IJSRP, Volume 5, Issue 5, May 2015 Edition [ISSN 2250-3153]
Anjum Ara Ahmad
The Economic Wealth Index (EWI) is created using the principal component analysis (PCA) method on the amenities data of Census 2001.The first principal component is used to create the index. An attempt is made in this research to the economic health of the districts of some selected states like Kerala, Maharashtra and Bihar/Jharkhand. The selected states represent almost all the regions of India i.e. Kerala from South, Maharashtra from West and Bihar/Jharkhand from North-East. I have used Principal Component Method for creating this index. The districts of the selected States are ranked based on the values of the index. When I compared the district level value of this index with the Human Development index value, I found that the two values are highly correlated with each other for the State of Maharashtra. Hence this method can be used to study the economic conditions of the districts of the States and can be used as an alternative to HDI values as district level HDI values are not available for all states.