The Multidimensional Poverty Index (MPI) is a comprehensive measure that assesses poverty beyond income, capturing individuals’ various deprivations in areas critical to human well-being. Unlike traditional poverty metrics, which primarily focus on monetary aspects, the MPI incorporates multiple dimensions, including health, education, and living standards. Each dimension is further broken down into indicators, such as child mortality, years of schooling, access to clean water, sanitation, and adequate housing.

The index assigns weighted scores to these indicators to evaluate the extent of deprivation in each household. A person is considered multi-dimensionally poor if they are deprived in a third or more of these weighted indicators. By offering a broader and deeper understanding of poverty, the MPI highlights the intersecting challenges individuals face, enabling policymakers to design targeted interventions to address the root causes of poverty across different areas and foster more holistic and sustainable development solutions.