National Multidimensional Poverty Index

Context:

According to the ‘National Multidimensional Poverty Index: A Progress Review 2023, India has registered a significant decline of 9.89 percentage points in the number of multidimensionally poor, from 24.85% in 2015-16 to 14.96% in 2019-2021.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Key Findings on Multidimensional Poverty
2. About the National Multidimensional Poverty Index (MPI)

Key Findings on Multidimensional Poverty:

Decline in Poverty:

• Approximately 13.5 crore people have moved out of multidimensional poverty during the assessed period.
• Rural areas have witnessed the fastest decline in poverty, from 32.59% to 19.28%, with significant progress in states like Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, and Rajasthan.
• Delhi, Kerala, Goa, and Tamil Nadu have the lowest number of people facing multidimensional poverty.

States with High Multidimensional Poverty:

• Bihar, Jharkhand, Meghalaya, Uttar Pradesh, and Madhya Pradesh, along with the Union Territories, have a high percentage of the population facing multidimensional poverty.

Decrease in Urban Multidimensional Poverty:

• Multidimensional poverty in urban areas has also seen a decrease, from 8.65% to 5.27% during the assessed period.
• Significant Progress in Uttar Pradesh:
• Uttar Pradesh has registered the largest decline in the number of poor, with 3.43 crore people escaping multidimensional poverty.

Reduction in MPI Value and Intensity of Poverty:

• The MPI value 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% during the same period.

About the National Multidimensional Poverty Index (MPI):

• The MPI is based on the latest National Family Health Survey of 2019-21 and represents the second edition of the index.

Parameters:

• The report examines 12 parameters related to health, education, and standard of living to determine multidimensional poverty.
• These parameters include nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.

Methodology:

• The report follows the Alkire-Foster methodology, which was developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
• This methodology provides a comprehensive approach to measuring multidimensional poverty by considering multiple dimensions and deprivations.

-Source: The Hindu