Photo Credit: Parinita Mathur
Clear Cut Research, Monitoring, Evaluation & Learning Desk
New Delhi, UPDATED: Sep 07, 2025 04:55 IST
Written By: Paresh Kumar
The 2025 Human Development Report was released on 6 May 2025 in Brussels. It marks 35 years since the Human Development Index (HDI) was first introduced in 1990.
Why does it matter? HDI is not just a number. It is a yardstick of dignity. It captures how long people live, how much they learn, and how much income they earn. GDP counts goods. HDI counts lives.
Stalled progress, lingering gaps
The 2025 Human Development Report brings sobering news. Global HDI gains are now the smallest since 1990 (excluding the COVID shock years). If pre-COVID trends had held, most countries might have reached very high human development by 2030. Now that goal may slip by decades.
The richest countries grow. The poorest stall. Inequality between nations widens.
Iceland leads with an HDI of 0.972. South Sudan brings up the rear at just 0.388.
What is HDI?
HDI blends three measures.
- First, life expectancy.
- Second, education—years of schooling on average, and years expected.
- Third, income—Gross National Income per capita, adjusted for purchasing power.
The closer to 1, the higher the human development.
India’s step forward
India climbed three spots. From rank 133 in 2022 to rank 130 in 2023. Its HDI rose from 0.676 to 0.685.
This keeps India in the “medium human development” category. The threshold for “high” is 0.700.
A global snapshot: Top 10 vs India
The top of the HDI ladder is crowded with European nations, joined by Hong Kong, Singapore, and Australia. Iceland tops at 0.972. Placed alongside, India at 130 looks distant. But the picture is not about despair. It is about a gap that must be bridged. India has moved forward, but the climb is steep.
A chart of the top 10 countries plus India shows the contrast. It is not to belittle India, but to highlight the distance yet to cover. Iceland, Norway, and Switzerland rank at the top. India, at 0.685, is still 0.3 points away from the leaders. The story is of progress, but also of unfinished work.
India and its neighbors
China is ahead at rank 78. Sri Lanka at 89. Bangladesh, at 130, matches India in rank but edges slightly higher in HDI value. Pakistan lags far behind at 168. The inequality-adjusted HDI (IHDI) tells another story. Inequality cuts India’s score by 30.7%, the steepest among its neighbors. Bangladesh loses 19%, Sri Lanka 16%, and China 17%. On this measure, India drops well below its peers.
The India-and-neighbours comparison shows that rank alone does not tell the whole story. Bangladesh, with fewer resources, matches India’s rank because its development is more evenly spread. Sri Lanka and China remain significantly ahead. Pakistan trails. The key lesson: India’s averages are improving, but inequality still blunts the gains.
Why the gap remains
- Health: Life expectancy has risen to 72 years in 2023, from 58.6 in 1990. Programs like Ayushman Bharat and Poshan Abhiyaan played a role. Yet rural gaps remain.
- Education: Average schooling years are up from 8.2 in 1990 to 13 in 2023. Reforms expanded access. But quality and learning outcomes are uneven.
- Income: GNI per capita has quadrupled since 1990. Over 135 million people escaped multidimensional poverty between 2015 and 2021. Yet inequality remains high.
- Gender: Women’s participation in the workforce is 41.7%. Political representation is low, though the 106th amendment promising one-third seats for women could change this.
The paradox
India’s story is full of contrasts. Its brightest minds head the world’s biggest corporations. They drive innovation across continents. Yet within India, millions still wait for basic healthcare, better schools, and equal opportunities.
This paradox does not weaken India’s progress. It sharpens the call for more inclusive growth.
Conclusion
India is on the move. From 133 to 130, the climb is real. Life expectancy rises. Schooling improves. Incomes grow. Millions escape poverty.
Yet inequality remains the shadow. It cuts India’s HDI by nearly a third. That is the barrier between medium and high human development.
India’s journey is not about catching up with Iceland or Norway. It is about ensuring every Indian shares the progress already underway.
HDI at 130 is not an endpoint. It is a milestone. A checkpoint on the road ahead.
