Development of an index of need for health resources for Indian States using factor analysis

An index of need for health resources in the Indian States has been developed using the statistical technique of factor analysis. Data on seven selected indicators measuring various aspects of population health in 17 Indian States for the year 1981 were used to extract factors. Two factors were discovered which together explained 83% of the total variation. The first factor alone, identified as 'proximate determinants', explained 67% of the variation. The second, 'sociomedical background' accounted for 16%. Factor analysis results have been used to derive standardized indices which helped to compare quantitatively the health needs of the people of various States.