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Normalization of the raw indicator values
Normalization of indicators is an exercise to centralize and scaling them on a uniform basis so as to make them relatable to each
other in terms of magnitude. Normalization also helps in removing units and dimensions from an indicator.

Normalization of the indicators’ value is normally done based on the minimum and maximum observed values. The indicators
however are to be categorized as positive or negatively perceived indicators. The procedure of normalization in each case is reverse
of others.

Positive indicators: Using maximum-minimum observed value- For indicators where higher the value means better the
performance, for example, the proportion of institutional deliveries, the following formula is used:

Negative Indicators: For indicators where higher the value implies lower the performance, for instance, Infant Mortality Rate,
the following formula is used:

X100

Using Target values- For indicators where higher the value means better the performance, for example, the proportion of
institutional deliveries, the following formula was used:

For indicators where higher the value implies lower the performance, for instance, Infant Mortality Rate, the
following formula was used:

Binary Indicators: There are also binary indicators which provide information on the existence or non-existence of some
infrastructure or phenomenon etc. In such cases, the normal practice is to assign 0 (for non-existence) and 1 value (for existence).
While this categorization serves its purpose for assessing the cumulative values but cannot be adopted ipso-facto for normalization
process as the value 0 and 1 are not true values but are notional assigned values. In order to reduce the value of existence below the

PDI Committee Report - 2023: Panchayat Development Index 69