Punjab has higher per capita income but Kerala has a better human development ranking. Explain.

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Solution

Punjab is the most developed state in India ( 2003-03 ) on Per capita income basis.
The Per capita income of Punjab in 2002-2003 is Rs. 26,000 per annum.
Kerala has low per capita income compared to Punjab. But the State has HDI rank better than Punjab.
Average income is one of the factors of HDI calculation.

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