Inequality reduced India’s Human Development Index (HDI) score by a staggering 30.7 per cent, one of the highest losses in Asia, according to the 2025 Human Development Report released by the United Nations Development Programme (UNDP) on May 6, 2025.
Despite this, India continued to make steady progress, climbing from rank 133 in 2022 to 130 in 2023 out of 193 countries. The country’s HDI value rose from 0.676 to 0.685, bringing it closer to the high human development threshold of 0.700.
The report, titled A Matter of Choice: People and Possibilities in the Age of AI, commended India’s long-term gains in health, education and income. Life expectancy reached 72 years — the highest since the index began — while gross national income per capita rose more than fourfold since 1990. Improvements in mean years of schooling and poverty reduction also contributed to India’s rise.
However, the report warned that inequality, particularly in income and gender, continued to hold back India’s human development potential. Female labour force participation and political representation remained low, although a recent constitutional amendment reserving one-third of legislative seats for women was seen as a promising shift.
Angela Lusigi, UNDP India’s Resident Representative, said India’s progress reflected “sustained improvements in key dimensions of human development” but urged a sharper focus on inclusion.
“With a renewed focus on women-led development, quality education and healthcare for all, India is well positioned to achieve inclusive growth and continued progress on human development,” she said.
The report also highlighted India’s emergence as a global AI leader, with the highest self-reported AI skills penetration and a growing share of domestic talent. AI was already being used to support farmers, expand healthcare access and deliver skills training, though the report stressed that technology’s benefits would depend on deliberate governance and investment choices.
Globally, the UNDP warned that human development progress had slowed to its weakest pace since 1990. Had pre-pandemic trends continued, the world would have been on track to reach very high human development by 2030. That goal now risks being delayed by decades, the report said.