Human Development Report 2025 & India’s Progress

Amid a disturbing rate of deceleration in global development and a growing divide between the rich and the poor, India has inched up on the Human Development Index.
In the backdrop of global developmental slowdown, India has marked a notable progress in the 2025 Human Development Report (HDR) titled “A Matter of Choice: People and Possibilities in the Age of AI”, published by the United Nations Development Programme (UNDP). India climbed four ranks to 130 out of 193 countries, with its Human Development Index (HDI) value rising from 0.676 (2022) to 0.685 (2023), reflecting resilience in the aftermath of the pandemic. However, the progress is tempered by significant challenges such as rising inequality, gender disparities, and the risk of technological divides in the AI era.

What is the Human Development Index (HDI) and Human Development Report (HDR)?

The HDI, introduced in the UNDP’s 1990 Human Development Report, is a composite index measuring average achievement in three key dimensions:

1. Health – measured by life expectancy at birth.
2. Education – measured by mean years of schooling and expected years of schooling.
3. Standard of Living – measured by Gross National Income (GNI) per capita (PPP $).

The HDI serves as a multi-dimensional alternative to GDP, emphasizing “human well-being” over mere economic output. The HDR is an annual flagship publication by UNDP that evaluates progress on HDI and related indices like the Gender Inequality Index (GII) and Multidimensional Poverty Index (MPI). It offers an analytical snapshot of development progress and inequality, and in 2025, focuses on the transformative power and risks of Artificial Intelligence (AI) in shaping human progress.

Changes in HDI values & indicators between 2022-23:

What are the Key Findings of the 2025 HDR?

1. India’s Rank and HDI Value Improves: India’s HDI rank improved from 133 (2022) to 130 (2023) out of 193 countries. HDI value increased from 0.676 to 0.685, nearing the High Human Development threshold (0.700).
2. Life Expectancy at Record High: Life expectancy rose to 72 years in 2023, up from 67.7 years in 2022. This is India’s highest life expectancy since HDI began in 1990 (then: 58.6 years).
3. Education Progress: Expected years of schooling: increased to 13 years (from 12.6). Mean years of schooling: rose to 6.9 years (from 6.57). Reflects impact of RTE Act, NEP 2020, and Samagra Shiksha Abhiyan.
4. Income Growth: GNI per capita rose to $9,046 (PPP, 2021) from $6,951. Since 1990, income has increased more than fourfold ($2,167 → $9,046).
5. Multidimensional Poverty Reduction: 135 million Indians escaped multidimensional poverty between 2015-16 and 2019-21 (NITI Aayog MPI data).
6. Gender Inequality: Gender Development Index (GDI): 0.874 (female HDI = 0.631, male = 0.722). India ranks 102nd on Gender Inequality Index (GII) with a score of 0.403.
7. AI and Development: India retains 20% of AI researchers (up from nearly 0% in 2019). Highest self-reported AI skill prevalence globally.
8. Inequality-Adjusted HDI (IHDI): India’s HDI falls to 0.475 when adjusted for inequality – a 30.7% drop, one of the highest regional losses.

What Does the 2025 HDR Highlighting About India’s Growth and Development?

1. Health Improvements: Initiatives like Ayushman Bharat, NRHM, JSY, and POSHAN Abhiyaan have expanded access and outcomes.
2. Social Sector Investments: Health missions like Ayushman Bharat, Poshan Abhiyaan, and Janani Suraksha Yojana improved health outcomes.
3. Educational Access: RTE Act and NEP 2020 have improved school access; average expected schooling up to 13 years.
4. Economic Resilience: GNI per capita quadrupled since 1990; economic recovery post-COVID aided by schemes like Jan Dhan Yojana and MGNREGA.
5. Poverty Reduction: “135 million exited multidimensional poverty” — UNDP.
6. AI as a Growth Multiplier: AI tools being used for crop advisories, insurance access, and local-language governance services.
7. Digital Inclusion: India leads in self-reported AI skills; “AI used in farmer insurance and advisory services in regional languages.”
8. Youth-Centric Development: With the average age of India at 28, harnessing AI and education can unlock a demographic dividend.
9. Digital Infrastructure and Inclusion: National plans for AI compute facilities and digital public goods are enabling digital equity.
10. Human Capital Upgradation: Skill development in emerging technologies is being prioritized across states like Tamil Nadu and Telangana (in collaboration with UNDP).

 What is the Significance of HDI for India?

