Context

• Recently, the United Nations Development Programme (UNDP) released the Human Development Report (HDR) for 2025, highlighting India’s progress in life expectancy, education, and income levels.
  • It is titled as ‘A Matter of Choice: People and Possibilities in the Age of AI’, and explores AI’s role in shaping future development.

Human Development Index (HDI)
– Pakistani economist Mahbub ul Haq created the HDI in 1990 and was further used by UNDP in creating a report on the nation’s socio-economic achievement.
– It evaluates three key dimensions and is calculated using a geometric mean of these three indices:
1. Health is measured by life expectancy at birth (SDG-3).
2. Education is assessed through mean years of schooling for adults (SDG-4.4) and expected years of schooling for children (SDG-4.3).
3. Standard of Living is evaluated using Gross National Income (GNI) per capita (SDG-8.5), adjusted for income distribution.


– Human Development Index (HDI): It categorizes countries into four development levels based on their HDI values:
1. Low Human Development: HDI value below 0.550
2. Medium Human Development: HDI value between 0.550 and 0.699
3. High Human Development: HDI value between 0.700 and 0.799
4. Very High Human Development: HDI value 0.800 and above
Limitations and Complementary Indices
– While HDI is a valuable tool, it does not capture inequality, poverty, human security, or empowerment. To address these gaps, UNDP provides additional indices, including:
1. Inequality-adjusted HDI (IHDI)
2. Gender Inequality Index (GII)
3. Multidimensional Poverty Index (MPI)  

Human Development Index: Current Status

• Iceland (HDI value of 0.972), ranked at the top of the Index, followed by Norway and Switzerland.
  • South Sudan was at the bottom at 193 with 0.388.

• India improved its HDI value from 0.676 in 2022 (133th) to 0.685 in 2023 (130th), remaining in the medium human development category.
  • India’s HDI value has increased by over 53% since 1990, growing faster than both the global and South Asian averages.
• Among India’s neighbours, China (75th), Sri Lanka (78th) and Bhutan (127th) are ranked above India, while Bangladesh (130th) is ranked at par.
  • Nepal (145th), Myanmar (149th), Pakistan (168th) are ranked below India.

Highlights of India’s HDI Progress

• Improved Life Expectancy: India’s life expectancy has risen from 58.6 years in 1990 to 72 years in 2023, marking its highest level since the index began.
  • National health programs like Ayushman Bharat, Janani Suraksha Yojana, and Poshan Abhiyaan have contributed to this growth.
• Advancements in Education: The average years of schooling have increased from 8.2 years in 1990 to 13 years in 2023.
  • Policies like the Right to Education Act, Samagra Shiksha Abhiyan, and National Education Policy 2020 have played a crucial role.
• Economic Growth and Poverty Reduction: India’s Gross National Income (GNI) per capita has risen over four times, from $2,167 in 1990 to $9,046 in 2023.
  • 135 million Indians escaped multidimensional poverty between 2015-16 and 2019-21.

Key Challenges & Suggestions Made in Report

• AI and Human Development: HDR 2025 argues that AI should enhance human capabilities rather than replace them.
  • It calls for bold policy decisions to ensure AI-driven growth benefits all communities.
• Widening Inequalities: Global inequalities are increasing, slowing human development progress, despite technological advancements.
  • Income inequality reduces India’s HDI by 30.7%, one of the highest losses in the region.
  • Gender disparities continue to affect education, employment, and healthcare access.
  • The report urges inclusive AI policies to bridge the gap between developed and developing nations.
• Three Key Action Areas:
  • Building a complementarity economy where humans and AI work together.
  • Driving innovation to expand human capabilities.
  • Investing in inclusive education, healthcare, and social protection systems.

Source: TH