About the Human Development Index (HDI)
The Human Development Index (HDI) is a composite statistical index created by Pakistani economist Mahbub ul Haq and Indian Nobel laureate Amartya Sen in 1990. It is published annually by the United Nations Development Programme (UNDP) as part of the Human Development Report (HDR).
The HDI measures human development across three fundamental dimensions:
| Dimension | Indicator | Min–Max Range |
|---|---|---|
| Long and Healthy Life | Life expectancy at birth | 20–85 years |
| Knowledge | Expected years of schooling (children) + Mean years of schooling (adults 25+) | 0–18 years (expected); 0–15 years (mean) |
| Decent Standard of Living | Gross National Income (GNI) per capita in PPP terms | $100–$75,000 |
How HDI Is Calculated
Each dimension is first normalised into an index between 0 and 1 using the formula:
Dimension Index = (Actual Value - Minimum Value) / (Maximum Value - Minimum Value)
The Education Index is the arithmetic mean of the Expected Years of Schooling Index and the Mean Years of Schooling Index. The Income Index uses the natural logarithm of GNI per capita to reflect diminishing returns of income.
The final HDI is the geometric mean of the three dimension indices:
HDI = (Health Index x Education Index x Income Index)^(1/3)
The geometric mean ensures that a poor performance in any one dimension is not linearly compensated by a high performance in another — promoting balanced development.
HDI Categories
| Category | HDI Range | Example Countries |
|---|---|---|
| Very High Human Development | 0.800 and above | Iceland (0.972), Norway (0.970), Switzerland (0.970) |
| High Human Development | 0.700 – 0.799 | Sri Lanka (0.776), China (0.797), Brazil (0.786) |
| Medium Human Development | 0.550 – 0.699 | India (0.685), Bangladesh (0.685), Nepal (0.622) |
| Low Human Development | Below 0.550 | Pakistan (0.544), South Sudan (0.388), Somalia (0.404) |
HDR 2025 — Report Overview
The Human Development Report 2025, titled “A Matter of Choice: People and Possibilities in the Age of AI”, was released on 6 May 2025 by UNDP Administrator Achim Steiner. It calculates HDI values based on 2023 data (two-year lag in data collection).
Key Global Findings
- Global human development progress has slowed to a 35-year low
- Iceland topped the HDI for the first time, with an HDI of 0.972
- Norway and Switzerland tied at second place with 0.970 each
- South Sudan (0.388) remained the lowest-ranked country
- The report highlighted AI as a transformative force for human development, but warned of deepening inequalities if access remains concentrated
India’s Performance in HDR 2025
India’s HDI value increased from 0.676 in 2022 to 0.685 in 2023, moving the country up from rank 134 to 130 out of 193 countries. India remains in the Medium Human Development category (threshold: 0.550-0.699) but is approaching the High Human Development threshold of 0.700.
India’s HDI Components (2023)
| Component | Value | Change from 1990 |
|---|---|---|
| Life expectancy at birth | 72 years (highest ever) | Up from 58.6 years in 1990 |
| Expected years of schooling | 13 years | Up from 8.2 years in 1990 |
| Mean years of schooling | 6.2 years | Up from 3.0 years in 1990 |
| GNI per capita (2021 PPP) | $9,046 | Up from $2,167 in 1990 |
India’s HDI Trend (1990-2023)
| Year | HDI Value | Category | Key Context |
|---|---|---|---|
| 1990 | 0.434 | Low | Baseline year; post-liberalisation era begins |
| 2000 | 0.490 | Low | Gains from economic reforms, IT boom |
| 2010 | 0.572 | Medium | Crossed into Medium category; NREGA impact |
| 2015 | 0.624 | Medium | Rapid GNI growth; Swachh Bharat, Jan Dhan launched |
| 2017 | 0.640 | Medium | Steady gains in schooling and income |
| 2019 | 0.645 | Medium | Pre-pandemic peak |
| 2021 | 0.633 | Medium | COVID-19 impact — life expectancy fell from 69.7 to 67.2 years |
| 2022 | 0.676 | Medium | Strong post-pandemic recovery across all indicators |
| 2023 | 0.685 | Medium | Highest ever; approaching High HDI threshold (0.700) |
Overall growth: India’s HDI value increased by 57.8% from 0.434 (1990) to 0.685 (2023). The average annual HDI growth during 2010-2019 was 1.21%.
The COVID-19 pandemic caused a visible dip in 2020-2021, primarily through falling life expectancy. However, India’s recovery by 2022-2023 has been robust, with life expectancy reaching a record 72 years in 2023.
