NITI AAYOG: National Multi- dimensional Poverty Index 2023

Recently NITI AAYOG has released the ‘National Multidimensional Poverty Index: A Progress Review 2023. As per report, a record 13.5 crore people moved out of multidimensional poverty between 2015-16 and 2019-21.

About National Multidimensional Poverty Index: A Progress Review 2023

• Released on- July 17, 2023
• Released by- NITI AAYOG
• Edition- 2 of the national MPI and is a follow-up to the Baseline Report published in November 2021 The first edition of MPI was released in 2021
• Based on- 5th round of the National Family Heath Survey INFHS-5 (2019-21)].

Methodology

• The intensity of poverty has reduced from 47.14% to 44.39%, indicating that India is on track to achieve SDG (Sustainable Development Goals) Target 1.2 (reducing multidimensional poverty by at least half) ahead of the stipulated timeline of 2030.
  
• The estimates indicate that rural areas saw a faster reduction in their MPI value, compared to urban areas.
  

Key Highlights

• As per report, 135 million(13.5 Crore) people exited multidimensional poverty between 2015-16 and 2019-21. As per the Report, India has registered a significant decline of 9.89 percentage points in number of India’s multi-dimensionally poor from 24.85% in 2015-16 to 14.96% in 2019-2021.
  

1. The rural areas witnessed the fastest decline in poverty from 32.59% to 19.28%.
2. During the same period, the urban areas saw a reduction in poverty from 8.65% to 5.27%

• Uttar Pradesh registered the largest decline in number of poor with 3.43 crore people escaping multidimensional poverty.
  
• The Report states that the fastest reduction in the proportion of multidimensional poor was observed in the States of Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan.
  Page No.78 Box
• The incidence of poverty fell from 32.59% to 19.28% in rural areas compared to a decline from 8.65% to 5.27% in urban areas between 2015-16 and 2019-21.