• UGI USER
  • Feb 05, 2024
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PROGRESS IN MULTIDIMENSIONAL POVERTY REDUCTION

Why in the News?

  • Finance Minister Nirmala Sitharaman asserts that 25 crore Indians were lifted out of poverty in the past decade.
  • This achievement is attributed to the government’s inclusive policies under ‘Sabka ka Saath’.
Source: IE

Basis of Assessment:

  • Discussion paper titled “Multidimensional Poverty in India Since 2005-06” by NITI Aayog, co-authored by Ramesh Chand and Yogesh Suri.
  • Indicates a decline in multidimensional poverty from 29.17% in 2013-14 to 11.28% in 2022-23, with 24.82 crore people escaping poverty during this period.
About Global Multidimensional Poverty Index (MPI)

·   An essential international measure for assessing acute multidimensional poverty in over 100 developing countries.

·   Introduced in 2010 by OPHI and the Human Development Report Office of the UNDP.

·   MPI differs from traditional income-based poverty measures.

·   Monitors deprivations in 10 indicators covering health, education, and standard of living.

MPI Indicators and Dimensions:

·   Individuals are deemed multidimensionally poor if deprived in one-third (33% or more) of the weighted indicators out of the ten.

·   Those deprived in one-half (50% or more) of the weighted indicators are considered in extreme multidimensional poverty.

Indian Multidimensional Poverty Index :

·   Indian MPI incorporates additional indicators like maternal health and bank accounts to align with national priorities.

·   Calculated based on incidence and intensity of deprivation across multiple dimensions, derived from surveys like the National Family Health Survey (NFHS).