Human Development Index India 2025 Introduction 

• India has made notable strides in its Human Development Index (HDI) ranking, despite facing a challenging global development landscape.
•  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 130th out of 193 countries, with its HDI value rising from 0.676 in 2022 to 0.685 in 2023. 
• This progress, however, comes with significant challenges, including rising inequality, gender disparities, and the risk of a technological divide, particularly in the era of Artificial Intelligence (AI).

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

• The Human Development Index (HDI) is a composite index introduced in the UNDP’s 1990 Human Development Report to measure and compare countries based on human well-being rather than mere economic output. The HDI evaluates three key dimensions:
  • Health – measured by life expectancy at birth.
  • Education – assessed using mean years of schooling and expected years of schooling.
  • Standard of Living – measured by Gross National Income (GNI) per capita (PPP $).
• The Human Development Report (HDR) is an annual flagship publication by the UNDP that provides an in-depth analysis of global development, examining progress on the HDI and other related indices such as the Gender Inequality Index (GII) and Multidimensional Poverty Index (MPI). The 2025 report also highlights the transformative potential and risks associated with AI in shaping future human development.

Key Findings from the 2025 Human Development Report (HDR)

• India’s HDI Rank and Value Improve: India has made significant progress in the 2025 HDR, with its HDI rank improving from 133 in 2022 to 130 in 2023. This marks a steady rise, with India’s HDI value increasing from 0.676 to 0.685, bringing it closer to the High Human Development threshold of 0.700.

• Life Expectancy Hits Record High: India’s life expectancy has reached a new high, increasing from 67.7 years in 2022 to 72 years in 2023. This is the highest life expectancy India has achieved since the HDI began in 1990, when it was just 58.6 years. This increase reflects improvements in healthcare, nutrition, and public health initiatives.

• Education Progress:  India has made notable strides in education as well. Expected years of schooling have increased to 13 years (up from 12.6 years), and mean years of schooling have risen to 6.9 years (up from 6.57 years). These improvements are reflective of the implementation of initiatives like the Right to Education Act (RTE), the National Education Policy (NEP) 2020, and Samagra Shiksha Abhiyan.

• Significant Income Growth: India’s Gross National Income (GNI) per capita has surged to $9,046 (PPP, 2021), up from $6,951 in 2022. This marks more than a fourfold increase in income since 1990, when the GNI per capita was $2,167. This growth reflects the expanding Indian economy, increased productivity, and better access to capital and resources.

• Reduction in Multidimensional Poverty: According to NITI Aayog’s Multidimensional Poverty Index (MPI) data, 135 million Indians emerged from multidimensional poverty between 2015-16 and 2019-21. This substantial reduction in poverty reflects the success of India’s poverty alleviation and social welfare programs.

• Gender Inequality and Disparities: India continues to face challenges in gender equality. The Gender Development Index (GDI) stands at 0.874, with female HDI at 0.631 and male HDI at 0.722. India ranks 102nd on the Gender Inequality Index (GII) with a score of 0.403, highlighting significant gender disparities in key areas such as health, education, and economic participation.

• AI and Technological Development: India has made remarkable progress in Artificial Intelligence (AI), retaining 20% of the world’s AI researchers (up from nearly 0% in 2019). India’s growing AI capabilities and the prevalence of AI skills among its workforce place it at the forefront of technological development. However, the digital divide remains a concern as India navigates the complexities of harnessing AI’s potential while ensuring inclusive growth.

• Inequality-Adjusted HDI (IHDI): India’s Inequality-Adjusted HDI (IHDI) falls to 0.475, marking a 30.7% loss due to inequality, one of the highest regional losses globally. This highlights the need for policies that address the growing income inequality and promote more equitable development, especially in rural and underdeveloped regions.

Key Highlights from the 2025 Human Development Report (HDR)

• Educational Access and Progress: Education has been a cornerstone of India’s development, with significant strides made through:

• • • The Right to Education (RTE) Act, which has improved school access for children across the country.
    • The National Education Policy (NEP) 2020, which aims to overhaul India’s educational system for better inclusivity and accessibility.
    • As a result, the average expected years of schooling has increased to 13 years, showing that India is making substantial progress in this vital sector.

