National Multidimensional Poverty Index - A Progress Review 2023
Why it is in news ?
Recently, NITI Aayog released report titled, National Multi Dimensional Poverty Index : Progress Review 2023", Which claims that significant number of population in India has overcome Multidimensional Poverty.
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The report titled "National Multidimensional Poverty Index: A Progress Review 2023" is the second edition of the MPI, and it has been prepared using data from the latest National Family Health Survey-5 (2019-21).
The MPI helps to identify and track improvements in the living conditions of the population and assess the effectiveness of poverty alleviation policies in India. According to the report, a significant number of people have experienced improvements in their multi-dimensional poverty status, indicating progress in the country's efforts to combat poverty across various dimensions.
What is the National Multidimensional Poverty Index ?
- The National Multidimensional Poverty Index (MPI) is a tool developed by NITI Aayog, a policy think tank of the Indian government.
- This index is modelled after the Global Multidimensional Poverty Index, a joint publication by Oxford Poverty and Human Development (OPHI) and the United Nations Development Program (UNDP).
- OPHI and UNDP are technical partners in the development of this report.
The primary objective of the MPI is to evaluate poverty in India from a multi-dimensional perspective, going beyond the conventional approach of relying solely on per capita consumption expenditure as an indicator.
- The index takes into account three equally weighted dimensions:
- Health,
- Education, and
- Standard of living.
- Nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, access to basic amenities like cooking fuel, sanitation, drinking water, electricity, housing quality, ownership of assets, and access to bank accounts.
Key Highlights of the Report:
- Reduction in Multidimensional Poverty:
- Between 2015-16 and 2019-21, there was a significant decline in the number of multidimensionally poor individuals in India, with approximately 13.5 crore people escaping multidimensional poverty during this period.
Reduction in Poverty Percentage:
- The population living in multidimensional poverty in India decreased from 24.85% in 2015-16 to 14.96% in 2019-21, representing a decline of 9.89 percentage points.
- Rural-Urban Poverty:
- Poverty in rural areas witnessed the fastest reduction, with the poverty rate dropping from 32.59% to 19.28% between 2015-16 and 2019-21.
- In urban areas, the poverty rate also decreased from 8.65% to 5.27% during the same period.
State-Level Review:
- Uttar Pradesh saw the most significant decline in the number of multidimensionally poor individuals, with 3.43 crore people escaping multidimensional poverty.
- Bihar, Madhya Pradesh, Odisha, and Rajasthan also showed substantial progress in reducing multidimensional poverty.
- SDG Target:
- The MPI value for India nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21, indicating significant progress towards achieving Sustainable Development Goals (SDG) Target 1.2 (reducing multidimensional poverty by at least half) well ahead of the 2030 timeline.
- Improvement in Indicators:
- All 12 indicators used to measure multidimensional poverty demonstrated marked improvements.
- The Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) led to a swift 21.8% improvement in sanitation deprivations.
- Initiatives like Poshan Abhiyan and Anaemia Mukt Bharat contributed to reduced health deprivations.
- Additionally, the provision of subsidised cooking fuel through the Pradhan Mantri Ujjwala Yojana (PMUY) resulted in a 14.6% improvement in cooking fuel deprivations.
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