UNDP Human Development Report 2025

New Delhi: The United Nations Development Programme (UNDP) released its highly anticipated Human Development Report 2025 on May 7, 2025, titled A Matter of Choice: People and Possibilities in the Age of AI. This comprehensive report underscores the transformative potential of artificial intelligence (AI) in shaping human development while highlighting India’s steady progress, persistent challenges, and global trends in human development. With India climbing three spots to rank 130 out of 193 countries in the Human Development Index (HDI), the report provides a roadmap for leveraging AI to address inequalities and foster inclusive growth.

India’s Human Development Index (HDI) Ranking and Progress

The Human Development Index (HDI) is a composite measure assessing three core dimensions of human development: a long and healthy life, access to knowledge, and a decent standard of living. In the 2025 report, India’s HDI value rose from 0.676 in 2022 to 0.685 in 2023, enabling the country to climb from 133rd to 130th place among 193 countries. While India remains in the medium human development category, it is nearing the threshold for high human development (HDI ≥ 0.700).

Key Achievements in India’s HDI

1. Life Expectancy: India’s life expectancy reached an all-time high of 72 years in 2023, up from 58.6 years in 1990. This remarkable progress, attributed to robust post-pandemic recovery and national health programs, reflects improvements in healthcare access and disease management.
2. Education: The average mean years of schooling in India has increased significantly, with children now expected to stay in school for 13 years, compared to 8.2 years in 1990. Initiatives like the Sarva Shiksha Abhiyan have expanded access to education, though challenges in quality and learning outcomes persist.
3. National Income: India’s Gross National Income (GNI) per capita has surged over fourfold, from USD 2,167 in 1990 to USD 9,046 in 2023 (based on 2021 Purchasing Power Parity). Additionally, 135 million Indians escaped poverty between 2015-16 and 2019-21, bolstering the country’s HDI growth.

Regional Comparison

Among India’s neighbors, China (78th), Sri Lanka (89th), and Bhutan (125th) rank higher, while Bangladesh (130th) shares the same rank. Nepal (145th), Myanmar (150th), and Pakistan (168th) trail behind. India’s progress positions it as a regional leader, though disparities with higher-ranked neighbors highlight areas for improvement.

Challenges Hindering India’s Human Development

Despite notable strides, India faces significant challenges that impede its human development trajectory:

1. Inequality: Inequality reduces India’s HDI by 30.7%, one of the highest losses in the region. The 2023 Gini coefficient of 0.410 underscores rising income disparities, necessitating inclusive policies to bridge the gap.
2. Gender Disparities: India ranks 102nd on the Gender Inequality Index (GII), reflecting persistent challenges in reproductive health, political representation, and workforce participation. Female labor force participation stands at 41.7%, and women remain underrepresented in political spheres.
3. GNI Per Capita Rank: India’s GNI per capita rank is seven positions below its HDI rank, indicating that economic growth has not fully translated into equitable human development outcomes.

Global Trends in Human Development

The 2025 Human Development Report paints a sobering picture of global human development, noting the slowest progress since 1990, excluding the 2020-2021 crisis years. Key global findings include:

• Stalled Progress: The global HDI recorded its smallest increase in decades. If pre-2019 trends had continued, most countries could have achieved very high human development by 2030. This milestone is now likely delayed by decades.
• Top and Bottom Ranks: Iceland leads with an HDI of 0.972, while South Sudan ranks last with an HDI of 0.388.
• Growing Inequality: The disparity between low and very high HDI countries has widened for the fourth consecutive year, with high-HDI countries progressing while low-HDI nations stagnate.

AI’s Role in Human Development: Global and Indian Perspectives

The 2025 report emphasizes AI’s dual potential to augment and automate jobs, with 1 in 5 people globally already using AI tools. Globally, 61% of respondents expect AI to enhance job roles, while 51% anticipate automation or transformation of existing roles. The report calls for inclusive, human-centered AI policies to ensure AI contributes to human development without exacerbating inequalities.

