Among India's 28 states, Gujarat has been ranked 12th 'most developed state,' according to the “underdevelopment index” formulated by a panel under Raghuram Rajan (as chief economic advisor in the Finance Ministry.
Gujarat has been classified in the second rung of developed states in the committee report, that is, “less developed states”, along with West Bengal, Tripura, Manipur, Nagaland, Jammu & Kashmir.
The new index, proposed by the Rajan committee, is based on averages of ten sub-components — monthly per-capita consumption expenditure, education, health, household amenities, poverty rate, female literacy, share of scheduled castes and scheduled tribes in the total population, urbanisation rate, financial inclusion, and connectivity.
The purpose of the index is to decide on a way to allocate Central funds to states.
Prime Minister Manmohan Singh has approved the committee’s recommendations to be put in public domain. He wants the suggestions to be examined and necessary action on those taken.