• NITI Aayog published its report on India’s “Multidimensional Poverty Index” (MPI) recently.

Key Points

  • Report was prepared on the basis of National Family Health Survey (NFHS) for 2015-16.
  • As per NITI Aayog’s report, in year 2015-16, one in every four people in India was multidimensionally poor.
  • It accounts that, 25.01 per cent of the population was multidimensionally poor.

How MPI was measured?

  • India’s national MPI was prepared using globally accepted and robust methodology developed by United Nations Development Programme (UNDP) and Oxford Poverty & Human Development Initiative (OPHI).
  • The index was prepared with the aim of leveraging the monitoring mechanism and methodology of MPI in order to rigorously benchmark national and sub-national performance.

MPI of India for 2021

  • MPI for 2021, Launched by UNDP and OPHI, showed that 27.9 per cent of India’s population were multidimensionally poor.
  • India was ranked at 62nd position out of 109 nations on the index.
  • Index was prepared on the basis of 10 indicators like adequate nutrition, lack of improved drinking water, or at least six years of schooling.
  • The report considered a person spending less than Rs 47 per day in cities and spending less than Rs 32 per day in villages as poor.
  • However, this approach of measuring MPI was abandoned by NITI Aayog.

Three dimensions of MPI

  • The MPI is based on three dimensions namely education, health, and standard of living. Each of the dimension is having a weighting of one-third in the index.
  • 12 segments of these dimensions include nutrition, antenatal care, child & adolescent mortality, school attendance, years of schooling, cooking fuel, drinking water, sanitation, housing, electricity, bank accounts and assets.

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