1. Benchmarking Progress: HDI provides a multidimensional lens beyond GDP – essential for India’s $5 trillion economy vision.
2. Tracking Progress Towards SDGs: HDI aligns with Sustainable Development Goals. HDI overlaps with SDGs (Goal 1, 3, 4, 5, 10) – pivotal for achieving Agenda 2030.
3. Policy Targeting: Use of Multidimensional Poverty Index (MPI) aligns with HDI insights for focused anti-poverty interventions. It identifies sectoral inequalities (e.g., education vs. income) to design evidence-based policies.
4. Poverty Reduction Monitoring: Tracks India’s multidimensional poverty dynamics, aiding MPI-linked schemes.
5. Gender Equity Agenda: Supports tracking gendered development outcomes under Women-Led Development, a G20 India Presidency theme.
6. Human Capital Strategy: Facilitates tracking of labour force quality, education, health – key to productivity and innovation.
7. Federal-State Development Competition: Promotes state-wise HDI ranking (NITI Aayog’s Human Development Dashboard), encouraging cooperative federalism.
8. International Image Building: HDI performance impacts India’s global investment climate, creditworthiness, and soft power.
9. AI as a Development Lever: Highlights the critical role of AI in achieving inclusive growth, a new frontier for HDI discourse. As AI reshapes sectors, HDI-adjusted indicators ensure technology is harnessed inclusively.
10. Inequality Correction Framework: Aids in policy discussions around wealth redistribution, taxation reforms, and social safety nets.

What are the Major Indian Initiatives to Achieve the Human Development?

1. Ayushman Bharat & Poshan Abhiyaan: Key in improving life expectancy and health outcomes.
2. NEP 2020 & RTE Act: Focused on universal and inclusive education.
3. MGNREGA & Jan Dhan Yojana: Enabled livelihood security and financial access for the poor. Joint efforts on AI deployment for governance and development, e.g., AI for skill development in Tamil Nadu and Telangana.
4. AI Collaborations: UNDP is working with Indian states on inclusive AI skill programmes.
5. India-AI Mission: A forthcoming initiative to democratize AI via shared compute infrastructure.
6. Digital Public Infrastructure (DPI): Initiatives like Aadhaar, UPI, DigiLocker are being scaled globally.
7. SDG India Index by NITI Aayog: Tracks progress across HDI-linked SDGs, promoting state-level accountability.
8. AI for Good Initiatives: India’s proposed National Compute Facility to democratize AI research; aligned with Global Partnership on Artificial Intelligence (GPAI).

What are the Challenges to Human Development in India?

1. High Inequality Impact: HDI loss of 30.7% due to inequality is among the highest in South Asia.
2. Gender Disparity Remains a Concern: Despite rising FLFPR to 41.7% (2023-24, Economic Survey), women score lower on HDI components; no timeline for women’s legislative reservation implementation. India ranks 102nd on GII; political reservation for women remains unimplemented.
3. Education Quality Concerns: ASER reports highlight poor learning outcomes despite high enrolments.
4. Jobless Growth & Informality: Rising GDP not translating into formal job creation – 90% workforce in informal sector (PLFS).
5. Urban-Rural Divide: Basic services like health, education still lag in rural areas.
6. Digital Divide: Unequal access to digital tools may worsen AI-driven development inequality.
7. Health Infrastructure Gaps: Doctor-population ratio still below WHO norms; stark inter-state disparities.
8. Stagnant HDI Progress Pace: Global and Indian HDI progress slowest since 1990, risking SDG 2030 delays.
9. Global Comparison: India lags BRICS peers—Brazil (89), China (75), Russia (59)—suggesting the need for sustained human capital investment.

What can be the Way Forward?

1. Implement Women’s Reservation Act Promptly: A game-changer for political inclusion.
2. Universalize Quality Education: Implement NEP 2020 goals with a focus on learning outcomes, not just enrolment.
3. Expand Social Security Net: Formalize informal jobs through ESIC/EPFO access and gig worker welfare.
4. Invest in AI for Public Good: Scale up AI for governance, agriculture, and health with open-source, multilingual tools.
5. Bridge the Digital Divide: Expand PM-WANI, BharatNet to enhance digital infrastructure in remote areas.
6. State-Level HDI Targets: Encourage state competitiveness on HDI parameters via rankings, grants, and incentives.
7. Boost Fiscal Allocation for Social Sector: Increase public spending on health (currently ~2.1% of GDP) and education (~2.9%), below global averages.
8. Strengthen Data Systems: Robust district-level HDI tracking is needed using real-time dashboards, AI-powered analytics.

Conclusion:
India’s performance in the 2025 HDR reflects both commendable progress and enduring structural challenges. As Achim Steiner of UNDP aptly noted, “AI is no panacea, but the choices we make can reignite human development.” For India@2047, human development must be central to its growth story—leveraging technology, deepening inclusion, and investing in its people. As global HDI progress decelerates, India must stay the course with “purpose-driven policies,” “inclusive governance,” and “AI for good” strategies. It is not just about moving up the HDI ranks, but ensuring that development is sustainable, equitable, and empowering for all.