India’s Human Development Index Ranking Improves to 130 in 2023

Team Finance Saathi

    06/May/2025

What's covered under the Article:

  1. India’s HDI ranking improved from 133 to 130 in 2023, reflecting better health, education, and income indicators.

  2. India’s GNI at 9,041 PPP dollars surpasses Bangladesh’s 8,498 PPP dollars, showcasing income growth.

  3. India ranks above Pakistan (168) and below Bhutan (125), Sri Lanka (89), and Vietnam (93) in HDI.

India has shown significant improvement in the Human Development Index (HDI) rankings, jumping from 133rd position in 2022 to 130th position in 2023. The HDI is a composite measure created by the United Nations Development Programme (UNDP), which evaluates a country’s progress in three fundamental areas: health, education, and income levels. This annual index helps gauge how well countries are performing in enhancing the well-being of their citizens.

India’s HDI score increased from 0.644 in 2022 to 0.685 in 2023, marking a notable improvement. The rise in this score reflects advancements in the country’s health outcomes, educational achievements, and economic growth.

Key Drivers Behind India’s HDI Improvement

The improvement in India’s HDI ranking is attributed to several factors, particularly in the health, education, and income sectors.

  • Health: Life expectancy, one of the key health indicators used in the HDI, has steadily increased in India, contributing positively to its HDI score. This improvement can be attributed to various healthcare initiatives, increased access to medical services, and government health schemes like Ayushman Bharat.

  • Education: The quality of education and the average years of schooling have seen improvements, with a growing focus on expanding access to education and enhancing literacy rates. India’s mean years of schooling and expected years of schooling have been rising steadily, which has positively impacted its HDI score.

  • Income: The country’s Gross National Income (GNI) per capita, calculated in Purchasing Power Parity (PPP) terms, has also improved. India’s GNI stood at 9,041 PPP dollars in 2023, surpassing that of neighboring Bangladesh (with a GNI of 8,498 PPP dollars). This indicates rising prosperity in the nation, particularly in terms of purchasing power.

India’s Global Comparison in HDI Rankings

India’s ranking of 130 places it alongside Bangladesh, a country that has been improving its development indicators in recent years as well. In the broader regional context, India ranks below Bhutan (125) and Sri Lanka (89), both of which have made significant strides in the areas of health and education.

Vietnam also ranks just above India at 93, while Pakistan continues to lag behind with a low rank of 168 on the HDI scale. India’s position above Pakistan highlights its better performance in key areas like life expectancy, educational attainment, and income levels.

China, with a HDI ranking of 78, continues to outperform India, largely due to its rapid economic growth and robust healthcare system. Meanwhile, the United States stands at 17th, reflecting its high level of development across all three dimensions of the HDI: health, education, and income.

HDI and its Implications for India

The Human Development Index provides valuable insights into a country’s developmental progress and can guide policymakers to implement strategies to improve citizens’ quality of life. India's rise in the HDI rankings highlights the success of various initiatives aimed at improving the socio-economic status of its population.

However, despite the improvement, India still faces challenges in several areas, particularly in education quality, healthcare access, and income disparity. While urban India has seen remarkable growth, many rural areas still struggle with basic amenities like clean water, education, and healthcare, which can limit further advancements in HDI rankings.

Looking Ahead: The Path to Continued Growth

India’s future progress on the HDI scale will depend on continued investments in healthcare and education. The government’s focus on inclusive growth, with initiatives like PM Jan Dhan Yojana, Swachh Bharat Abhiyan, and Atmanirbhar Bharat, can help to further reduce inequalities and raise living standards for a larger section of the population.

India’s economic growth is also expected to continue, as the country remains one of the fastest-growing economies in the world. With rising income levels and improvements in the quality of life, India has the potential to achieve higher ranks in the coming years.

Conclusion

India’s improvement in the Human Development Index in 2023 is a positive indicator of the country’s progress in various sectors. The increase in India’s HDI score to 0.685 and its improved ranking to 130th reflects the ongoing development in health, education, and income, which are key areas for further focus. While India still faces challenges, particularly in rural areas, the overall trajectory is positive, with the potential for continued improvement in the years to come. The HDI is an important tool for monitoring national development, and India’s performance signals that it is moving in the right direction toward sustainable progress.

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