MULTIDIMENTIONAL POVERTY (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     16th January 2024        

Context: Recently, a discussion paper released by NITI Aayog reveals that the share of India's population experiencing multidimensional poverty has dropped from 29.17 percent in 2013-14 to 11.28 percent in 2022-23.

National Multidimensional Poverty Index (NMPI)

  • About: It is prepared based on the latest National Family Heath Survey of 2019-21.
  • First Edition Released: 2021
  • Nodal Agency: NITI Ayog
  • Indicators: 3 equally weighted dimensions - Health, Education, and Standard of living

Key Findings

Positive Trends in Poverty Reduction

  • Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan witness significant decline in poverty.
  • Multidimensional Poverty Index (MPI) considers health, education, and standard of living indicators.

Severity of Deprivation

  • Severity of deprivation declined less between 2015-16 and 2019-21 compared to 2005-06 and 2013-14.
  • Measures the deprivations faced by the average multidimensionally poor person.

Long-Term Poverty Trends

  • Discussion paper uses NFHS data from 2005-06 to 2019-21 to analyze long-term poverty trends.
  • NITI Aayog collaborates with Oxford Policy and Human Development Initiative (OPHI) and UNDP.

Impact of COVID-19 on Poverty

  • Share of MPI poor in 2022-23 would be lower without the pandemic's impact.
  • NHFS-5 data collected between 2019-21 predates the full impact of COVID-19.

SDG Progress and Targets

  • India on track to achieve SDG Target 1.2 ahead of 2030.
  • Sustainable Development Goals aim to reduce poverty in all dimensions.