It can be noticed with the help of a report that Kerala with lower capita income has a better human development ranking in comparison to Punjab and to counter the inadequacy of this average, the human development Index is used.

Various factors are used by HDI for the comparison of the two states. Some of these factors are health, education, income etc. Per capita income is useful for the money index of states. So it can be easily said that the per capita income is one of the development factors and cannot be put away.