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India’s Population Estimates Multi-dimensional Poverty Index, by state

UID: EC-20241108-IN-03

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Source

National Family Health Surveys, NITI Aayog

Last Updated

November 8, 2024

Time Range

2015 – 2021

Periodicity

Round

Overview

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.

Trends & Insights

India has significantly reduced multidimensional poverty between 2015-16 and 2019-21, with the national MPI score improving from 0.117 to 0.066. The headcount ratio of poor people decreased substantially from 24.85% to 14.96%, indicating that nearly 10% of the population moved out of multidimensional poverty during this period. The intensity of poverty also showed improvement, declining from 47.14% to 44.39%. The state-wise analysis reveals stark regional disparities in poverty levels and reduction rates. Kerala consistently maintained the lowest MPI scores (improving from 0.003 to 0.002), with a minimal headcount ratio dropping from 0.70% to 0.55%. Other southern states also demonstrated strong performance, with Tamil Nadu reducing its MPI from 0.019 to 0.009 and Telangana improving from 0.057 to 0.024. In contrast, Bihar, despite showing substantial improvement from 0.265 to 0.160, continued to have the highest MPI score among all states. Its headcount ratio decreased from 51.89% to 33.76%, indicating that one-third of its population still lives in multidimensional poverty. Similarly, Jharkhand improved from 0.202 to 0.131 but remained among the states with high poverty levels.The BIMARU states (Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh) showed significant improvement but still lag behind the national average. Uttar Pradesh’s MPI improved from 0.179 to 0.103, Madhya Pradesh from 0.173 to 0.090, and Rajasthan from 0.137 to 0.065. Union Territories generally performed better, with Puducherry (0.007 to 0.003) and Lakshadweep (0.007 to 0.004) having some of the lowest MPI scores. Among the northeastern states, there’s considerable variation, with Meghalaya showing relatively high poverty levels (0.156 to 0.133) while Mizoram demonstrated better performance (0.046 to 0.024). The intensity of poverty (average deprivation score among poor people) showed less dramatic improvement compared to the headcount ratio, suggesting that while fewer people are classified as poor, those who remain poor still face significant deprivations. This is particularly evident in states like Meghalaya, where the intensity remained high at 48.01% in 2019-21. Urban areas and urban-dominated regions like Delhi (0.020 to 0.014), Chandigarh (0.026 to 0.017), and Goa (0.015 to 0.003) consistently showed lower MPI scores, highlighting the urban-rural divide in poverty reduction. The data suggests that while India has substantially reduced multidimensional poverty, significant regional disparities that need targeted intervention remain. The slower reduction in poverty intensity compared to the headcount ratio indicates the need for more comprehensive poverty alleviation strategies, particularly in states with historically high poverty levels.

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Citation

Please cite this article using proper attribution to 360 Analytika when referencing or sharing our content.

National Family Health Surveys, NITI Aayog. (2024). India’s Population Estimates Multi-dimensional Poverty Index, by state (360 Analytika, Ed.) [Dataset]. 360 Analytika. https://360analytika.com/indias-population-estimates-multi-dimensional-poverty-index-by-state/

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