Here - SAARC Human Resource Development Centre

Link between Human Resource Development, Growth and PovertyPer Capita Income, Poverty and Human Development among Provinces inIndiaThe table below presents the indicators relating to per capita gross state domesticproduct, literacy rate, human development index, poverty ratio and infant mortalityrate.There is a negative correlation between per capita income and poverty in Indianstates, the value of correlation was modest at -0.609. It may be noted, however, thatMaharashtra and Gujarat rank high in per capita GSDP, yet poverty ranking showstheir position at 8 and 12 respectively. It shows that highest per capita GSDP statesmay have higher incidence of poverty as well. Highest poverty state such as Orissa,Bihar, Madhya Pradesh and Assam are also associated with lowest per capitaGSDP states. Kerala and Himachal Pradesh have lowest poverty incidence, yetthey may not have highest per capita GSDP. Thus from the provincial analysis ofdifferent states in India, it is observed that some of the higher per capita incomestates are not necessarily associated with lower poverty incidence, although some ofthe lowest per capita income states are generally associated with highest incidenceof poverty.The regression equation given in Chart-3 also shows that there is a weak link fromper capita income to poverty ratio. There is high correlation (0.8 8696) between percapita income of the state and human development index. It proves the point thatstates with higher per capita income are at higher stage of economic developmentand they are in a position to devote greater resources for human resourcedevelopment leading the state in HD index. What is also important to note is thatstates with lowest per capita income are at lower stage of economic developmentand they are not in a position to devote greater resources for human resourcedevelopment. As a result such states show lower human development index. Anexception in this regard is state like Kerala which top in HR development index, yetdoes not stand high in per capita GSDP.6