For eg. in a diverse country like India sb might be rich and someone might be poor, but PCI does not tell us so. Hence it hides disparities.

per capita income is used usually for the comparison between two countries. It is obtained by dividing the the total income of the country with the total no. of population. it is very useful but it hides disparities.

acording to the world bank countries with higher income (i.e more than 10,066 dollars) are considered as more developed than the countries with lower income(i.e less than 825 dollars) but as we know that it hides the disparities so ,UNDP in its human development report compares the measures of the levels of the diff. countries on the basis of :-

1. Educational level of the people
2. Health status of the people
3. Per capita income