[Answered] In the context of the forthcoming 2025 Human Development Report, critically analyze the interplay between India’s upward trajectory in HDI rankings and the challenges posed by rising inequality. Discuss policy measures that could address these disparities and ensure more inclusive human development in India.

Introduction

The 2025 Human Development Report (HDR) by UNDP, titled “A Matter of Choice: People and Possibilities in the Age of AI”, places India at rank 130 out of 193 countries, up from 133 in 2022. India’s Human Development Index (HDI) value rose to 0.685 in 2023, reflecting progress in life expectancy, education, and income. However, this upward trend is overshadowed by widening inequality, particularly across income, gender, and regional lines. These disparities threaten the sustainability and inclusivity of India’s human development journey.

India’s Upward HDI Trajectory

India’s progress is notable:

1. Life expectancy reached a historic high of 72 years (up from 58.6 in 1990).
2. Expected years of schooling rose to 13 years, reflecting improvements in educational access.
3. GNI per capita surged from $2,167 in 1990 to $9,046 in 2023.
4. Social programs like MGNREGA, Right to Education (RTE), and National Rural Health Mission (NRHM) have played crucial roles in enhancing living standards.

This progress was further supported by the reduction of multidimensional poverty: 135 million people exited poverty between 2015-16 and 2019-21 (NITI Aayog & UNDP data).

The Inequality Challenge

Despite these achievements, inequality has deepened:

1. Income and gender inequality reduced India’s HDI by 30.7%, among the highest losses in South Asia.
2. Female Labour Force Participation (FLFP) improved to 41.7% (2023-24), yet challenges remain in job retention, wage parity, and social mobility.
3. Educational disparities persist, especially among marginalized groups — SCs, STs, minorities, and rural children.
4. Political underrepresentation of women continues despite constitutional amendments for reservation.
5. Access to quality healthcare and digital services remains uneven across states and income groups.

The HDR warns that technologies like AI may amplify existing disparities if not equitably deployed, despite India now retaining 20% of global AI researchers (from near zero in 2019).

Policy Measures for Inclusive Human Development

1. Strengthen Social Protection and Safety Nets: Expand universal basic services in education, health, and nutrition. Increase allocations to rural employment (MGNREGA) and urban livelihoods missions.
2. Gender-Responsive Reforms: Operationalize the Women’s Reservation Bill for legislatures. Ensure equal pay, maternity benefits, and safe workplaces to improve FLFP. Promote STEM education and digital skilling for women and girls.
3. Equitable Education and Healthcare: Improve public school and primary health centre infrastructure in backward areas. Focus on early childhood development and school-to-work transitions.
4. Tackle Regional and Digital Divide: Use Digital India and BharatNet to bridge rural-urban gaps. Promote AI-enabled public service delivery while ensuring inclusion and privacy.
5. Fiscal Measures and Data Governance: Adopt progressive taxation and redistributive policies to address income disparities. Strengthen disaggregated data systems to monitor inequality trends.

Conclusion

India’s HDI rise signals positive momentum, but rising inequality poses a structural threat to inclusive growth. Policies must now pivot toward equity-centric development, grounded in gender justice, universal access, and digital inclusion. The 2025 HDR should serve as a wake-up call to institutionalize inclusive human development, ensuring that India’s progress benefits all its citizens.