Introduction to Human Development Measurement
The measurement of human development fundamentally shifted global economic
perspectives, replacing the supreme income measure (like GDP) as the sole indicator of
progress. The Human Development approach emphasizes that economic growth is merely a
means, while the well-being of people is the ultimate end. To track this progress, specific
indices were created to assess populations from the perspective of the quality of people’s
lives.
- Human Development Index (HDI)
A. Concept and Methodology
● The search for a new composite index of socio-economic progress led to the creation
of the HDI under the sponsorship of the UNDP in 1989.
● The HDI measures the average achievements of a country in three basic dimensions.
● Health: This dimension evaluates a long and healthy life, which is strictly measured
by life expectancy at birth.
● Knowledge: This is measured by the adult literacy rate, which is given a two-thirds
weight, and the combined primary, secondary, and tertiary gross enrolment ratio,
which is given a one-third weight.
● Decent Standard of Living: This economic dimension is measured by GDP per
capita in purchasing power parity (PPP) terms in US dollars.
● Calculation Method: The index defines a country’s measure of deprivation for each
of the three basic variables. Minimum and maximum values are defined for the actual
observed values. The deprivation measure places the country in a 0 to 1 range,
where 0 represents the minimum observed value and 1 represents the maximum. An
average indicator is compiled by taking a simple average of the three indicators.
Finally, the HDI is measured as one minus the average deprivation index.
● Limitations: Since the HDI is a measure of average achievements, it does not take
into account the distribution of achievements. It was soon recognized that the HDI
neither reflects deprivation nor suggests the distributional aspects of development,
particularly the issue of inequality.
B. Relevant Examples & Latest Data (2025-2026 Context)
● India’s Macro Performance (UNDP HDR 2025): According to the latest 2025
Human Development Report, India’s HDI value has risen to 0.685, placing it at the
130th rank out of 193 countries. India remains in the “Medium Human Development”
category but is inching closer to the high development threshold.
● Component Breakdown (India): The improvement is driven by an increase in life
expectancy to 72 years and a rise in GNI per capita (PPP) to approximately $9,046.
● Jharkhand’s Economic Survey 2025-26 Data: While national averages are rising,
regional disparities persist. To improve its state-level standard of living (the income
component of HDI), Jharkhand’s real GSDP is projected to reach approximately
₹3,21,892 crore in 2025–26. More importantly for the HDI income metric, Jharkhand’s
per capita income has crossed the ₹1 lakh mark for the very first time, reaching
₹1,16,663 (2024-25) and is projected to hit ₹1,25,677 in 2025-26.
● Example in Action: To boost the “Knowledge” and “Health” components of the HDI,
the Jharkhand government has emphasized social infrastructure in its latest budget,
focusing on the Jharkhand Student Research and Innovation Policy 2025 to increase
enrollment ratios and institutional skill development. - Gender-Related Development Index (GDI)
A. Concept and Methodology
● Introduced in 1995, the GDI was created to establish the prevalence of gender
inequality across the world.
● The GDI measures achievements in the exact same dimensions and variables as the
HDI.
● However, unlike the HDI, the GDI explicitly takes into account the inequality in
achievements between women and men.
● The relationship between the two indices is direct: the greater the gender disparity in
human development within a country, the lower its GDI will be compared to its HDI.
● Mitigating these gender disparities is emphasized as being critical for overall
development. Achieving gender equality is not merely a technocratic goal, but a
political process requiring radical shifts in mindsets.
B. Relevant Examples & Latest Data (2025-2026 Context)
● India’s GDI Reality: In the recent UNDP reports, India’s female HDI value frequently
trails behind the male HDI value (e.g., female HDI around 0.631 vs. male HDI around
0.722). This gap yields a GDI value that mathematically demonstrates the loss in
human development due to gender inequality, specifically in labor force participation
and income disparities.
● Jharkhand’s Policy Example: To bridge the GDI income and health gaps, the
Jharkhand state budget 2025-26 has aggressively funded the Maiyan Samman
Yojana. With a massive allocation of ₹13,363 crore (roughly 11% of budgeted
revenue receipts), this scheme provides ₹2,500 monthly assistance directly to
women aged 18-50. By directly increasing female purchasing power, the state targets
the gendered income disparities that drag down the GDI score. - Gender Empowerment Measure (GEM)
A. Concept and Methodology
● Also introduced in 1995, the GEM exposes inequality in opportunities in selected
areas, specifically focusing on the participation of women in economic and political
life, and in decision making.
