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Human Development Index 2025 UPSC Notes: Key Highlights & India’s Rank

Last Updated on May 22, 2025
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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! 

Download the UPSC Previous Year Questions on Human Development for Prelims & Mains!

GS Paper

General Studies Paper III

Topics for UPSC Prelims

Inclusive Growth, Social Development Indicators

Topics for UPSC Mains

Welfare schemes for vulnerable sections

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.

Important Details on Human Development Index for UPSC

Feature / Parameter

Details

Introduced by

United Nations Development Programme (UNDP)

First Published

1990 in the first Human Development Report

Latest Report (as of 2025)

Human Development Report 2025, based on 2023 data

Published by

UNDP (United Nations Development Programme)

Purpose

To measure average achievement in basic dimensions of human development

HDI Components

Health – Life expectancy at birth

Education – Mean & Expected years of schooling

Standard of living – GNI per capita (PPP adjusted)

HDI Scale

Ranges from 0 (lowest) to 1 (highest)

Categories of HDI

Very High Human Development (≥ 0.800)

High (0.700–0.799)

Medium (0.550–0.699)

Low (< 0.550)

India’s HDI Rank (2025)

130 out of 193 countries

India’s HDI Value (2025)

0.685 (up from 0.676)

Top HDI Country (2025)

Iceland – HDI value: 0.972

Lowest HDI Country (2025)

South Sudan – HDI value: 0.388

India’s Category (2025)

Medium Human Development

India’s HDI Loss due to Inequality

30.7%

Life Expectancy in India (2023 data)

72 years

Mean Years of Schooling (India)

8.2 years (1990) → 13 years (2023)

GNI per capita (India, PPP)

USD 9,046 (2023)

Know more about the Social Progress Index!

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Objectives of the Human Development 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:

Index = (Actual Value - Minimum Value) / (Maximum Value - Minimum Value)

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

  1. Calculate the HDI:

HDI=(Health Index × Education Index × Income Index)1/3

Learn more about Poverty Alleviation Programmes!

Key Highlights of the Human Development Index 2025

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:

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:
  • 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:

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

Country

HDI Rank (2025 Report)

HDI Category

China

78

High Human Development

Sri Lanka

89

High Human Development

Bhutan

125

Medium Human Development

India

130

Medium Human Development

Bangladesh

130

Medium Human Development

Nepal

145

Medium Human Development

Myanmar

150

Low Human Development

Pakistan

168

Low Human Development

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).

Check out the test series for the UPSC IAS Exam here. 

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Human Development Index UPSC FAQs

As per the Human Development Report 2025 (based on 2023 data), life expectancy in India reached 72 years, the highest recorded since HDI tracking began.

India ranked 130th out of 193 countries in the Human Development Index 2025 report (based on 2023 data), improving from 133rd in the previous year.

IHDI adjusts the HDI for inequality across the three dimensions. If there is no inequality, HDI and IHDI are equal. In 2025, India lost 30.7% of its HDI value due to inequality, which is one of the highest losses among medium development countries.

The three parameters are: Life expectancy at birth (health) Mean and expected years of schooling (education) Gross National Income per capita (PPP) (standard of living)

According to the HDI 2025 report, Iceland ranked first with an HDI score of 0.972, followed by Norway and Switzerland.

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