Components of Human Development Index(HDI) :-
Unlike conventional methods like Gross Domestic Product (GDP), Gross National Product (GNP), Net National Product (NNP at factor cost is used in India to derive National Income), this is more elaborated and comprehensive method to determine the real development of a Nation. To calculate the HDI of a country, there are three components which are taken into consideration as follows :-
- Life Expectancy Index(LEI) :- The first and most important thing which is included in Human Development Index is Life Expectancy Index. This Index is basically refers to life expectancy at birth not at the age of one year(Infant Mortality Rate).
- Educational Attainment Index (EAI) :- It is a combination of adult literacy rate and combined enrollment ratio. The weight-age assigned to Adult Literacy Rate(ALI) is 2/3 and to Combined Enrollment Ratio(CER) is 1/3. Therefore Educational Attainment Ratio will be given as :- EAI = 2/3EAI + 1/3CER.
- Standard of Living Index(SLI) :- It is represented by transformation of per ca pita income. Per ca pita income is converted into Purchasing Power Parity(PPP) in dollars.[post_ads_2]