The report released on Thursday placed India at the near-bottom of countries which have reached 'medium development'.
With its index standing at 0.554 for the last year, India has miles to go to meet countries like Norway (ranked number 1) which boasts of an HDI of 0.955.
HDI is considered a better measure of a country's progress than mere income growth, but suffers from its own flaws such as masking regional inequalities.
On the positive side, India's HDI has risen by 1.7% annually since 1980. The report lauds India's contribution by way of its spillover development effect on other countries. For instance, it points out that Indian firms have been supplying affordable medicines, medical equipment and information and communication technology to other poorer countries.
The 2013 report focuses on the "rise of the south", mapping the shift in global dynamics from the traditional power base in the west to newer emerging countries.
Besides the emerging economies of Brazil, China, India and South Africa, the report also acknowledges developing nations such as Turkey, Mexico, Thailand and Indonesia as playing a larger role on the global stage.
It estimates that by 2020, the combined economic output of the three leading developing countries — India, Brazil and China — will surpass the aggregate production of Canada, France, Germany, Italy, the United Kingdom and the United States.
It underlines south-south cooperation as the key factor in boosting such development.
The report also underlines the need for global governance institutions to adopt a more equitable approach.
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