Indicators of Economic Development GNP, PCI Index, Physical life quantity index, Basic needs index, Human development index HDI

An indicator means measurement. Actually economic development is very long period and process so its indicators are few. The main indicators are.

(1)     GNP Index

Only an increase in National income may bring an increase in economic activities and opportunity of an additional economic development. Simon Kuznets, Meier and other considered gross National product (GNP) as an indicator of economic development. According to this economy over a long period of time lie economic development can be measured in terms of an increase in the economy real national income over a long period of time.

(2)     Per capital income index (PCI)

Human resources

(1) Size of labor forces (2) Literacy (3) Skills (4) Discipline (5) Motivation

Per head income is known as per capita income in this index economic development measured by difference between per capital income with countries. This index is useful for under developed countries. It is important because population growth, which is very high, is taken care of. It point out the possibilities of raising the general standard of living at the poor provided distribution is fairly equitable.

(3)     Physical Quantity Life Index (PQLI)

PTLI takes three items as indicators of economic development. Infant mortality, literacy and life expectancy are three components of PQLI. This index emphasizes that people want to enjoy longer life, education and mortality. The higher PQLI shows higher level of economic development. Economic development means three components. Life expectancy gone up, fallen of infant mortality and literacy rate has increased.

(4)     Basic needs index

In this index, economic development measured by basic needs of the population in particular of the poor are satisfied, this approach, which has been emphasized by such world bodies as ILO and UNESCO. It includes minimum basis needs like pure drinking water, sanitation public transport, electricity, health and education etc. This approach is also very useful in assessing the relative gap between the rich and poor countries.

(5)     Human development index (HDI)

More useable and most recent one approach of economic development is HDI. It was first given by UNDP in 1990. It is a composite of three social indicators – Real G.DP per capital Adult literacy and life expectancy. The HDI value is lies between 0-1, 0-0.5 indicate low level, 0.5 -0.8 indicates average level and 0.8 -1 indicates high-level country.