India’s AI Landscape

India stands out as a global leader in AI adoption and talent development:

1. AI Skills Penetration: India boasts the highest self-reported AI skills penetration globally, reflecting a robust ecosystem of AI education and training.
2. Global AI Index: In the Global AI Index, India ranks 4th among 36 evaluated countries, the only lower-middle-income nation in the top 10. This achievement underscores India’s growing influence in AI innovation.
3. Talent Retention: In 2025, 20% of AI researchers in India remain in the country, a significant rise from nearly zero in 2019. This trend signals a strengthening domestic AI ecosystem.

How AI Can Drive Human Development in India

The report outlines several ways AI can address India’s human development challenges:

1. Enhancing Productivity and Economic Growth: AI is poised to boost productivity by automating routine tasks, enabling innovation in sectors like manufacturing, services, and agriculture. A Google report estimates AI could contribute Rs 33.8 lakh crore to India’s economy by 2030, supporting the country’s goal of a USD 1 trillion digital economy by 2028 and contributing 20% to GDP.
2. Improving Healthcare: AI enhances diagnostic accuracy in radiology, detects abnormalities, and supports personalized treatment plans in oncology. It streamlines clinical workflows, optimizes resource allocation, and enables remote monitoring and telemedicine, particularly in underserved areas. AI-driven medical education tools, such as virtual simulations, further enhance healthcare professionals’ skills.
3. Transforming Education: AI-powered adaptive learning platforms provide personalized education, while AI tutors and chatbots offer real-time support, especially in remote regions. These tools help educators track student progress and address learning gaps effectively.
4. Empowering Governance: AI improves public service delivery by enhancing efficiency, transparency, and fraud detection in welfare schemes. Tools like the Reserve Bank of India’s mule buster combat digital fraud, while the government’s Bhashini initiative boosts multilingual communication, improving policy outreach.
5. Addressing Inequality: AI tools can identify gaps in service delivery, ensuring equitable access to opportunities for marginalized communities. Human-centered AI design is critical to promoting inclusion.

Strategies to Address India’s Human Development Challenges

The report proposes actionable strategies to overcome India’s human development hurdles:

1. Gender Equality:
   1. Implement the 106th Constitutional Amendment to reserve one-third of legislative seats for women, strengthening their decision-making roles.
   1. Expand access to financial schemes and digital freelancing platforms to boost women’s entrepreneurship.
   1. Promote flexible jobs, skilling programs, crèche support, and initiatives like Stand-Up India to increase female workforce participation.
   1. Enforce stricter laws against gender-based violence, child marriage, and workplace discrimination, while strengthening Beti Bachao Beti Padhao and One Stop Centres.
2. Tackling Inequality:
   1. Strengthen inclusive programs like PM Awas Yojana, Ayushman Bharat, and MGNREGA to address income disparities.
   1. Pursue long-term reforms in land rights, healthcare, and education to promote equitable development.
   1. Leverage Mission Antyodaya and Aspirational Districts Programme for inclusive policy measures.
3. Improving Health and Education:
   1. Increase investment in primary healthcare and nutrition through schemes like Poshan Abhiyaan.
   1. Enhance teacher training, implement NEP 2020 curriculum reforms, and deploy tech-enabled education tools to improve learning outcomes.
4. Leveraging AI for Inclusion:
   1. Utilize AI for e-health monitoring, e-learning, and agriculture advisories, ensuring ethical governance through transparent policies.
   1. Focus job creation on manufacturing, the green economy, and infrastructure, with skilling programs for emerging sectors.
   1. Enhance digital and financial inclusion through Jan Dhan and digital literacy campaigns.

Conclusion

The UNDP Human Development Report 2025 highlights India’s remarkable progress in human development, with a three-spot rise to 130th in the global HDI rankings. Advances in life expectancy, education, and national income reflect the impact of people-centric policies. However, challenges like inequality, gender disparities, and economic gaps underscore the need for inclusive strategies. The report’s focus on AI as a catalyst for human development offers India a unique opportunity to harness technology for productivity, healthcare, education, governance, and inclusion. By addressing inequalities head-on and leveraging AI ethically, India can unlock its full human potential, ensuring sustainable progress for all.

Frequently Asked Questions (FAQs)