IIndia is now one of the fastest growing economies globally. However, this growth has not resulted in a corresponding increase in its Human Development Index (HDI). The HDI is a composite statistical measure created by the United Nations Development Program to evaluate and compare the level of human development in different regions around the world. It was introduced in the 1990s as an alternative to traditional economic measures such as gross domestic product (GDP), which do not consider broad aspects of human development. The HDI measures a country’s average achievement in three aspects: a long and healthy life, knowledge and a decent standard of living. According to the Human Development Report 2021-22, India ranks 132 out of 191 countries, behind Bangladesh (129) and Sri Lanka (73).
Given India’s size and large population, it is important to address sub-national or state-wise disparities in human development. Doing so will help India realize its demographic dividend. For this purpose, I have developed a new index, which measures human development at the sub-national level, for 2019-20, using the methodology suggested by the UNDP and the National Statistical Office (NSO).
HDI calculation
The HDI is calculated using four indicators: life expectancy at birth, average years of schooling, expected years of schooling, and gross national income (GNI) per capita. Life expectancy is estimated from the Sample Registration System, and average and expected years of schooling are derived from the National Family Health Survey-5. Since estimates for GNI per capita are unavailable at the sub-national level, gross state domestic product (GSDP) is used as a proxy indicator to measure the standard of living per capita. GSDP (PPP at 2011-12 constant prices) is collected from the Reserve Bank of India’s Statistical Handbook on Indian States. GSDP per capita is estimated on the basis of population estimates provided by the Office of the Registrar General of India. The methodology involved computing the geometric mean of the normalized indices for the three dimensions of human development by applying the maximum and minimum values recommended by UNDP and NSO. HDI scores range from 0 to 1, with higher values indicating a higher level of human development.
The sub-national HDI shows that while some states have made considerable progress, others are still struggling. Delhi is at the top and Bihar is at the bottom. However, it is worth noting that unlike the previous HDI report, Bihar is no longer considered a low human development state.
The five states with the highest HDI scores are Delhi, Goa, Kerala, Sikkim and Chandigarh. Delhi and Goa have HDI scores above 0.799, which puts them at par with countries in Eastern Europe with high levels of human development. Nineteen states including Kerala, Maharashtra, Tamil Nadu, Haryana, Punjab, Telangana, Gujarat and Andhra Pradesh have scores between 0.7 and 0.799 and are classified as high human development states.
The bottom five states with medium level of human development are Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand and Assam. This category also includes states like Odisha, Rajasthan and West Bengal, which have HDI scores lower than the national average. The scores of these low-performing states are similar to those of African countries such as Congo, Kenya, Ghana and Namibia.
Despite having the highest per capita SGDP among large states, Gujarat and Haryana have failed to convert this advantage into human development and are ranked 21st and 10th, respectively. In contrast, Kerala has consistently stood out with high HDI values over the years, which can be attributed to its high literacy rate, strong health care infrastructure and relatively high income levels. However, with high poverty levels, low literacy rates and poor health care infrastructure as contributing factors, Bihar has consistently maintained the lowest HDI value among states. It is worth noting that the impact of COVID-19 on the subnational HDI is not shown here. The full impact of COVID-19 on human development will be known when post-pandemic projections are available.
due to discrepancies
One of the main reasons for this discrepancy is that economic growth has been unevenly distributed. The top 10% of the Indian population holds more than 77% of the wealth. This has resulted in significant inequalities in access to basic amenities, health care and education. Another reason is that while India has made significant progress in reducing poverty and increasing access to health care and education, the quality of such services remains a concern. For example, while the country has achieved near-universal enrollment in primary education, the quality of education remains low.
Governments should prioritize economic development as well as human development to ensure that the benefits of development are more equitably distributed. This requires a multi-pronged approach that addresses income inequality and gender inequality; improving access to quality social services; addresses environmental challenges; and provides greater investment in social infrastructure in underdeveloped states such as healthcare, education and basic household amenities including access to clean water, improved sanitation facilities, clean fuel, electricity and the Internet. India should prioritize investment in human development and job creation, especially for its youth.