Jammu & Kashmir 55.41

Jharkhand 47.80

Karnataka 59.72


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Kerala 68.09

Madhya Pradesh 55.03

Maharashtra 57.88

Manipur 55.50

Meghalaya 53.51

Mizoram 62.89

Nagaland 56.76

Odisha 51.64

Punjab 62.18

Rajasthan 52.31

Sikkim 62.72

Tamil Nadu 65.34

Tripura 53.22

Uttar Pradesh 50.96

Uttarakhand 64.23

West Bengal 54.37

India’s states’ scores can be divided into three performance groups, as shown on Map 1.

● High Performance States: scores greater than 60

● Middle Performance States: scores between 50 and 60

● Low Performance States: scores less than 50

Most states (more than half) score in the middle performance category, while nine states achieve high

performance, and three states perform in the lowest performance range.

Map 1: Social Progress Index, States of India


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A better picture of the level of progress is ascertained by analysing the dimension- and component-level

scores of the Social Progress Index, States of India presented in Table 2.

Table 2: Social Progress Index, States of India, Dimension- & Component-Level Scores

Note: Colouring of the table is based on the level of performance (scores) on Social Progress Index, its

dimensions and components. Green signifies high performance; yellow represents average, and red low

performance.

DIMENSION DIMENSION DIMENSION

States

Basic Human

Needs

Nutrition

& Basic

Medical

Care

Water &

Sanitatio

n Shelter

Personal

Safety

Foundations

of wellbeing

Access to

Knowled

ge

Access to

Informati

on &

Communi

cation

Health &

Wellness

Environm

ental

Quality Opportunity

Personal

Rights

Personal

Freedom

& Choice Inclusion

Access to

Advance

d

Educatio

nAndhra Pradesh 67.9618325 48.59736 74.0944 76.82709 72.32848 50.3485313 61.59442 40.46536 55.7262 43.60815 50.0734 66.55306 53.07619 42.52853 38.13582Arunachal Pradesh 57.410665 56.75748 71.59849 55.46412 45.82257 61.5779875 70.26563 29.23167 73.11054 73.70411 46.72096 50.90765 64.88482 44.18909 26.90228Assam 52.224005 47.91103 84.35249 34.40035 42.23215 54.696765 71.51325 17.84436 73.5209 55.90855 38.6549425 28.63632 70.71174 31.748 23.52371Bihar 52.728305 34.64409 81.27919 34.62123 60.36871 47.244365 55.35455 16.1483 72.1703 45.30431 34.7083025 32.55895 61.3979 32.95998 11.91638Chhattisgarh 63.1921275 44.72628 90.08514 58.74404 59.21305 51.959375 78.97866 30.57385 58.87414 39.41085 54.931865 63.9407 78.94313 48.0329 28.81073Delhi 62.918105 51.48847 90.21744 77.85752 32.10899 60.2513823 85.21506 76.82406 69.68323 9.283179 57.3408225 47.37616 79.09945 60.92397 41.96371Goa 76.6051925 62.80025 95.07322 81.45081 67.09649 55.4150888 91.18703 45.36218 58.0147 27.09645 58.1506 41.15385 68.35232 68.19209 54.90414Gujarat 73.294165 43.64156 92.59438 77.09358 79.84714 49.4318775 61.64482 44.16376 67.44236 24.47657 47.210355 52.61173 63.65639 32.64253 39.93077Haryana 64.2219275 43.09155 90.79107 69.96865 53.03644 53.2498025 63.8117 43.60931 75.11195 30.46625 54.63848 54.30895 79.04056 37.98692 47.21749Himachal Pradesh 68.071095 53.94114 64.17943 83.16927 70.99454 62.7215125 79.79337 52.5952 70.54385 47.95363 65.374825 56.23657 84.42144 56.0326 64.80869Jammu and Kashmir 61.1889 58.87211 65.02818 57.79733 63.05798 56.16571 53.17607 34.69018 80.91784 55.87875 48.8640825 55.78978 72.46214 32.35791 34.8465Jharkhand 56.0955675 32.09341 86.13969 48.71175 57.43742 46.9843913 62.40006 28.79424 75.66565 21.07762 40.33156 37.90145 65.11141 40.84197 17.47141Karnataka 65.6432225 48.60065 75.49776 71.06361 67.41087 55.9803213 75.25443 45.37072 63.21533 40.08081 57.54136 58.80406 53.22332 59.08414 59.05392Kerala 73.7788225 74.72464 79.58531 75.82936 64.97598 65.4191775 87.3221 54.70249 62.96911 56.68301 65.0768 60.70114 87.47211 58.76105 53.3729Madhya Pradesh 59.138845 29.79074 85.09184 61.59135 60.08145 53.9837975 66.83878 33.24579 70.9071 44.94352 51.9808625 56.00402 70.32619 41.56519 40.02805Maharashtra 70.7404 54.01147 90.00729 72.6702 66.27264 54.3244175 