India’s multidimensional poverty rate down to 11.28% in 2022-23 from 29.17% in 2013-14

India’s multidimensional poverty rate down to 11.28% in 2022-23 from 29.17% in 2013-14

Subject: Schemes

Section: Reports and Indices

Context: A discussion paper released by NITI Aayog on Monday

According to a NITI Aayog discussion paper, multidimensional poverty in India declined from 29.17% in 2013-14 to 11.28% of the population in 2022-23, with about 24.82 crore people moving out of this bracket in nine years to 2022-23. They also claim that Uttar Pradesh, Bihar and Madhya Pradesh registered the largest decline.

The Government of India has made remarkable progress in improving the lives of people, aiming to reduce poverty in all dimensions. Noteworthy initiatives like Poshan Abhiyan and Anemia Mukt Bharat have significantly enhanced access to healthcare facilities, leading to a substantial decrease in deprivation.

Operating one of the world’s largest food security programs, the Targeted Public Distribution System under the National Food Security Act covers 81.35 crore beneficiaries, providing food grains to rural and urban populations. Recent decisions, such as extending free food grain distribution under Pradhan Mantri Garib Kalyan Anna Yojana for another five years, exemplify Government’s commitment. Various programs addressing maternal health, clean cooking fuel distribution through Ujjwala Yojana, improved electricity coverage via Saubhagya, and transformative campaigns like Swachh Bharat Mission and Jal Jeevan Mission have collectively elevated living conditions and overall well-being of people. Additionally, flagship programs like Pradhan Mantri Jan Dhan Yojana and PM Awas Yojana have played pivotal roles in financial inclusion and providing safe housing for the underprivileged.

While the performance of States varies, some States which were traditionally having high poverty have made remarkable progress in helping people escape poverty, thus reducing inter-state disparities in multidimensional poverty. With this, the fundamental problems in accessing basic services are getting resolved fast so that the country can look towards becoming a developed nation i.e. Viksit Bharat @2047.

National Multidimensional Poverty Index (MPI):

• The MPI has been used by the United Nations Development Programme (UNDP) in its flagship Human Development Report since 2010.
• In this context, NITI Aayog had published the first edition of national Multidimensional Poverty Index for India in 2021.
• Purpose –
• A national MPI statistic for a country is tailored to the national priorities and therefore, countries choose their own set of dimensions, indicators, weights, and cut-offs, according to their plans and contexts.
• The report presents an in-depth analysis of the headcount ratio and intensity of multidimensional poverty at the national, State/UT, and district levels.
• The first report was based on the reference period of 2015-16 of the National Family Health Survey (NFHS)- 4.
• MPI Parameters & Methodology:
• The Index is based on the Alkire-Foster methodology developed by its technical partners — the Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) and has three equally weighted dimensions –
  • Health
  • Education
  • Standard of Living
• These three dimensions are represented by 12 indicators–
• The index is calculated by first setting the deprivation cut-offs for each indicator, i.e., the level of achievement considered normatively sufficient for an individual to be considered not deprived in an indicator.
• For example, the individual has completed at least six years of schooling. Such a cut off would be applied to determine whether the individual is deprived in each indicator.
• Weights are added to each indicator and a composite metric is then used to calculate the index.