Multidimensional poverty: meaning, numbers

Syllabus: GS-III

Subject: Economy

Topic: Poverty

Issue: MPI

Context: Finance Minister Nirmala Sitharaman stated that 25 crore Indians were lifted out of poverty over the past decade, based on a discussion paper by NITI Aayog.

Summary:

  1. Multidimensional poverty in India decreased from 29.17% in 2013-14 to 11.28% in 2022-23.
  2. Health metrics rely on National Family Health Survey (NFHS) data, conducted every five years.
  3. Uttar Pradesh, Bihar, and Madhya Pradesh saw significant reductions in poverty, according to the study.
Multidimensional poverty index:

 Components: The Multidimensional Poverty Index (MPI) in India incorporates 10 indicators across health, education, and standard of living dimensions.

These indicators include nutrition, child mortality, schooling, household assets, access to basic amenities, and more.

Calculation: MPI identifies individuals as “MPI poor” if they are deprived in at least one-third of the weighted indicators.

The index value is calculated by multiplying the incidence (proportion of poor individuals) by the intensity (average deprivation experienced).

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