The Big Shift: How India Improved Its HDI Ranking in 2025

India has made remarkable strides in human development, climbing to the 130th spot out of 193 countries in the 2025 Human Development Index (HDI) rankings, as per the United Nations Development Programme (UNDP) report. This upward movement from 133 in 2022 (published in 2024) signals a positive shift in India’s focus on health, education, and income.

For students eager to understand India’s progress and its implications, this blog breaks down the essentials of HDI, India’s achievements, challenges, and what lies ahead in a simple, engaging way.

What is HDI and How is It Calculated?

The Human Development Index (HDI) is a tool developed by the UNDP to measure a country’s progress beyond just economic growth. It focuses on three core pillars of human well-being:

1. Health: Measured by life expectancy at birth, reflecting how long people are expected to live based on current healthcare conditions.
2. Education: Evaluated using two indicators: the average duration of education for adults aged 25 and above, and the anticipated years of education a child starting school is likely to complete.
3. Standard of Living: Evaluated using Gross National Income (GNI) per capita, adjusted for purchasing power parity (PPP), which indicates the average income and economic well-being.

Each dimension is scored between 0 and 1, and the HDI is the geometric mean of these scores. A higher HDI value (closer to 1) places a country in categories like “very high,” “high,” “medium,” or “low” human development. India’s journey in this index showcases its efforts to improve quality of life for its 1.4 billion people.

India’s 2025 HDI Scorecard: Key Highlights

In 2025, India’s HDI score climbed to 0.685 from 0.676 in 2023, solidifying its status in the “medium human development” tier while nearing the “high” development benchmark of 0.700 or higher.. Key achievements include:

• Life Expectancy: Increased to 72 years in 2023, a significant jump from 67.7 years in 2022, reflecting better healthcare access and post-pandemic recovery.
• Education: Expected years of schooling rose to 13 years, and mean years of schooling improved to 9 years, showing progress in educational access and quality.
• Income: In 2023, per capita GNI rose to $9,046.76, reflecting a 6.3% growth from $6,951 in 2022, demonstrating robust economic performance.
• Gender Inequality: India improved to 102nd in the Gender Inequality Index (GII), with a GII value of 0.437, better than the global average of 0.462.

Since 1990, India’s HDI has surged by over 53%, outpacing global and South Asian averages, a testament to long-term investments in human-centric policies

The Driving Forces Behind India’s HDI Growth

India’s HDI improvement stems from targeted government initiatives and systemic reforms:

• Healthcare Boost: Programs like Ayushman Bharat, the world’s largest health assurance scheme, and Janani Suraksha Yojana have enhanced healthcare access, reducing mortality rates and improving life expectancy. The National Health Mission has enhanced healthcare facilities in rural areas.
• Education Reforms: The National Education Policy (NEP) 2020 emphasizes inclusive education, teacher training, and tech-enabled learning. Initiatives like Digital India have bridged the digital divide, improving access to online education.
• Economic Growth: India’s GNI per capita growth reflects robust economic policies and social welfare schemes like Jan Dhan and UPI, promoting financial inclusion. Between 2015-16 and 2019-21, 135 million Indians escaped multidimensional poverty, boosting overall development.
• AI and Innovation: India’s rise as a global AI hub, with 20% of AI researchers staying in the country (up from nearly zero in 2019), is driving productivity in healthcare, education, and governance.

These efforts reflect India’s commitment to people-centric development, aligning with global Sustainable Development Goals (SDGs).

Regional Variations: Which States Led the HDI Surge?

India’s HDI progress isn’t uniform across its states and union territories. According to subnational HDI data, states like Kerala, Goa, and Delhi lead the pack due to:

• Kerala: High literacy rates (near 100%) and robust healthcare systems.
• Goa: Strong tourism-driven economy and high per capita income.
• Delhi: City infrastructure, along with improved access to high-quality education and employment opportunities.

However, states like Bihar, Uttar Pradesh, and Jharkhand lag behind, grappling with lower literacy, inadequate healthcare, and higher poverty rates. These disparities highlight the need for region-specific policies to ensure balanced development.

Challenges Remain: Where India Still Lags Behind

Despite progress, India faces significant hurdles:

• Inequality: Inequality reduces India’s HDI by 30.7%, one of the highest losses in the region. Economic inequalities and unequal resource distribution continue to exist.
• Gender Gaps: Female labour force participation is only 41.7%, compared to 76.1% for men, and women’s representation in Parliament remains low, though the Women’s Reservation Bill aims to address this.
• Education Quality: While access has improved, learning outcomes need strengthening through better teacher training and curriculum reforms.
• Climate and Poverty: Climate change and economic shocks threaten progress, with 234 million Indians still in multidimensional poverty.

Addressing these challenges requires sustained policy focus and inclusive growth strategies.

Global Perspective: How Does India Compare Now?

India’s 130th rank places it alongside Bangladesh (130th) but behind neighbours like Sri Lanka (89th) and China (78th), both in the “high human development” category. Nepal (145th) and Pakistan (168th) trail India. Worldwide, Iceland leads the HDI with a score of 0.972, whereas South Sudan trails at 0.388. India’s progress outpaces many developing nations, but it lags behind OECD countries, where recovery from global crises has been faster. The global HDI growth has slowed, with 90 countries stagnating or declining, making India’s upward trajectory noteworthy.

The Road Ahead: Sustaining HDI Growth Post-2025

To maintain and accelerate HDI growth, India must:

• Leverage AI: Expand AI-driven solutions in e-health, e-learning, and agriculture, ensuring ethical governance.
• Reduce Inequality: Focus on job creation in manufacturing and green sectors, alongside skilling programs for youth.
• Strengthen Education: Invest in teacher training and tech-enabled learning to improve educational outcomes.
• Promote Gender Equity: Increase women’s participation in the workforce and politics through targeted policies.
• Combat Climate Challenges: Prioritize renewable energy and sustainable practices to mitigate environmental impacts.

Wrapping-up

India’s steady HDI climb reflects its potential to become a global leader in human development. By addressing inequalities and embracing innovation, India can cross the “high human development” threshold by 2030, creating a brighter, more equitable future for its citizens.

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