National Multidimensional Poverty Index

GS Paper 2

 Syllabus: Issues Relating to Poverty and Hunger

 

Source: IE

Context: The NITI Aayog released the ‘National Multidimensional Poverty Index: A Progress Review 2023’.

 

Key highlights:

  • India has registered a decline in the number of multidimensionally poor from 24.85% in 2015-16 to 14.96% in 2019-2021.
  • In absolute terms, ~13.5 crore Indians escaped poverty during the five-year time period.
  • Still, one in seven Indians is multidimensionally poor.

 

What is the National Multidimensional Poverty Index (MPI)?

  • With its first edition released in 2021, the project is aimed at deconstructing the Global MPI and creating a globally aligned and yet customised India MPI.
  • It seeks to draw up comprehensive Reform Action Plans with the larger goal of improving India’s position in the Global MPI rankings.
  • NITI Aayog is the nodal agency for the National MPI, ranking States and UTs based on their performance.

 

Methodology:

  • It captures overlapping deprivations in health, education and living standards to ascertain multidimensional poverty.
  • Each of the specific parameters (under 3 broad categories) is assigned a value to calculate what is called a ‘deprivation score’.
  • The deprivation score is the sum of the weighted status of all the indicators for an individual – if it is more than 0.33, only then an individual is considered multidimensionally poor.
  • The primary data source to arrive at these figures was National Family Health Survey-5 (NFHS-5).

 

Highlights of the National MPI Report 2023 (2nd Edition):

  • Which indicators have reduced India’s multidimensional poverty? Improvements in indicators like access to cooking fuel, sanitation, drinking water, and bank accounts.
  • Where more improvements are needed? Indicators like nutrition and access to education, where the improvement has only been marginal.

 

Performance of various states:

  • BIMARU states: The number of people in poverty in rural areas witnessed the fastest decline (from 32.59 to 19.28%), owing to improvements in states like Bihar, UP, MP, Odisha, and Rajasthan.
  • Number of states with less than 10% of people living in multidimensional poverty:
  • Doubled between 2016 and 2021 from 7 (Mizoram, HP, Punjab, Sikkim, TN, Goa, and Kerala) to 14 (Telangana, Andhra Pradesh, Haryana, Karnataka, Maharashtra, Manipur, and Uttarakhand).
  • Except for Bihar, no other state in India has more than one-third of its population living in multidimensional poverty.

 

Comparing with Global MPI 2023:

  • In 2005/2006, about 645 million people were in multidimensional poverty in India, with this number declining to about 370 million in 2015/2016 and 230 million in 2019/2021.
  • Thus, 415 million poor people moved out of poverty from 2005/2006 to 2019/2021.
  • Incidence fell from 55.1 to 16.4%.
  • Deprivation in all indicators declined.

 

What is keeping Indians multidimensionally poor?

  • Within the health category, 3 sub-indicators – nutrition, child and adolescent mortality, and maternal health – showed only moderate improvement.
    • Lack of proper nutrition contributed close to 30% – the highest – in the overall calculation of India’s MPI.
  • Other indicators that did not record a significant decline include lack of years of schooling, inadequate access to maternal health services and less-than-desired school attendance.
  • Within the standard of living category,
    • While there has been a significant improvement in access to cooking fuel, ~44% of India’s population is still deprived of it.
    • While sanitation numbers have improved, over 30% of the population is deprived when it comes to sanitation services.
    • Access to housing also remained to be an indicator where the improvement was only marginal. standard of living criteria.

 

Government’s flagship programmes:

  • Health and Nutrition: Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reduced deprivations in health.
  • Sanitation: Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have improved sanitation across the country.
  • Cooking fuel: PM Ujjwala Yojana (PMUY) has positively transformed lives.
  • Other initiatives: Initiatives like Saubhagya (electricity), PM Awas Yojana (housing), PM Jan Dhan Yojana (banking), and Samagra Shiksha (education).

 

Conclusion: Consistent implementation across a diverse set of programmes and initiatives that have strong interlinkages will lead to a further reduction in deprivations across multiple indicators.

 

Insta Links:

Multidimensional Poverty Index

 

Mains Links:

Though there have been several different estimates of poverty in India, all indicate a reduction in poverty levels over time. Do you agree? Critically examine with reference to urban and rural poverty indicators. (UPSC 2015)