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The significance of this index lies in its ability to build upon currently existing and accepted frameworks and databases by delineating the optimal links between them. It also facilitates achievement of village development while developing new indicators to fill the gaps in measurement.

Village-level monitoring can play an important role in fostering knowledge sharing & peer review across villages in the same region (Gram Panchayat, Taluka, Zilla Parishad). Area Development is a multi-faceted concept that covers and consists of a set of intertwined processes of providing various facilities and services for village as a whole.

The multidimensional aspects of ADI comprise the Sustainable Development Goals as the core. The ADI presents a new method of monitoring village development, because it expands the scope of understanding rural development– going beyond measuring physical infrastructure and livelihoods outcomes in isolation– to embed them within the multi-faceted context of SDGs inspired holistic development.

Being able to focus closely on individual dimensions is an important way to find the aspects of village development that need attention, facilitating planning of policies. In other words, at a national level, ADI will provide data for policy planning and intervention.