Q. Consider the following statements about National MPI (Multidimensional Poverty Index):
1. Niti Aayog has released the National MPI (multidimensional poverty index).
2. As per the report, Gujarat registered the lowest population poverty levels.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

About National MPI (Multidimensional Poverty Index):

It seeks to measure poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure.

Methodology: The index has used the globally accepted and robust methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) for Global MPI.

Indicators: The index is based on three equally weighted dimensions – health, education and standard of living – which in turn are represented by 12 indicators.

Key findings of the National MPI

Multidimensionally Poor: Around 25.01% of the Indian population is multidimensionally poor. Bihar has the maximum percentage of the population living in poverty among all the States and the Union Territories, with over 50% of the population in the State identified as “multidimensionally poor”. On the other hand, Kerala registered the lowest population poverty levels (0.71%).

Education:  At least 13.9% of households have a member aged 10 years or older who has not completed six years of schooling. At least 6.4% of households have a school-aged child not attending school up to the age at which he/she would complete class 8.

Standard of Living

Source of Cooking Fuel: At least 58.5% of households have dung, agricultural crops, shrubs, wood, charcoal or coal as their primary source of cooking fuel.

No Access to Drinking water: At least 14.6% of households do not have access to improved drinking water or a safe drinking water facility that is more than a 30-minute walk from home (as a round trip).

Inadequate Housing: Some 45.6% of households have inadequate housing. Their floor is made of natural materials, or the roof or walls are made of rudimentary materials.

Earlier reports on poverty

Tendulkar Report: It showed the proportion of the poor in the rural population declined to 25.7% from 33.8%, while that in the urban population came down to 21.9% from 29.8% between 2009-10 and 2011-12. The report took those spending less than Rs. 33 a day in urban areas and Rs 27 a day in the rural areas as poor.

Rangarajan Report: According to this report, the poor constituted 30.9% of the rural population during 2011-12, against 39.6% during 2009-10. On the other hand, the urban poverty ratio fell to 29.5% from 38.2% over this period. The report took a person spending less than Rs 47 a day in cities and below Rs 32 a day in villages as poor.

Source: Important Indexes