74.3047 46.61029 66.09577 30.28691 48.5810225 41.42377 59.63739 46.36344 46.89949Manipur 65.876445 76.20707 64.25451 60.8292 62.215 57.889025 76.14439 31.02842 69.92867 54.45462 42.7332825 32.98528 63.35987 32.48891 42.09907Meghalaya 52.6189675 48.1591 48.17204 57.3995 56.74523 61.8204825 77.20261 26.79726 77.31764 65.96442 46.09954 37.53439 65.72868 44.50663 36.62846Mizoram 71.02099 71.44125 79.19934 71.4163 62.02707 61.3200938 78.29114 33.87453 69.02246 64.09225 56.343425 71.46137 71.52077 49.35231 33.03925Nagaland 66.56538 73.07728 65.32644 55.32871 72.52909 55.60885 75.44963 28.01301 71.63363 47.33913 48.1170225 61.1074 66.70491 30.69154 33.96424Odisha 55.4407575 45.23007 80.88775 41.38429 54.26092 50.9789463 71.76331 21.08379 68.99971 42.06898 48.4986175 42.83357 75.56819 42.07465 33.51806Punjab 68.605585 57.522 86.65417 62.69906 67.54711 59.1424075 67.69781 56.84436 72.51109 39.51637 58.80029 66.81938 74.6296 41.58145 52.17073Rajasthan 59.11453 36.42887 76.40203 60.94159 62.68563 42.8418825 44.44722 31.88585 79.21125 15.82321 54.96412 59.90756 71.83593 43.98721 44.12578Sikkim 69.8630075 60.55199 67.16835 72.18298 79.54871 59.1655338 72.34893 38.3014 61.61645 64.39536 59.136225 72.94874 66.79859 54.43111 42.36646Tamil Nadu 76.25714 62.24794 91.28109 79.21461 72.28492 58.842115 75.10809 54.66309 61.16896 44.42832 60.92234 73.18471 61.66653 55.0685 53.76962Tripura 60.2873925 56.99293 69.05264 55.89442 59.20958 55.5574138 78.49772 30.68659 75.14913 37.89622 43.8190375 43.01923 69.81598 39.93658 22.50436Uttar Pradesh 57.930505 31.51614 93.3008 37.38005 69.52503 47.4112725 54.39805 25.62293 71.8954 37.72871 47.5306225 37.39493 71.57616 46.32146 34.82994Uttarakhand 67.5702125 44.83857 78.07775 76.20921 71.15532 66.41837 78.59201 47.94035 81.99058 57.15054 58.699315 66.04436 72.55401 43.08721 53.11168West Bengal 62.4568 53.29047 76.96689 51.30235 68.26749 58.0386388 74.54243 28.04283 69.95758 59.61172 42.6166375 35.81512 70.47006 43.42148 20.75989

SOCIAL PROGRESS INDEX, STATES OF INDIA: DIMENSION AND COMPONENT SCORES

COMPONENT COMPONENT COMPONENT


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RELATIVE ANALYSIS The results that are presented in the absolute analysis do not distinguish states on the basis of economic

development. In some cases, it is more helpful to compare a state’s performance with its economic peers.

For instance, a state may score low on certain aspects of the social progress, but its performance could

exceed the scores for states with similar per capita income levels.

For this reason, a methodology is developed to present a state’s strengths and weaknesses on a relative

rather than absolute basis. Each state’s performance is compared to its economic peers.

Scorecards are used to depict the relative results. The state-level scorecards portray a state’s detailed

absolute and relative analysis. The scorecards are colour-coded to highlight relative strengths and

weaknesses. Red indicates performance below the peer group median; yellow indicates performance

consistent with the peer group; and green highlights areas of relative strength.

The state level scorecards for Social Progress Index, States of India are available at




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SOCIAL PROGRESS & ECONOMIC DEVELOPMENT: DEMYSTIFYING THE RELATIONSHIP

One of the primary objectives of the Social Progress Index, States of India is to provide an

understanding of the relationship between social and economic progress. The Social Progress Index

allows, for the first time, an analysis of the relationship between social progress and measures of

economic success. By measuring social progress independent of economic indicators, it provides empirical

evidence of the relationship of the two and helps in understanding whether economic performance is

being transformed into social progress or not.

Figure 7: Social Progress and Economic Development

Figure 7 shows that economic performance is not the whole story and should not be the ultimate goal.

