National Multidimensional Poverty Index (MPI)

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Recently, Niti Aayog has published the first-ever National Multidimensional Poverty Index (MPI) of India.

Key Findings

• Among States:
  • Bihar has the highest proportion of people who are multidimensionally poor, followed by Jharkhand and Uttar Pradesh.
  • Kerala, Goa, and Sikkim have the lowest percentage of the population being multidimensionally poor.
  • This baseline report of the national MPI measure is based on the reference period of 2015-16 of the National Family Health Survey (NFHS).

Image Courtesy: IE

• Among Union Territories (UTs):
  • Dadra and Nagar Haveli (27.36 per cent), Jammu & Kashmir, and Ladakh (12.58), Daman & Diu (6.82 per cent) and Chandigarh (5.97 per cent), have emerged as the poorest UTs in India. 
  • The proportion of poor in Puducherry at 1.72 percent is the lowest among the Union Territories, followed by Lakshadweep at 1.82 per cent, Andaman & Nicobar Islands at 4.30 per cent and Delhi at 4.79 per cent.

Image Courtesy: TH

• Global Rank: According to Global MPI 2021, India’s rank is 66 out of 109 countries.

About National Multidimensional Poverty Index (MPI)

• Prepared By: the Government think-tank NITI Aayog
• Objective: 
  • To measure poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure. 
• Purpose of National MPI as a measure:
  • Enhanced high-level view of poverty at the national level
  • Complements monetary poverty measures
  • Gives Information to shape policy
  • The MPI is based on each person’s or household’s profile of the overlapping or “joint” deprivations they experience.
  • Provides incentives for leaving no one behind and reaching the furthest behind first
  • Adaptable to national context and transparent
• Credible Methodology: 
  • India’s national MPI measure uses the globally accepted and robust methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) which publishes the Global Multidimensional Poverty Index.
• Three Macro Dimensions: The National MPI dimensions, indicators and weights are given below –

Image Courtesy: PIB

Significance

• Important Public Policy Tool: The development of the National MPI of India will be instituting a public policy tool which monitors multidimensional poverty, informs evidence-based and focused interventions, thereby ensuring that no one is left behind.
• Adjugdes Success of Multi-sectoral Interventions: It provides important insights into the degree of success of multi-sectoral interventions to address various aspects of poverty.
• Includes Multiple Deprivations: Importantly, as a measure of multidimensional poverty, it captures multiple and simultaneous deprivation faced by households.
• Rigorous Analysis Through All Levels: This report presents an in-depth analysis of the headcount ratio and intensity of multidimensional poverty at the national, State/UT, and district levels.

Conclusion

• India’s national MPI has been envisaged as a comprehensive tool to expedite goal-oriented action to measure multidimensional poverty and steer its systematic eradication. 
• The dimensions of the index have proven to help identify and achieve targeted policy interventions.

Sources: TH + PIB