Kerala 2005 - of Planning Commission

TECHNICAL NOTE
169
An index has been constructed for each dimension by
choosing maximum and minimum values for each of the
underlying indicators. The goalposts for calculating HDI
as used by UNDP are given below and we have used the
same for computing district HDI.
Indicator Maximum Minimum
Life Expectancy at Birth (years) 85 25
Literacy Rate (7+) (%) 100 0
Gross Enrolment Ratio (%) 100 0
GDP per capita (PPP US$) 40,000 100
The dimension index is calculated by applying a following
general formula.
Dimension Index =
The Human Development Index is calculated by taking an
average of the dimension indices.
Calculating the HDI for Districts in Kerala
1. Income Index
Xi-minX
maxX-minX = 0.562
does not require unlimited income. For details, see Anand
and Sen (1994).
2. Life Expectancy Index
The life expectancy index measure the relative achievement
in life expectancy at birth. As the life expectancy at birth is
not available for the districts, we have derived this through
an indirect estimation. The infant mortality rates estimated
by the Registrar General of India for all the districts from
the 1991 Census data have been used. First, district level
infant mortality rates have been adjusted based on the
SRS estimates given for Kerala in 1991. Assuming that the
decline in the infant mortality rate in the districts is same
that of Kerala as a whole during the period 1991-2000,
infant mortality rates for all the districts have been projected
for the year 2000. The life expectancy at birth in 2000 for
all the districts has been derived from the model life tables
on the basis of estimated level of infant mortality rates. The
life expectancy at birth for Kerala was 74.6 years in 2000,
the life expectancy index is:
74.6-25
Life Expectancy Index= = 0.827
85-25
The income index is calculated using an adjusted NSDP
per capita (PPP US$). The district per capita NSDP in PPP$
equivalent has been derived from the per capita NSDP in
rupees (Kerala Economic Review) multiplying with the ratio
of per capita GDP in PPP$ in India and per capita GDP in
rupees in India. For example,
Per capita NSDP for Kerala in 2001
at constant prices = Rs.10,963
Per capita GDP for India in 2001-02
at constant prices = Rs.10,754
Per capita GDP for India in 2001
US$ PPP) = $2,840
Per capita NSDP for Kerala in 2001
($PPP) = 10,963*(2840/10754)=2,895
After estimating the district per capita NSDP in PPP$
equivalent, the income index is derived using the formula
below. The income index for Kerala is as follows.
Income Index =
3. Education Index
The education index measures relative achievement
in both literacy level as well as gross enrolment in
the school. The literacy rate (7+) in 2001 by districts
has been taken from Census 2001 and gross school
enrolment ratio has been estimated by taking a ratio
of number of persons enrolled in school (up to X
standard, including CBSE, ICSE schools) in 2001-02
and corresponding school age population in 2001
(5-14 age group population). The indexes for literacy
rates and gross enrolment ratio are calculated at first.
Then, these indices are combined to derive an education
index, with two-third weight given to literacy rate and
one-third weight to gross enrolment ratio.
For Kerala, the literacy rate is 87.9 per cent and the gross
enrolment ratio is 97.3 per cent. The literacy and enrolment
index are computed as follows.
Literacy Index = (87.9-0)/(100-0) = 0.879
log(2895)-log(100)
log(40000)-log(100) = 0.562 Gross Enrolment Index = (97.3-0)/(100-0) = 0.973
The income index is adjusted using the above formula
because achieving a respectable level of human development
Education Index = (2/3)*literacy index + (1/3)*gross
enrolment index = (2/3)*0.879+(1/3)*0.973 = 0. 910