Measures of Development:

As mentioned  earlier, per capita GDP  provides a measure of output;  it can  indicate the  average income  of the  country. However, it  neither represents the  level  of development nor the level of societal welfare of an economy. In  the presence of steep inequality, high per  capita  income may  imply  acute poverty  for  large  sections oP society. In  order to overcome this  limitation of per capita income as an  indicator of development, economists  have come  up  with several  alternative measures.