National Multidimensional Poverty Index (MPI)

By Rajat Pandey|Updated : January 27th, 2022
  • NITI Aayog has released the National Multidimensional Poverty Index (MPI), the National Multidimensional Poverty Index.
  • The report is based on the National Family Health Survey-4 which was completed in 2015-16 and 2011 census data.

About National Multidimensional Poverty Index:

  • MPI attempts to measure poverty in many of its dimensions and actually provides current poverty statistics on the basis of per capita consumption expenditure.
  • A globally accepted and robust methodology developed by the United Nations Development Program (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) is used to measure the National MPI.
  • It has three equally weighted dimensionsHealth, Education and Standard of Living.
  • These three dimensions are represented by 12 indicators, such as nutrition, school enrolment, school education, drinking water, sanitation, housing, bank accounts etc.
  • The report precedes the full rollout of flagship schemes on housing, drinking water, sanitation, electricity, cooking fuel, financial inclusion, and other major efforts towards improving school attendance, nutrition, mother and child health, etc.
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Key Highlights of the Index:

  • Bihar state has the highest population-to-poverty ratio, followed by Jharkhand and Uttar Pradesh with multidimensional poverty levels. 91% of the population in Bihar is poor.
  • The state of Kerala recorded the lowest poverty level in its population, followed by Puducherry, Lakshadweep, Goa, and Sikkim. Kerala registered lowest population poverty levels (0.71%).
  • The Union Territory of Puducherry recorded the lowest poverty level in its population. Union Territories (UTs) of Dadra and Nagar Haveli (27.36 per cent), Jammu & Kashmir, and Ladakh (12.58), Daman & Diu (6.82 per cent) and Chandigarh (5.97 per cent), have emerged as the poorest UTs in India.
  • Bihar has the highest number of malnourished people, followed by Jharkhand, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.

What is the Significance of the Index?

  • The development of the Index is an important contribution towards instituting a public policy tool which monitors multidimensional poverty, informs evidence-based and focused interventions, thereby ensuring that no one is left behind.
  • SDG-1 aims to end poverty in all its forms, everywhere. It is a contribution towards measuring progress towards target 1.2 of the Sustainable Development Goals (SDGs) which aims at reducing “at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions.
  • India’s national MPI has been envisaged as a comprehensive tool to expedite goal-oriented action to measure multidimensional poverty and steer its systematic eradication. 

Source: The Hindu

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