National Multidimensional Poverty Index

Background:

• The report has been prepared based on the latest National Family Health Survey-5 ( 2019-21 ) and is the 2nd edition of the National Multidimensional Poverty Index (MPI). The first edition of MPI was released in 2021.
• The MPI seeks to measure Poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure.
• It has three equally weighted dimensions – Health, Education, and Standard of living.

Linkage:

• India’s population living in multidimensional poverty decreased from 24.85% in 2015-16 to 14.96% in 2019-21, reflecting a decline of 9.89 % points.
• The rural areas of India experienced the fastest decline in poverty, with the poverty rate dropping from 32.59% to 19.28% between 2015-16 and 2019-21.
• In urban areas, the poverty rate reduced from 8.65% to 5.27% during the same period.

Current News:

• NITI Aayog has released the Report “National Multidimensional Poverty Index: A Progress Review 2023”, claiming that a significant number of people have come out of multidimensional poverty in India.

Impact:

• The impact of the Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) is evident in the swift 21.8% points improvement in sanitation deprivations.
• The Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reduced deprivations in health.
• The provision of subsidized cooking fuel through the Pradhan Mantri Ujjwala Yojana (PMUY) has positively transformed lives, with a 14.6% improvement in cooking fuel deprivations.