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Niti Aayog’s National Multidimensional Poverty Index

By Amigos IAS

Why is it in the news?

  • The Niti Aayog released the second edition of the National Multidimensional Poverty Index (MPI) based on the latest National Family Health Survey of 2019-21.
Multidimensional poverty is assessed based on health, education, and standard of living, represented by 12 SDG-aligned indicators.

 

Key highlights of the Report

  • The 2023 report highlights a significant decline in multidimensional poverty from 24.85% to 14.96% between 2015-16 and 2019-21.
  • The report indicates that 5 crore Indians have escaped multidimensional poverty in the last five years.
  • Rural areas experienced the fastest decline in poverty, going from 32.59% to 19.28%. Uttar Pradesh witnessed the highest decline in the number of poor, with 3.43 crore people moving out of poverty, followed by Bihar and Madhya Pradesh.
  • Over the last eight years, India has moved up from being the tenth largest economy in 2015 to the fifth largest.
  • Notable contributions come from the service sector, software services, and the manufacturing sector, the latter being boosted by initiatives like Make in India and production-linked incentive schemes.
  • Indicators such as the Purchasing Managers Index (PMI) show sustained growth in manufacturing.
  • Direct tax collection has seen substantial growth, increasing by 21.82% until November 9, 2023.
  • Monthly GST collections have stabilized at Rs 1.6 lakh crore, indicating a positive sign of economic growth.
  • Flagship programs like Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reducing health-related deprivations.
  • Initiatives such as Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have improved sanitation nationwide.
  • Subsidized cooking fuel through Pradhan Mantri Ujjwala Yojana (PMUY) has positively impacted lives.
  • Other initiatives like Saubhagya, Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Samagra Shiksha have played a major role in reducing multidimensional poverty.

 

 

Historical Perspective on Poverty Measurement in India

 

YearKey Event/CommitteeFocus
19th CenturyDadabhai Naoroji’s effortsConceptualization of poverty in economic terms
1950s (First Five-Year Plan)Planning Commission focuses on minimum living levelInitial attempts to quantify poverty
1979Alagh CommitteeProposes a composite index (income, consumption)
2009Tendulkar CommitteeRecommends inclusion of health, education
2014Rangarajan CommitteeSuggests considering calorie intake, non-food expenditure

 

Conclusion

  • India is acknowledged as the fastest-growing major economy, with all sectors contributing significantly to economic activities.
  • Deprivation rates for electricity, access to bank accounts, and drinking water are remarkably low, reflecting the government’s commitment to improving citizens’ lives and creating a brighter future for all.

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