• Economic Resilience and Growth: India’s Gross National Income (GNI) per capita has quadrupled since 1990, and the country’s economic recovery post-COVID has been supported by initiatives like the Jan Dhan Yojana (financial inclusion) and MGNREGA (employment guarantee for rural India). These policies have strengthened India’s economic foundation, contributing to more inclusive growth.

• Multidimensional Poverty Reduction: According to UNDP data, 135 million Indians escaped multidimensional poverty between 2015-16 and 2019-21. This reduction in poverty highlights the success of India’s inclusive growth policies and the success of social welfare schemes that target multiple dimensions of poverty.

• Artificial Intelligence (AI) as a Growth Multiplier: AI is increasingly being leveraged across sectors in India to enhance growth and development. AI tools are now being used for:

• • • Crop advisories for farmers
    • Insurance access in regional languages
    • Local-language governance services.
    • India is also emerging as a global leader in AI research, with 20% of the world’s AI researchers being based in India. This positions India as a key player in the future of AI-powered development.

• Empowering Through Technology: India leads globally in self-reported AI skills, making strides in digital inclusion. AI is now actively being used to support farmer insurance schemes, advisory services, and government services in regional languages, enhancing accessibility for all citizens.

•  Health Improvements: India has made significant strides in improving health outcomes, particularly through government initiatives like:

• • • Ayushman Bharat: A flagship health insurance scheme providing access to healthcare for millions of poor and vulnerable families.
    • National Rural Health Mission (NRHM): Focused on improving rural health infrastructure.
    • Janani Suraksha Yojana (JSY): Aimed at reducing maternal mortality by encouraging institutional deliveries.
    • POSHAN Abhiyaan: A national mission to improve nutritional outcomes.

• Social Sector Investments: India has invested heavily in the social sector with initiatives like Ayushman Bharat, Poshan Abhiyaan, and Janani Suraksha Yojana. These programs have been pivotal in improving health outcomes, particularly among underserved and vulnerable populations. They address issues of maternal health, nutrition, and affordable healthcare, fostering broader social welfare.

• Youth-Centric Development: With a median age of 28 years, India’s youth presents a tremendous opportunity for harnessing AI and education to unlock a demographic dividend. India’s youthful population can drive technological innovation, entrepreneurship, and sustainable development in the coming decades.

• Digital Infrastructure and Inclusion: National plans for AI compute facilities and digital public goods are pushing the country toward greater digital equity. These efforts ensure that technological advancements benefit all citizens, particularly in rural and underserved regions.

• Human Capital Upgradation: India is focusing on skill development in emerging technologies, particularly in states like Tamil Nadu and Telangana, in collaboration with the UNDP. These initiatives aim to enhance the quality of India’s workforce, making it more capable of driving future innovation and economic growth.

Importance of HDI for India’s Development

• Benchmarking Progress Beyond GDP: The Human Development Index (HDI) offers a comprehensive and multidimensional lens to measure national progress beyond Gross Domestic Product (GDP). This is especially important as India works towards achieving its $5 trillion economy vision. The HDI highlights key areas of development such as health, education, and income, helping to prioritize human well-being over economic output alone.

• Tracking Progress Towards Sustainable Development Goals (SDGs): The HDI aligns with the Sustainable Development Goals (SDGs), especially goals related to poverty reduction (Goal 1), good health and well-being (Goal 3), quality education (Goal 4), gender equality (Goal 5), and reducing inequality (Goal 10). The HDI acts as an essential tool to monitor progress toward achieving the Agenda 2030 for global sustainable development.

• Policy Targeting and Development Interventions: The HDI, along with the Multidimensional Poverty Index (MPI), aids policymakers in identifying sectoral inequalities such as disparities in education and income. This ensures that anti-poverty programs are evidence-based and targeted effectively, addressing specific gaps in development.

• Monitoring Poverty Reduction: India’s multidimensional poverty dynamics are tracked through the HDI and MPI, enabling a better understanding of poverty’s multifaceted nature. This data is used to guide policies that directly address poverty in all its forms, including income poverty, education poverty, and health poverty.

