The NITI Aayog, India’s policy making body, recently unveiled the Multidimensional Poverty Index (MPI). This came after the Global Multidimensional Poverty Index 2021 which was published by the United Nations Development Programme (UNDP) alongside the Oxford Poverty & Human Development Initiative (OPHI). The MPI is a unique tool that offers a broader perspective on poverty, supplementing existing statistics rooted in per capita consumption expenditure.
In the 2021 Global MPI ranking, India placed at 66 out of 109 countries. The National MPI hopes to further dissect this global index, aiming to develop a customised MPI for India and formulate extensive Reform Action Plans with the ultimate aim to enhance India’s position in the Global MPI rankings.
Key Elements of the MPI
The MPI is designed around three key dimensions – health, education, and standard of living, each carrying equal weightage. These dimensions are further measured through twelve indicators such as nutrition, school attendance, years of schooling, drinking water, sanitation, housing, and bank accounts, among others.
Methodology and Data Selection for MPI
The National MPI utilises the globally approved and robust methodology established by the Oxford Poverty and Human Development Initiative (OPHI) and the UNDP. The initial report of the national MPI measure employs data from the 2015-16 reference period under the National Family Health Survey (NFHS-4). This survey data provides an understanding of baseline multidimensional poverty, giving insight into the situation before the full implementation of various central government initiatives.
Findings: Levels of Poverty
The MPI findings reveal that Bihar has the highest proportion of its population experiencing multidimensional poverty, followed by Jharkhand and Uttar Pradesh, while Kerala records the least poverty levels, succeeded by Puducherry, Lakshadweep, Goa and Sikkim. This index also identifies Bihar as having the highest number of malnourished people, followed by Jharkhand, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
Significance and Applications of MPI
The MPI is not merely a statistical tool; it also serves as a crucial instrument for forming public policies. It provides a comprehensive view of poverty in the country, enabling more thorough analyses of regions such as states or districts and particular sectors. By doing so, it supplements existing monetary poverty statistics. Furthermore, the MPI contributes to measuring progress towards target 1.2 of the Sustainable Development Goals (SDGs), aiming at halving the proportion of men, women, and children of all ages living in poverty across all its dimensions.
Government Initiatives Related to Poverty Reduction
A variety of government initiatives are aimed at combating poverty. 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), Jal Jeevan Mission (JJM), Swachh Bharat Mission (SBM), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), and Pradhan Mantri Ujjwala Yojana (PMUY).