Access Inequality Now Defines Multidimensional Poverty in India

Access Inequality Now Defines Multidimensional Poverty in India

Why in the News?

Although extreme poverty in India has declined, deeper concerns remain regarding access inequality and multidimensional poverty. New findings highlight that headline statistics may mask structural vulnerabilities, especially in education, health, sanitation, housing, and electricity across low-income and underserved states. The Multidimensional Poverty Index (MPI) for India reveals a complex picture of deprivation beyond traditional income-based measures, showcasing various types of poverty and developmental issues.

Declining Poverty, But Rising Questions:

• World Bank data shows a fall in extreme poverty from 27.1% (2011-12) to 5.3% (2022-23).
• Around 269 million people moved above the poverty line in that period.
• Critics question whether this reflects actual well-being improvements or merely statistical changes.
• Traditional poverty lines focus on income/consumption, missing deprivations in health, education, sanitation, housing, and electricity.
• Recent poverty estimation studies use updated tools like the multidimensional poverty index and CMMRP surveys to capture multidimensional poverty and issues related to poverty and unemployment in India, including social exclusion.

Gaps in Access and Regional Inequality

• Access to public goods (healthcare, education, digital infrastructure) remains unequal, even among non-poor, highlighting the complexity of multidimensional poverty in India and the challenges in public goods access.
• UP, Bihar, Maharashtra, West Bengal, and MP reduced poverty, but many still lack essential services, as revealed by the multidimensional poverty index India state-wise analysis.
• In Bihar and UP, only 19%-21% households use clean cooking fuel, a key indicator in the national MPI and a crucial aspect of health and living standards.
• Insurance coverage, another aspect of the human poverty index, is limited in states like Maharashtra (22.4%) and West Bengal (33.7%).
• Kerala, Goa, and Tamil Nadu perform better in access: Goa tops in housing, piped water, and immunization, demonstrating lower levels of multidimensional poverty.

Vulnerabilities Persist Beyond Income Gains

• Even households just above the poverty line may lack clean water, gas, health care, illustrating that poverty is multidimensional and goes beyond mere income.
• COVID-19 impact: Income losses hit poorest hard; lowest 10% saw a 27% drop, exacerbating multidimensional poverty and increasing the headcount ratio of those experiencing deprivation.
• Hunger Watch 2022: 80% faced food insecurity; 67% couldn’t afford cooking fuel, highlighting the intensity of poverty and its impact on nutrition and health.
• Welfare schemes like Ujjwala, Ayushman Bharat, though expanding, face gaps in adequacy in addressing multidimensional deprivation across various dimensions including health, education, and living standards.
• Access inequality is now the real face of poverty, requiring institutional reforms and equity in public services to address multidimensional poverty effectively and reduce the national MPI.

These initiatives, along with the National Multidimensional Poverty Index 2023 developed by NITI Aayog, aim to address various dimensions of poverty and contribute to poverty reduction efforts. The UNDP and Oxford Poverty and Human Development Initiative have also been instrumental in developing global standards for measuring multidimensional poverty, which India has adapted to create its national MPI.

The MPI full form, Multidimensional Poverty Index, goes beyond traditional income-based poverty measures to include deprivations in health, education, and living standards. This approach aligns with the capability approach to poverty, which focuses on individuals’ freedoms to achieve valuable functionings in life.

NITI Aayog’s multidimensional poverty index takes into account various indicators across health, education, and living standards dimensions. This comprehensive approach helps in identifying the poorest districts in India and guides targeted interventions for poverty alleviation.

The global Multidimensional Poverty Index, developed by UNDP, allows for international comparisons and tracking progress towards Sustainable Development Goals, particularly SDG target 1.2 on reducing poverty in all its dimensions. The Alkire-Foster method is used to calculate the MPI, which combines both the headcount ratio and the intensity of poverty experienced by poor individuals.

The National Family Health Survey provides crucial data for assessing multidimensional poverty in India, offering insights into health, education, and living standards. This participatory approach to data collection ensures a more accurate representation of poverty and developmental issues across the country.

To effectively address multidimensional poverty, policymakers must consider not only income-based measures but also access to essential services, nutritional outcomes, and social inclusion. By adopting a holistic approach to poverty reduction that encompasses all aspects of deprivation, including household consumption expenditure and the poverty cutoff, India can work towards sustainable development and improved quality of life for all its citizens.