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India rose to the fifth place among the top 10 ranked economies in the Index of Government Economic Power (IGEP) in 2009, says the Economic Survey. In 2000, India was ranked last among the 10 top ranked economies.
The index endeavours to capture the ability of a Government to project itself in the international sphere. It has four variables — Government revenues, foreign currency reserves, export of goods and services and human capital. These variables broadly capture a Government's ability to raise resources, its creditworthiness and credibility in international financial markets, its influence on global economic activity, and its representational strength, that is how much of the global economy, including global manpower, it can claim to represent.
In order to ensure use of standard data, the index has been constructed using three widely accepted datasets, the IFS and WEO of the IMF, and the United Nations Development Programme's (UNDP's) Human Development Index (HDI).
The survey shows that India and China also demonstrate remarkable robustness by not having lower index values in 2009 unlike US, Japan, Germany, France, UK, Italy, South Korea and Canada that occupied the top 10 ranking in 2000.
The index can also be of value in deciding on the voting rights and other powers the Governments of various countries ought to have in international organisations like the International Monetary Fund (IMF) and the World Bank. The index has been created for 10 years (2000-09) covering 112 economies.
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