Economics Project: Human
Development Index (HDI)
Class XII | Economics Project | Session 2025-26
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Certificate of Completion
This is to certify that ____________________, a student of Class XII, has successfully completed the
Economics Project titled “Human Development Index (HDI)” for the academic session 2025-
26 under the guidance of the subject teacher.
Signature of Student: ____________________
Signature of Teacher: ____________________
Index
1. Introduction
2. Objectives of the Study
3. What is HDI?
4. Components of HDI
5. HDI Calculation Methodology
6. HDI: Global Rankings
7. HDI and India: A Case Study
8. Factors Affecting HDI
9. Measures to Improve HDI
10. Comparative Analysis (India vs. Other Countries)
11. Conclusion
12. Bibliography
Acknowledgement
I would like to express my heartfelt gratitude to my Economics teacher for their valuable
guidance and continuous support throughout the course of this project. I also thank my
school and family members who encouraged me in completing this work successfully.
Declaration
I hereby declare that this project work titled “Human Development Index” is my original
work and has not been copied from any other source. All the information used has been
duly acknowledged.
Objectives of the Study
The main objectives of this project are:
- To understand the concept and purpose of the Human Development Index.
- To explore the factors influencing HDI.
- To analyze India's HDI performance in comparison to other nations.
- To suggest measures for improving human development in India.
Introduction
The Human Development Index (HDI) is a composite index introduced by the United
Nations Development Programme (UNDP) in 1990. It serves as a measure of a country's
social and economic development based on three fundamental dimensions: health,
education, and standard of living. HDI provides a broader understanding of well-being than
GDP alone.
What is HDI?
HDI is a statistical tool used to measure a country's overall achievement in its social and
economic dimensions. It combines indicators of life expectancy, education level, and per
capita income. HDI aims to highlight people-centered policies and emphasize that
development must result in improved lives.
Components of HDI
1. Life Expectancy Index: Measures average life expectancy at birth.
2. Education Index: Includes mean years of schooling and expected years of schooling.
3. Income Index: Measured by Gross National Income (GNI) per capita (PPP international
dollars).
HDI Calculation Methodology
HDI is the geometric mean of normalized indices for each of the three dimensions:
HDI = (Life Expectancy Index × Education Index × Income Index)^(1/3)
Each index is calculated using the formula:
(Actual Value - Minimum Value) / (Maximum Value - Minimum Value)
HDI: Global Rankings
Countries are ranked on a scale from 0 to 1. Norway, Switzerland, and Ireland have
consistently topped the rankings. Countries with scores above 0.800 are considered to have
very high human development.
HDI and India: A Case Study
India's HDI has shown gradual improvement over the years. According to the UNDP Human
Development Report 2023, India's HDI was around 0.633, placing it in the medium human
development category. Although India has improved in education and health, income
disparity and inequality remain challenges.
Factors Affecting HDI
- Access to quality education
- Availability of healthcare services
- Income and employment opportunities
- Gender equality
- Government policies and public investment
Measures to Improve HDI
- Increase investment in public health and sanitation
- Improve access and quality of education in rural and urban areas
- Implement poverty reduction and employment schemes
- Promote gender inclusiveness and reduce inequality
- Strengthen social welfare programs
Comparative Analysis (India vs. Other Countries)
India ranks lower in HDI compared to countries like China, Sri Lanka, and Brazil. These
countries have achieved better outcomes through focused investment in health, education,
and income-generating infrastructure. Comparing policies and results helps in identifying
best practices.
Conclusion
HDI offers a meaningful approach to assess development by looking beyond income. India,
while progressing, must address systemic challenges in education, health, and income
distribution. With sustained efforts and inclusive policies, human development can be
accelerated to ensure a better quality of life for all citizens.
Bibliography
- UNDP Human Development Reports
- NCERT Economics Textbook – Class XII
- Government of India Reports and Statistics
- www.worldbank.org
- www.un.org
- Newspapers and online articles on human development
