National Multidimensional Poverty Index 2023: A Progress Review

Table of Contents

Context:

In a positive development for India, the nation has made substantial progress in reducing multidimensional poverty. According to the “National Multidimensional Poverty Index: A Progress Review, 2023,” released by NITI Aayog recently.

National Multidimensional Poverty Index 2023: Findings

India has registered a remarkable decline of 9.89 percentage points in the number of multidimensionally poor. This decline took place between 2015-16 and 2019-2021, bringing down the figure from 24.85% to 14.96%. The report highlights the efforts made to identify and address acute deprivations in health, education, and standard of living using United Nations-approved parameters.

Decline in Multidimensional Poverty

The study reveals that approximately 13.5 crore individuals have emerged from multidimensional poverty during the assessment period.
The report emphasizes the use of internationally recognized parameters to identify acute deprivations in health, education, and standard of living.
This approach allows for a comprehensive understanding of poverty that extends beyond income-based measures.
By focusing on various dimensions, such as access to healthcare, quality education, and basic living standards, the report provides a nuanced perspective on poverty eradication.

National Multidimensional Poverty Index 2023: Regional Disparities

The report highlights the varying rates of progress in different regions of India.
Rural areas experienced the fastest decline in poverty, with the percentage falling from 59% to 19.28%.
This positive trend can be attributed to the reduction in the number of multidimensionally poor individuals in states like Bihar, Uttar Pradesh, Madhya
Pradesh, Odisha, and Rajasthan. On the other hand, Delhi, Kerala, Goa, and Tamil Nadu, along with the Union Territories, demonstrated the lowest rates of multidimensional poverty.
Bihar, Jharkhand, Meghalaya, Uttar Pradesh, and Madhya Pradesh were identified as the states with the highest percentages of multidimensional poverty.

National Multidimensional Poverty Index 2023: Urban Progress

The report also reveals encouraging developments in urban areas. Multidimensional poverty in urban regions decreased from 8.65% to 5.27% during the same assessment period.
Uttar Pradesh emerged as a frontrunner in poverty reduction, with 3.43 crore individuals escaping multidimensional poverty. These findings indicate that efforts to address poverty have been effective across rural as well as urban areas, resulting in tangible improvements in the quality of life for many people.

National Multidimensional Poverty Index 2023: Methodology and Data Source

The report is based on the latest National Family Health Survey conducted between 2019 and 2021.
It represents the second edition of the National Multidimensional Poverty Index (MPI).
The methodology employed is in line with global standards, ensuring a comprehensive evaluation of poverty by examining 12 parameters related to health, education, and standard of living.

National Multidimensional Poverty Index 2023: Implications

The decline in multidimensional poverty has significant implications. It reflects the positive impact of government policies and initiatives aimed at poverty alleviation.
Understanding the complexities of poverty eradication, beyond monetary measures, will enable future policies to develop innovative and holistic strategies to uplift vulnerable sections of society.

Conclusion

India’s progress in reducing multidimensional poverty signifies a commendable achievement on the path toward inclusive development. It demonstrates the positive impact of comprehensive policy measures. By recognizing the multidimensional nature of poverty and formulating effective strategies, Effective policy-making can contribute to the sustained progress of India and uplift the lives of millions.

Multidimensional Poverty Index (MPI)

The index is a crucial global tool for measuring severe, multifaceted poverty in more than 100 developing nations.
The OPHI and the UNDP’s Human Development Report Office initially introduced it in 2010.
The MPI tracks both the incidence and the intensity of poverty in ten variables covering health, education, and standard of life
If a person is deficient in at least one-third (i.e., 33% or more) of the 10 weighted indicators, they are said to be multidimensionally poor.
Extreme multidimensional poverty is defined as the presence of one-half or more of the weighted indicators.

Important Facts to be Used in Mains

13.5 crore Indians escape Multidimensional Poverty in 5 years.
The steep decline in number of multi-dimensionally poor from 24.85% to 14.96% between 2015-16 and 2019-21.
Rural areas saw the fastest decline in poverty from 32.59% to 19.28%.
India on track to achieve SDG Target 1.2 much ahead of the 2030 deadline.
Substantial improvements across all the 12 MPI indicators on the ground.
Uttar Pradesh registered the highest decline in the number of poor with 3.43 crore, followed by Bihar and Madhya Pradesh.
Improvements in nutrition, years of schooling, sanitation, and cooking fuel played a significant role in bringing down poverty.