Daily News Analysis

National Multidimensional Poverty Index

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Over 24.8 crore people moved out of poverty in India in nine years: NITI report.

The Index

  • Released by - Niti Aayog, which is the nodal agency to release Multidimensional Poverty (MDP) report for States and Union Territories.
  • Purpose - Plays a role in assessing advancements towards Sustainable Development Goals (SDGs) 1.2.

SDG 1.2. - By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to regional definitions.

 

Multidimensional Poverty - Poverty – According to the World Bank, those who are unable to earn 2.15 dollar per day are living in extreme poverty.

  • As per UNDP, it is the measure of poverty that considers various deprivations experienced by people in their daily lives including poor health, insufficient education and low standard of living.
  • It is a means to capture the complexity of poverty that considers dimensions of well-being beyond just monetary poverty.

 

Indicators of National MPI - India’s national MPI has 3 equally weighted dimensions, which are then represented by 12 other indicators.

    1. Health
    2. Education
    3. Standard of living
  • These 12 include nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.
  • Sub-indices of National MPI:
    1. Headcount ratio (H): How many are poor?
    2. Intensity of poor (I): How poor are the poor?
  • Formula - MPI= H*I
  • If the deprivation score (sum of the weighted status of all the indicators) for an individual is more than 0.33, then an individual is considered multidimensionaly poor.

Global MPI Report - It is jointly published by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).

  • It is based on the Alkire-Foster (AF) methodology that captures overlapping deprivations in health, education, and living standards.

Findings

  • Report based on - The report said the recent National MPI was based on National Family Health Surveys 4 (2015-16) and 5 (2019-21).
  • As many as 24.82 crore people moved out of multidimensional poverty in nine years to 2022-23, with Uttar Pradesh, Bihar and Madhya Pradesh registering the largest decline.
  • At the State level, Uttar Pradesh topped the list with 5.94 crore people escaping poverty followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.
  • The rate of decline of multidimensional poverty has accelerated during the period 2013-14 to 2022-23.
  • All 12 indicators of MPS have shown remarkable improvement during this period.

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