Measurement of social development: evidence from India

Purpose - The purpose of this paper is to examine the progress of social development in terms of social development index (SDI) of India in the pre- and post-reforms period. Design/methodology/approach - This study used the methodology ofRay (1989, 2008) for the construction of composite index for social development, i.e. SDI. The study also used the ordinary least squares method of regression analysis for checking the impact of development expenditure, non-development expenditure and Per Capita Net National Product (PCNNP) on the SDI value. Findings - The results show an increasing trend in social development. The findings of this study also suggest that there is a sharp increase in the index over the period between 2002/2003 and 2010/2011. But in the remaining period, sluggish improvement in social development has been observed. Though there has been growth in the social sector, but it is not much heartening and perhaps more efforts need to be done in the social sector in India. The results also exhibit that development expenditure, non-development expenditure and PCNNP are significantly affecting the SDI value. Practical implications - The study suggests that the government should focus more on social sector programs and there is an urgent need to increase development and non-development expenditures to improve the overall social condition of the country. Originality/value - The work is different in terms of number of development variables from the already existing literature in India. The author constructed the SDI by using the weighted sum of 12 transformed social variables which has not been studied previously.