Measuring a country’s progress isn’t just about its economy or skyscrapers – it’s about how well its people live. The Human Development Index (HDI) is an appropriate metric in this context. It was introduced by the United Nations Development Programme (UNDP) to provide a broader perspective, one that considers health, education, and national income. It’s a way to focus on a much more meaningful aspect: whether people have the opportunity to lead long, healthy, and fulfilling lives.
HDI rankings matter because they help cut through clichéd, surface-level stats and show which countries are truly creating environments that support a decent standard of living for people. They give you insights into progress, beyond GDP figures. In this article, we’ll look at the countries that rank highest in the Human Development Index, where people live well, and why it matters.
List of top countries by HDI ranking
We’ve curated a list of the top countries by HDI rankings, sourced from the UNDP’s latest report
| Ranking |
Country |
Human Development Index (HDI) value |
| 1 |
Switzerland |
0.967 |
| 2 |
Norway |
0.966 |
| 3 |
Iceland |
0.959 |
| 4 |
Hong Kong, China (SAR) |
0.956 |
| 5 |
Denmark |
0.952 |
| 6 |
Sweden |
0.952 |
| 7 |
Germany |
0.950 |
| 8 |
Ireland |
0.950 |
| 9 |
Singapore |
0.949 |
| 10 |
Australia |
0.946 |
| 11 |
Netherlands |
0.946 |
| 12 |
Belgium |
0.942 |
| 13 |
Finland |
0.942 |
| 14 |
Liechtenstein |
0.942 |
| 15 |
United Kingdom |
0.940 |
| 16 |
New Zealand |
0.939 |
| 17 |
United Arab Emirates |
0.937 |
| 18 |
Canada |
0.935 |
| 19 |
Korea |
0.929 |
| 20 |
Luxembourg |
0.927 |
How is the Human Development Index (HDI) calculated?
The Human Development Index considers three key data points —health, education, and economic conditions—to provide a balanced view of people’s development in different parts of the world. It’s less about tracking policies and more about measuring outcomes that affect everyday lives.
- Health is measured by the average lifespan of people in a country. A higher life expectancy score indicates better living conditions, access to healthcare, nutrition, and overall well-being.
- Education is measured in two ways: the average number of years adults have spent in school and the expected number of years a child undergoes schooling. Together, these numbers give us insights into current and future access to learning.
- The economic metric helpful for HDI is the Gross National Income (GNI) per capita, based on purchasing power parity (PPP). This metric tells us the average income and reflects living standards.
Each of these components is scaled between 0 and 1, and the final HDI is calculated using the formula:
Key indicators used in the HDI ranking
The key indicators that provide a more comprehensive picture of human well-being are:
- Infant mortality rate (IMR): It is calculated as the total number of infant deaths out of 1,000 live births. It reflects healthcare access, maternal care, and early childhood nutrition. In India, the infant mortality rate has reduced from 32 infant deaths in 2018 to 28 deaths per 1,000 live births in 2020.
- Maternal mortality rate (MMR): It shows how many mothers die every 1,000 live births during pregnancy or delivery. This data gives us insight into women’s health and the healthcare system’s ability to support childbirth. According to the Ministry of Health and Family Welfare’s report, the maternal mortality rate dropped from 130 to 97 per lakh live births.
- Adult literacy ratio: This value refers to the number of people aged 15 years and above who can read and write fluently. It reflects the country’s efforts in the education system.
- People below the poverty line: The percentage of people living below the poverty line is calculated based on daily calorie consumption. Anyone consuming less than the normal calorie intake (below 2,100 to 2400 calories) is categorised as living below the poverty line. This data reveals a direct correlation between income and basic nutritional needs.
Together, all these indicators help us to understand the gaps and progress in Human Development Index rankings, even for developed countries.
Why does HDI matter so much?
If you’re a student looking for better study opportunities or considering migrating with your family, you’ll look for better living conditions with improved education, job security, and healthcare systems. Most of us weigh these basic yet essential factors before making a life-changing decision to move to another country.
HDI can directly influence our decisions, like where we choose to live, study, or invest. Countries like Switzerland, Norway, Iceland, and Hong Kong with stronger HDI rankings attract global talent, international business, and development aid more easily. That’s why governments implement policies to improve public health, expand educational opportunities, and reduce the income gap. Countries with values ranging from 0.8 to 1.0 have a very high Human Development Index and are considered the best places to live in.
Frequently asked questions (FAQs)
1. What is India’s HDI rank?
India currently ranks 134th with a Human Development Index score of 0.644. While it has made progress in education and healthcare, factors like income inequality and fair access to quality public services remain challenges.
2. Which countries have the lowest HDI?
Nigeria, Pakistan, Liberia, Tanzania, and Sudan, among other countries, have the lowest HDI with values ranging from 0.38 to 0.54.
3. What are the limitations of HDI?
Although HDI is a good metric, it overlooks some critical factors, such as income inequality, environmental sustainability, political freedom, and gender equality.
