Multidimensional Poverty Reduction in India

NITI Aayog has said in a new report that 24.8 crore people have been lifted out of multidimensional poverty in the nine years leading up to 2022-23.

What is Multidimensional Poverty?

• Multidimensional poverty goes beyond monetary constraints, presenting a more comprehensive view of poverty.
• It includes three key dimensions – health, education, and standard of living.
• It encompasses 10 indicators such as child mortality, nutrition (health), years of schooling, school attendance (education), and factors like cooking fuel, sanitation, drinking water, housing, electricity, and assets (standard of living).

About the Report

• The report, released by NITI Aayog, aims to present a detailed analysis of multidimensional poverty in India.
• The report introduces the National Multidimensional Poverty Index (MPI), aligning with global standards while focusing on India’s specific priorities.
• The Oxford Policy and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) provided technical assistance.
• The Multidimensional Poverty Index Coordination Committee (MPICC) was formed to improve India’s MPI, it involves various ministries and departments, focusing on multiple deprivation factors.

Key Highlights of the Report:

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• In India, 24.82 crore people have escaped multidimensional poverty between 2013-2014 and 2022-2023.
• Significant reduction in MPI observed: from 29.17% in 2013-2014 to 11.28% in 2022-2023.
• Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan noted the highest reductions in poverty levels.
• The annual rate of decline in the poverty headcount ratio was faster between 2015-16 and 2019-21 (10.66%) compared to 2005-06 to 2015-16 (7.69%).
• Improvement was recorded in all 12 indicators of MPI during the study period.
• India’s initiatives, such as Poshan Abhiyan and Anemia Mukt Bharat, have significantly contributed to healthcare access improvements.
• The Targeted Public Distribution System, covering 81.35 crore beneficiaries, and the extension of the Pradhan Mantri Garib Kalyan Anna Yojana highlight the government’s commitment to reducing poverty.
• India is on track to achieve the Sustainable Development Goal of halving multidimensional poverty before 2030.

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