Regional Comparison — South Asia (HDR 2025)
| Country | HDI Rank | HDI Value | Category |
|---|---|---|---|
| Sri Lanka | 89 | 0.776 | High |
| Maldives | 93 | 0.747 | High |
| Bhutan | 125 | 0.698 | Medium |
| India | 130 | 0.685 | Medium |
| Bangladesh | 130 | 0.685 | Medium |
| Nepal | 145 | 0.622 | Medium |
| Pakistan | 168 | 0.544 | Low |
Key observations:
- Sri Lanka leads South Asia comfortably, benefiting from high literacy and universal healthcare
- India and Bangladesh are tied at rank 130 — Bangladesh has overtaken India on life expectancy (73.4 years vs 72 years) and gender indicators, while India leads on GNI per capita
- Pakistan is the only South Asian country in the Low Human Development category
- Bhutan is very close to crossing into the High HDI category (0.698, just 0.002 short of 0.700)
BRICS Comparison (HDR 2025)
| Country | HDI Rank | HDI Value | Category |
|---|---|---|---|
| Russia | 59 | 0.832 | Very High |
| China | 75 | 0.797 | High |
| Brazil | 84 | 0.786 | High |
| South Africa | 110 | 0.717 | High |
| India | 130 | 0.685 | Medium |
Key observations:
- India is the lowest-ranked BRICS nation on the HDI
- Russia is the only BRICS member in the Very High HDI category
- China has rapidly climbed from a Medium HDI country in 2000 to near-Very High status (0.797)
- India trails China by 0.112 points and South Africa by 0.032 points — the gap with South Africa is narrowing
State-Level HDI Variation Within India
India’s national HDI of 0.685 masks enormous subnational disparities. According to Global Data Lab’s Subnational HDI calculations and government data:
Top-Performing States/UTs
| State/UT | HDI Level | Comparable To |
|---|---|---|
| Delhi | Very High (0.799+) | Eastern European countries |
| Goa | Very High (0.799+) | Eastern European countries |
| Kerala | High (0.775) | Sri Lanka, Latin America |
| Sikkim | High | Upper-middle income countries |
| Chandigarh | High | Upper-middle income countries |
Bottom-Performing States
| State | HDI Level | Key Challenges |
|---|---|---|
| Bihar | Low–Medium (lowest among all states) | Low literacy, poor healthcare, high poverty |
| Uttar Pradesh | Medium (low end) | Population pressure, low female literacy |
| Madhya Pradesh | Medium (low end) | Tribal areas lag, malnutrition |
| Jharkhand | Medium (low end) | Mining-dependent, low urbanisation |
| Assam | Medium (low end) | Flood vulnerability, limited industry |
Key insight: Delhi and Goa possess HDI scores comparable to Eastern European countries with Very High human development, while Bihar’s HDI is comparable to sub-Saharan African nations. This gap — within the same country — highlights the challenge of India’s regional inequality.
Gender Development Index (GDI)
The GDI measures gender gaps in human development by computing separate HDI values for women and men.
India’s GDI (2023)
| Indicator | Female | Male |
|---|---|---|
| HDI Value | 0.631 | 0.722 |
| Life expectancy | Higher than males | Lower than females |
| Mean years of schooling | Lower | Higher |
| GNI per capita | Significantly lower | Significantly higher |
India’s GDI value: 0.874 — placing India in Group 5 (countries with the lowest levels of gender parity). A GDI of 1.000 would indicate perfect gender equality; India’s 0.874 means women’s human development is approximately 87.4% of men’s.
Key Gender Gaps
- Female labour force participation rate: 41.7% (PLFS 2023-24), well below the global average
- Women’s political representation and economic participation continue to lag
- Education gap is narrowing but income gap remains wide — women earn significantly less than men even with similar education levels
Inequality-Adjusted HDI (IHDI)
The IHDI adjusts the HDI for inequalities in the distribution of each dimension across the population. If there were no inequality, HDI and IHDI would be equal. The greater the inequality, the larger the gap.
India’s IHDI (2023)
| Metric | Value |
|---|---|
| HDI | 0.685 |
| IHDI | 0.475 |
| Overall loss due to inequality | 30.7% |
India loses 30.7% of its human development value when adjusted for inequality — one of the highest losses in the region. This means India’s effective human development, when accounting for how unevenly health, education and income are distributed, is significantly lower than the headline HDI suggests.
What drives the loss:
- Income inequality is the largest contributor — the gap between rich and poor in India is among the widest in the developing world
- Education inequality persists between urban-rural, male-female, and upper caste-lower caste populations
- Health inequality has improved but still varies drastically by state (Kerala vs Bihar, urban vs rural)
Gender Inequality Index (GII)
The GII reflects gender-based disadvantage across three dimensions: reproductive health, empowerment and the labour market.
India’s GII (2023)
| Indicator | Value |
|---|---|
| GII Value | 0.403 |
| GII Rank | 102 out of 172 countries |
| Maternal mortality ratio | Declining but still significant |
| Female labour force participation | 41.7% |
| Women in Parliament | Low representation |
India improved by 14 ranks from 2021 to 2023 on the GII, indicating progress in gender equality, but substantial gaps remain — particularly in economic participation and political representation.
