Multi-Dimensional Poverty Index in India

India aims to reduce its poverty considerably by the 2030s to achieve the Sustainable Development Goals (SDG) 1 i.e.. No Poverty.

NITI Aayog has launched a Multi-Dimensional Poverty Index to keep track of Poverty in India.

What is a Multi-Dimensional Poverty Index?

So, it refers to a concept that goes beyond traditional income-based poverty measures, and it takes into account various dimensions of deprivation that individuals or households may face, and the broader dimension may include health, education, and standard of living.

It is an Index developed by UNDP and OPHI which is used to measure the levels of poverty across the globe.

*NITI Aayog- National Institution for Transforming India

*UNDP- United Nations Development Programme

*OPHI- Oxford Poverty Human Development Index

Significance of Multi-Dimensional Poverty Index:-

• Multi-Dimensional Poverty is a qualitative measure of poverty that uses non-monetary metrics to measure poverty in the world by measuring overlapping deprivations in access to health, education, and living standards.

• MPI captures additional information, not measures of poverty such as broader qualitative aspects of life, child mortality, housing conditions, and other basic services such as water and sanitation.

• Monetary measures of poverty based on poverty lines only give a headcount ratio i.e. number of poor people. However, these measures fail to measure the depth of poverty. It is so possible that while the overall number of poor individuals reduces, at the same time, the poorest get poorer. Also, gains in quality of life may be completely missed unless the poor cross the poverty line or exit poverty.

• Thus, MPI provides insights not just into the distribution of poverty within a country but also indicates the contribution of each indicator to Multi-Dimensional Poverty.

• Using, MPI it has been possible to devices with target specific-deprivations.