Source: PIB
Why in News?
Recently, NITI Aayog has released the Report “National Multidimensional Poverty Index: A Progress Review 2023”, claiming that a significant number of people have come out of multidimensional poverty in India.
What is the National Multidimensional Poverty Index?
- The report has been prepared based on the latest National Family Health Survey-5 ( 2019-21 ) and is the 2nd edition of the National Multidimensional Poverty Index (MPI).
- The MPI seeks to measure Poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure.
- It has three equally weighted dimensions – Health, Education, and Standard of living.
- These three dimensions are represented by 12 indicators such as nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.
What are the Key Highlights of the Report?
- Reduction in Multidimensional Poverty:
- Between 2015-16 and 2019-21, India witnessed a significant decline in the number of multidimensionally poor individuals.
- Around 13.5 crore people moved out of multidimensional poverty during this period.
- Decline in Poverty Percentage:
- India's population living in multidimensional poverty decreased from 24.85% in 2015-16 to 14.96% in 2019-21, reflecting a decline of 9.89 % points.
- Rural-Urban Divide:
- The rural areas of India experienced the fastest decline in poverty, with the poverty rate dropping from 32.59% to 19.28% between 2015-16 and 2019-21.
- In urban areas, the poverty rate reduced from 8.65% to 5.27% during the same period.
- State-Level Progress:
- In terms of number of MPI poor, Uttar Pradesh saw the largest decline in the number of poor individuals, with 3.43 crore (34.3 million) people escaping multidimensional poverty.
- The states of Bihar, Madhya Pradesh, Odisha, and Rajasthan also witnessed significant progress in reducing multidimensional poverty.
- Bihar saw the fastest reduction in MPI value in absolute terms with the proportion of multidimensional poor reducing from 51.89% to 33.76% in 2019-21 followed by Madhya Pradesh and Uttar Pradesh.
- SDG Target:
- The MPI value for India has nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21.
- The intensity of poverty has reduced from 47% to 44%, indicating that India is on track to achieve SDG (Sustainable Development Goals) Target 1.2 (reducing multidimensional poverty by at least half) ahead of the stipulated timeline of 2030.
- Improvement in Indicators:
What are the Government Initiatives for Reducing deprivations and Improving the Well-Being of Citizens?
FAQs
What is the National Multidimensional Poverty Index? The National Multidimensional Poverty measures simultaneous deprivations across three equally weighted dimensions of Health, Education, and Standard of Living that are represented by 12 Sustainable Development Goals-aligned indicators.
What are the 12 indicators of MPI? ›
These three dimensions are represented by 12 indicators such as nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.
What are the 3 dimensions of multidimensional poverty index? ›
The Global MPI uses three standard dimensions: Health; Education; Standard of Living and ten indicators. These mirror the Human Development Index (HDI). Multidimensional Poverty Indices used for purposes other than global comparison have sometimes used different dimensions, including income and consumption.
What is USA Multidimensional Poverty Index? ›
The US-MPI measures simultaneous deprivations experienced in multiple dimensions of well- being: health, education, income and housing.
Which is the poorest state in multi multidimensional poverty index? ›
STATES WITH MOST POOR IN 2022-23
Based on the NFHS 5 data of 2019-21, multidimensional figure projections were also done in the Niti Aayog paper. A look at this data reveals that Bihar is the state with the highest number of poor with 26.59% of its population in 2022-23 in that bracket.
Which country has the highest multidimensional poverty? ›
Countries with the highest prevalence of multidimensional poverty worldwide 2017-2022. Chad was the country with the highest prevalence of multidimensional poverty in the world based on surveys from 2017 to 2022. The Central African country was given an index score of 0.5 on a scale from zero to one.
How does MPI measure poverty? ›
Based on the Alkire Foster methodology, the MPI is created by multiplying together two numbers: the percentage of the population who are poor; and the average percentage of the weighted indicators that poor people experience (intensity). Including intensity provides an incentive to reach the poorest of the poor.
What are the 10 key indicators of multidimensional poverty? ›
The ten indicators of poverty used in the MPI include child mortality, nutrition, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, and assets.
What is an MPI score? ›
The global Multidimensional Poverty Index (global MPI) is a poverty measure that reflects the multiple deprivations that poor people face in the areas of education, health, and living standards.
What is the difference between poverty and multidimensional poverty? ›
Applying a narrow definition of poverty and focusing on one dimension alone, such as income, fails to capture the true reality of people's circ*mstances. In contrast, multidimensional poverty measurement offers a more holistic approach which better reflects peoples lived experiences.
Limitations of Multidimensional Poverty Index (MPI):
Due to large numbers of indicators, it can become overwhelming to deal and to make proper assessment leading to ineffective implementation. Intra-household inequality and inequality amongst the poor is not captured.
What are the 7 indicators of poverty? ›
more of the following deprivation items:
- Without heating at some stage in the last year.
- Unable to afford a morning, afternoon or evening out in last fortnight.
- Unable to afford two pairs of strong shoes.
- Unable to afford a roast once a week.
- Unable to afford a meal with meat chicken or fish every second day.
The MPI value for a given population, therefore, is the share of weighted deprivations faced by multidimensionally poor individuals divided by the total population.
Why is the Multidimensional Poverty Index important? ›
Multidimensional poverty measures can be used to create a more comprehensive picture. They reveal who is poor and how they are poor – the range of different disadvantages they experience.
Who makes Multidimensional Poverty Index? ›
The global MPI Report is jointly published by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
How do you calculate multidimensional poverty index? ›
If the data are binary or ordinal, multidimensional poverty is measured by the adjusted headcount, M0, which is calculated as H times A. Headcount poverty is multiplied by the 'average' number of dimensions in which all poor people are deprived to reflect the breadth of deprivations.
What is the MPI poverty measure? ›
Multidimensional poverty is defined as being deprived in a range ofhealth, education and living standards indicators. The MPI is ameasure that reflects both the prevalence and the intensity ofmultidimensional poverty.
What is the multidimensional poverty index approach? ›
Multidimensional poverty measures complement monetary measures to create a more comprehensive picture of poverty. Measures such as the Multidimensional Poverty Index (MPI) reveal both who is poor and how they are poor, illuminating the set of different disadvantages they experience at the same time.
How to interpret MPI values? ›
The MPI value ranges from 0 to 1, with 0 reflecting zero poverty and 1 universal poverty and deprivation. It is always expressed with 3 decimals e.g. 0.235. Incidence of poverty: The percentage of the population who are multidimensionally poor.
