MULTIDIMENTIONAL POVERTY (Syllabus: GS Paper 3 – Economy)

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.