MULTIDIMENSIONAL POVERTY INDEX (Syllabus: GS Paper 3 – Economy)

Context: Recently, the Union Finance Minister of India highlighted that approximately 13.5 crore people escaped "multidimensional" poverty in the last five years. India, maintaining its momentum as the fastest-growing major economy, witnesses significant contributions from all sectors to economic activities.

• India has become the fifth largest economy from being the tenth largest in 2015.

Multidimensional Poverty Index (MPI)

• About: The index is a key international resource that measures acute multidimensional poverty across more than 100 developing countries.
• Produced by: United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI)
• Calculation of MPI: Multiplying the incidence of poverty and the average intensity of poverty.
• MPI Ranges: From 0 to 1, and higher values imply higher poverty.

National Multidimensional Poverty Index (MPI)

• About: It is prepared based on the latest National Family Heath Survey of 2019-21.

oNFHS is conducted by the International Institute for Population Sciences (IIPS) under the Ministry of Health and Family Welfare, Government of India.

• First Edition Released: 2021
• Nodal Agency: NITI Ayog
• Indicators: 3 equally weighted dimensions - Health, Education, and Standard of living