Multidimensional Poverty Index: Indian Economy 



The Global Multidimensional Poverty Index (MPI) is a publication of the Oxford Poverty and Human Development Initiative. This index seeks to assess acute multidimensional poverty in emerging nations using a number of different criteria. In 2010, OPHI and the United Nations Development Programme (UNDP) jointly created it. It is released yearly as part of the Human Development Report (HDR) by the UNDP. The MPI for 2021 was released in September. As of 2020, India ranked 62 out of 107 countries in the Global MPI. 
Multidimensional Poverty Index: Indian Economy

Multidimensional Poverty Index: What Is It?

•    The worldwide Multidimensional Poverty Index (global MPI) is a measure of poverty that takes into consideration the many disadvantages that people living in poverty face in terms of their access to healthcare, education, and other basic necessities.
•    The Global MPI assesses both the prevalence (the proportion of a population that is multidimensionally poor) and severity (the average number of deprivations that each poor individual endures) of multidimensional poverty.
•    It permits comparisons within nations by ethnicity, urban/rural location, and other characteristics of families and communities, as well as comparisons between nations, regions, and the world.

Dimensions And Global MPI Indicators

With the help of ten indicators and three aspects, countries' performance is evaluated. The list below includes the following:

How Does Mpi's Indicator System Measure Deprivation?

OCHI claims that the following elements lead to living in a household that is deficient:
•    A malnourished person between the ages of 0 and 70.
•    A youngster between the ages of 0 and 18 passed away in the five years prior to the MPI survey.
•    No household that qualifies has finished the required six years of education.
•    The child who is old enough to go to school doesn't start until they are eight years old, when they should be in class eight.
•    In the home, solid fuel is utilized for cooking, such as cow dung.
•    A sanitation facility that is either nonexistent or insufficient. Even better sanitary facilities that are shared with other residences make life more difficult.
•    Lack of access to clean water for drinking. Additionally, if getting to the clean water requires a 30-minute walk from home.
•    There is no electricity in homes.
•    There are not enough materials for the walls, the roof, or the floor of a house.
When a family only possesses one of the following and neither a car nor a truck:
•    Radio
•    TV
•    Telephone
•    Computer
•    Animal cart
•    Bicycle
•    Motorbike
•    Refrigerator
•    It's important to remember the following details concerning Global MPI:
•    It looks at poverty from a person-by-person perspective.
•    A person is classified as "MPI Poor" when they fall short in one-third of the 10 indicators.
•    The degree of someone's poverty is measured by the proportion of deprivations that person experiences.

Key Findings From The Global Multidimensional Poverty Index For 2021

Global MPI 2021 claims that:
•    In 109 nations, 1.3 billion people experience severe multidimensional poverty.
•    The 1.3 billion people consist of 644 million children (under the age of 18) and 105 million adults (over the age of 60).
•    More than 85% of the world's multidimensionally impoverished individuals live in South Asia or sub-Saharan Africa.
•    84 percent of those who live in poverty reside in rural areas.
•    More than 67 percent of the multidimensionally impoverished people on the planet live in middle-income nations.
•    There are 481 million households worldwide with unenrolled children.
•    At least seven of the other eight assets—a radio, television, telephone, computer, animal cart, bicycle, motorcycle, or refrigerator—are also unavailable to 550 million people.
•    568 million people do not have access to improved drinking water within a 30-minute roundtrip walk.
•    No one in their family of 635 million has completed at least six years of education.
•    There are 678 million individuals that cannot get power.
•    In 788 million families, at least one member suffers from malnutrition.
•    Each of the billions is impacted by improper housing, inadequate sanitation, and solid cooking fuels.
Multidimensional Poverty Index: Indian Economy

India And Its Neighbors - Global MPI

The MPI uses the National Family Health Survey (NFHS) to gather data. With a 0.123 score in MPI 2020, India came in at number 62. India's headcount ratio in the Global MPI 2020 is 27.91%.
The following is how India's neighbors were ranked by the MPI in 2020:
•    Sri Lanka – 25
•    Nepal – 65
•    Bangladesh – 58
•    China – 30
•    Myanmar – 69
•    Pakistan – 73
The main organization behind the MPI is the Multidimensional Poverty Index Coordination Committee (MPICC) in India.

Niti Ayog's National Multidimensional Poverty Index

•    The government think tank Niti Aayog unveiled the first-ever Multi-dimensional Poverty Index (MPI) on November 20, 2021, which gauges poverty at the district, state/UT, and federal levels. Bihar is the state with the highest score on the first index. 

Overview of National Multidimensional Poverty Index 

•    The MPI seeks to measure poverty in all of its manifestations as a complement to current data on poverty based on per capita consumer spending.
•    Among 109 nations, India is placed 66th in the Global MPI 2021. With the overarching objective of raising India's position in the Global MPI rankings, the National MPI seeks to disassemble the Global MPI and establish a globally aligned but personalized India MPI for producing comprehensive Reform Action Plans.
•    The three factors are equally weighted and are health, education, and level of living.
•    The measurements that highlight these three aspects include those related to nutrition, school attendance, years of schooling, drinking water, sanitation, housing, and bank accounts, to name just a few.

Technique & Data

•    The Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) developed a trustworthy methodology that forms the foundation of the national MPI.
•    Based on the National Family Health Survey's reference period of 2015–16, this baseline report for the country's MPI measure. (NFHS-4).
•    Prior to the full implementation of various central government programmes, a baseline multidimensional poverty estimate was created using the NFHS-4 data to better understand the situation on the ground.
•    Prior to the full implementation of the (central government's) flagship housing, drinking water, sanitation, power, cooking fuel, and other essential measures to increase school attendance, nutrition, mother and child health, among other significant objectives, NFHS-4 is the fourth of a series of important initiatives.
•    It should be underlined, nevertheless, that the NFHS-5 data shows that access to electricity, sanitary facilities, and clean cooking fuel has improved, which has reduced poverty.

Findings of The Index:

Levels of Poverty 

•    Statewide, Bihar has the highest percentage of people who are multidimensionally impoverished, followed by Uttar Pradesh and Jharkhand.
•    Kerala has the lowest population poverty rate, closely followed by Puducherry, Lakshadweep, Goa, and Sikkim.

People that are malnourished

•    Malnourished persons are most prevalent in Jharkhand, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh, followed by Bihar, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
Multidimensional Poverty Index: Indian Economy

Significance of The Index

Contribution to the Implementation of Public Policy Instrument

•    The establishment of the Index is a critical step towards developing a public policy instrument that tracks multidimensional poverty and guides evidence-based, targeted measures to make sure no one is left behind.

Describes Poverty in General

•    This complements current financial poverty statistics by giving a comprehensive picture of poverty in the nation while also enabling more thorough and in-depth analysis of particular interest areas like regions, states, or districts, and certain industries.

Contribute to the SDGs' achievement 

•    It helps track progress towards Sustainable Development Goal (SDG) target 1.2, which aims to cut "at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions."


The Multidimensional Poverty Index seeks to quantify poverty across all of its facets, thereby enhancing the per capita consumption expenditure-based poverty statistics now in use. Among 109 nations, India is placed 66th in the Global MPI 2021. On November 20, 2021, the government's think tank Niti Aayog unveiled the first-ever Multi-dimensional Poverty Index (MPI), which gauges poverty at the district, state/UT, and federal levels.

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