• Advancing the Gender Equity Agenda: The Gender Development Index (GDI) and Gender Inequality Index (GII) offer crucial insights into gendered development outcomes. India’s HDI performance is a key tool for tracking progress on gender equality, especially under India’s Women-Led Development theme during its G20 presidency.

• Human Capital Strategy for Innovation: The HDI provides valuable information on human capital—which includes labour force quality, education, and health—all of which are key to productivity and innovation. This data helps India shape policies that focus on enhancing human capital to drive technological advancements and boost economic growth.

• Federal-State Development Competition: India’s HDI is used to rank states in terms of their development progress, which is tracked through the NITI Aayog Human Development Dashboard. This encourages healthy competition among states and promotes cooperative federalism, where states collaborate to improve development outcomes.

• International Image Building: India’s HDI performance plays a significant role in shaping its global image, affecting factors such as creditworthiness, investment climate, and soft power. A strong HDI performance signals to the world that India is a stable and thriving nation, attracting both global investments and diplomatic support.

• AI as a Lever for Inclusive Growth: AI is now recognized as a significant driver of inclusive growth. India’s progress in AI research and the widespread adoption of AI tools in agriculture, healthcare, and education have the potential to boost human development and bridge technological divides, especially for marginalized populations.

• Addressing Inequality: The HDI also highlights the need for inequality correction frameworks, such as wealth redistribution, taxation reforms, and social safety nets. The focus is on achieving equitable development, ensuring that growth benefits all sections of society, including the most disadvantaged.

Major Indian Initiatives to Achieve Human Development

• Ayushman Bharat and Poshan Abhiyaan: The Ayushman Bharat Scheme is India’s flagship health insurance program aimed at providing universal health coverage. It plays a crucial role in improving life expectancy and overall health outcomes, especially for the economically disadvantaged sections of society. The Poshan Abhiyaan (National Nutrition Mission) is another key initiative that targets malnutrition through interventions focused on maternal and child health.

• National Education Policy (NEP) 2020 and Right to Education (RTE) Act:  India’s Right to Education (RTE) Act guarantees free and compulsory education for children aged 6 to 14, and the National Education Policy (NEP) 2020 further strengthens efforts towards inclusive and equitable education. These initiatives focus on improving educational access, quality, and outcomes across rural and urban populations.

• MGNREGA and Jan Dhan Yojana: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides livelihood security through guaranteed employment to rural households. Jan Dhan Yojana, on the other hand, ensures that financial inclusion is extended to the underserved, enabling access to banking and financial services for millions of Indians.

• AI Collaborations: India is focusing on Artificial Intelligence (AI) as a tool for driving economic and social development. Collaborations with the United Nations Development Programme (UNDP) are helping states in India launch AI skill development programs, which are crucial in fostering an AI-ready workforce.

• India-AI Mission: The upcoming India-AI Mission aims to democratize AI by creating shared compute infrastructure for research and development. This mission will focus on ensuring that AI tools and resources are accessible to a broader section of society, including underserved communities.

• Digital Public Infrastructure (DPI):  India is leading the world in digital public infrastructure initiatives like Aadhaar (a unique identification system), Unified Payments Interface (UPI), and DigiLocker. These initiatives are aimed at ensuring digital inclusion and creating equitable access to services for all citizens, regardless of their socio-economic status.

• SDG India Index by NITI Aayog: The SDG India Index, developed by NITI Aayog, tracks India’s progress in achieving the United Nations Sustainable Development Goals (SDGs). By aligning India’s development goals with the HDI and SDGs, the country is ensuring state-level accountability and encouraging progress toward inclusive growth.

• AI for Good Initiatives: India is also participating in AI for Good initiatives, which aim to leverage AI technologies for social good. This includes the National Compute Facility, which will support AI research and development, particularly in the public sector, in alignment with the Global Partnership on Artificial Intelligence (GPAI).

Challenges to Human Development in India

• High Inequality Impact: India’s IHDI (Inequality-Adjusted HDI) falls by 30.7%, reflecting some of the highest regional losses due to inequality. Income and wealth disparities remain entrenched, limiting access to opportunities for marginalized groups.

