The United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) have released the latest update of the Multidimensional Poverty Index (MPI), revealing significant progress in poverty reduction in India.
India’s Strides in Poverty Reduction
- The latest update of the Multidimensional Poverty Index demonstrates India’s remarkable progress in lifting millions of people out of poverty. Within a span of 15 years, from 2005/2006 to 2019/2021, India has witnessed a significant reduction in poverty, with 415 million people being lifted out of poverty.
- In 2005-2006, approximately 645 million people in India were living in multidimensional poverty. This number declined to about 370 million in 2015-2016 and further decreased to 230 million in 2019-2021. These statistics indicate a substantial improvement in the living conditions of a significant portion of India’s population.
Improvements in Key Indicators
- The report highlights the improvements in various indicators of multidimensional poverty in India. The percentage of people who are multidimensionally poor and deprived under the nutrition indicator declined from 44.3 percent in 2005-2006 to 11.8 percent in 2019-2021. Child mortality also witnessed a significant decline, falling from 4.5 percent to 1.5 percent.
- The data further reveals a substantial reduction in deprivation in other key areas. The percentage of people who are poor and deprived of cooking fuel decreased from 52.9 percent to 13.9 percent, and those deprived of sanitation reduced from 50.4 percent in 2005-2006 to 11.3 percent in 2019-2021. Similarly, in the drinking water indicator, the percentage of people who are multidimensionally poor and deprived decreased from 16.4 to 2.7. The improvements also extend to electricity access (from 29 percent to 2.1 percent) and housing (from 44.9 percent to 13.6 percent).
India’s Global Achievement
India’s progress in poverty reduction is not only remarkable within its borders but also holds global significance. The country is among the 19 nations that have halved their global Multidimensional Poverty Index (MPI) value during a specific period. For India, this period was from 2005-2006 to 2015-2016. The substantial reduction in multidimensional poverty highlights the effectiveness of poverty alleviation efforts undertaken by the Indian government and various stakeholders.
Understanding the Global Multidimensional Poverty Index
- The Multidimensional Poverty Index is a report produced by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI). It was first launched in 2010 and has since become an important tool for measuring poverty beyond income-based measures.
- The global MPI constructs a deprivation profile of each household and individual, considering 10 indicators that span health, education, and standard of living. The index takes into account both the incidence and intensity of poverty. All indicators are equally weighted within each dimension. A person is identified as multidimensionally poor if their deprivation score is 1/3 or higher.
- The Multidimensional Poverty Index provides a comprehensive picture of poverty, capturing various dimensions of deprivation. It goes beyond income measures to consider factors such as access to education, healthcare, and basic amenities. This holistic approach to measuring poverty helps policymakers and development practitioners identify and address the specific areas where poverty persists, leading to more targeted and effective poverty reduction strategies.