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19/07/23 06:37 AM IST

National Multidimensional Poverty Index: A Progress Review 2023

In News
  • The NITI Aayog has published the second edition of the Multidimensional Poverty Index titled ‘National Multidimensional Poverty Index: A progress of Review 2023’.
Major Highlights
  • The report is based on the latest National Family Health Survey (2019-21) and represents progress made by India in reducing multidimensional poverty between the two surveys, NFHS-4 (2015-16) and NFHS-5 (2019-21).
  • India has achieved a remarkable reduction in its MPI value and Headcount Ratio between 2015-16 and 2019-21.
  • About 135.5 million (13.5 crore) persons have exited poverty between 2015-16 and 2019-21.
  • Rural areas saw a faster reduction in their MPI value, compared to urban areas.
  • The incidence of poverty fell from 32.59% to 19.28% in rural areas compared to a decline from 8.65% to 5.27% in urban areas between 2015-16 and 2019-21.
  • Nearly 3.43 crore people escaped poverty in Uttar Pradesh, registering the largest decline among the 36 States and Union Territories.
  • Uttar Pradesh, the most populous state in India, registered the largest decline in the number of poor individuals.
  • A remarkable 3.43 crore people in Uttar Pradesh successfully escaped multidimensional poverty, demonstrating the effectiveness of government initiatives in reaching the most vulnerable sections of society.
Multi-dimensional Index
  • A person who is poor can suffer multiple disadvantages at the same time – for example they may have poor health or malnutrition, a lack of clean water or electricity, poor quality of work or little schooling.
  • Focusing on one factor alone, such as income, is not enough to capture the true reality of poverty.
  • Multidimensional Poverty is a measure of poverty that captures deprivations in education and access to basic infrastructure in addition to income or consumption at the USD 1.90 international poverty line (as per World Bank).
National Multi-dimensional Index
  • The MPI has been used by the United Nations Development Programme (UNDP) in its flagship Human Development Report since 2010.
  • In this context, NITI Aayog had published the first edition of national Multidimensional Poverty Index for India in 2021.
  • A national MPI statistic for a country is tailored to the national priorities and therefore, countries choose their own set of dimensions, indicators, weights, and cut-offs, according to their plans and contexts.
  • The report presents an in-depth analysis of the headcount ratio and intensity of multidimensional poverty at the national, State/UT, and district levels.
  • The first report was based on the reference period of 2015-16 of the National Family Health Survey (NFHS)- 4.
Significance
  • Government-led flagship programs have played a pivotal role in alleviating deprivations and accelerating poverty reduction.
  • Initiatives such as Poshan Abhiyan, Anaemia Mukt Bharat, Swachh Bharat Mission, Jal Jeevan Mission, Pradhan Mantri Ujjwala Yojana, Saubhagya, Pradhan Mantri Awas Yojana, Pradhan Mantri Jan Dhan Yojana, and Samagra Shiksha have significantly contributed to addressing key challenges and providing essential resources to marginalized communities.
 Source- Indian Express

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