The Human Development Index (HDI), introduced by UNDP in 1990, measures a country’s progress in terms of health, education, and income. The Inequality-adjusted Human Development Index (IHDI), introduced in 2010, refines HDI by factoring in inequality of distribution of these achievements.
India’s Human Development Performance
Human Development Index (HDI)
Rank improved from out of 193 countries.
Since 1990, HDI improved by 53%, outpacing global and South Asian averages.
Inequality-adjusted Human Development Index (IHDI)
India suffers a 30.7% loss due to inequality.
Poorest 40% hold only 20.2% of income, while the richest 10% hold 25.5%.
Why IHDI is a Better Indicator of Inclusive Growth
Accounts for Inequality – Unlike HDI, IHDI reduces scores based on income, education, and health disparities, showing the real distribution of gains.
Closer to Ground Reality – Reflects what people actually experience, not just national averages. For India, 30.7% loss of human development due to inequality.
Reveals Hidden Gaps – Exposes divides across region, caste, class, and gender that HDI alone masks. Eg- gender gap in Labour Force Participation Rate
Guides Policy Better – Eg- targeted schemes like PM Poshan Abhiyan or Eklavya Model Schools
Captures Inter-generational Equity – By highlighting disparities, it stresses need for equal opportunities for long-term human development.
Comparative Value – Countries with similar HDI can differ widely in IHDI, revealing which societies are more inclusive.
Supports SDGs – Aligns with SDG 10 (Reduce Inequality) and SDG 1 (No Poverty) by showing inequality-adjusted outcomes.
As Amartya Sen observed, “Development is about expanding freedoms.” HDI shows progress, but IHDI shows whether that progress is fairly shared.