Economic Indicators - Left to Write

It just happened that I came across some material related to Indicators of Economic well-being.
As a dabbler in Economics, I just couldnt abstain from going through it which presented invaluable insights.

We all know that GDP (Gross Domestic Product) is considered one of the chief indicator to rate how an economy is faring. GDP essentially is the value of all commodities (goods & services) produced by a nation. But, some citizens work elsewhere and few foreign nationals also contribute to GDP of India. After adjusting for this inflow & outflow values, the result is the GNP (Gross National Product). Now, few economists believe that the cost of the capital be deducted from GNP arriving at the national income or NNP (Net National Product). This NNP divided by the population gives the true Per Capita Income (PCI).

Though PCI is a widely used indicator to evaluate an economy, common sense tells us that the proper distribution of income reflects true state of the economy. Few very high income individuals can pull the PCI to a higher level. Hence, inequality (in distribution of incomes) should be taken into account. Thus, PCI adjusted for the inequality is the true measure of 'Welfare' of a society. A quantitative method for calculating welfare is given by Amarthya Sen.

Above mentioned are the economic indicators. There are few indices which try to bring out socio-economic progress in the society. Most important of these is the HDI (Human Development Index). It takes into account three parameters, namely,
1. Infant Mortality from birth
2. Standard of Living
3. Adult Literacy

Infant mortality is just relects the life expectancy. The better the living conditions the less is the infant mortality or the more is the life span.
Standard of living is derived from PPP (Purchasing Power Parity). Per Capita Incomes have to be compared if two different economies have to be compared. But they have to be converted to a common denominator (currency). Then that value is the PPP of that economy. Standard of Living reflects the material comforts that the people of an economy are enjoying. More PPP -> More comforts. Simple !!!
Human Development is not complete is one is unable read or write. Literacy leads to innovations and technological advances Thereby impacting whole socio-economic progress.