National MPI (Multidimensional Poverty Index) – UPSC Prelims

  • National MPI is a new Poverty index developed by NITI Aayog.
  • It seeks to measure poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure.
  • Niti Aayog has released India’s first National MPI (multidimensional poverty index).
  • Methodology: The index has used the globally accepted and robust methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) for Global MPI.
  • Indicators: The index is based on three equally weighted dimensions:
    • Health
    • Education and
    • Standard of living (which in turn are represented by 12 indicators)

Source of Data: The index is based on the findings of the fourth National Health Family Survey (2015-16).
What are the key findings of the National MPI?
  • Multidimensionally Poor: 
    • Around 25.01% of the Indian population is multidimensionally poor.
    • Bihar has the maximum percentage of the population living in poverty among all the States and the Union Territories, with over 50% of the population in the State identified as “multidimensionally poor”.
    • On the other hand, Kerala registered the lowest population poverty levels (0.71%).
    • Note: The Global MPI had shown  27.9% of India’s population were multidimensionally poor. The country ranked 62nd out of 109 nations on the index.
    • Poverty Criteria: The report took a person spending less than Rs 47 a day in cities and one spending less than Rs 32 a day in villages as poor.

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