While India has emerged as the world’s fifth-largest economy (2024) in terms of nominal GDP, its performance on human development indicators (HDIs) has remained suboptimal. According to the UNDP Human Development Report 2023, India ranked 134 out of 193 countries, reflecting a gap between economic growth and human development.

Reasons for the Mismatch between Economic and Human Development

1. Growth without Adequate Equity:

   • Economic gains have disproportionately benefited the top deciles.
     • Oxfam Report (2023): Top 10% hold ~77% of national wealth.
   • Inequality limits access to quality education, healthcare, and nutrition.

2. Underinvestment in Social Infrastructure:

   • Public spending: on health (~2.1% of GDP) and education (~2.9% of GDP) is lower than global averages.
   • Leads to poor learning outcomes, high infant mortality, and undernourishment.

3. Jobless Growth:

   • Despite high GDP growth, unemployment remains high (Urban UR ~6.8%, 2024).
   • Rise in informal jobs, low wages, and working poor despite growing industries.

4. Gender Disparities:

   • Female Labour Force Participation Rate (FLFPR) ~23% in 2023.
   • Women face barriers in education, employment, and health access.
   • E.g; NFHS-5 (2019–21): Only 30% of women had access to their own bank accounts for personal use.

5. Regional Imbalances:

   • Southern and Western states (e.g., Kerala, Tamil Nadu) fare better in HDI than Northern states (e.g., Bihar, UP).
   • Development skewed towards urban centers, leaving rural areas behind.

6. Administrative and Governance Deficits:

   • Leakages in welfare schemes, poor delivery, and lack of local capacity.
   • Malnutrition persists despite schemes like PM Poshan.

7. Neglect of Environmental Sustainability:

   • Development often compromises clean air, water, and sustainable livelihoods, impacting quality of life.
   • E.g; India ranks 176/180 in the Environmental Performance Index (2022).

Way Forward: Bridging the Gap Between Economic and Human Development

1. Increase Investment in Human Capital:

   • Raise public spending on health (target 2.5% of GDP) and education (target 6% of GDP as per NEP 2020).
   • Focus on universal health coverage, quality schooling, and digital literacy.

2. Inclusive and Equitable Growth Models:

   • Adopt region-specific development strategies for lagging states (e.g., Bihar, Odisha).
   • Promote rural industrialization and skill development under schemes like PMKVY and One District One Product (ODOP).

3. Gender Mainstreaming:

   • Improve FLFP through targeted policies like Maternity Benefit (Amendment) Act, childcare support, and safety in public spaces.
   • Promote financial inclusion of women via Self-Help Groups and Jan Dhan Yojana.

4. Employment-Oriented Policies:

   • Shift from jobless growth to labour-intensive sectors like textiles, MSMEs, tourism.
   • Strengthen gig and informal sector protections through Social Security Code 2020.

5. Good Governance and Accountability:

   • Strengthen last-mile delivery through Direct Benefit Transfer (DBT), e-governance, and community monitoring.
   • Use Aspirational Districts Programme as a model to target HDI improvements.

6. Environmental Sustainability as a Development Metric:

   • Integrate green growth with human development via Mission LiFE, National Solar Mission, and water conservation initiatives like Jal Jeevan Mission.

7. Holistic Monitoring of Progress:

   • Use Multidimensional Poverty Index (MPI) and SDG India Index alongside GDP to guide policy decisions.

India's economic growth has not automatically translated into human capability expansion, which is the essence of human development. To bridge this gap, economic planning must be complemented by equity-focused policies, investments in health, education, and gender equity, and grassroots empowerment.