Human Capital index

Subject: Index

Context:

India has been ranked at the 116th position in the latest edition of the World Bank’s annual Human Capital Index that benchmarks key components of human capital across countries.

Concept:

• The 2020 Human Capital Index update includes health and education data for 174 countries covering 98 per cent of the world’s population up to March 2020, providing a pre-pandemic baseline on the health and education of children
• India’s score increased to 0.49 from 0.44 in 2018, as per the Human Capital Index report released by the World Bank.
• The HCI has three components:
  • Survival, as measured by under-5 mortality rates
  • Expected years of Quality-Adjusted School which combines information on the quantity and quality of education: quality is measured by harmonizing test scores from major international student achievement testing programs  and quantity from the number of years of school that a child can expect to obtain by age 18 given the prevailing pattern of enrolment rates across grades in respective countries
  • Health environment is measured by adult survival rates and the rate of stunting for children under age 5.