What is Multi-Dimensional Poverty | Budget | Indepth | Drishti IAS

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In her Interim Budget speech, Finance Minister Nirmala Sitharaman said 25 crore Indians had been pulled out of poverty over the past decade. “With the pursuit of ‘Sabka ka Saath’ in these 10 years, the Government has assisted 25 crore people to get freedom from multidimensional poverty,” she said. This number appeared in a discussion paper, Multidimensional Poverty in India Since 2005-06, published by NITI Aayog on Jan 15.The paper, written by Ramesh Chand, Member, NITI Aayog, and Yogesh Suri, Senior Adviser, NITI Aayog, with technical inputs from the United Nations Development Programme (UNDP) and the Oxford Policy and Human Development Initiative (OPHI), says: “Multidimensional poverty in India was found to decline from 29.17% in 2013-14 to 11.28% in 2022-23 with about 24.82 crore people escaping poverty during this period. At the States’ level, Uttar Pradesh topped the list with 5.94 crore people escaping poverty followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.”The MPI approaches poverty differently. Globally, the MPI uses 10 indicators covering three main areas: (i) health, (ii) education, and (iii) standard of living. These three dimensions have one-third weight each in the final index.The health dimension includes nutrition and child & adolescent mortality indicators. The education dimension includes years of schooling and school attendance indicators. The standard of living dimension includes six household-specific indicators: housing, household assets, type of cooking fuel, access to sanitation, drinking water, and electricity.The Indian MPI has two additional indicators: maternal health (under the health dimension) and bank accounts (under the standard of living dimension). This has been done, according to the NITI Aayog, to align the MPI with India’s national priorities.
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