The goal of the HDI is to provide a comprehensive assessment of a country’s development based on the individuals and their capabilities. The Human Development Index is a statistical measure that shows the average achievement in various key dimensions of human development. These include a long and healthy life, a good standard of living, and being knowledgeable. The three main dimensions of the HDI are health, education, and standard of living. The health dimension is based on the life expectancy at birth. The education dimension is calculated by the years of schooling that are expected for children entering school. The standard of living is computed by taking into account the country’s gross national income. The scores for these three dimensions are then computed and aggregated using a geometric mean.
The HDI can be used to analyze the various policy choices that governments make regarding human development. It can also help stimulate debate about the priorities of the government. Although the HDI provides a comprehensive view of human development, it does not take into account various factors such as poverty, human security, and inequality. The other composite indices that are used to measure human development, such as the Human Development Report, provide a more accurate and broader perspective.
India in HDI
The rapid growth of income, education, and life expectancy has become a major challenge for India. According to the Human Development Report 2021, which was released by the UNDP, the country’s global rankings have dropped from 130 in 2020 to 132 in 2021. This is not surprising since the growth in India’s Human Development Index has slowed down faster than that of the global index. In 2020, India’s HDI values had remained flat, but they fell significantly in 2021. This marked a sharp deterioration from the previous year, and it is expected to have a negative impact on the country’s medium and South Asian HDI economies. At the global level, the fall in the index was slightly less than in 2020, but it was still more than in the previous year.
The decline in the Human Development Index values in 2021 was mainly due to India’s poor performance. However, other regions such as East Asia and the Pacific and Europe and Central Asia showed some marginal growth. While the HDI values in Arab countries remained stable, they continued to fall in the Caribbean and Latin America.
India and its Trends in HDI
The positive trends in the HDI values were seen in different HDI groups in 2021. For instance, in very high and high human development countries, the trends improved significantly. However, in low human development countries, the trends remained negative. This was mainly due to the sharp decline in the growth of India’s HDI values.
Although the pandemic has resulted in a sharp decline in India’s HDI values, it is also worrying that the country’s global rankings have dropped significantly. In 2015, the previous government of the National Democratic Alliance assumed office, and the country’s ranking decreased by one rung. During this period, the HDI rankings for China, Bangladesh, Sri Lanka, and the United Arab Emirates improved significantly. However, India’s efforts to improve its human development indicators are still lagging behind. This is because the country’s rapid growth has been overshadowed by other countries’ achievements.
A closer look at the data shows that the decline in India’s Human Development Index (HDI) growth has been continuous for more than a decade. From an annual average rate of 1.2% during the 1990s to 1.6% during the 2000s, the country’s growth rate has slowed down to 0.9% during the 2010–21 period. Its neighbors, such as Bangladesh, Bhutan, and China, did better than India. During the period under review, the HDI values of these countries improved by 1.64%, 1.25%, and 0.97%, respectively. The continuous decline in the growth of India’s Human Development Index can be considered as a destabilising factor. For instance, the country’s life expectancy rate, which had been at an annual rate of 0.7% during the 1990s to the 2000s, has remained flat since 2010.
In the first two years following the outbreak of the pandemic, life expectancy in India fell by 1.1% and 4.2%. However, in neighboring Bangladesh, life expectancy started to recover and reached 0.6% in the second year. The decline in the average annual growth of schooling in the country has also been continuous for more than a decade. From 0.4% in the 1990s to 0.5% in the 2000s, the annual average growth of schooling in India has dropped to 0.4%. Despite the improvement in the mean years of schooling that occurred during the past couple of decades, the growth in this area has stagnated during the pandemic. This is a negative factor for the country’s long-term growth.
The decline in the growth rates of the per capita national income and gender development index has also been disappointing. After reaching an annual average of 3.6% during the 1990s, the growth rate of India’s per capita gross national income has slowed down to 4.3% during the 2010–21 period, which is considered a contributing factor to the country’s current economic slowdown. Even after the various factors that have affected the country’s long-term growth, the per capita income of Bangladesh has maintained its steady increase during the past couple of years. It has also been able to prevent the decline in the gender development index from happening much faster than India. This demonstrates Bangladesh’s ability to sustain its rapid growth. The continuous decline in the growth of India’s Human Development Index and the steady decline in its ranking are two important indicators that should be taken into account. It is clear that the country’s economic growth can no longer be sustainable if it does not include higher human development. This is because a critical level of development is required for sustainable growth.
It is no surprise that the decline in India’s HDI values has been linked to the country’s economic slowdown. As a result, it is important that the government of India takes immediate action to boost the country’s Human Development Index and accelerate its growth. This can be done through the establishment of innovative policies and the establishment of a virtuous cycle of accelerated human development.
Although it is not always accurate to compare the rankings of different countries, it is still important to note that the data collected from the Human Development Index can provide more accurate and timely reports. In terms of its human development, India has declined on three different parameters. One of these is its life expectancy, which has decreased from 69.7 to 67.2 years. On the other hand, the country’s education system has shown an increase in the number of years that students are expected to complete schooling, though the school closure caused a drop in the expected years of education. Finally, the standard of living has also gone down. Around 90 percent of the countries in the world are currently experiencing this decline due to various crises, such as the pandemic, climate change, and the war. Although the pandemic is a contributing factor to the decline in human development, it is also important to note that other factors such as the displacement of people due to climate change are affecting the country. The ongoing conflict between Ukraine and Russia has shown that the world is constantly experiencing a crisis that is unprecedented. Because of this, it is not possible for humans to effectively resolve these crises. Despite the progress that has been made in narrowing the gender gap, there are still many challenges that remain. One of these is the low number of women participating in the labor force. Although the government has already launched various initiatives aimed at addressing these issues, more needs to be done to improve the situation of women. One of the most important factors that can be considered when it comes to addressing the issue of inequality is the strengthening of the social protection schemes. This will allow the country to include more vulnerable groups in its development. Besides this, other factors such as the availability of healthy populations are also important to improve the country’s human development.