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In a significant move towards comprehensive poverty measurement, the Government of India has appointed Niti Aayog as the nodal ministry for the Multidimensional Poverty Index (MPI) in accordance with the Global Indices for Reforms and Growth (GIRG) mandate. The MPI report, jointly published by the United Nations Development Programme (UNDP) and Oxford Policy and Human Development Initiative (OPHI), presents India's progress in reducing multidimensional poverty from 2015-16 to 2019-21.
The MPI goes beyond monetary assessment, capturing facets such as health, education, and standard of living to offer a more holistic view of poverty.
A Holistic Approach to Measuring Poverty
Historically, poverty has been quantified solely through income metrics, neglecting the broader influences on well-being. The MPI, following the Alkire-Foster methodology, addresses this limitation by assessing poverty across health, education, and standard of living. It calculates both the extent and depth of poverty, allowing for a nuanced analysis of multidimensional deprivation. This index enables policymakers to formulate targeted policies at various geographic and demographic levels.
Key Findings and Progress
The second edition of the MPI report, titled "National Multidimensional Poverty Index—A Progress Review 2023," showcases a remarkable reduction in India's multidimensional poverty line from 24.85% in 2015-16 to 14.96% in 2019-21. This signifies that approximately 135 million individuals have escaped multifaceted poverty within this period. The report is a crucial milestone in achieving Sustainable Development Goals (SDG) target 1.2, which aims to halve poverty across all dimensions by 2030.
Rural areas experienced the most significant decline in poverty, dropping from 32.59% to 19.28%, while urban areas also saw a reduction from 8.65% to 5.27%. States like Uttar Pradesh, Bihar, and Madhya Pradesh led the progress, with 3.43 crore, 2.25 crore, and 1.36 crore individuals respectively escaping multidimensional poverty.
Government Initiatives Driving Change
The Economic Survey of 2022-23 attributed the reduction in poverty to various government initiatives that directed efforts toward improving overall living conditions. Programs such as Pradhan Mantri Awas Yojana (PMAY) for housing, Jal Jeevan Mission (JJM) for clean drinking water, Swachh Bharat Mission (SBM) for sanitation, and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) for electricity accessibility, among others, were identified as instrumental in driving this positive change.
Unaddressed Aspects and Limitations
While the report lauds the government's efforts, it acknowledges the lack of representation of the Covid-19 pandemic's impact on poverty estimates. Moreover, the report fails to capture the country's economic and social standing in the last two years. The disproportionate reduction in rural and urban multidimensional poverty is highlighted as an ongoing challenge.
Critics argue that the data collection for the MPI report lacks accuracy and completeness due to the Covid-19 pandemic's disruptions. The report's reliance on data collected primarily in 2019-20, before the pandemic, raises concerns about its relevance to the pandemic-impacted years. Critics question the government's delay in conducting the census, essential for robust policy-making based on accurate data.
Aiming for SDG 2030 Goal
The MPI report holds immense significance for policymakers, state governments, academia, civil societies, and citizens, offering a data-driven evaluation of policy effectiveness. India is making strides towards achieving SDG 1.2 before the deadline.
Dr Yogesh Suri, Senior Adviser at the National Institute of Transforming India, emphasizes the critical role of poverty eradication in sustainable development and integration with global goals.
Understanding Poverty Beyond Metrics
The multidimensional approach to poverty measurement presents a more comprehensive picture of societal well-being. The MPI report showcases India's remarkable strides in reducing multidimensional poverty, driven by government initiatives targeting health, education, and living standards. While the report's methodology faces scrutiny, its overarching goal of aligning with global Sustainable Development Goals emphasizes the nation's commitment to holistic progress.