Title of Report
A Matter of Choice: People and Possibilities in the Age of Artificial Intelligence (UNDP)
Why in News?
India has been ranked 130th out of 193 countries in the United Nations Human Development Report (HDR) 2025, titled “A Matter of Choice: People and Possibilities in the Age of AI” by United Nations Development Programme (UNDP). The report highlights steady progress in human development indicators for India but flags persistent inequality and gender gaps as critical areas of concern.
Key Highlights of Human Development Report 2025
Global Insights:
- HDI Stagnation: Global human development progress has slowed to the weakest pace since 1990 (excluding the pandemic years).
- Global Rankings:
- Top: Iceland (HDI: 0.972)
- Bottom: South Sudan (HDI: 0.388)
- Inequality Rising: The gap between high and low-HDI countries continues to widen, stalling convergence.
- AI and Human Development:
- 1 in 5 people globally use AI tools.
- 60% believe AI will create opportunities; ~50% fear job displacement.
- Call for inclusive AI policies that prioritize equity and mitigate automation-related job losses.
India’s Performance
- HDI Score: Improved from 0.676 (2022) to 0.685 (2023)
- Ranking: Rose from 133rd in 2022 to 130th in 2023. Source: UNDP
- Category: Medium Human Development (close to “high” threshold of 0.700)
- Regional Standings:
- Above: China (78), Sri Lanka (89), Bhutan (125)
- Equal: Bangladesh (130)
- Below: Nepal (145), Myanmar (150), Pakistan (168)
- Gender and Inequality Adjustments:
- Inequality-Adjusted HDI (IHDI): Drops to 0.475, showing a 30.66% decline
- Gender Development Index (GDI): 0.874 (Male: 0.722, Female: 0.631)
- Gender Inequality Index (GII): India ranks 102nd, score: 0.403
- India Among Regional and BRICS Peers:
- BRICS Rankings: Brazil (89), Russia (59), China (75), South Africa (110), India (130)
- South Asia Region: Sri Lanka leads, India ahead of Nepal, Myanmar, and Pakistan
Progress in Key Areas
- Health:
- Life expectancy rose from 58.6 years (1990) to 72 years (2023)
- Driven by programs like Ayushman Bharat, NHM, Janani Suraksha Yojana, and Poshan Abhiyaan
- Education:
- Expected years of schooling: Increased to 13 years (from 8.2 in 1990)
- Supported by RTE Act, NEP 2020, Samagra Shiksha Abhiyan
- Income:
- GNI per capita (PPP): Rose from $2,167 (1990) to $9,046 (2023)
- 135 million Indians exited multidimensional poverty (2015-2021)
- AI Skills Leadership:
- Highest global self-reported AI skill penetration
- 20% of Indian AI researchers now remain in India (vs. 0% in 2019)
Regional Comparison: India vs. Neighbours
| Country | HDI Rank (2025) | HDI Value |
|---|---|---|
| China | 75 | |
| Sri Lanka | 78 | |
| Bhutan | 127 | |
| India | 130 | 0.685 |
| Bangladesh | 130 (tied) | |
| Nepal | 145 | |
| Myanmar | 149 | |
| Pakistan | 168 |
Global HDI Leaders (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 |
How Can Artificial Intelligence Contribute to Human Development?
- Boosting Economic Productivity:
- AI is expected to contribute ₹33.8 lakh crore to India’s GDP by 2030 (Google estimate)
- Enhances innovation across manufacturing, agriculture, and services
- Transforming Healthcare:
- AI in diagnostics (radiology, oncology), telemedicine, and remote monitoring
- Personalized treatment, VR-based medical training, and improved access in rural areas
- Improving Education Outcomes:
- Adaptive learning platforms, AI tutors, and chatbot-based support
- Real-time monitoring to identify learning gaps
- Enabling Smart Governance:
- Public service delivery tools like MuleHunter.AI (RBI fraud detection)
- Projects like Bhashini enhance multilingual accessibility
- Promoting Inclusion:
- AI can detect delivery gaps and aid marginalized groups if guided by ethical, human-centered design
Challenges
- Inequality Impact:
- Inequality-adjusted HDI loss: 30.7%, among the highest in the region
- Gender Inequality:
- Female labor force participation: 41.7%
- Political representation and decision-making remain low
- Promise shown by the 106th Constitutional Amendment for one-third legislative reservation
Policy Recommendations: How Can India Address Human Development Challenges?
- Promote Gender Equality:
- Ensure effective implementation of legislative reservation
- Expand access to PM Mudra Yojana, Stand-Up India, and digital skilling platforms
- Support women via flexible work, childcare (crèches), and STEM programs like Vigyan Jyoti
- Enforce laws against child marriage and workplace harassment
- Strengthen Nirbhaya Fund and One Stop Centres
- Address Income Inequality:
- Scale inclusive programs: MGNREGA, PMEGP, Jan Dhan Yojana
- Focus on land reforms, quality healthcare, and accessible education
- Promote SDG 10 for reduced inequalities
- Leverage CSR for equitable development projects
- Improve Health and Education:
- Prioritize universal healthcare access and nutrition (Poshan Abhiyaan)
- Reform teacher training and curricula under NEP 2020
- Expand use of EdTech and AI-based learning tools
- Leverage AI for Inclusion and Innovation:
- Ensure ethical, inclusive AI governance
- Expand AI-based solutions in farming, health, and education
- Promote green jobs, manufacturing, and skilling in emerging sectors
- Enhance financial/digital inclusion via UPI, Jan Dhan, and digital literacy drives
About HDR:
- The Human Development Report is an annual flagship publication of the United Nations Development Programme (UNDP).
- It has been published since 1990 by the Human Development Report Office (HDRO).
- Each report focuses on a specific theme related to human development (e.g., inequality, sustainability, or resilience).
- The aim is to promote people-centric development, expanding choices and improving well-being rather than focusing solely on economic growth.
Human Development Index (HDI):
- The HDI is a composite index used in the Human Development Report to measure and compare the overall development of countries.
- It evaluates average achievements in three key dimensions:
- Health:
- Life expectancy at birth
- Aligned with SDG 3: Ensure healthy lives and promote well-being
- Education:
- Expected years of schooling (SDG 4.3: Access to quality education)
- Mean years of schooling (SDG 4.4: Relevant skills for employment)
- Standard of Living:
- Gross National Income (GNI) per capita (PPP)
- Linked to SDG 8.5: Decent work and equal pay for all
- Health:
India’s HDI improvement in 2025 reflects tangible progress in health, education, and income. However, sustained attention to inequality, gender gaps, and inclusive AI adoption will be critical to unlocking high human development status and achieving Sustainable Development Goals (SDGs) by 2030.
UPSC Civil Services Examination Previous Year Question (PYQ)
Prelims
Q. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (2012)
- Deprivation of education, health, assets and services at household level
- Purchasing power parity at national level
- Extent of budget deficit and GDP growth rate at national level
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (a)
Mains
Q. Despite consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive. (2016)
