Current Affairs 2022 : National Multidimensional Poverty Index 2021

Current Affairs 2022 : National Multidimensional Poverty Index 2021

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Updated on Feb 4, 2022 15:03 IST

By Shubham Singh

National Multidimensional Poverty Index 2021: Methodology and Highlights

Multidimensional_Poverty_index

Recently, NITI Aayog has launched the National Multidimensional Poverty baseline Index 2021 based on the National Family Health Survey (NFHS). This is the annual report launched by the NITI Aayog. The main objective of this index is to end poverty in all its forms and to know which state is more efficient to be self-reliant. The National Multidimensional Poverty Index measures various aspects, almost similar as the UNDP (United Nations Development Programme) does in their reports. UNDP also used to publish a global multidimensional poverty index in collaboration with the Oxford Poverty and Human Development Initiative (OPHI).

What is the idea behind this National Multidimensional Poverty Index?

As per the data of the global multidimensional poverty index, the ranking of India is 62 among 107 countries. To address this issue, India decided to launch its state-wise index to easily counter the main reason behind the poor ranking. We often hear the biases about this report and to counter this, the index is created aiming to deconstruct this Global MPI and to create a more detailed yet aligned to global MPI.

NITI Aayog and the Government of India wants to publish an MPI index to boost up the competition among the States and Union Territories.

Methodology of the National Multidimensional Poverty Index

The national MPI has a variety of constraints to measure poverty. The index follows the existing globally acceptable formula which is generated by the  OPHI and UNDP. The main key of this formula is to check poverty at various proportions and provide in-depth studies based on the per capita consumption expenditure of that state or country.

The MPI index compiles the data of three fields in general and 12 indicators related to that field. Those three fields are health, education, and standard of living. If we deep dive into these three fields we know that 12 parameters are being used to compile the data of this index. Some parameters are housing, nutrition, sanitation, school attendance,  average years of schooling, facility of drinking water, having bank accounts or not, electricity, Maternal Health, Child-Adolescent Mortality,

The MPI index widely used the data of the National Family  Health Survey which was conducted in 2015-16. NFHS was conducted to know the ground situation of the country so that it is easy to roll out the various government schemes across the country.

Key Objectives of National Multidimensional Poverty Index

The Government of India decided to launch the National MPI keeping various objectives in mind.

  • To compare poverty across the country, states and districts level.
  • To track poverty status in the country from time to time.
  • To know the intensity of poor people in poverty, using direct information from the set of MPI indicators.
  • To provide a handful of data of statistics on smaller levels like districts as well.

National Multidimensional Poverty Index

The National MPI has been generated by the MPI member committee. The member committee includes NITI AAyog, Department of Health and Family Welfare, Ministry of Women and Child Development, Ministry of Statistics and Programme Implementation, Department of Drinking Water and Sanitation, Ministry of Housing and Urban Affairs, Department of Rural Development, Department of School Education and Literacy and many more.

MPI Score Of India

India’s overall MPI score is 0.118 which is not that good. The MPI score includes the rural weightage that is 0.155 and the urban weightage as well which is 0.04 slightly lower than the national average.

State Wise MPI Score and the percentage  

In the following data, there is an MPI Score on one side and on the other side, there is the percentage of the population which are poor.

State 

% Poor of Total Population 

MPI Score 

Bihar

51.91%

0.265 

Jharkhand

42.16%

0.202

Uttar Pradesh

37.79%

0.18

Madhya Pradesh

36.65%

0.173

Meghalaya

32.67%

0.157

Assam

32.67%

0.156

Chhattisgarh

29.91%

0.134

Rajasthan

29.46%

0.14 

Odisha

29.35%

0.136

Nagaland

25.23% 

0.117

Arunachal Pradesh

24.27% 

0.115

West Bengal

21.43%

0.097

Gujarat

18.60%

0.084

Manipur

17.89%

0.08

Uttarakhand

17.72%

0.079

Tripura

16.65%

0.075

Maharashtra

14.85%

0.065

Telangana

13.74%

0.059

Karnataka

13.16% 

0.056

Andhra Pradesh

12.31%

0.053

Haryana

12.28%

0.055

Mizoram

9.80%

0.046

Himachal Pradesh

7.62%

0.03

Punjab

5.59%

0.024

Tamil Nadu

4.89% 

0.02

Sikkim

3.82%

0.016

Goa

3.76%

0.015

Kerala

0.71%

0.003

Union Territories 

% Poor of Total Population

MPI Score 

Dadra & Nagar Haveli

27.36%

0.122

Jammu & Kashmir, & Ladakh

12.58%

0.055

Daman & Diu

6.82%

0.03

Chandigarh

5.97%

0.026

Delhi

4.79%

0.021

Andaman & Nicobar Islands

4.30%

0.017

Lakshadweep

1.82%

0.007

Puducherry

1.72%

0.007

Results

Bihar has the poorest percentage in the country followed by Jharkhand and Uttar Pradesh while Kerala has the least poor percentage across the country and after that Puducherry, Lakshadweep, Goa and Sikkim are compiled in the MPI.

Electricity

Again, Bihar has the most deprived state in electricity while Daman Diu has the least.

Sanitation

Bihar followed by Jharkhand has the highest percentage of population deprived of sanitation while Lakshadweep has the most advanced sanitation facility.

Nutrition

Again Bihar tops the list of most malnourished people in the state followed by Jharkhand and Madhya Pradesh. Sikkim has the best-nourished people across the country.

Drinking-Water

Manipur has the poorest facility for drinking water in the country while Goa and Bihar have the best facility.

Bank Accounts

Nagaland has the least amount of bank accounts and on the other hand, Himachal Pradesh, Andaman & Nicobar Islands have the highest no of bank accounts across the country.

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