Human Development Report 2025

Context

Recently, the United Nations Development Programme (UNDP) launched the Human Development Report (HDR) for 2025, highlighting India’s progress in life expectancy, education, and income levels.

About

• It is titled as ‘A Matter of Choice: People and Possibilities inside the Age of AI’, and explores AI’s position in shaping future development.
• Iceland (HDI cost of 0.972), ranked at the top of the Index, observed by Norway and Switzerland.
• South Sudan was at the bottom at 193 with 0.388.
• India improved its HDI value from 0.676 in 2022 (133th) to 0.685 in 2023 (130th), remaining in the medium human development category.
• India’s HDI price has increased by over 53% since 1990, developing faster than both the global and South Asian averages.
• Among India’s neighbours, China (75th), Sri Lanka (78th) and Bhutan (127th) are ranked above India, even as Bangladesh (130th) is ranked at par.
• Nepal (145th), Myanmar (149th), Pakistan (168th) are ranked below India.

Highlights of India’s HDI Progress

• Improved Life Expectancy: India’s life expectancy has risen from 58.6 years in 1990 to 72 years in 2023, marking its highest level since the index commenced.
• Advancements in Education: The common years of education have expanded from 8.2 years in 1990 to 13 years in 2023.
• Economic Growth and Poverty Reduction: India’s Gross National Income (GNI) per capita has risen over four times, from $2,167 in 1990 to $9,046 in 2023.

Key Challenges & Suggestions Made in Report

• • AI and Human Development: HDR 2025 argues that AI ought to decorate human talents in place of them.
    • It requires formidable policy choices to ensure AI-pushed growth advantages all communities.
  • Widening Inequalities: Global inequalities are developing, slowing human development development, no matter technological advancements.
    • Income inequality reduces India’s HDI by 30.7%, one of the maximum losses in the area.
    • Gender disparities continue to affect education, employment, and healthcare access.
    • The report urges inclusive AI guidelines to bridge the distance between advanced and developing countries.

• Three Key Action Areas:

• • Building a complementarity economic system where humans and AI work collectively.
  • Driving innovation to extend human talents.
  • Investing in inclusive education, healthcare, and social security structures.

Human Development Index (HDI)

• Pakistani economist Mahbub ul Haq created the HDI in 1990 and was similarly used by UNDP in developing a report on the state’s socio-economic fulfillment.
• It evaluates three key dimensions and is calculated using a geometric suggest of these three indices:

1. Health is measured by life expectancy at birth (SDG-3).
2. Education is classified through mean years of education for adults (SDG-4.4) and predicted years of education for children (SDG-4.3).
3. Standard of Living is evaluated using Gross National Income (GNI) per capita (SDG-8.5), adjusted for income distribution.

Human Development Index (HDI)

• Human Development Index (HDI): It categorizes nations into 4 development levels based on their HDI values:

1. Low Human Development: HDI value below 0.550
2. Medium Human Development: HDI value between 0.550 and 0.699
3. High Human Development: HDI value between 0.700 and 0.799
4. Very High Human Development: HDI value 0.800 and above

Limitations and Complementary Indices

• While HDI is a tool, it does not capture inequality, poverty, human security, or empowerment. To deal with those gaps, UNDP gives more indices, which include:
  • Inequality-adjusted HDI (IHDI)
  • Gender Inequality Index (GII)
  • Multidimensional Poverty Index (MPI)  

Source: The UNDP

UPSC Mains Practice Question

Q. 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. (2016)

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