India’s National MPI, developed by NITI Aayog in collaboration with the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), measures poverty beyond income by assessing deprivations across health, education, and living standards. It adapts the Global MPI methodology to India’s context, aligning with national priorities and Sustainable Development Goal (SDG) 1.2 (halving multidimensional poverty by 2030).
Dimensions and Indicators
The National MPI uses three equally weighted dimensions (each 1/3 of the total score), represented by 12 indicators:
1. Health (1/3):
(i) Nutrition (1/9): Deprived if any child (0–59 months), woman (15–49 years), or man (15–54 years) is undernourished (e.g., low BMI or stunting/wasting in children).
(ii) Child and Adolescent Mortality (1/9): Deprived if any child or adolescent under 18 died in the household in the five years prior to the survey.
(iii) Maternal Health (1/9): Deprived if lacking adequate antenatal care, institutional delivery, or postnatal care (unique to National MPI).
2. Education (1/3):
(i) Years of Schooling (1/6): Deprived if no household member aged 10+ has completed six years of schooling.
(ii) School Attendance (1/6): Deprived if any school-aged child (up to grade 8 age) is not attending school.
3. Living Standards (1/3):
(i) Cooking Fuel (1/18): Deprived if using solid fuels (e.g., wood, dung).
(ii) Sanitation (1/18): Deprived if lacking improved sanitation (e.g., no flush toilet) or sharing facilities.
(iii) Drinking Water (1/18): Deprived if safe water is unavailable or >30-minute walk.
(iv) Electricity (1/18): Deprived if no electricity.
(v) Housing (1/18): Deprived if housing materials are inadequate (e.g., dirt floors).
(vi) Assets (1/18): Deprived if lacking multiple basic assets (e.g., owns one or none of: radio, TV, phone, etc., and no car).
(vii) Bank Accounts (1/18): Deprived if no household member has a bank account (unique to National MPI).
Difference from Global MPI: Adds Maternal Health and Bank Accounts to the 10-indicator Global MPI framework, reflecting India’s focus on women’s health and financial inclusion.
Methodology
(i) A person is “multidimensionally poor” if deprived in at least 33.33% of the weighted indicators (e.g., a combination totaling 1/3 of the score).
(ii) MPI = H × A:
(a) Incidence (H): Percentage of people who are multidimensionally poor.
(b) Intensity (A): Average proportion of deprivations among the poor.
Latest Data
Based on National Family Health Survey (NFHS) data and NITI Aayog reports:
1. NFHS-5 (2019–21) – A Progress Review 2023:
(i) Poverty Rate: 14.96% of India’s population (down from 24.85% in NFHS-4, 2015–16).
(ii) People Exiting Poverty: 135.5 million escaped multidimensional poverty between 2015–16 and 2019–21.
(iii) Rural Decline: From 32.59% to 19.28%.
(iv) Urban Decline: From 8.65% to 5.27%.
(v) Intensity: Reduced from 47.14% to 44.39%.
(vi) MPI Value: Nearly halved from 0.117 to 0.066.
(vii) State Highlights:
(a) Fastest Reductions: Uttar Pradesh (34.3 million fewer poor), Bihar, Madhya Pradesh, Odisha, Rajasthan.
(b) Lowest MPI: Kerala (0.55%), Goa (0.84%), Tamil Nadu (2.20%).
(c) Highest MPI: Bihar (33.76% in 2019–21, down from 51.89%).
2. Discussion Paper (Jan 2025) – Trends Since 2005–06:
(i) Poverty Rate: Fell from 29.17% (2013–14) to 11.28% (2022–23), a 17.89-point drop.
(ii) People Exiting Poverty: 248.2 million (24.82 crore) escaped poverty over nine years (2013–14 to 2022–23).
(iii) Long-Term Trend: From 55.34% in 2005–06 (NFHS-3) to 11.28% in 2022–23, with faster declines post-2015–16.
(iv) Key Drivers: Government programs like PM Ujjwala Yojana (cooking fuel), Swachh Bharat Mission (sanitation), Jal Jeevan Mission (water), and Poshan Abhiyan (nutrition).
Progress and Insights
(i) SDG Target 1.2: India is on track to halve multidimensional poverty well before 2030.
(ii) Indicator Improvements: All 12 indicators showed gains, with sanitation (21.8-point improvement), electricity, and cooking fuel leading.
(iii) Regional Disparities: Poorer states (e.g., Uttar Pradesh, Bihar) saw the fastest absolute declines, reducing disparities, though Bihar remains the poorest.
Limitations
(i) Data Lag: NFHS-5 (2019–21) predates full COVID-19 impacts; 2022–23 estimates are projections.
(ii) Critiques: Some economists note stagnant wages and pandemic setbacks (e.g., reverse migration) may not be fully captured.
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