Concept of Multidimensional Poverty
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Definition: Extends beyond income to include deprivations in health, education, living standards, and other socio-economic factors. Aligns with SDG 1 (ending poverty in all forms).
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Key Dimensions: Health, education, living standards, maternal health, financial inclusion (specific to India).
Measurement Framework
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Alkire-Foster Method:
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Identifies the poor based on weighted deprivations across indicators.
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A person is “MPI poor” if deprived in ≥1/3 of weighted indicators.
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MPI Formula:
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MPI = H × A
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H (Headcount Ratio): Proportion of multidimensionally poor individuals.
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A (Intensity): Average deprivation score among the poor.
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Global MPI (GMPI) vs. National MPI (NMPI)
| Aspect | Global MPI | India’s NMPI |
|---|---|---|
| Indicators | 10 indicators across 3 dimensions: | 12 indicators (retains GMPI’s 10 + 2): |
| – Health: Nutrition, Child Mortality | – Maternal Health (added under Health) | |
| – Education: Schooling, Attendance | – Bank Account (financial inclusion) | |
| –Â Living Standards: 6 indicators | ||
| Weighting | Equal weight (1/3) to health, education, living standards. Sub-indicators have specific weights (e.g., 1/6 for health/education indicators). | Likely adjusted to accommodate new indicators while retaining alignment with national priorities. |
Data Sources & Reports
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National Family Health Survey (NFHS): Primary data source.
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NFHS-4 (2015–16) and NFHS-5 (2019–21) used in the 2023 progress review.
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Key Report: National Multidimensional Poverty: A Progress Review 2023 by NITI Aayog tracks reduction in poverty between 2015–16 and 2019–21.
Institutional Framework
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NITI Aayog: Nodal agency under the Global Indices for Reforms and Growth (GIRG) initiative.
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Monitors India’s performance on global indices (e.g., MPI, Human Development Index).
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SDG Alignment: NMPI reflects India’s commitment to holistic poverty eradication, beyond income metrics.
Significance of NMPI
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Policy Tool: Helps target interventions in critical areas like maternal health, financial inclusion, and sanitation.
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Progress Tracking: Highlights reductions in deprivations (e.g., electricity access, sanitation) over time.
Example Calculation
If 15% of the population is MPI poor (H = 0.15) and they experience 40% average deprivation (A = 0.40):
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MPI = 0.15 × 0.40 = 0.06 (on a scale of 0 to 1).
Challenges & Future Directions
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Data Gaps: Regular NFHS rounds needed for timely updates.
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Regional Disparities: Focus on states/districts with higher MPI values.
Conclusion
India’s NMPI, with its expanded indicators, offers a nuanced understanding of poverty, enabling targeted policy interventions. The decline in multidimensional poverty (as per NFHS-5) underscores progress, though challenges persist in addressing acute deprivations.