• Gender Disparity: Despite improvements in women’s labour force participation rate (FLFPR) (41.7% in 2023-24), India continues to face significant gender disparities. Women’s economic and social outcomes lag behind those of men, with India ranking 102nd on the Gender Inequality Index (GII). The lack of political reservation for women and the absence of a timeline for implementing women’s legislative reservation continue to pose barriers to gender equity.

• Education Quality Concerns: While enrolment rates have risen, education quality remains a concern, particularly in rural areas. Reports like ASER (Annual Status of Education Report) highlight poor learning outcomes, despite high enrolment numbers.

• Jobless Growth and Informality: Despite a growing GDP, India’s growth has not translated into formal job creation. The informal sector continues to employ about 90% of the workforce, contributing to the jobless growth phenomenon.

• Urban-Rural Divide: There remains a significant urban-rural divide, particularly in access to basic services like healthcare and education. Rural areas continue to lag behind in terms of infrastructure, services, and opportunities.

• Digital Divide: India’s progress in digital infrastructure has been significant, but unequal access to digital tools, particularly in rural and underserved regions, could deepen the technological divide and exacerbate inequalities.

• Health Infrastructure Gaps: India’s doctor-population ratio is still below WHO norms, and significant inter-state disparities in healthcare infrastructure remain. These gaps pose challenges to ensuring equitable healthcare access for all citizens.

• Stagnant HDI Progress Pace: Global HDI progress has slowed down, and India’s own HDI improvements have also decelerated since 1990. This slow pace of progress risks delaying the achievement of SDGs 2030.

• Global Comparison: India lags behind its BRICS peers like Brazil (89), China (75), and Russia (59) in HDI rankings. This highlights the need for sustained human capital investments to bridge these gaps.

Way Forward

• Implement Women’s Reservation Act Promptly: A significant milestone for gender equity in India would be the implementation of the Women’s Reservation Act. This policy would ensure greater political representation for women in India’s Parliament and State Assemblies, empowering women to contribute more effectively to governance and decision-making processes.

• Universalize Quality Education: India has made substantial progress in expanding access to education through initiatives like the Right to Education Act (RTE) and NEP 2020. However, the focus should now shift from merely increasing enrolment rates to improving learning outcomes. The implementation of NEP 2020 must be aligned with measurable goals related to quality education, skill development, and critical thinking.

• Expand the Social Security Net: A key challenge in India’s development is the informal sector, which employs over 90% of the workforce. To provide greater financial security, the government must work towards formalizing informal jobs and offering access to social security benefits such as Employee State Insurance Corporation (ESIC) and Employees’ Provident Fund (EPFO). Additionally, gig workers should be included under these schemes to ensure welfare protection.

• Invest in AI for Public Good: Artificial Intelligence (AI) has the potential to be a transformational tool for governance, agriculture, and healthcare. Scaling up AI-based solutions in these sectors, with a focus on open-source and multilingual tools, can drive inclusive growth and improve the quality of public services.

• Bridge the Digital Divide: Digital inclusion remains a significant barrier to inclusive development. Expanding initiatives like PM-WANI and BharatNet will enhance digital infrastructure in remote areas, providing access to digital services and opportunities for economic and educational advancement.

• Set State-Level HDI Targets: To encourage cooperative federalism and enhance the performance of states, India should set state-specific HDI targets. By ranking states based on their HDI parameters and providing grants and incentives for improvement, the government can create healthy competition and encourage localized development initiatives.

• Boost Fiscal Allocation for Social Sector: India’s public spending on health (approximately 2.1% of GDP) and education (around 2.9% of GDP) are below global averages. To accelerate human development, there is an urgent need to increase fiscal allocation for these critical sectors, focusing on improving healthcare infrastructure, access to quality education, and skill development.

• Strengthen Data Systems for Real-Time Monitoring: Robust data systems are critical for tracking human development and ensuring that policies are effectively implemented. India needs to establish real-time dashboards and use AI-powered analytics to monitor district-level HDI and other development indicators. This will help in identifying gaps and making data-driven decisions for improvement.