NITI Aayog released a report on ‘National Multidimensional Poverty Index’ on 17 July 2023.The report has been prepared on the basis of the latest ‘National Family Health Survey’ for 2019-21 and is the second edition of the ‘National Multidimensional Poverty Index’ (MPI).This second edition of the ‘National Multidimensional Poverty Index (MPI) based on the latest National Family Health Survey NFHS-5 (2019-21) Shows India’s progress in reducing.It has been prepared on the basis of the baseline report of India’s MPI launched in November 2021. This comprehensive methodology adopted is in line with global practice.
Key Highlights of the Report
Reduction in Multidimensional Poverty
- Between 2015-16 and 2019-21, India witnessed a significant decline in the number of multidimensionally poor individuals.
- Around 13.5 crore people moved out of multidimensional poverty during this period.
Decline in Poverty Percentage
- India’s population living in multidimensional poverty decreased from 24.85% in 2015-16 to 14.96% in 2019-21, reflecting a decline of 9.89 % points.
- Rural-Urban Divide:
- The rural areas of India experienced the fastest decline in poverty, with the poverty rate dropping from 32.59% to 19.28% between 2015-16 and 2019-21.
- In urban areas, the poverty rate reduced from 8.65% to 5.27% during the same period.
State-Level Progress
- In terms of number of MPI poor, Uttar Pradesh saw the largest decline in the number of poor individuals, with 3.43 crore (34.3 million) people escaping multidimensional poverty.
- The states of Bihar, Madhya Pradesh, Odisha, and Rajasthan also witnessed significant progress in reducing multidimensional poverty.
- Bihar saw the fastest reduction in MPI value in absolute terms with the proportion of multidimensional poor reducing from 51.89% to 33.76% in 2019-21 followed by Madhya Pradesh and Uttar Pradesh.
SDG Target
- The MPI value for India has nearly halved from 0.117 to 0.066 between 2015-16 and 2019-21.
- The intensity of poverty has reduced from 47% to 44%, indicating that India is on track to achieve SDG (Sustainable Development Goals) Target 1.2 (reducing multidimensional poverty by at least half) ahead of the stipulated timeline of 2030.
Improvement in Indicators
- All 12 indicators used to measure multidimensional poverty showed marked improvements.
- The impact of Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) is evident in the swift 21.8% points improvement in sanitation deprivations.
- The Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reduced deprivations in health.
- The provision of subsidized cooking fuel through the Pradhan Mantri Ujjwala Yojana (PMUY) has positively transformed lives, with a 14.6% improvement in cooking fuel deprivations.