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A Deep Dive into India’s IHDI and Its Implications

Analyzing the Human Development Landscape of India

A Deep Dive into India’s IHDI and Its Implications

  • 07 Jun, 2025
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What is the Inequality-Adjusted Human Development Index (IHDI)?

The Inequality-Adjusted Human Development Index (IHDI) reflects the true level of human development in a country by accounting for disparities in health, education, and income. While the standard Human Development Index (HDI) provides national averages, the IHDI illustrates the uneven distribution of these benefits. If every individual had equal access to resources, the HDI and IHDI would align. However, in nations with significant inequalities, such as India, the IHDI is considerably lower.

What is India’s HDI and IHDI as of 2023?

As of 2023, India’s HDI stands at 0.644, while its IHDI is at 0.537. This indicates that India experiences a loss of approximately 16.6% of its human development value due to inequality. In the global ranking, India is positioned at 130 out of 193 countries, and the rank diminishes further when adjusted for inequality.

Why is India’s IHDI low?

India grapples with substantial disparities in health, education, and income, which are particularly pronounced among women, rural communities, and marginalized groups. For instance, the average years of schooling for females significantly lag behind that of males, life expectancy is reduced among impoverished populations, and income is predominantly concentrated among the wealthiest individuals. These disparities detract from India’s actual human development accomplishments.

How is IHDI calculated using an example?

To illustrate the calculation of IHDI, let’s assume India’s HDI is derived from three equal components: health, education, and income. Consider the following:

  • In health, inequality results in a 10% decrease in actual outcomes.
  • In education, a 36% reduction due to inequality.
  • In income, a 32% drop attributed to inequality.

Each component is adjusted based on these inequality figures. Consequently, India’s HDI declines from 0.644 to 0.537, resulting in the IHDI. The difference of 0.107 indicates the loss incurred due to inequality.

How does India compare with other countries?

When compared to other nations, countries like Norway and Switzerland experience less than a 10% reduction in their HDI when inequality is factored in. China’s loss is around 11.4%. In contrast, India’s decrease exceeds 16%, indicating that while there has been progress, the benefits of development are not equitably distributed among the population.

What is the role of artificial intelligence in improving IHDI?

Artificial Intelligence (AI) can play a crucial role in mitigating inequality by enhancing public service delivery:

  • In education: AI can provide personalized learning experiences to students in remote areas using affordable devices.
  • In health: AI can facilitate early diagnosis and remote healthcare services in rural and tribal regions.
  • In income: AI technologies can assist small farmers and workers in accessing markets, receiving weather alerts, and obtaining microcredit.

By improving accessibility and the quality of services, AI has the potential to lessen the disparities that negatively impact India’s IHDI.

What challenges must be addressed to leverage AI for human development?

AI’s effectiveness hinges on overcoming the digital divide. Numerous impoverished and rural areas lack reliable internet access and necessary digital devices. Additionally, AI systems must be trained on diverse datasets to prevent biases. It is also essential to equip individuals with digital competencies to take advantage of AI resources, alongside implementing regulations to safeguard personal data.

What initiatives has India undertaken to utilize AI for inclusive development?

India has initiated digital platforms such as DIKSHA for education and the Ayushman Bharat Digital Mission for healthcare. The government encourages AI research and the development of localized solutions in areas like agriculture, sanitation, and governance. Pilot projects are being implemented to monitor school dropout rates, assist small farmers, and support rural healthcare workers.

Can AI alone resolve India’s inequality issue?

AI, while powerful, is merely a tool. It can enhance human efforts but cannot substitute for public investments in education, healthcare, and social programs. Achieving inclusive development necessitates political commitment, strategic planning, and a sustained focus. AI can accelerate service delivery and bridge gaps, but only when backed by robust policies.

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