The National Institution for Transforming India (NITI) Aayog recently released the second edition of the “National Multidimensional Poverty Index: A Progress Review 2023” report. According to this report, a significant number of people in India have managed to escape multidimensional poverty. The first edition of the Multidimensional Poverty Index (MPI) was published in 2021.
Understanding the National Multidimensional Poverty Index
The National Multidimensional Poverty Index is based on the latest findings of the National Family Health Survey-5 conducted between 2019 and 2021. The Index aims to measure poverty across multiple facets rather than focusing solely on per capita consumption expenditure. It incorporates three major dimensions: Health, Education, and Standard of living, each balanced equally in weight. These three dimensions are represented by 12 key indicators including nutrition, child mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.
Key Highlights of the Report
Between the years 2015-16 and 2019-21, India witnessed a marked decrease in multi-dimensionally poor individuals; approximately 13.5 crore people successfully broke free from multidimensional poverty during this period. This progress is evident in the decline of the poverty percentage from 24.85% in 2015-16 to 14.96% in 2019-21.
In terms of geographic division, rural areas experienced rapid poverty rate declines, dropping from 32.59% in 2015-16 to 19.28% in 2019-21. Urban areas also showed significant improvement, with poverty rates reducing from 8.65% in 2015-16 to 5.27% in 2019-21.
State-Level Progress and Sustainable Development Goals
On a state level, Uttar Pradesh made the most progress, with 3.43 crore (34.3 million) individuals escaping multidimensional poverty. Bihar, Madhya Pradesh, Odisha, and Rajasthan also made substantial strides. The MPI value for India has almost halved from 0.117 to 0.066 between 2015-16 and 2019-21, putting India on track to accomplish Sustainable Development Goal (SDG) Target 1.2 ahead of the stipulated timeline of 2030.
Improvement in Indicators
All 12 indicators used to measure multidimensional poverty showed noticeable improvements. Government initiatives like Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have evidently led to a significant 21.8% improvement in sanitation deprivations. The Poshan Abhiyan and Anaemia Mukt Bharat have also helped reduce health deprivation. The Pradhan Mantri Ujjwala Yojana (PMUY) has notably transformed lives by providing subsidized cooking fuel, resulting in a 14.6% improvement in cooking fuel deprivations.
Government Initiatives for Enhancing Citizen Welfare
The Indian government has launched a number of schemes aimed at improving the well-being of its citizens and reducing deprivation. These include the National Rural Livelihood Mission (NRLM), The Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MNREGA), Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), Public Distribution System (PDS), Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), and the previously mentioned Pradhan Mantri Ujjwala Yojana (PMUY).
Last Modified: February 22, 2024