Human Development Report 2025
India achieved milestone by improving its rank on the UNDP’s Human Development Report 2025. The country now stands at 130 out of 193 nations, rising from 133 in 2022. This advancement reflects India’s ongoing efforts to enhance health, education, and income levels. However, challenges such as gender inequality and economic disparities remain prevalent.
Human Development Index
The Human Development Index measures a country’s social and economic development. It considers factors like life expectancy, education, and per capita income.
Key Contributors to India’s Improvement
India’s HDI value increased from 0.676 to 0.685, nearing the high human development threshold of 0.700. India’s HDI growth is attributed to several factors. Life expectancy increased to 72 years, the highest recorded. Gross National Income (GNI) per capita rose to $9,047. Initiatives like the National Rural Health Mission, Janani Suraksha Yojana, the Poshan Abhiyaan and Ayushman Bharat improved health outcomes. Educational reforms under the Right to Education Act have also played a critical role.
Gender Inequality Index
India improved its position on the Gender Inequality Index, moving from 108 to 102. Despite this progress, the Gender Development Index score remains low at 0.874. Female labour force participation and political representation are still insufficient, although recent amendments reserving legislative seats for women show promise.
AI Adoption
The report highlighted that India is emerging as a key player in the global AI arena. It boasts the highest level of self-reported AI skills and is successfully retaining a growing share of its domestic AI talent—with 20% of Indian AI researchers now staying in the country, compared to almost none in 2019. AI is being implemented across various fields, including agriculture and healthcare, and several initiatives are in progress to make AI more accessible to the broader population.
Regional Comparisons
In South Asia, India shares its HDI rank with Bangladesh. Nepal and Bhutan rank lower, while Pakistan’s position declined. China and Sri Lanka have maintained high human development status. This comparison marks the varying development trajectories within the region.
Global Trends and Challenges
Sluggish Recovery Post-Crisis
- The post-pandemic global human development progress has been unexpectedly slow.
- Excluding 2020–2021, the projected increase in global Human Development Index (HDI) for 2024 is the smallest since 1990.
HDI Progress Has Stalled Globally
- Across all world regions, HDI growth is stagnant in 2024.
- This raises serious concerns about achieving sustainable development goals by 2030.
Growing Inequality:
- The gap between Low HDI and Very High HDI countries has increased for the fourth consecutive year, reversing past progress.
- Development disparities are intensifying due to economic, ecological, and geopolitical pressures.
- Low-HDI countries face a triple challenge:
- Escalating trade tensions
- Mounting debt burden
- Jobless industrialization (growth without adequate employment)
People’s Views on AI (Survey Insights):
- 50% believe their jobs may be automated.
- 60% expect AI to positively impact their jobs, with opportunities in new sectors.
- Only 13% fear job losses, indicating optimism over AI’s role.
AI in Low- and Medium-HDI Countries:
- 70% believe AI will boost productivity.
- Two-thirds expect to use AI in education, health, or work within a year.
- This shows readiness but also highlights the urgency of bridging internet and electricity access gaps.
Key Recommendations
Three Priority Actions Proposed:
- Foster economies where humans and AI collaborate, not compete.
- Ensure human agency in all stages of AI—design, development, and deployment.
- Modernize education and healthcare systems to align with 21st-century challenges.
Democratizing AI Use:
- 20% of global respondents already use AI.
- Rapid digital transformation is underway, making infrastructure access and digital literacy essential.
Future Prospects
India’s future in human development hinges on addressing inequality and promoting inclusive growth. A focus on women-led development and quality education is essential. Investments in technology and governance will also play important role in harnessing AI for societal benefits.
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