Total changes 1990-2008
Inclusive Wealth Index
Gross Domestic Product
Changes over 20 Years
India experienced very strong growth in GDP over the time period assessed, whereas IWI showed more modest growth. The significant difference between the two indicators may be attributed to the decline in natural capital. Additionally, the positive changes in India’s inclusive wealth appear to be primarily driven by rapid growth in produced capital, which was able to offset the decline in natural capital.
While India’s positive IWI is primarily driven by increases in produced capital, it only makes up 18% on average of India’s total capital stock. The majority of India’s inclusive wealth lies in its human and natural capital.
India’s natural capital base is primarily made up of agricultural land and fossil fuels. These resources have been steadily depleted and rapid population growth has significantly exacerbated the situation.