National Multidimensional Povety Index (MPI)

Question 1

Q. What are some key facts about MPI ?

Answer 1

Ans : * NITI Aayog is the nodal agency .
* Methodology used : Alkire-Foster Methodology ( an individual is considered MPI poor if their deprivation score equals or exceeds the India’s National MPI poverty cutoff of 33.33%)
* Sub-indices of the National MPI (H×A) : Headcount ratio(H) & Intensity of poverty(A) .

Question 2

Q. What are the indicators in India’s National MPI ?

Answer 2

Ans : *Retains 10 original indicators of the global MPI model and has added 2 indicators ( maternal health and bank account).
* Health(1/3), Education(1/3) and Standard of living(1/3).
* Per capital income, literacy rate and life expectancy are not included as indicators.

Question 3

Q. What are some key Highlights of the report ?

Answer 3

Ans: 1. Steep decline in Poverty ‘H’ : 24.85% in 2015-16 to 14.96% in 2019-21.
* 13.5 crore people exited multidimensional poverty between 2015-16 and 2019-20.
* Rural areas - 32.5% to 19%
* Urban areas - 8.5% to 5%
2. Improvement in ‘A’ : 47.14% to 44.39% .
3. Improvement in ‘H × A’ : 0.117 to 0.066
4. India is on track to achieve SDG target 1.2 (reducing multidimensional poverty by at least half) much ahead of 2030.
5. Performance of states :
* Top 5 - Bihar>Jharkhand>UP>Meghalaya>MP.
* Bottom most - Kerala
* UP - largest decline in no. of MPI poor.
* Bihar - Fastest reduction in MPI value .

Question 4

Q. Who releases Global MPI ?

Answer 4

Ans : UNDP & Oxford Poverty and Human development initiative (OPHI) since 2010.