Human Development Index (HDI): Parameters, Factors, Uses & Global Examples – A Complete Guide
The Human Development Index (HDI) is one of the most widely used global indicators created by the United Nations Development Programme (UNDP) to evaluate how countries are progressing in terms of overall human well-being. Unlike traditional economic indicators such as GDP, HDI provides a broader picture of development that includes:
• Health
• Education
• Standard of Living
First introduced in 1990 by economist Mahbub ul Haq and with expertise from Nobel laureate Amartya Sen, the HDI reflects a country’s ability to provide:
• A long and healthy life
• Quality education and skills
• A decent standard of living
What is Human Development Index (HDI)?
The Human Development Index is a composite measure that evaluates the development level of a country by analyzing:
HDI Indicator Dimension Outcome
Life Expectancy Health Index Long, healthy life
Mean & Expected Years of Schooling Education Index Knowledge & skill level
Gross National Income per capita Income Index Standard of living
HDI Score Range:
0.000 – 1.000
Higher value = higher development
Countries are classified based on HDI score:
HDI Score Category
0.800 – 1.000 Very High Human Development
0.700 – 0.799 High Human Development
0.550 – 0.699 Medium Human Development
Below 0.550 Low Human Development
Three Main Parameters of HDI
HDI uses three core dimensions to measure development:
1. Health Index
Measured by: Life Expectancy at Birth
This indicates how long people are expected to live in a country.
Higher life expectancy = better health care, nutrition & living conditions.
Country Example Life Expectancy (approx.) Health Status
Japan 84+ years Very strong
India 70 years Improving
Chad 54 years Low due to poverty, disease
2. Education Index
Measured by two indicators:
1. Expected Years of Schooling (years a child entering school can expect)
2. Mean Years of Schooling (average years of education completed by adults)
Better education → better skills → better job opportunities.
Country Example Expected Years Mean Years
USA 16.5 13.8
India 12.6 6.7
Niger 5.4 2.0
3. Income Index (Standard of Living)
Measured by: Gross National Income (GNI) per capita (PPP$)
It represents people’s purchasing power & living quality.
Country Example GNI per capita (PPP$) Interpretation
Qatar $90,000+ Very high
India ~$7,000 Developing
Uganda ~$2,000 Low income
HDI Calculation (Simplified Formula)
HDI = (Health Index × Education Index × Income Index)^(1/3)
A geometric mean is used to minimize imbalance among components.
Why is HDI Important? (Uses of HDI)
The Human Development Index is widely used because:
Uses Explanation
Better comparison between countries Shows development differences globally
Measures social progress Not just economic growth
Helps government policymaking Identifies weak sectors
Focus on equality & opportunities Encourages inclusive growth
Global development monitoring Used in UNDP Human Development Reports
HDI allows nations to track improvement over time and implement better welfare programs.
Global Examples of HDI Rankings
Top 10 Countries by HDI (2023/24 UNDP Report)
Rank Country HDI Category
1 Switzerland Very High
2 Norway Very High
3 Iceland Very High
4 Hong Kong* Very High
5 Denmark Very High
6 Sweden Very High
7 Australia Very High
8 Netherlands Very High
9 Germany Very High
10 Ireland Very High
Hong Kong listed as SAR under China
South Asian Countries HDI
Country HDI Category Key Challenge
Sri Lanka High Economic instability
India Medium Education inequality
Bangladesh Medium Healthcare access
Nepal Medium Low per-capita income
Pakistan Low Political instability & literacy gap
Afghanistan Very Low Conflict & poverty
India’s HDI: approx. 0.640 → Medium Human Development
Factors Influencing HDI Differences
Factor Impact on HDI
Healthcare quality Increases life expectancy
Education expenditure Enhances knowledge & skills
Economic policies Improves GNI per capita
Gender equality Boosts overall development
Political stability Attracts investments
Technology & infrastructure Drives growth
Clean water & sanitation Reduces mortality
Countries investing more in human capital show higher HDI.
Limitations of Human Development Index
Even though HDI is highly useful, it has drawbacks:
Limitation Why it occurs
Only 3 indicators Ignores income inequality, environment, culture
Same index value ≠ same development Two countries may have same HDI but different strengths
GDP reliance Does not measure informal economy
Data dependency Low-income regions often lack accurate data
Modified Measures Related to HDI
To provide deeper understanding, UNDP developed additional indexes:
Index Meaning Focus
IHDI Inequality-Adjusted HDI Accounts for income & social inequality
GII Gender Inequality Index Highlights gender disparity
MPI Multidimensional Poverty Index Measures poverty using multiple indicators
These help identify hidden inequalities.
Real-World Example: India’s HDI Progress (Year-wise)
Year HDI Score Status
1990 ~0.439 Low
2000 ~0.496 Medium
2010 ~0.579 Medium
2022–23 ~0.640 Medium improving
India has improved due to better education, digitalization & healthcare schemes like:
• Ayushman Bharat
• National Education Policy
• Swachh Bharat Abhiyan
How Countries Can Improve HDI?
Increase investment in primary healthcare
Promote universal education
Job creation & income opportunities
Reduce gender discrimination
Improve sanitation and nutrition
Technological & infrastructural development
Better policies directly raise HDI scores.
Conclusion
The Human Development Index (HDI) is a powerful tool to measure a nation’s development beyond economic growth. Its three core parameters—health, education, and income—represent real human progress. HDI helps governments understand where they lag and encourages programs that improve quality of life.
As countries continue to focus on human-centric development, HDI remains one of the most important benchmarks for tracking global progress.
Frequently Asked Questions (FAQs)
1. Who introduced the HDI?
HDI was introduced by Mahbub ul Haq with contributions from Amartya Sen in 1990.
2. What is the purpose of HDI?
To measure overall human well-being, not just economic growth.
3. How many parameters does HDI include?
Three: Health Index, Education Index, and Income Index.
4. What is a good HDI score?
A score above 0.800 indicates Very High Human Development.
5. Which country ranks highest in HDI?
Switzerland currently holds the top HDI rank.
6. What is India’s HDI ranking?
India falls under Medium Human Development with a score around 0.640.
7. Does HDI include gender equality?
Not directly. Gender inequality is measured separately using the GII.
8. What are the limitations of HDI?
It does not measure inequality, environment, quality of governance, or happiness.
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Writer: Vandita Singh, Lucknow (GS India Nursing Group)