National Multidimensional Poverty Index

Over 24.8 crore people moved out of poverty in India in nine years: NITI report.

The Index

Released by - Niti Aayog, which is the nodal agency to release Multidimensional Poverty (MDP) report for States and Union Territories.
Purpose - Plays a role in assessing advancements towards Sustainable Development Goals (SDGs) 1.2.

SDG 1.2. - By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to regional definitions.

Multidimensional Poverty - Poverty – According to the World Bank, those who are unable to earn 2.15 dollar per day are living in extreme poverty.

As per UNDP, it is the measure of poverty that considers various deprivations experienced by people in their daily lives including poor health, insufficient education and low standard of living.
It is a means to capture the complexity of poverty that considers dimensions of well-being beyond just monetary poverty.

Indicators of National MPI - India’s national MPI has 3 equally weighted dimensions, which are then represented by 12 other indicators.

1. Health
2. Education
3. Standard of living
These 12 include nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.

Sub-indices of National MPI:
1. Headcount ratio (H): How many are poor?
2. Intensity of poor (I): How poor are the poor?
Formula - MPI= H*I
If the deprivation score (sum of the weighted status of all the indicators) for an individual is more than 0.33, then an individual is considered multidimensionaly poor.

Global MPI Report - It is jointly published by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).

It is based on the Alkire-Foster (AF) methodology that captures overlapping deprivations in health, education, and living standards.

Findings

Report based on - The report said the recent National MPI was based on National Family Health Surveys 4 (2015-16) and 5 (2019-21).
As many as 24.82 crore people moved out of multidimensional poverty in nine years to 2022-23, with Uttar Pradesh, Bihar and Madhya Pradesh registering the largest decline.
At the State level, Uttar Pradesh topped the list with 5.94 crore people escaping poverty followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.
The rate of decline of multidimensional poverty has accelerated during the period 2013-14 to 2022-23.
All 12 indicators of MPS have shown remarkable improvement during this period.

Source:

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