Multidimensional Poverty Index (MPI) / NITI AAYOG / CURRENT AFFAIRS LSGS, SI PRELIMS LDC #keralapsc

India has shown significant progress in poverty reduction. According to the 2023 Global MPI report, 25 countries, including India, have halved their poverty levels within 15 years. This achievement aligns with India's commitment to achieving Sustainable Development Goal 1.2, aiming to reduce multidimensional poverty by half by 2030.

Multidimensional poverty considers more than just monetary income, encompassing various dimensions like access to food, healthcare, education, cooking fuel, and sanitation. This approach provides a comprehensive view of poverty, moving beyond the traditional measure of financial status.

The Global MPI, first launched in 2010, is developed by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI). It measures poverty across three main dimensions: Health (nutrition, child mortality), Education (years of schooling, school attendance), and Living Standards (cooking fuel, sanitation, drinking water, electricity, housing, assets). A person is considered multidimensionally poor if they are deprived in at least one-third of these 10 indicators. The latest 2023 data indicates that 18% of the global population, or 1.1 billion people, are multidimensionally poor, with Sub-Saharan Africa and South Asia accounting for the majority.

NITI Aayog, with technical assistance from UNDP and OPHI, prepares India's National MPI, which ranks states and Union Territories. While it uses the same three dimensions as the Global MPI, India's NMPI includes 12 indicators, adding 'Maternal Health' and 'Bank Accounts' to the global 10. The latest (second) edition of the NMPI, released in 2023, is based on data from the fifth edition of the National Family Health Survey (NFHS-5). The first edition was released in 2021 based on NFHS-4 data.

The 2023 National MPI report indicates a significant reduction in the headcount ratio of poverty, from 24.85% (NFHS-4: 2015-16) to 14.96% (NFHS-5). This translates to 135 million people escaping multidimensional poverty during this period. Poverty has decreased in both rural and urban areas. Bihar remains the state with the highest poverty, while Kerala has the lowest. Among Union Territories, Dadra and Nagar Haveli and Daman and Diu have the highest poverty, and Lakshadweep has the lowest.

A coordination committee, comprising NITI Aayog, various ministries (including Statistics and Program Implementation, Women and Child Development, Petroleum and Natural Gas, Power, Housing and Urban Affairs, Health and Family Welfare, Rural Development, Food and Public Distribution, School Education and Literacy, Drinking Water and Sanitation, and Financial Services), along with UNDP and OPHI, works together to accurately collect data and prepare the MPI. This collaborative effort ensures comprehensive data collection and effective policy implementation.