Question

why is per capita income not regarded as the sole indication of economic development of country

Answer 1

Lets consider 2 situations

Situation 1:

Person             Salary
   A                    2000
   B                   2000
   C                   2000
   D                   400

Here the PCI is 6400/4 = Rs 1600 per person

Situation 2 :

Person            Salary
   A                    100
   B                    100
   C                    100
    D                   6100

Here also the PCI is 6400/4 = Rs 1600

But in situation 2 there are more number of poor people than in situation 1.
Therefore PCI is not effective in providing a good indication for development.

Hence it is not taken to be the sole indication of economic development of a country.

Hope this helps!!
Cheers!!