The recent Voluntary National Review (VNR) of Sustainable Development Goals (SDGs) has highlighted a significant reduction in the number of people living under multidimensional poverty in India. This review was presented by the Niti Ayog at the High-Level Political Forum on Sustainable Development, reports that 271 million people were lifted out of poverty between 2005-06 and 2016-17.
Analysis of Related Data
The data for this analysis was drawn from the 2019 Global Multidimensional Poverty Index (MPI), which was released in July 2019. It shows that over 640 million people across India were living in multidimensional poverty in 2005-2006. By 2016-2017, these numbers had decreased significantly to around 369.55 million. However, about 27.9% of India’s population was still considered poor in 2016-17.
Poverty Reduction Trends
The rate of poverty reduction has been found to be higher in rural areas than in urban ones. The rate of poverty reduction in rural areas outpaced that in urban areas.
Multidimensional Poverty Index
The Multidimensional Poverty Index was introduced by the United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative (OPHI) in 2010. It argues against the traditional unidimensional view of poverty and proposes that poverty is multidimensional. The MPI seeks to provide a more comprehensive measure of poverty by evaluating deprivations in education, health, and standards of living among the poor.
Significance of Multidimensional Poverty Index
The MPI is important as it recognizes poverty from multiple dimensions as opposed to conventional methodologies that measure poverty strictly in monetary terms. It therefore provides a more nuanced understanding of poverty, which can guide more effective interventions.
Future Directions
Given the impact of the Covid-19 pandemic, which is feared to increase poverty levels, it will be crucial for India to reassess its poor. Furthermore, measuring and monitoring progress towards the goal of ‘zero poverty by 2030’, a key aim of the SDGs, requires a clear and accurate understanding of the current state of poverty in the country.
Importance of Quality Data
Reliable data is crucial to estimating poverty. While consumption surveys provide some important indicators, the all-India survey on household consumption expenditure for the period July 2017-June 2018 was discarded by the Ministry of Statistics and Programme Implementation due to “data discrepancies”. Therefore, improvements in data quality and survey methodology will be essential for the upcoming Consumer Expenditure Survey in 2020-2021 and 2021-22.
