Answer : Haryana is a better state than Kerala in terms of per capita income . But it does not mean that Haryana is a more developed state that Kerala . Along with per capita income,There are other factors also like IMR , literacy rate , net attendance ratio from which overall development of a state / country is measured . Kerala is better than Haryana in these factors . Therefore it is a more developed state and has a better HDI ranking than Haryana .
I do not agree that per capita income should not be used for measuring development as per capita income tells us about the economic development of a state / country . Money is a very important component of development. Therefore,per capita income can not be discontinued to be used as a factor for comparison.
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Kerala, with lower per capita income has a better human development ranking than Maharashtra. However, it would be wrong to say that per capita income is not a useful criterion at all. Per capita income is certainly not the only criterion and it has its limitations. But this does not imply that it is not useful at all. To counter the inadequacy of this average, the human development index is used. The human development index uses a combination of development factors (such as health, education, income) for comparison. Thus, per capita income is one of the development factors, and cannot be done away with. Also, per capita income is useful for comparing the money index of states.