Kerala, with lower per capita income
has a better human development ranking than Punjab because, human development ranking is determined using a combination of factors such as health, education, and income. So, this does not imply that per capita income is not useful. Rather, per capita income is one of the development factors and can not be neglected.
The World Bank uses per capita income as the criterion for measuring development and comparing states.
But this criterion has certain limitations because of which determination of Human Development Index (HDI) is done using this criterion along with some other development factors like health, education etc.

That's all🙂

High Literacy Rate
Kerala boasts one of the highest literacy rates in India, exceeding 90%. This is attributed to:
- Strong Educational Infrastructure: A well-developed network of schools and colleges.
- Government Initiatives: Proactive policies to promote education, including free schooling and adult literacy programs.
- Cultural Emphasis on Education: A societal belief in the value of education, encouraging higher enrollment rates.
Low Infant Mortality Rate
The state has made significant strides in reducing infant mortality, with rates comparable to developed nations. Factors contributing to this include:
- Access to Healthcare: Comprehensive healthcare facilities and maternal health services.
- Public Health Campaigns: Effective programs addressing nutrition, sanitation, and vaccination.
- Community Participation: Involvement of local communities in health initiatives.
Low Per Capita Income
Despite these successes, Kerala's per capita income remains relatively low due to several reasons:
- Employment Opportunities: Limited industrialization and reliance on agriculture lead to fewer job opportunities.
- Migration: Many skilled individuals migrate for better-paying jobs, reducing local income levels.
- Economic Structure: A high proportion of the economy is based on the informal sector, which often pays lower wages.
Conclusion
In summary, Kerala's high literacy and low infant mortality rates reflect its commitment to education and healthcare. However, its economic challenges, including limited job opportunities and reliance on low-wage sectors, contribute to a lower per capita income. Addressing these economic issues is crucial for improving overall living standards.