The Wealth Index as part of NFHS-4 is prepared on the basis of information of scores on ownership of consumer goods such as television and bicycles and household characteristics such as availability of drinking water.

• On the basis of the information the households were divided into quintiles. Lowest 20% were considered poorest and top 20% were considered richest.
• Based on these criteria the index revealed that Delhi and Punjab are the richest states and Jain community is the wealthiest community of the country.
• Bihar is the poorest state while Rajasthan has the most equitable distribution.
• Hindus and Muslims have the most equitable wealth distribution in the country. The index also revealed that poverty is predominantly a rural phenomenon.