Human Development Index (HDI)

Human Development Index (HDI) is a statistical index that measures key dimensions of human development: health, education, and standard of living. It was introduced by the United Nations in 1990 that assess each country’s economic and social level of development. Every year United Nations Development Programme (UNDP) publishes a Human Development Report with HDI rankings. According to the Human Development Report 2023, India ranks 132 out of 191 countries, having a score of 0.633.

What is Human Development Index?

The Human Development Index (HDI) is a composite index of life expectancy, education and per capita income indicators, and rank countries into four tiers of human development.

Human Development Index 

Pakistani economist Mahbub ul-Haq developed HDI and it was introduced by the United Nations Development Programme (UNDP) in 1990 as a comprehensive alternative to simple economic measures like Gross Domestic Product (GDP) per capita that measures development. In the 2010 Human Development Report introduced an Inequality-adjusted Human Development Index (IHDI). The Human Development Index (HDI) measures average achievement in key dimensions of human development: a long and healthy life, knowledge, and standard of living. The HDI measures only part of what human development entails. It does not reflect on inequalities, poverty, empowerment, etc.

The HDI is calculated on a scale from 0 to 1. It has become an important tool for policymakers and researchers to assess and address development challenges and disparities among nations.

Dimensions and Indicators of Human Development Index

HDI is calculated by combining three dimensions that are as follows:

Health (Life Expectancy): It determines the overall health and longevity of a population. It is measured by calculating life expectancy at birth, which represents the average number of years a person is expected to live. Longer life expectancy indicates better health outcomes.

Education: The education dimension assesses both access to education and the quality of education. It is consists of two components:

Mean Years of Schooling: It represents the average number of schooling received by adults aged 25 and older. It indicates the level of education in a particular region.

Expected Years of Schooling: It estimates the number of years of education a child entering school today can expect to receive, assuming current enrollment rates. It reflects access to education for future generations.

Standard of Living (Income): The standard of living dimension measures the economic well-being of a population. It is represented by Gross National Income (GNI) per capita adjusted for purchasing power parity (PPP). GNI per capita reflects the income available to individuals in a country and is a key indicator of their economic well-being.

Importance of Human Development Index

The importance of the human development index are as follows:

• It determine social measures of development for calculating the overall development of a nation. 
• HDI measures disparities within and among the countries. It highlightes areas or groups that may be lagging in development and provides a more targeted approach.
• It allows for comparisons between countries, thereby helping policymakers identify areas where more improvement is required. It allow to learn from the success of other nations.
• HDI data is used by the national governments and international organizations to design policies, programmes and allocate resources according to it.
• HDI act as a tool for tracking progress toward certain development goals, such as those outlined in the Sustainable Development Goals (SDGs).
• It encourages countries to shift their development priorities from economic growth alone to improving the overall well-being of their citizens.

Rank of India in Human Development Index

The Human Development Report 2021-22 ranks India 132nd out of 191 countries. The report, themed “Uncertain Times, Unsettled Lives: Shaping our Future in a Transforming World,” . It addresses emerging threats such as conflicts, inequalities, and the resilience of healthcare systems, particularly in the context of challenges like the COVID-19 pandemic.

India’s HDI value stood at 0.633 in 2021, which was lower than the world average of 0.732. India’s life expectancy at birth was recorded at 67.2 years. Expected years of schooling at 11.9 years, mean years of schooling at 6.7 years. The gross national income per capita stood at USD 6,590. India has been ranked 122 on the Gender Inequality Index. The GDI(Gender Development index) value for 2021 is 0.490.

Consequences and Implications of Human Development Index

The Human Development Index (HDI) measures a nation’s development and well-being by considering factors like health, life expectancy, education, and per capita income. A higher HDI indicates better living conditions and access to opportunities. The Human Development Index (HDI) has several consequences and implications that are as follows:

• The HDI helps government to prioritize policies that improve human development, such as investing in healthcare, education, and income equality.
• The HDI is often considered when making investment decisions, as it reflects the potential for a stable, educated, and healthy workforce in a particular region.
• A higher HDI generally signifies a better quality of life for a country’s citizens. It indicates access to healthcare, education, and economic opportunities.
• A lower HDI can highlight internal inequalities within a nation. It requires efforts to address disparities in income and access to basic services.
• The HDI facilitates international comparisons. It highlightes disparities in living standards and influences global aid, trade, and diplomatic relations.

The Human Development Index not only measures well-being but also has significant consequences and implications for policy makers, social equality, and economic competitiveness, international relations, quality of life. It is a powerful tool for assessing and improving the overall human development of a nation.

Limitations of Human Development Index

The limitation of the Human Development Index are as follows:

• HDI simplifies and measures development factors by taking into account only three dimensions. It overlooks other human development factors.
• It doesn’t consider factors like poverty, gender inequality, environmental sustainability, or political freedoms.
• HDI doesn’t differentiate between the quality and quantity of education and healthcare.
• HDI mask disparities within countries, as it provides an average for the entire nation.
• HDI relies on data accuracy, which can vary widely between countries and regions.

FAQs on Human Development Index

1. What is the Human Development Index (HDI)?

HDI is a composite measurement developed by the United Nations to assess a country’s overall development by considering factors like health, education, and income.

2. What are the Dimensions of HDI?

HDI includes three dimensions: health (life expectancy), education (schooling and expected years of schooling), and standard of living (income).

3. Who Made HDI in India?

HDI was developed by Mahbub ul-Haq along with Indian economist Amartya Sen’s work on human capabilities.

4. What is the Purpose of HDI?

HDI serves as a tool for comparing the development levels of different countries, identifying disparities within and between nations. It act as guide for policy making to carry out overall development.

5. What are Some of the Criticisms of HDI?

HDI is criticized as being oversimplified development index that overlooks factors like environmental sustainability, and may not fully capture the quality of education and healthcare.

6. What are the different categories of HDI?

The HDI is categorised into various categories such as “very high human development,” “high human development,” “medium human development,” and “low human development” based on their HDI scores.