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Multidimensional Poverty Index (MPI)

Facts for Prelims (FFP)


Source: PIB

 Context: A recent discussion paper by NITI Aayog reveals that in the last nine years, over 24 crore Indians have escaped multidimensional poverty, showcasing a steep decline in the Poverty Headcount Ratio from over 29% in 2013-14 to about 11% in 2022-23.


What is MPI?

The National Multidimensional Poverty Index (MPI) is a metric assessing poverty in a country by considering health, education, and standard of living, represented by 12 indicators. It employs the Alkire Foster methodology.

The National Multidimensional Poverty Index (MPI), a first-of-its-kind, estimates multiple deprivations at a household level using NFHS data. Published by NITI Aayog, it includes three dimensions and 12 indicators. Sub-indices measure the Headcount Ratio (how many are poor) and the Intensity of Poverty (how poor are the poor). The Global MPI, published by OPHI in collaboration with UNDP, is a similar index addressing worldwide multidimensional poverty.


Key findings of Niti Aayog:

  1. Steep decline in Poverty Headcount Ratio (HCR): HCR represents the percentage of the population below the Poverty Line.
  2. Positive Improvement in All 12 MPI Indicators
  3. Faster Decline in Poorer States: Poorer states like Uttar Pradesh and Bihar show a rapid decline in poverty, suggesting a reduction in disparities.
  4. SDG Target 2: India is expected to achieve Sustainable Development Goal (SDG) Target 1.2, aiming to reduce multidimensional poverty by at least half, well before 2030.
  5. Successful Government Initiatives: Programs like Poshan Abhiyan and Anemia Mukt Bharat have improved healthcare access, while the Targeted Public Distribution System under the National Food Security Act (ensures food grains for over 81 crore beneficiaries), extending free food grain distribution under Pradhan Mantri Garib Kalyan Anna Yojana.