Why in news?
India’s latest performance on the Human Development Index (HDI) has been highlighted in the United Nations Development Programme’s 2025 Human Development Report. The report, released in May 2025, notes that India’s HDI value rose from 0.676 in 2022 to 0.685 in 2023. This improvement moved the country up to the 130th position out of 193 countries and brought it closer to the “high human development” category, which begins at a score of 0.700. The rise reflects gains in life expectancy, education and per‑capita income and underscores the growing emphasis on people‑centred development rather than mere economic output.
Background
The Human Development Index was introduced by the UNDP in 1990 under the guidance of economists Dr Mahbub ul Haq and Nobel laureate Amartya Sen. It shifts the assessment of development from purely economic measures to a more comprehensive view of human well‑being. HDI combines three fundamental dimensions:
- Long and healthy life: measured by life expectancy at birth.
- Access to knowledge: measured by expected years of schooling for children and mean years of schooling for adults.
- Decent standard of living: measured by Gross National Income per capita, adjusted for purchasing‑power parity.
A country’s HDI score is calculated using the geometric mean of the three dimension indices. Countries are then grouped into four categories: very high (≥ 0.800), high (0.700–0.799), medium (0.550–0.699) and low (< 0.550) human development. The index aims to encourage governments to invest in health, education and social protection to improve people’s capabilities and choices.
Key points
- India’s progress: India’s HDI value increased to 0.685 in 2023, its highest ever. Life expectancy rose to about 72 years, mean years of schooling climbed to 6.9 years, and GNI per capita (PPP) surpassed US$ 9,000. The country has seen over 53 % improvement in HDI since 1990.
- Inequality and gender gaps: Inequality reduces India’s HDI by more than 30 %. While health and education inequality have improved, income disparities and low female labour force participation persist. India ranked 108th on the Gender Inequality Index in 2024.
- Government initiatives: Flagship programmes such as Ayushman Bharat for universal health coverage, the National Education Policy 2020, Skill India Mission, PM‑KISAN, PM Awas Yojana and Digital India have been launched to enhance health, education and living standards. These interventions aim to improve India’s HDI indicators and reduce regional disparities.
- Related indices: The UNDP has developed supplementary measures like the Inequality‑adjusted HDI (IHDI), the Gender Development Index (GDI), the Gender Inequality Index (GII) and the Multidimensional Poverty Index (MPI) to capture disparities that HDI may mask. India’s IHDI reflects a loss of more than 30 % due to inequality.
Significance
- Holistic measure of progress: HDI emphasises people’s well‑being rather than merely national income. It directs attention to health, education and living standards as core components of development.
- Policy guidance: By comparing countries and tracking progress over time, HDI helps policymakers identify weak areas—such as low schooling levels or poor health outcomes—and design targeted interventions.
- Focus on inclusive growth: India’s steady rise on HDI underscores that economic growth must translate into improved capabilities for all citizens, particularly marginalised groups. Addressing inequality, gender gaps and regional disparities remains critical for achieving high human development.
Conclusion
The Human Development Index reminds governments and citizens that development is about expanding people’s choices and freedoms. India’s improved ranking is encouraging, yet significant work remains to ensure equitable progress across states and communities. Sustained investments in quality education, universal healthcare, gender equality and environmental sustainability will be essential to reach the high human development threshold and to ensure that growth benefits everyone.
Source: UNDP