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Human Development Index 2025 UPSC Notes: Key Highlights & India’s Rank
IMPORTANT LINKS
GS Paper |
|
Topics for UPSC Prelims |
Inclusive Growth, Social Development Indicators |
Topics for UPSC Mains |
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!
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.
- 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.
- 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:
- 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:
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
What was the life expectancy in India in 2024?
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.
What is India’s HDI rank in the 2024 Human Development Report?
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.
What is the Inequality-adjusted Human Development Index (IHDI)?
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.
What are the parameters used to calculate HDI?
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)
Which country has the highest HDI in the world as per the latest report?
According to the HDI 2025 report, Iceland ranked first with an HDI score of 0.972, followed by Norway and Switzerland.