Multidimensional Poverty Index 2022: 41.5 Crore Indians Exited Poverty Since 2005-06

The new Multidimensional Poverty Index (MPI) finds that reducing poverty at scale is possible and unveils new 'poverty profiles' that can offer a breakthrough in development efforts to tackle the interlinked aspects of poverty. This analysis by the UNDP (United Nations Development Programme) and the Oxford Poverty and Human Development Initiative (OPHI). This report looks beyond income as a measurement of poverty to understand how people experience poverty in different aspects of their daily lives - from access to education and health, to living standards such as housing, drinking water, sanitation and electricity.

UNDP Multidimensional Poverty Index Highlights

The report highlights pre-pandemic trends over 15 years in India, where the number of poor people decreased by about 415 million with the poorest states and groups, including children, showing the strongest absolute reductions in poverty.
India's journey demonstrates that the Sustainable Development Goal (SDGs) of 'reducing at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions by 2030' is achievable. For this reason and following the sharing of targeted policies at the event, UNDP Administrator, Achim Steiner closed the launch by saying that 'this report is about hope if you take the issues seriously'.
The number of poor people in India fell by about 415 million between 2005-06 and 2019-21, a "historic change".

Significance of MPI

This index demonstrates that the India's Sustainable Development Goal target of reducing at least by half the proportion of men, women and children of all ages living in poverty by 2030 is possible to achieve, even at a large scale.

Progress from 2005-06 to 2019-21

Of the nearly 415 million people who exited poverty in India in the 15 years prior to the Covid-19 pandemic, roughly 275 million did so between 2005-06 and 2015-1 and 140 million between 2015-16 and 2019-21.

Fastest Reduction Till Now

Bihar: The poorest state in India in 2015-16 saw the fastest reduction in Multidimensional Poverty Index value in absolute terms.
As per the MPI report, the poverty fell from:

• 2005-06: 77.4%
• 2015-16: 52.4
• 2019-21: 34.7%

The fastest reduction in relative terms was in Goa, followed by Jammu and Kashmir, Andhra Pradesh, Chhattisgarh and Rajasthan.

The report notes that nationally, Tthe relative reduction from 2015/2016 to 2019/21 was faster: 11.9% a year compared with 8.1% from 2005/2006 to 2015/2016. This is unsurprising because relative poverty reduction is easier to achieve when starting levels of poverty are lower."

Statistics as per Multidimensional Poverty Index

The report is based on 2020 population data for India, it has by far the largest number of poor people worldwide (228.9 million), followed by Nigeria (96.7 million projected).
The report looks at the most common deprivation profiles across 111 developing countries. The most common profile, affecting 3.9 percent of poor people, includes deprivations in exactly four indicators: nutrition, sanitation, cooking fuel and housing.
India significantly reduced deprivations in all 10 indicators, each improved assets, cooking fuel, sanitation and nutrition

About United Nations Development Programme (UNDP)

• HQ- New York
• United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development.
• It is the largest UN development aid agency.
• UNDP works in 170 countries and territories to eradicate poverty and reduce inequality.