While there is a relationship between economic development and social progress, the relationship is not

a direct one. For any level of economic development, there are states performing better or worse on

social progress.

This provides us with three key findings:

First, there is a positive and strong relationship between NSDP (Net State Domestic Product5) per capita

and the Social Progress Index. For instance, Bihar with a per capita NSDP of 15,506 scores 44.89 on the

Social Progress Index, States of India. On the other hand, Goa with NSDP per capita of 137,401 has a

5 The estimate of net state domestic product is arrived at by deducting the consumption of fixed capital from the

gross state domestic product for each sector.


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Social Progress Index score of 63.39. At an aggregate level, a one percent increase in NSDP per capita

is associated with a 0.08-point increase in Social Progress Index score6.

Second, the relationship between social progress and NSDP (economic development) is not linear. At

lower levels of income, a small change in NSDP leads to great advancements in social progress scores.

However, as income levels rise, the rate of change slows.

Third, despite the correlation between NSDP per capita and the Social Progress Index, a considerable

amount of variability in social progress is observed among states with comparable levels of NSDP per

capita. Hence, economic performance alone does not fully explain social progress. This fact, which was

empirically established by the Global Social Progress Index holds true for the Indian states as well.

● Chhattisgarh attains a higher social progress score (56.69) than Rajasthan with a NSDP per

capita (28,373) lower than the latter. Rajasthan with a per capita NSDP of 31,836 scores 52.31

on social progress.

● Manipur and Maharashtra have a difference of two points on social progress when the former

belongs to the category of low-income states while Maharashtra has one of the highest per capita

incomes in the country.

● Despite not achieving highest NSDP levels, Kerala achieves the highest score on social progress,

while Goa and Delhi, the richest states (measured by NSDP), perform worse.

The evidence supports the conclusion that economic measures cannot be the sole driving force of inclusive

growth: it is important to focus on the social aspects as well. The Social Progress Index India provides the

tools to assess, track, and monitor social progress in order to better understand the performance, to be

able to identify and emulate best practices that can inform national as well as state-level policies.

SOCIAL PROGRESS INDEX AND INCOME: DIMENSION-LEVEL RELATIONSHIP

The relationship between social progress and economic development can be further examined at the

dimension level to understand better how different aspects of social progress vary with economic

development (see Figure 8).

Again, a logarithmic model is established for Basic Human Needs, Foundations of Wellbeing, and

Opportunity. The model predicts that NSDP per capita explains 52 %, 19 % and 40 % of the variation

in Basic Human Needs, Foundations of Wellbeing and Opportunity scores respectively.

In real terms, this means that a small improvement in NSDP per capita yields higher gains in achieving

basic human needs for all.

Foundations of Wellbeing has the least correlation with NSDP per capita. The likely reason being that

two of the four components in this Dimension - Health and Wellness and Environmental quality, have

either no or even negative relationship with NSDP per capita.

6 The model has an R-squared value of 0.54 i.e. only 54% of the changes in social progress can be explained by the NSDP

per capita.


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Opportunity also shows a significant relationship with the per capita NSDP. This is perhaps surprising,

since many aspects of Opportunity, such as rights and freedoms, do not necessarily require substantial

economic resources but rather sound norms and policies. It could have been the case that economic

advancements have led to strong institutions which led to substantial increases in Opportunity scores.

Figure 8: Dimension-Level Relationship

SOCIAL PROGRESS INDEX AND INCOME: COMPONENT-LEVEL RELATIONSHIP

The component level scores can be used to further data-driven insights on the relationship between economic

performance and different aspects of social progress. Such analysis can be instrumental in informing public

policies as well as private investments and civil society interventions.

QUICK WINS

Overall, we can identify components that improve significantly with each additional unit of economic

development. For example, Shelter and Access to Information & Communications show drastic

improvements at relatively lower levels of economic performance. This group of components should be

central to the agenda for development in the country as economic development will lead to improvements

in these aspects of social development.

Basic Human Needs

Foundations of Wellbeing

Opportunity


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Figure 9: Quick Wins

HARD PROBLEMS

Access to Basic Knowledge, Personal Rights, Inclusion, and Access to Advanced Education depict the most

complicated relationship with economic development. There are components that show developments with

GDP per capita, but their relationship is highly variable. Although the improvements in GDP levels can

help to increase access to education, these advancements are not as easily transformed into tangible

increases in the welfare of citizens. There might be an array of reasons, including that such improvements

take a long time to materialize, and rather than being a direct function of the wellbeing of the economy,

they are also a result of coherent and sound long-term policies.

