Integration of LGBTI in India: Analyzing the Ripple of Economic Development

Abstract Introduction This study analyzed the relationship between the social inclusion of LGBTI people and economic development. In this study, we have observed HDI and GDP per capita (PPP) in association with the LGBT + Rights and Inclusion Index for India from 1990 to 2022. The index accounts for microeconomic effects, whereas the controls account for the overall impact on the macroeconomic level. Methods We employ an OLS and robust least squares approach, in conjunction with the author’s developed “Inclusion Index” dataset, to examine the integration of LGBTI individuals into the Indian economy. Results India’s Inclusion Index scores 0.51 out of 1. Further, our study finds that an additional point on the LGBT + Rights scale of legal rights is associated with an increase in GDP per capita (PPP) of approximately $668 and a 0.035 increase in HDI value. Additionally, integrating the LGBTI community into the health, education, personal safety, and violence aspects of the Inclusion Index increases the GDP per capita (PPP) by about 0.608%, according to the approximation. Conclusions Combining the in-depth, subjective information on the actual experiences of LGBTI individuals with the broader statistical modeling leads to a compatible outcome—there exists an apparent relationship between LGBTI inclusiveness and the development of the economy. Policy Implications. By promoting LGBTI inclusivity on the microeconomic spectrum, specifically through the Inclusion Index’s dimensions, we can foster wholesome inclusivity that aligns with the macroeconomic spectrum, particularly the variables examined in the study.