Multidimensional Poverty

Multidimensional Poverty

News: A recent NITI Aayog report has unveiled a positive trend in India\'s fight against multidimensional poverty.

What is Multidimensional Poverty?
• Multidimensional Poverty is a measure of poverty that goes beyond monetary aspects to capture a range of deprivations faced by individuals in their lives.
• It is based on the Alkire-Foster methodology, which uses three broad dimensions—health, education, and living standards—to determine the levels of poverty in a country.

How India evaluates Multidimensional Poverty?
• In India, the National Multidimensional Poverty Index (MPI) by NITI Aayog uses this methodology with some modifications. The National MPI covers 12 indicators while the global MPI covers 10. The 12 indicators used by India are divided into three categories:
• Health: Nutrition, child mortality, and maternal health.
• Education: Years of schooling and children enrolled.
• Living Standards: Cooking fuel, sanitation, water, electricity, floor, assets, and bank accounts

Key Findings:
• Over 24.8 crore people have moved out of multidimensional poverty in the span of nine years, from 2013- 14 to 2022-23.
• This reduction, representing a decline from 29.17 per cent to 11.28 per cent, underscores the successful efforts in addressing deprivations across health, education, and standard of living.
• Uttar Pradesh leads the states, with 5.94 crore people escaping poverty, followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.
• The report indicates an annual escape rate of 2.75 crore people from multidimensional poverty, demonstrating a consistent positive trend.
• The report suggests that India is on track to reach single-digit poverty levels in 2024.
• The pace of decline in the poverty headcount ratio has notably increased between 2015-16 to 2019-21, demonstrating a 10.66 per cent annual rate of decline compared to 7.69 per cent in the preceding period.
• Poorer states are experiencing a faster decline in poverty, indicating a reduction in disparities. Additionally, the report anticipates India achieving Sustainable Development Goals (SDGs) 1.2, aiming to reduce multidimensional poverty by at least half, ahead of the 2030 target.

Which areas in the report highlight continued deprivation?
• Cooking fuel and housing remain the highest contributors to deprivation, while child and adolescent mortality, electricity, and bank account indicators maintain the lowest deprivation levels.
• The report credits government initiatives like Poshan Abhiyan and Anemia Mukt Bharat for significantly improving healthcare access, contributing to the decrease in deprivation.
• The targeted public distribution system, covering 81.35 crore beneficiaries, has also played a crucial role in reducing poverty.

What initiatives have helped in reducing India’s multidimensional poverty?
• Improvements in indicators pertaining to access to clean cooking fuel, bank accounts, access to drinking water and sanitation have helped.
• Flagship initiatives such as PM Jan Dhan Yojana, Swachh Bharat Mission, Jal Jeevan Mission, PM Ujjawala Yojana have been helpful.
• Better nutrition and healthcare through PM Poshan Abhiyan, Ayushman Bharat, Anaemia Mukt Bharat, Fortification of Rice etc have also helped.