Figure 10: Hard Problems


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TOUGHEST CHALLENGES

However, we can also see that many areas of the wellbeing of societies pose much greater challenges.

Many components show very little, or even negative relationship with economic development. These are

the hardest problems to solve, and economic performance cannot be the only answer. These include

Water & Sanitation, Personal Safety, Health & Wellness, Environmental Quality, and Personal Freedom

& Choice.

Figure 11: Toughest Challenges


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LONGITUDINAL ANALYSIS

One of the main objectives of this study is to provide a model to measure regional social progress

overtime. Longitudinal analysis is important as it helps in analysing whether the developments of states on

social and economic indicators are heading in the right direction. Such information is essential for

adjusting policies, as well as public and private investments. Especially in light of the SDGs, tracking

progress on societies’ wellbeing will be fundamental in the next decade. If India is going to achieve the

goals set out in this ambitious agenda, it needs a tool designed to measure progress for people.

This analysis will help in examining how the country has progressed over the years on different facets of

social progress leading to the following benefits:

● The analysis can be used to view a state’s performance overtime on the overall, dimension and

component level.

● This can help policy makers in understanding the impact of different policies and investments.

● The analysis is further enhanced by examining the changes in the average performances of the

states across peer groups.

For the period of 2005–2016 that we were able to measure, the results show that all states have

progressed. However, as shown in Figure 12, some states progressed more than others. On the one hand,

there are states like Rajasthan, Chhattisgarh, and Bihar that have advanced more than 25 %, and on the

other hand, Punjab, Delhi, and Assam have progressed less than 10 % on social progress scores.


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Figure 12: Evolution of Social Progress Index, States of India 2005 – 2016

Figure 13 depicts the social progress and dimension scores for the timeframe 2005–2016. The social

advancements are clearly highlighted by the rising scores which are mainly driven by performance on

Basic Human Needs.

It is also noteworthy to highlight the progress made in the last years in the Basic Human Needs and

Opportunity dimensions.


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Figure 13: Longitudinal Analysis – Social Progress Index, States of India

Further insights about how the country has progressed since 2005 are highlighted in Figure 14.

Figure 14: Longitudinal Analysis – Dimensions and Components

0

20

40

60

80

Social Progress Index Basic Human Needs Foundations ofWellbeing

Opportunity

TRENDS:SOCIAL PROGRESS INDEX, STATES OF INDIA AND ITS

DIMENSIONS

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

10

20

30

40

50

60

70

80

90

Basic HumanNeeds

Nutrition & BasicMedical Care

Water & Sanitation Shelter Personal Safety

TRENDS: BASIC HUMAN NEEDS

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


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0102030405060708090

Foundations ofWellbeing

Access to BasicKnowledge

Access toInformation &

Communication

Health & Wellness EnvironmentalQuality

TRENDS: FOUNDATIONS OF WELLBEING

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

10

20

30

40

50

60

70

80

Opportunity Personal Rights Personal Freedom &Choice

Inclusion Access to AdvancedEducation

TRENDS: OPPORTUNITY

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


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CONCLUSION

The Social Progress Index helps in identifying and prioritizing issues by measuring both a state’s

absolute performance as well as its performance relative to states at a similar level of per capita income.

These absolute and relative results enable states to not only assess their areas of strengths and

weaknesses but also to identify other states that may serve as role models, and prioritize actions

accordingly.

The performance of high (low) social progress states is not necessarily high (low) on all facets of

social progress. The top-ranking states Goa, Tamil Nadu, and Kerala show that high levels of social

progress are possible, however, even these states have their lows. Thus, it becomes important for states to

identify the most pressing issues and prioritize development agendas accordingly.

The Index provides valuable findings for two levels: state-specific and country-wide. On the one hand,

there are certain components on which all the states demonstrate low performance; on the other hand,

there are certain components on which variation is registered across states and where state governments

have to chalk out plans of action to drive improvements.

o State-specific Issues: Water & Sanitation, Shelter, Access to Information & Communication,

Health & Wellness, Personal Rights, and Personal Freedom & Choice.

o Country-wide Issues: Nutrition & Basic Medical Care, Personal Safety, Access to Basic

Knowledge, Environmental Quality, Inclusion, and Access to Advanced Education.

Economic performance alone does not fully explain social progress. Despite the correlation between

NSDP per capita and the Social Progress Index, States of India, a considerable amount of variability in

social progress is observed among states with comparable levels of GDP per capita.

The analysis of social progress over the years reveals that the average scores for the Indian states on the

Social Progress Index are tightly clustered between 48 and 57 for the period 2005–2016, reflecting

that the country has immense room for improvement.

social progress index: states of india · proposed social progress index, states of india by july...

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