Multidimensional Poverty in India since 2005-06

General Studies Paper -2

Context: NITI Aayog has released its discussion paper ‘Multidimensional Poverty in India since 2005-06’.

About

• The Multidimensional Poverty Index (MPI) is a globally recognized comprehensive measure that captures poverty in multiple dimensions beyond monetary aspects. 
• It has three equally weighted dimensions – Health, Education, and Standard of living – which are represented by 12 indicators.
• It also adds two indicators, viz., Maternal Health and Bank Accounts in line with national priorities.

Findings

• Reduction in Poverty: India has registered a significant decline in multidimensional poverty from 29.17% in 2013-14 to 11.28% in 2022-23 i.e. a reduction of 17.89 percentage points.
• State Wise Decline: Uttar Pradesh registered the largest decline in the number of poor with 5.94 crore people escaping multidimensional poverty during the last nine years followed by Bihar, Madhya Pradesh and Rajasthan.
• Headcount Ratio:The pace of decline in poverty headcount ratio using the exponential method was much faster between 2015-16 to 2019-21 (10.66% annual rate of decline) compared to period 2005-06 to 2015-16 (7.69% annual rate of decline).
• Improvement in Indicators: All 12 indicators of MPI have recorded significant improvement during the entire study period.
• Initiatives covering all dimensions of poverty have led to 82 crore individuals escaping multidimensional povertyin the last 9 years.
  • As a result, India is likely to achieve its SDG target of halving multidimensional poverty well before 2030.

Government Interventions to Reduce MPI

• Poshan Abhiyan and Anaemia Mukt Bharat have played a crucial role in addressing reach to health facilities, resulting in a substantial reduction in deprivation.
• National Food Security Act (NFSA): Under it foodgrains are provided to 81.35 crore beneficiaries covering 75% population in rural areas and 50% population in urban areas.
  • Recently, the Government has decided to continue providing free food grains to NFSA beneficiaries under Pradhan Mantri Garib Kalyan Anna Yojana for a period of five years w.e.f. 1st January, 2024.
• Mission Poshan 2.0 and Saksham Anganwadihave significantly contributed to fostering a healthier India, impacting millions of lives through key schemes like POSHAN Abhiyaan, Anganwadi Services, and the Scheme for Adolescent Girls.
• Pradhan Mantri Poshan Shakti Nirman (PM POSHAN): It is a flagship programme of Government of India, is the largest School feeding Scheme in the world to address the twin problems of improving the nutritional status and school enrolment of children.
• Pradhan Mantri Surakshit Matritva Abhiyan:It is aimed at improving maternal health by offering assured, comprehensive, and quality antenatal care to all pregnant women universally on the 9th of each month.
• PM Ujjwala Yojana: It has provided clean cooking fuel to an impressive 31 crore individuals, distributing 10 crore LPG connections.
  • Beyond creating smoke-free kitchens, this initiative has protected numerous women from chronic respiratory disorders.
• Saubhagya:It  has improved electricity coverage for almost 100% of the population, benefiting an additional 2.86 crore households and rendering kerosene lamps obsolete, thus improving respiratory health and eyesight.
• Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM):They have led to a nationwide wave of improved sanitation facilities providing 14 crore tap water connections and construction of 11.33 crore IHHL in rural areas.
• The Pradhan Mantri Jan Dhan Yojana (PMJDY): It has been a driving force for change, witnessing the opening of over 50 crore bank accounts in recent years.
  • It has played a central role in bringing a significant section of the population into the formal financial system.
• The PM Awas Yojana:It has revolutionized living conditions in both urban and rural areas, facilitating the construction of over 4 crore homes for the underprivileged.