A happy news for India, home to a vast population (1.4 billion) and numerous young minds, holds a critical role in Agenda 2030. Its primary development goal is eradicating poverty in all forms and ensuring inclusivity for every individual. Traditionally, poverty assessment relied solely on income, but the Global Multidimensional Poverty Index (MPI), following the Alkire-Foster methodology, considers health, education, and living standards deprivations. This index, jointly published by OPHI and UNDP, is endorsed by the Indian government through the GIRG initiative, aiming to improve rankings and drive systemic reforms. NITI Aayog oversees an indigenous MPI to monitor state and union territory performance, involving various ministries, departments, experts, and technical partners. The national MPI, aligned with global methodology, includes ten indicators and incorporates two national priorities: Maternal Health and Bank Accounts.
The second edition of India’s National Multidimensional Poverty Index (MPI), based on the latest National Family Health Survey (NFHS-5) from 2019-21, reflects the country’s progress in reducing multidimensional poverty between NFHS-4 (2015-16) and NFHS-5. It builds upon the Baseline Report launched in November 2021.
According to the report, 135 million people were lifted out of multidimensional poverty between 2015-16 and 2019-21. India experienced a significant decline of 9.89 percentage points in multidimensional poverty, decreasing from 24.85% in 2015-16 to 14.96% in 2019-2021. Notably, rural areas saw the most rapid reduction in poverty, dropping from 32.59% to 19.28%. The report provides multidimensional poverty estimates for all 36 States and Union Territories and 707 Administrative Districts, highlighting the fastest progress in Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan.
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