Human development index and poverty linkages

In this paper an attempt has been made to analysis of income and human development index (HDI) on poverty ratio for 15 states of India and for some selected Asian Nation. Our hypothesis is that both HDI and the growth of per capita income to play a significant role in the perspective of reduction of poverty. Data pertaining to 15 major states of India has been considered to study the linkages between these three variables over time with the help of correlation and regression technique. The empirical analysis clearly revealed that per capita income and human development have profound influence on the reduction of poverty. Another important result is that over time the linkage between the three variables is getting strengthened. While there is a sizeable decline in poverty ratio of majority of states, still there is a long way to go. It may be concluded by saying that greater attention needs to be paid to human development mainly by increasing budgetary and plan expenditure on social sector and generation of ample employment opportunities.