As India climbs up HDI rankimgs, rising inequality poses challenge

Context

In the 2025 Human Development Report, ‘A Matter of Choice: People and Possibilities in the Age of AI’, released on Tuesday, India ranks 130 out of 193 countries, from 133 in 2022. It registered an HDI value increase to 0.685 in 2023 from 0.676 in 2022.

HDI 2023 – Overview

• India’s life expectancy, at 72 years in 2023, is the highest level it has reached since the inception of the index in 1990 (58.6 years).

• Children, the report noted, are expected to stay in school for 13 years on average, up from 8.2 years in 1990; and Gross National Income per capita has risen from $2,167.22 in 1990 to $9046.76 in 2023.

• It gave a shout out to programmes such as MGNREGA, the Right to Education Act, the National Rural Health Mission and other initiatives for the improved status, but also sounded a word of caution about rising inequality, particularly significant income and gender disparities.

• Top and Bottom Ranks: Iceland ranked first with an HDI of 0.972, while South Sudan ranked last with an HDI of 0.388.

• Regional Comparison: Among India’s neighbors, China (78th), Sri Lanka (89th), and Bhutan (125th) rank above India, while Bangladesh (130th) is on par. Nepal (145th), Myanmar (150th), and Pakistan (168th) are ranked below India

• Life Expectancy: India’s life expectancy rose from 58.6 years in 1990 to 72 years in 2023, the highest ever, reflecting a strong post-pandemic recovery.

• This progress is attributed to national health programs like National Health Mission, Ayushman Bharat, Janani Suraksha Yojana, and Poshan Abhiyaan.

• Education: India's mean years of schooling have increased, with children now expected to stay in school for 13 years, up from 8.2 years in 1990.

• Initiatives like the Right to Education Act 2009, National Education Policy 2020, and Samagra Shiksha Abhiyan have improved access, though quality and learning outcomes still require attention.

• National Income: India’s Gross National Income per capita rose over fourfold, from USD 2,167 in 1990 to USD 9,046 in 2023 based on 2021 Purchasing Power Parity (PPP).

• Additionally, 135 million Indians escaped multidimensional poverty between 2015-16 and 2019-21, contributing to HDI improvement.