National MPI 2023: An Invaluable Tool For Mitigating Poverty
On July 17, 2023, NITI Aayog unveiled the "National Multidimensional Poverty Index: A Progress Review 2023" casting a brilliant spotlight on the remarkable advances achieved in India's tireless battle against poverty. This report, a follow-up to the baseline report published in November 2021, has played an instrumental role in fostering awareness among state governments, academia, civil society, and citizens regarding the paramount importance of utilizing multidimensional poverty measures as both a potent policy instrument and a mechanism to gauge progress.
The latest findings reveal an impressive reduction of 13.5 crore individuals from multidimensional poverty between 2015-16 and 2019-21, accompanied by a remarkable decline in the poverty headcount ratio from 24.85 per cent to 14.96 per cent. Encouragingly, all 12 indicators related to health, education, and standard of living exhibited improvement. This comprehensive report reflects the effectiveness of poverty alleviation efforts in India and provides grounds for continued optimism in the country's pursuit of prosperity and well-being for all citizens. The journey to combat poverty which is a serious issue in a developing country like India is not without challenges. The ambitious vision of SDG target 1.2 to halve the proportion of people living in poverty in all its dimensions by 2030 according to national definitions stands as a beacon of hope, guiding our path towards a more equitable society.
Through targeted policies, schemes, and developmental programs rolled out at both the national and sub-national levels, the rapid reduction in multidimensional poverty has been most evident in rural areas, where the percentage of those considered poor decreased from 32.59% in 2015-16 to 19.28% in 2019-21. Urban regions also witnessed progress, with poverty incidence dropping from 8.65% to 5.27% during the same period. The report attributes this success to notable improvements in nutrition, years of schooling, sanitation, and access to clean cooking fuel, all of which played pivotal roles in lowering the Multidimensional Poverty Index (MPI) value.
The MPI's relevance lies in its comprehensive approach, capturing crucial non-monetary indicators of poverty. This inclusive methodology empowers state and district administrations to not only replicate successful practices but also identify areas that require further attention, fostering peer learning and growth. Furthermore, the Intensity of poverty displayed positive advancement, ameliorating from about 47.14% in 2015-16 to 44.39% in 2019-21. States like Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan which have a huge population which is considered poor have stood out for their substantial reduction in the number of MPI poor individuals.
Key government schemes like Swachch Bharat Mission (SBM), Jal Jeevan Mission (JJM), Poshan Abhiyan, Samagra Shiksha, Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), Pradhan Mantri Ujjwala Yojana (PMUY), Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Awas Yojana (PMAY), and many more have contributed significantly in driving the tremendous progress outlined in this report. These schemes have effectively addressed the fundamental requisites for a dignified life, ensuring access to basic necessities like hygiene, water provisions, nourishment, education, electricity, cooking fuel, access to banking facilities, housing, and more. The implementation of these transformative initiatives empowers the marginalized population to break free from the chains of poverty and embrace a life worthy of their potential.
To adeptly monitor the progress of implementation, a dynamic dashboard has been devised by the Development Monitoring and Evaluation Office (DMEO), an integral unit under NITI Aayog, to leverage the monitoring of select Global Indices including MPI. This performance dashboard marks a momentous step forward. With its capabilities, this dashboard stands as a powerful tool for concerned Ministries, Departments, and States to track and monitor India's advancement on multiple fronts including global level, national and state level, and identify reform areas and reform actions as mentioned in the report.
India’s progress on the national MPI between 2015-16 and 2019-21 reflects the Government’s commitment towards enhancing the well-being and quality of life for its citizens. Proper identification of beneficiaries, well-suited initiatives, and a steadfast commitment to continuously monitoring the scheme's progress have led to this remarkable achievement. As we venture into the future, the invaluable insights derived from the second edition of the National MPI will function as a precious asset for States and Union Territories, guiding them in identifying and amplifying the actions that have ignited progress since the Baseline Report's release. This index not only serves as an invaluable tool for effective policymaking but also inspires us to forge ahead with renewed determination in our mission to alleviate poverty and build a brighter future for all.
Divya Singh Rathore, a public policy professional. She tweets at @_divyarathore
Suhani Jain is an undergraduate student pursuing B.A. (Honors) Economics at Lady Shri Ram College for Women, University of Delhi and currently holds an internship position at NITI Aayog
