Why in the News?
India ranks 130th out of 193 countries in the 2025 Human Development Index (HDI), up from 133rd in 2022.
What is the Human Development Index (HDI)?The Human Development Index (HDI) is a composite statistic developed by the United Nations Development Programme (UNDP).
|
Why has India’s HDI improved?
- Health (Life Expectancy at Birth): HDI measures the average number of years a person can expect to live, reflecting the overall health conditions in a country. Eg: In 2023, India’s life expectancy increased to 72 years, marking a significant improvement since 1990, when it was just 58.6 years.
- Education (Mean Years of Schooling and Expected Years of Schooling): HDI considers the average number of years adults aged 25 and older have spent in school (mean years of schooling) and the number of years a child of school-entry age can expect to receive (expected years of schooling). Eg: In 2023, children in India are expected to stay in school for 13 years on average, up from 8.2 years in 1990.
- Standard of Living (Gross National Income per Capita): HDI includes the per capita income adjusted for purchasing power parity (PPP), which gives a sense of the country’s economic prosperity and standard of living. Eg: India’s GNI per capita increased from $2,167 in 1990 to $9,046 in 2023, reflecting a growth in economic well-being.
- Inequality Adjustments: HDI adjusts for inequality in each of its three dimensions—health, education, and standard of living—through the Inequality-adjusted HDI (IHDI). The more inequality there is in a country, the lower the adjusted HDI score will be. Eg: India’s HDI value of 0.685 in 2023 was influenced by inequalities, including gender and income disparities, which the report highlighted as a key challenge.
- Multidimensional Poverty Index (MPI): HDI is indirectly linked to the MPI, which measures poverty beyond income, including deprivations in health, education, and living standards. Eg: India has made significant progress in reducing multidimensional poverty, with 13.5 crore people escaping poverty between 2015-16 and 2019-21.
How has the pandemic affected India’s HDI recovery?
- Health Impact: The pandemic strained India’s healthcare system, leading to higher mortality rates and disruptions in healthcare services, which affected life expectancy. Eg: The pandemic slowed India’s progress towards improving life expectancy, though it rebounded in the subsequent years, reaching 72 years in 2023.
- Education Disruptions: School closures and lack of access to online education hindered educational outcomes, especially for underprivileged children. Eg: While the expected years of schooling improved, the pandemic delayed educational progress, particularly in rural areas.
- Economic Setbacks: The lockdowns and economic disruptions due to the pandemic led to a sharp contraction in economic activities, affecting income levels and jobs, particularly in the informal sector. Eg: India’s GNI per capita growth faced a slowdown, though it eventually rebounded, reaching $9,046 in 2023.
What challenges remain in improving India’s HDI?
- Income Inequality: Despite progress, income disparity remains a major challenge, with the rich benefiting disproportionately from economic growth, while the poor remain marginalized. Eg: India’s HDI is impacted by a 30.7% loss due to income inequalities, which continues to drag down overall development outcomes.
- Gender Disparities: The gender gap in labor force participation and political representation limits progress in improving India’s HDI. Women’s workforce participation remains low, and the gender wage gap is significant. Eg: The female labor participation rate stood at 41.7% in 2023-24, but a supportive ecosystem for women’s work retention and political representation is still lacking.
How can India use AI to address development while avoiding inequality? (Way forward)
- AI in Public Service Delivery: AI can streamline public services, making them more efficient, transparent, and accessible, especially to marginalized communities. Eg: AI-driven systems can help in targeted welfare distribution, ensuring resources like food and healthcare reach those most in need, reducing administrative inefficiencies.
- Inclusive Education and Skill Development: Leveraging AI for personalized learning can bridge gaps in educational access and quality, particularly for underserved areas. Eg: AI-based platforms like Byju’s and other ed-tech initiatives provide tailored education, improving learning outcomes for students in rural and remote areas.
- AI for Job Creation and Economic Inclusion: AI can be used to create new job opportunities and enhance existing ones, especially in sectors like agriculture, healthcare, and manufacturing. Ensuring that AI adoption leads to inclusive economic growth can help reduce inequality. Eg: AI-driven agricultural technologies can optimize crop yields and provide real-time data to farmers, increasing productivity and income, especially for those in rural areas.
Mains PYQ:
[UPSC 2019] Despite Consistent experience of High growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.
Linkage: The paradox of economic growth not translating into high human development indicators, which is a central theme when discussing India’s HDI rank and the challenges despite improvements. It also touches upon inclusive development, another concept related to the HDR’s focus on reducing inequalities
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
