Why is it in the News?

The share of India’s population living in multidimensional poverty is estimated to have fallen to 11.28 per cent in 2022-23 from 29.17 per cent in 2013-14, according to a discussion paper released by NITI Aayog on Monday.

Context:

• According to the NITI Aayog’s discussion paper, multidimensional poverty in India declined from 29.17% in 2013-14 to 11.28% in 2022-23, with about 24.82 crore people moving out of this bracket during this period.
• The national multidimensional poverty measures simultaneous deprivations across three equally weighted dimensions of health, education, and standard of living that are represented by 12 sustainable development goals-aligned indicators, according to NITI Aayog.

Key Highlights of the MPI in India Since 2005-2006:

• Overall Decline in Multidimensional Poverty: As per the NITI Aayog discussion paper, India's multidimensional poverty has decreased from 29.17% in 2013-14 to 11.28% in 2022-23.
  • The trend signifies the upliftment of 24.82 crore people from this bracket during the specified period.
• State-wise Decline: "Uttar Pradesh registered the largest decline in the number of poor with 5.94 crore people escaping multidimensional poverty during the last nine years followed by:
  • Bihar at 3.77 crore
  • Madhya Pradesh at 2.30 crore and
  • Rajasthan at 1.87 crore.
• NITI Aayog's approach to measuring multidimensional poverty involved considering 12 indicators aligned with the sustainable development goals.
  • These indicators encompass crucial aspects such as nutrition, child and adolescent mortality rates, maternal health, educational attainment, access to basic amenities like clean cooking fuel, sanitation, safe drinking water, electricity, and housing, as well as possession of assets and bank accounts.
• "Significant initiatives covering all dimensions of poverty have led to 24.82 crore individuals escaping multidimensional poverty in the last 9 years.
  • As a result, India is likely to achieve its SDG target of halving multidimensional poverty well before 2030.
• The report emphasized impactful programs, such as Poshan Abhiyan and Anemia Mukt Bharat, which have markedly improved accessibility to healthcare services, significantly reducing deprivation.
  • Managing one of the globe's largest food security initiatives, the targeted Public Distribution System (PDS) under the National Food Security Act encompasses 81.35 crore beneficiaries, ensuring the distribution of food grains to both rural and urban populations.
• "The government's persistent dedication and resolute commitment to enhancing the lives of the most vulnerable and deprived have been instrumental in this accomplishment.

What is Multidimensional Poverty?

• Poverty can have several negative effects at once. Some of these include inadequate nutrition or health, a lack of power or clean water, low-quality employment, or insufficient education.
• The true nature of poverty cannot be fully captured by concentrating only on one aspect, such as income.
• Multidimensional Poverty, as a metric, goes beyond income or consumption alone.
  • It encompasses deprivations in education and access to essential infrastructure, considering factors beyond the monetary aspect.
  • The measurement is conducted at the $2.15 international poverty line, as defined by the World Bank (in 2017 purchasing power parity terms), ensuring a comprehensive assessment of poverty that extends beyond monetary value.

What is the National Multidimensional Poverty Index (MPI)?

• Prepared By: NITI Aayog
• Objective: The aim is to gauge poverty across various dimensions, complementing existing statistics based on per capita consumption expenditure.
• Purpose of the National MPI: Provides an enhanced, high-level overview of poverty at the national level.
  • Acts as a complement to monetary poverty measures.
  • Furnishes information crucial for shaping effective policy initiatives.
  • The MPI is founded on the individual or household profile of overlapping or "joint" deprivations experienced by each person.
• Key Features: Serves as an incentive for leaving no one behind and prioritizing the most marginalized.
  • Adaptable to the national context and maintains transparency.
• Credible Methodology: India's national MPI employs a methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), aligning with the globally accepted and robust standards used in the publication of the Global Multidimensional Poverty Index.
• Three Macro Dimensions: The National MPI is structured around three macro dimensions, each with specific indicators and weights, outlined below –

Significance of the MPI:

• Crucial Public Policy Instrument: The establishment of India's National MPI introduces a pivotal public policy instrument that monitors multidimensional poverty, facilitating evidence-based and targeted interventions to ensure inclusivity and prevent any individuals from being left behind.
• Assesses the Efficacy of Multi-Sectoral Interventions: It offers valuable insights into the effectiveness of multi-sectoral interventions aimed at addressing diverse facets of poverty.
• Encompasses Diverse Deprivations: Notably, functioning as a metric for multidimensional poverty, it captures the myriad and simultaneous deprivations experienced by households.
• Comprehensive Analysis Across All Tiers: This report conducts a thorough analysis of the headcount ratio and intensity of multidimensional poverty, encompassing national, State/UT, and district levels.

Conclusion

The National MPI in India has been conceived as an all-encompassing tool, expediting purpose-driven initiatives to gauge and systematically eliminate multidimensional poverty. The dimensions of the index have demonstrated their efficacy in identifying and facilitating precise policy interventions aimed at achieving targeted goals.

NITI Aayog

• NITI Aayog, established on January 1, 2015, succeeded the Planning Commission with a distinctive focus on a 'Bottom-Up' approach.
• Embracing the vision of 'Maximum Governance, Minimum Government' and echoing the ethos of 'Cooperative Federalism,' NITI Aayog serves as a dynamic institution facilitating collaborative decision-making.

Functional Components: NITI Aayog operates through two principal hubs-

• Team India Hub: This hub is a crucial interface, fostering effective communication and collaboration between the states and the central government.
  • It plays a pivotal role in aligning the diverse interests of different regions in the spirit of cooperative federalism.
• Knowledge and Innovation Hub: This hub is dedicated to enhancing the intellectual capacity of NITI Aayog. It functions as a think tank, driving innovative ideas and knowledge creation to inform policy decisions and contribute to the overall development agenda.

INDICES of NITI Aayog:

• Composite Water Management Index
• District Hospital Index
• Export Preparedness Index
• Global Innovation Index
• India Innovation Index
• Multidimensional Poverty Index
• School Education Quality Index
• SDG India Index
• State Energy Index
• State Health Index