Knowledge Nugget: Why Human Development Report 2025 is UPSC essential

Why in the news?

Recently, the United Nations Development Programme (UNDP) released its latest Human Development Report (HDR) titled “A matter of choice: People and possibilities in the age of AI.” Humans are “the true wealth of nations,” the report notes, underscoring that humans are more than the sum of the tasks they perform. Instead of emphasising the difference, the report pointed out that humans and machines have the potential to be a powerful complementarities that expand human potential. The report shows how Artificial Intelligence (AI) could reignite development.

Key Takeaways:

1. According to UNDP, “Human Development Reports (HDRs) have been released most years since 1990 and have explored different themes through the human development approach. They have had an extensive influence on development debate worldwide.” The Human Development Report Office produces it for the United Nations Development Programme (UNDP).

2. UNDP published the following indices: Human Development Index (HDI), Inequality-adjusted HDI, Gender Development Index, Gender Inequality Index, Gender Social Norms Index (GSNI), Multidimensional Poverty Index, and Planetary pressures-adjusted Human Development Index.

3. HDI is composite index that measures average achievement in human development taking into account four indicators: life expectancy at birth (Sustainable Development Goal 3); expected years of schooling (SDG 4.3); mean years of schooling (SDG 4.4); and gross national income (GNI) per capita (2017 PPP$) (SDG 8.5).

Key highlights of the Report:

1. The report noted the widening gap in inequality between countries with low Human Development Index (HDI) scores and those with very high HDI scores for the fourth consecutive year, highlighting a stark reversal of a historical trend where such inequalities were decreasing.

2. India shows steady upward movement in the HDI rankings, ranking 130 in the 2025 UNDP report. The country’s HDI value rose from 0.676 in 2022 to 0.685 in 2023, placing India in the medium human development category and bringing it closer to the high human development threshold (HDI ≥ 0.700).

3. The report noted that India’s HDI value has increased by over 53% since 1990, showing a growth faster than both the global and South Asian averages. The targeted social protection and welfare programmes, and economic growth are cited as reasons for the progress.

Source: UNDP Human Development Report 2025

4. India recorded the highest increase in  Life expectancy from 58.6 years in 1990 to 72 years in 2023. On the economic front, India’s Gross National Income per capita rose over four times, from $2167.22 (1990) to $9046.76 (2023) based on 2021 PPP $.

5. According to the report, India has been placed in a unique position globally as a rising AI powerhouse with the highest self-reported AI skills penetration. The report pointed out that 20 per cent of Indian AI researchers are now choosing to stay in the country – up from almost none in 2019.

Source: UNDP’s HDR 2025

6. “As Artificial Intelligence continues its rapid advance across so many aspects of our lives, we should consider its potential for development. New capabilities are emerging almost daily, and while AI is no panacea, the choices we make hold the potential to reignite human development and open new pathways and possibilities,” said Achim Steiner, UNDP Administrator.

7. AI’s impact is not inevitable—it is a matter of choice, has been stressed by the report. There is a risk of deepening existing inequalities if deliberate policy and inclusive governance are not implemented. But with the right investments and safeguards, it can become a force for opportunity, equity, and innovation.

BEYOND THE NUGGET: 2024 Global Multidimensional Poverty Index (MPI)

1. The 2024 Multidimensional Poverty Index was published on 17th October, 2024, by the Oxford Poverty and Human Development Initiative (OPHI) and the Human Development Report Office of the United Nations Development Programme(UNDP). It was first launched in 2010.

2. The Global MPI uses 10 indicators covering three main areas: (i) health, (ii) education, and (iii) standard of living. These three dimensions have one-third weight each in the final index.

3. India, with 234 million people living in poverty, is among the countries with the largest number of extreme poor. The report also found that 1.1 billion out of the 6.3 billion people in 112 countries live in acute poverty worldwide.

4. The report pointed out that the countries with the lowest Human Development Index (HDI) values tend to have the highest MPI values and the highest proportion of people living in poverty, but a large share of people also reside in medium HDI countries like India.

Post read question

Consider the following statements about the Human Development Report:

1. The Human Development Report is published by the United Nations Development Programme(UNDP) and Oxford Poverty and Human Development Initiative (OPHI).

2. According to the latest report, India is in the medium human development category with an HDI value of 0.685.

Which of the following statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) None

(Source: UNDP’s HDR 2025)

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