One out of every two Bihar households is multi-dimensionally poor (51.9 per cent) according to India’s first multi-dimensional poverty index released by NITI Aayog.

Context: NITI Aayog has released MPI

Concept:

Under the Cabinet Secretary’s Global Indices for Reforms and Growth (GIRG) initiative, the country’s performance is being monitored across 29 global indices including Human Development Index (HDI), Global Hunger Index (GHI), Global Competitiveness Index (GCI), Human Capital Index (HCI), Global Innovation Index (GII), among others.
This exercise is aimed at leveraging the monitoring mechanism of important social, economic, and other internationally recognised indices, enabling the utilisation of these indices as tools for bringing about reforms to improve outcomes and correspondingly reflect them in India’s performance in these indices globally.
Under this initiative, NITI Aayog is the nodal Ministry for the Multidimensional Poverty Index (MPI). According to Global MPI 2021, India’s rank is 66 out of 109 countries. The National MPI Project is aimed at deconstructing the Global MPI and creating a globally aligned and yet customised India MPI for drawing up comprehensive Reform Action Plans with the larger goal of improving India’s position in the Global MPI rankings.
As the nodal Ministry for MPI, NITI Aayog is also responsible for engaging with the publishing agencies of the index; ranking States and Union Territories based on their performance and has also constituted an inter-ministerial MPI Coordination Committee (MPICC) to consult twelve Line Ministries mapped to each National MPI indicator.

National MPI (based on National Family Health Survey-4, data period- 2015-16): Dimensions, Indicators and Findings

India’s national MPI captures multiple and simultaneous deprivations faced by households across the three macro dimensions of health, education and living standards. The National MPI dimensions, indicators and weights are given below:

Sustainable Development Goal 1 aims to end poverty in all its forms everywhere. The global Multidimensional Poverty Index (MPI) measures acute multidimensional poverty across more than 100 developing countries.
It does so by measuring each person’s deprivations across 10 indicators in three equally weighted dimensions: health, education and standard of living.

Launched in 2010 by the Oxford Poverty and Human Development Initiative at the University of Oxford and the Human Development Report Office of the United Nations Development Programme, the global MPI is updated annually to incorporate newly released surveys and share fresh analyses.
In the global MPI, people are counted as multidimensionally poor if they are deprived in one-third or more of 10 indicators (see figure), where each indicator is equally weighted within its dimension, so the health and education indicators are weighted 1/6 each, and the standard of living indicators are weighted 1/18 each.
The MPI is the product of the incidence of multidimensional poverty (proportion of multidimensionally poor people) and the intensity of multidimensional poverty (average share of weighted deprivations, or average deprivation score, 1 among multidimensionally poor people) and is therefore sensitive to changes in both components. The MPI ranges from 0 to 1, and higher values imply higher multidimensional poverty.
Report uses methodology developed by Oxford Poverty and Human Development Initiative and UNDP
The Multidimensional Poverty Index has been used by the United Nations Development Programme in its flagship Human Development Report since 2010. It is the most widely employed non-monetary poverty index in the world