UPSC Relevance
Prelims: HDI components (3 dimensions, 4 indicators), India’s rank (130/193) and value (0.685), top performer (Iceland, 0.972), HDI categories and thresholds, IHDI, GDI, GII, formula (geometric mean), creator (Mahbub ul Haq), issuing body (UNDP)
Mains GS-1: Regional disparities in human development (Kerala vs Bihar); gender gaps reflected in GDI (0.874); female labour force participation (41.7%); interstate migration driven by HDI gaps
Mains GS-2: Government welfare policies and their impact on HDI components — Ayushman Bharat (health), NEP 2020 (education), Jan Dhan-Aadhaar-Mobile (financial inclusion); comparison with South Asian neighbours; why India trails Bangladesh on life expectancy despite higher GNI
Mains GS-3: Income inequality as the largest driver of IHDI loss (30.7%); GNI per capita growth ($2,167 to $9,046 in PPP terms, 1990-2023); skilling and employment challenges
Essay: “Development is about expanding choices” (Mahbub ul Haq); India’s paradox of high GDP growth but medium human development; can India cross the 0.700 threshold by 2030?
Interview: “India and Bangladesh have the same HDI rank (130) but very different economic profiles — what does this tell us about the HDI as a measure?” / “Should India target HDI improvement at the state level rather than national level?” / “What policy interventions would most effectively raise India’s IHDI?”
📌 Facts Corner — Knowledgepedia
HDR 2025 — Core Data:
- Report title: “A Matter of Choice: People and Possibilities in the Age of AI”
- Released: 6 May 2025 by UNDP
- Data year: 2023 (two-year lag)
- Total countries covered: 193
- UNDP Administrator: Achim Steiner
- HDI creator: Mahbub ul Haq (Pakistani economist); conceptual framework by Amartya Sen
- First HDR published: 1990
India’s HDI Performance:
- India HDI 2023: 0.685 (rank 130/193) — Medium Human Development
- India HDI 2022: 0.676 (rank 134/193)
- Improvement: +4 ranks, +0.009 HDI points in one year
- India HDI 1990: 0.434 — overall growth of 57.8% over 33 years
- Life expectancy: 72 years (highest ever; up from 58.6 in 1990)
- Expected years of schooling: 13 years (up from 8.2 in 1990)
- Mean years of schooling: 6.2 years (up from 3.0 in 1990)
- GNI per capita (2021 PPP): $9,046 (up from $2,167 in 1990)
- COVID-19 dip: HDI fell from 0.645 (2019) to 0.633 (2021)
HDI Categories and Thresholds:
- Very High: 0.800 and above
- High: 0.700 – 0.799
- Medium: 0.550 – 0.699
- Low: Below 0.550
Global Rankings (HDR 2025):
- Rank 1: Iceland (0.972)
- Rank 2: Norway (0.970)
- Rank 2: Switzerland (0.970)
- Lowest: South Sudan (0.388)
India’s Gender and Inequality Indices:
- GDI: 0.874 (Female HDI 0.631 / Male HDI 0.722) — Group 5 (low parity)
- IHDI: 0.475 (30.7% loss from inequality)
- GII: 0.403, rank 102/172
- Female labour force participation: 41.7% (PLFS 2023-24)
South Asia (HDR 2025):
- Sri Lanka: Rank 89, HDI 0.776
- Maldives: Rank 93, HDI 0.747
- Bhutan: Rank 125, HDI 0.698
- India: Rank 130, HDI 0.685
- Bangladesh: Rank 130, HDI 0.685
- Nepal: Rank 145, HDI 0.622
- Pakistan: Rank 168, HDI 0.544
BRICS (HDR 2025):
- Russia: Rank 59, HDI 0.832 (Very High)
- China: Rank 75, HDI 0.797 (High)
- Brazil: Rank 84, HDI 0.786 (High)
- South Africa: Rank 110, HDI 0.717 (High)
- India: Rank 130, HDI 0.685 (Medium)
Other Relevant Facts:
- HDI formula: Geometric mean of Health, Education and Income indices
- HDI does NOT measure: happiness, political freedom, environmental sustainability, inequality (separate IHDI for that)
- Planetary Pressures-adjusted HDI (PHDI) is a newer variant that adjusts for CO2 emissions and material footprint
- India’s top HDI states: Delhi, Goa (Very High, comparable to Eastern Europe)
- India’s lowest HDI state: Bihar (comparable to sub-Saharan Africa)
- Bangladesh overtakes India on life expectancy (73.4 vs 72 years) despite lower GNI
- India needs just 0.015 more to cross the High HDI threshold (0.700)
Sources: UNDP India, HDR 2025, UNDP Press Release, Global Data Lab
