The Human Development Index (HDI) is published by the Human Development Report Office (HDRO) under the United Nations Development Programme (UNDP). Introduced in 1990, the HDI is released annually, except for the year 2012. It is a composite index used to assess and compare the overall well-being and development progress of countries. The latest Human Development Index 2025, based on 2023 data, was released in May 2025. India ranked 130 out of 193 countries, with an improved HDI value of 0.685, still below the global average of 0.739. 

This topic Human Development Index UPSC is important from the perspective of the UPSC IAS Examination, which falls under General Studies Paper 3 (Mains) and General Studies Paper 1 (Prelims), particularly in the Social Justice section. 

In this article on the Human Development Index UPSC, we shall discuss the latest human development report by UNDP, Major highlights, Objectives, 5 Indices of HDR, Interesting facts about the human development report, and More! 

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What is the Human Development Index?

The Human Development Index (HDI) is a publication of the United Nations Development Programme (UNDP). It assesses the state of human development in countries around the world. It is published annually and is considered to be one of the most authoritative sources of information on human development. In 1990, the first Human Development Index (HDI) was introduced by Pakistani economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen. Since that milestone, annual reports have been consistently published, delving into various themes using the human development approach, which prioritizes placing individuals at the core of the development process.

Know more about the Social Progress Index!

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators. It aims to assess the social and economic development of countries. Here are the major objectives:

• To provide a broader understanding of overall well-being compared to just economic growth metrics.
• To guide policymakers in creating informed decisions aimed at improving human development.
• To highlight the importance of health, education, and standard of living.
• To measure and compare levels of human development across countries.
• To highlight inequalities in human development among countries and regions.
• To encourage investments in health, education, and quality of life.
• To support international efforts in addressing global human development issues.

Learn more about Issues Relating to Poverty and Hunger!

Human Development Index Indicators

The Human Development Index is calculated based on the following 13 important indicators:

• Gender
• Health
• Human security
• Mobility & Communication
• Socio-economic sustainability
• Trade and financial flows
• Work, employment, and vulnerability
• Income
• Inequality
• Humans’ Development
• Demography
• Education
• Environment Sustainability

Human Development Index Calculation

HDI is calculated as the geometric mean (not the average) of normalized indices for each of the three dimensions.

1. Normalize each indicator using a formula:

Each indicator is scaled between 0 and 1 based on a fixed minimum and maximum.

1. Calculate the HDI:

Learn more about Poverty Alleviation Programmes!

The Human Development Index (HDI) is a yearly report by the United Nations that measures a country’s average progress in health (life expectancy), education (years of schooling), and income (GNI per capita). The 2025 report uses data from 2023.

Global Highlights of HDI 2025

• Slow Global Progress: HDI growth is slowing worldwide, especially after COVID-19. Many countries are falling behind in reaching high human development by 2030.
• Top Countries: Iceland ranked first, followed by Norway and Switzerland.
• Lowest Rank: South Sudan was last, with many African countries also at the bottom.
• Widening Inequality: Rich countries are improving, while poorer nations are falling behind, increasing the global gap.
• AI and Development: 1 in 5 people use AI tools. While 60% believe AI creates jobs, 50% fear job losses. The report stresses inclusive AI policies to ensure AI benefits everyone.
• Polycrisis Impact: Climate change, conflicts, economic troubles, and tech changes are combining to slow progress and hit the poor hardest.

HDI Rank of India 

India has shown consistent improvement in the Human Development Index (HDI) rankings over the years. In the 2025 report (based on 2023 data), India’s performance reflects steady gains but also highlights deep-rooted challenges in equality, gender, and social inclusion.

• HDI Rank: India moved up 3 places, from 133rd (2022) to 130th (2023) out of 193 countries.
• HDI Value: Increased from 0.676 to 0.685, keeping India in the "Medium Human Development" category.
• India is gradually approaching the "High Human Development" threshold (HDI score of 0.700 or above).
• Since 1990, India’s HDI has grown by over 53%, faster than the global and South Asian averages.

Read the article on Income Inequality in India!

Progress in Key Areas of Human Development

India’s improvement is visible across health, education, and income indicators.

Health (Life Expectancy)

• Life expectancy rose from 58.6 years in 1990 to 72 years in 2023 — the highest ever for India.
• This gain is the result of sustained efforts through major healthcare programs:
  • Ayushman Bharat: World’s largest health insurance scheme.
  • National Health Mission (NHM): Strengthens rural and urban healthcare services.
  • Janani Suraksha Yojana: Promotes safe childbirth.
  • Poshan Abhiyaan: Targets malnutrition in children and women.

Education

• Mean years of schooling (25+ age group): Increased from 8.2 years to 13 years.
• Expected years of schooling (school-entry age): Stable at around 13 years.
• Key educational reforms driving progress:
  • Right to Education Act (2009): Free and compulsory education for children.
  • National Education Policy (2020): Focus on flexibility, inclusivity, and skill-building.
  • Samagra Shiksha Abhiyan: Unified education scheme to bridge learning gaps.
• However, the quality of education and learning outcomes still need significant improvement.

Income and Standard of Living

• India’s Gross National Income (GNI) per capita (PPP adjusted) rose to USD 9,046 in 2023, up from USD 2,167 in 1990.
• Poverty Reduction:
  • Nearly 135 million people exited multidimensional poverty between 2015–16 and 2019–21.
  • This is a result of targeted social protection schemes like:
    • MGNREGA
    • Jan Dhan Yojana
    • PM Awas Yojana
    • Ujjwala and Swachh Bharat Mission

Read the article on the Environment Performance Index EPI!

Persistent Challenges for India

While progress is notable, serious problems remain, particularly in inequality and gender disparity.

High Inequality

• Inequality reduces India’s HDI by 30.7%, one of the highest losses in the region.
• Gaps in income, health, and education distribution continue to affect development outcomes.
• Richer states and urban areas advance faster than poorer states and rural regions.

Read about Gender Inequality in India here!

Gender Disparities

• Female Labour Force Participation (FLFP): Only 41.7% of women are in the formal workforce.
  • Cultural, safety, and infrastructure barriers continue to limit women’s economic roles.
• Political Representation:
  • Women remain underrepresented in legislative and decision-making roles.
  • The 106th Constitutional Amendment proposing one-third reservation for women in legislatures is a step forward, but effective implementation is key.

Read more about Economic Growth and Development!

Regional Comparison

Read the linked article to learn more about Poverty Estimation!

India’s Role in AI and Human Development

The HDI 2025 report places a special focus on Artificial Intelligence (AI). India stands out globally for its emerging role in the AI-driven future of development.

AI Skill Penetration

• India now has the highest self-reported AI skills penetration globally.
• This means more people in India are learning and applying AI-related skills than anywhere else.

AI Talent Retention

• In a positive trend, 20% of Indian AI researchers now stay and work in India — a major jump from nearly zero in 2019.
• This helps India build a self-sustaining tech ecosystem.

Inclusive Use of AI

India is leveraging AI for inclusive growth:

• Real-time advisory for farmers in local languages.
• AI-based access to subsidies and insurance schemes.
• Plans for a national-level computing infrastructure to democratize AI for researchers and startups.
• AI-led skill development programs in Tamil Nadu and Telangana (in partnership with UNDP).

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