Is economic growth linked with comprehensive wealth? Link to state-level analysis in India in S. Managi and P. Kumar edited, Inclusive Wealth Report 2018 – Measuring Progress towards Sustainability

This chapter aims to understand the link between economic growth and different forms of capital for the period 2001–2011 using comprehensive wealth as an indicator. It discusses some perspective on growth and development in India at the state level. The chapter also discusses the concept of measurement of produced, natural and human capital, and provides the state-level analysis. It considers forest capital and mineral assets – under the categories renewable and non-renewable natural capital. The biggest challenge in estimating changes in wealth arises from establishing shadow prices. Tangible assets have been further classified into: reproducible tangible assets comprising fixed assets and stocks, and non-reproducible tangible assets comprising, land, timber tracts and forests, subsoil assets and extraction sites, fisheries and historical monuments. The chapter concludes with the interaction between the qualities of institutions, extent of natural resource dependence and abundance along with the level of investments impacts the economic growth.