Q1. Distinguish between the Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth?
Possible Introductions
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- Definitional framing: The Human Development Index (HDI), introduced by UNDP in 1990, measures development beyond GDP by considering health, education, and income. The Inequality-adjusted HDI (IHDI), introduced in 2010, refines this by accounting for disparities in the distribution of these dimensions.
- Current affairs framing: The UNDP Human Development Report 2025 placed India at 130th rank in HDI, but its IHDI value fell further due to inequality across regions, gender, and social groups — reflecting the gap between aggregate progress and lived realities.
- Comparative framing: While HDI treats all citizens as if they equally share national achievements, IHDI reveals the “loss” due to inequality, showing how countries like India may appear well developed on paper but less so in terms of inclusive growth.
- Philosophical/micro-narrative intro: Amartya Sen’s capability approach underlined that true development lies not just in averages but in actual freedoms available to people. HDI captures potential achievements, while IHDI measures how far societies fall short due to inequality.
Directive Analysis
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- “Distinguish between” → Requires a comparative analysis of concepts (HDI vs IHDI: definition, dimensions, methodology, outcomes).
- “With special reference to India” → Must provide India-specific data, trends, and examples.
- “Why is IHDI better for inclusive growth?” → Demands explanation and justification, linking IHDI to inclusivity, distributive justice, and inequality.
Body of the Answer
1. HDI – Core Features
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- Composite index (UNDP) combining: Life expectancy at birth (health), mean & expected years of schooling (education), GNI per capita (income).
- Focuses on average achievements.
- X-Factor: India’s HDI as per 2025 Report = 0.685 (Rank 130/193) – improvement from earlier years.
2. Limitations of HDI
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- Ignores inequality, gender disparity, regional variation.
- Two countries with same HDI may differ drastically in actual distribution.
3. IHDI – Core Features
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- Introduced in 2010 HDR.
- Adjusts each HDI dimension for inequality in its distribution.
- Reflects actual human development experienced.
- X-Factor: If inequality is zero, HDI = IHDI; greater inequality → bigger “loss.”
4. India-Specific Contrast (HDI vs IHDI)
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- HDI (2023): 0.685 → Rank 130.
- IHDI (approx.): 0.475 → loss of ~30.7% due to inequality (among the highest in Asia).
- As per the 2025 report, inequality in India is sharper in income and gender than in health.
- X-Factor: Additional Data:
- Gender Inequality in Workforce – LFPR: Males 78.8% vs females 41.7%.
- Gender Inequality in Politics – Less than 15% women MPs in Lok Sabha.
- Income Inequality – Oxfam reports highlight poor wealth distribution in India.
5. Why IHDI is a Better Indicator of Inclusive Growth
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- Captures distribution → Beyond averages, shows equity in outcomes.
- Highlights vulnerable groups → caste, gender, regional disparities.
- Policy relevance → Data useful for schemes like PM Jan Dhan Yojana, DBT, Aadhaar-enabled welfare, Ayushman Bharat, PM Vishwakarma Yojana, etc.
- X-Factor: Aligns with Directive Principles (Art. 38, 39).
Possible Conclusions
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- Future-oriented: For India to move towards $5 trillion economy with justice, policies must focus not just on raising HDI but also on reducing inequality.
- Philosophical: Gandhi observed, “A nation’s greatness is measured by how it treats its weakest members.” IHDI embodies this spirit better than HDI.
- Policy-based: As NITI Aayog’s SDG Index shows, inclusive development requires reducing inequality — essence of IHDI.
- Civilisational: India’s ethos of Sarvodaya (upliftment of all) resonates more with IHDI than HDI, aligning modern policy with age-old traditions.