● This index captures gender inequality in three key areas, deeply focusing on
women’s opportunities and agency.
● Political Participation and Decision-Making Power: This is measured by women’s
and men’s percentage share of parliamentary seats.
● Economic Participation and Decision-Making Power: This is evaluated using two
specific indicators: women’s and men’s percentage shares of positions as legislators,
senior officials, and managers; and their percentage shares of professional and
technical positions.
● Power Over Economic Resources: This final pillar is measured by women’s earned
income share as a percentage of men’s, calculated in PPP in US dollars.
B. Relevant Examples & Latest Data (2025-2026 Context)
● India’s GEM Challenges: While India performs adequately on fundamental health
and education metrics, empowerment remains a hurdle. Women’s labor force
participation in India generally hovers below 30%, which severely impacts the
“Economic Participation” metric of the GEM. Similarly, women hold only about
14-15% of the seats in the national Parliament, restricting the “Political Participation”
score.
● Jharkhand’s Empowerment Initiatives (Economic Survey 2025-26): To improve
the GEM metric regarding economic decision-making power, Jharkhand has focused
heavily on MSME expansion. The latest economic survey highlights over 83,000 new
Udyam registrations. By linking schemes like the Rural Self Employment Training
Institute (RSETI) and prioritizing female-led micro-enterprises, the state aims to
increase the percentage of women acting as managers and senior officials in the
local economy, thereby directly improving gender empowerment outcomes.
Conclusion
GDP growth is a necessary but insufficient condition for true progress. The capability
approach highlights that macroeconomic expansion must translate into micro-level
empowerment. Improving HDI, GDI, and GEM scores is not just a statistical exercise, but a
political commitment to ensuring freedom, dignity, and equal opportunity for all.
Way Forward: A 4-Pillar Strategy (Equity, Efficiency, Participation,
Sustainability)
● Quality over Quantity: Shift focus from simply increasing budget allocations to
ensuring the quality and equitable delivery of education and healthcare, specifically
targeting marginalized groups.
● Structural Gender Empowerment: Dismantle systemic inequalities (e.g., unpaid
work, property rights) by expanding state-led financial autonomy and targeted credit
access to build women’s economic agency.
● Democratic Decentralization: Empower grassroots institutions to give marginalized
communities a direct voice in policy-making and the monitoring of local funds.
● Holistic Interventions: Address interlocking deprivations (e.g., poor health causing
poor education outcomes) by ensuring economic growth generates resources that
are sustainably reinvested into human development.
Case Study: The “Odisha Model” for Jharkhand
Context: Odisha is the perfect blueprint for Jharkhand as both share a similar baseline
(mining dependency, high tribal populations, and historically low HDI), yet Odisha has
successfully decoupled its development from purely mining-led growth. - Mission Shakti (Improving GEM & GDI)
● The Odisha Model: Organized 70 lakh women into SHGs and outsourced massive
state functions (e.g., hospital diets, meter reading) to them, turning women into active
economic agents.
● Jharkhand’s Application: Transition beyond immediate cash transfers (Maiyan
Samman Yojana) by outsourcing government procurement to women’s collectives via
the JSLPS, building permanent economic capabilities. - Millet Mission (Improving HDI – Health & Income)
● The Odisha Model: Incentivized tribal farmers to grow climate-resilient millets,
procured them at MSP, and integrated them into the PDS and Anganwadis to fight
malnutrition.
● Jharkhand’s Application: Launch a “Jharkhand Nutri-Cereal Mission” suited to its
rainfed topography to dually boost tribal farm incomes (Standard of Living) and
reduce infant/maternal mortality (Health). - Empowering Local Institutions (Decentralization)
● The Odisha Model: Aggressively devolved funds and functionaries to Panchayati
Raj Institutions, especially in Scheduled Areas (PESA).
● Jharkhand’s Application: Fully implement PESA to empower Gram Sabhas.
Allowing local councils to control Minor Forest Produce (MFP) and District Mineral
Foundation (DMF) funds will ensure mining wealth directly funds local schools and
clinics.