India has moved up in the Human Development Index (HDI). As per the 2025 Human Development Report titled “A Matter of Choice: People and Possibilities in the Age of AI”, released on May 6, India was ranked 130 out of 193 countries in 2023. In 2022, it was ranked 133.
Key Points From The Report
HDI Ranking and Value (2023)
| Rank | Country | HDI Value |
|---|---|---|
| 1 | Iceland | 0.972 |
| 2 | Norway | 0.970 |
| 2 | Switzerland | 0.970 |
| 4 | Denmark | 0.962 |
| 5 | Germany | 0.959 |
| 5 | Sweden | 0.959 |
| 7 | Australia | 0.958 |
| 8 | Hong Kong, China (SAR) | 0.955 |
| 8 | Netherlands | 0.955 |
| 17 | United States | 0.938 |
| 130 | India | 0.685 |
Source: UNDP Human Development Report 2025
- Slow Global Progress: Since 1990, except for 2020–2021, the world has seen its lowest HDI growth. If pre-COVID trends had continued, most countries could have achieved very high human development by 2030. That goal now seems delayed by many years.
- Best and Worst Performers: Iceland topped the HDI list with a score of 0.972. South Sudan was at the bottom with a score of 0.388.
- Rising Inequality: The gap between rich and poor countries is growing. Nations with high HDI are improving, while those with low HDI are stuck.
- Role of Artificial Intelligence: AI is spreading quickly. One in five people worldwide use AI tools. About 60% of users believe AI will create new jobs, but half of them worry it might replace their current jobs. The report calls for fair and inclusive AI policies to make sure AI helps people instead of hurting job opportunities.
India’s HDI Progress
India’s HDI score rose from 0.676 in 2022 to 0.685 in 2023. Though still in the “medium human development” category, it is getting close to the “high human development” level (0.700).
Comparison with Neighbouring Countries
In South Asia, China (78), Sri Lanka (89), and Bhutan (125) are ahead of India. Bangladesh shares the same rank (130). Nepal (145), Myanmar (150), and Pakistan (168) are behind India.
Growth in Income and Poverty Reduction
India’s Gross National Income per person rose from $2,167.22 in 1990 to $9,046.76 in 2023. Between 2015-16 and 2019-21, 135 million Indians came out of multidimensional poverty.
But, inequality reduced India’s HDI by 30.7%, one of the highest drops in the region. Though inequality in health and education has declined, income and gender gaps remain high.
The report noted that while steps like reserving one-third of legislative seats for women show progress, issues like low female job participation and under-representation in politics still remain.
Changes in India’s HDI Value and Indicators (2022 vs 2023)
| Key Data (Human Development Index) | 2022 | 2023 |
|---|---|---|
| Rank | 133 | 130 |
| HDI value | 0.676 | 0.685 |
| Life Expectancy (years) | 71.70 | 72.00 |
| Expected Years of Schooling (years) | 12.96 | 12.95 |
| Mean Years of Schooling (years) | 6.57 | 6.88 |
| Gross National Income Per Capita ($ 2021 PPP) | 8475.68 | 9046.76 |
Source: UNDP Human Development Report 2025
Life Expectancy and Education
Life expectancy in India rose to 72 years in 2023 from 58.6 years in 1990 — the highest ever for the country. This improvement is due to programs like the National Rural Health Mission, Ayushman Bharat, Janani Suraksha Yojana, and Poshan Abhiyaan.
Schooling has also improved. Children now stay in school for an average of 13 years, up from 8.2 years in 1990. Initiatives such as the Right to Education Act and the National Education Policy 2020 have played a key role. However, improving education quality remains a challenge.
What is Human Development Index?
The HDI was created in 1990 by Pakistani economist Mahbub ul Haq and later adopted by the United Nations Development Programme (UNDP). It evaluates a country’s development based on three key dimensions:
- Health – Measured by life expectancy at birth.
- Education – Measured by average years of schooling and expected years of schooling.
- Standard of Living – Measured by Gross National Income (GNI) per person, adjusted for inequality.
HDI Categories:
- Low: below 0.550
- Medium: 0.550 to 0.699
- High: 0.700 to 0.799
- Very High: 0.800 and above
Analysis: India’s Current Challenges
Women’s workforce participation reached 41.7% in 2023-24. However, more support systems are needed to help women keep their jobs. Political representation of women is still weak, and it’s unclear when the seat reservation law will be implemented.
Many children from poor families still struggle to get an education. Until this is fixed, India’s HDI cannot improve much.
Despite 135 million Indians escaping poverty, income and gender gaps have pulled down India’s HDI by 30.7%. India is now using AI more than before and has retained 20% of AI researchers as of 2023. Going forward, India must use AI to grow sectors like agriculture, health, education, and public services—but with the right rules to avoid increasing inequality.
How AI Can Help Human Development
- Boosting Productivity: AI can increase productivity in industries by handling repetitive tasks. About 70% of people globally believe AI will improve economic growth. A report by Google says AI could add Rs 33.8 lakh crore to India’s economy by 2030.
- Better Healthcare: In healthcare, AI helps detect diseases in radiology and cancer treatment. It also improves hospital management, supports remote care, and trains doctors using virtual reality.
- Improving Education: AI enables tailored learning through smart platforms and chatbots. It also helps teachers track student progress and identify where help is needed.
- Better Governance: AI tools are making public services more efficient. They help detect fraud, like mule bank accounts through MuleHunter.AI developed by the RBI. The Bhashini project is helping the government communicate in multiple languages.
- Reducing Inequality: AI can help reach poor and underserved communities by identifying service gaps. With the right design, AI can make services fairer and more accessible to all.