Report of the Committee for Evolving a Composite Development Index of States

Abstract

The Terms of Reference of the Committee were as under : (a) To suggest methods for identifying backward States on the basis of measures such as the distance of the State from the national average on a variety of criteria such as per capita income and other indicators of human development; (b) To suggest any other method or criteria to determine the backwardness of States; (c) To suggest the weightage to be given to each criterion; (d) To recommend how the suggested criteria may be reflected in future planning and devolution of funds from the Central Government to the States. (e) To suggest ways in which the absorptive capacity of States for funds and their ability to use the funds to improve well-being can be assessed and used to influence devolution to incentivise performance.