National Multidimensional Poverty Index

India Witnesses Remarkable Triumph: Over 24.8 Crore People Lifted out of Poverty in Just Nine Years, Reveals NITI Aayog Report

The NITI Aayog released a report on the Multidimensional Poverty in India on January 15, 2024. According to Ramesh Chand, a Member of the NITI Aayog “24.82 crore people escaped multidimensional poverty in nine years, which translates into 2.75 crore people escaping multidimensional poverty every year.” In its latest report, the Aayog has used the Alkire Foster technique to measure the prevalence of multidimensional poverty in India.

According to the Aayog, multidimensional poverty in India decreased from 29.17% (in 2014) to 11.28% (in 2023). The report also notes the biggest poverty declines in Uttar Pradesh, Bihar, and Madhya Pradesh. Expressing satisfaction with the progress, BVR Subrahmanyam, CEO of NITI Aayog stated that the “Government has a goal to bring down multidimensional poverty to below 1% and all efforts are being made in that direction.”

Multidimensionally Poor Population in India (Source: PTI)

About the National Multidimensional Poverty Index:

According to the Aayog, the National Multidimensional Poverty Index assesses concurrent deprivations across three equally weighted dimensions of Health, Education, and Standard of living, which are represented by 12 indicators that are associated with the SDGs. These include food, maternal health, child and adolescent mortality, years of education, school attendance, fuel for cooking, clean drinking water, power, housing, possessions, and bank accounts.

From 2014 onwards, the rate of reduction in multidimensional poverty has accelerated. Additionally, an extensive array of government programs and activities aimed at addressing specific aspects of deprivation have made this possible. According to the report, India is expected to accomplish SDG 1.2, which calls for a reduction in multidimensional poverty at least by half, well in advance of 2030.

State-wise Reduction in Poverty:

At the State level, Uttar Pradesh has topped the list with 5.94 crore people escaping poverty followed by Bihar at 3.77 crore and Madhya Pradesh at 2.30 crore.

Several states, including Chhattisgarh, Odisha, Rajasthan, Jharkhand, and Assam, recorded a decline in multidimensional poverty of more than 13% between 2015 to 2019.

The Downside:

The headcount poverty ratios for 2013 to 2023 have been measured using the compound growth rate of reduction in the incidence of poverty levels due to a lack of data regarding the incidence of poverty levels for the years between 2005–06 and 2015–16 and after 2019–21.

However, the data misses COVID information and how it affects poverty. Because of COVID-19, the NFHS Survey was discontinued in 22 states between 2019 and 2021. Since the death rate rose significantly during the COVID-19 years, the report has failed to capture data on poverty-linked deaths highlighted by several health indices.² Additionally, COVID-19 harmed all three health indicators: maternal health, child and adolescent mortality, and nutrition. The virus itself is still having negative health effects on people. Hence, there is a lot of debate and discussions going on regarding NITI Aayog’s assertions that the poorest states in India — Uttar Pradesh, Bihar, and Madhya Pradesh — had the greatest multidimensional poverty improvement even though they were the most severely hit COVID-19 states.

Conclusion:

Thus, in a transformative socio-economic journey, India witnessed an extraordinary upliftment in poverty, as revealed by the NITI Aayog report. This commendable achievement underscores the effectiveness of targeted policies and collaborative efforts aimed at eradicating poverty. Though a lot needs to be done in the direction of poverty alleviation, the latest report reflects the nation’s commitment to fostering prosperity and creating a more equitable society.

References:

PTI (2024). Over 24.8 crore people moved out of poverty in India in nine years: NITI report. The Hindu. https://www.thehindu.com/news/national/over-248-crore-people-moved-out-of-multidimensional-poverty-in-india-in-nine-years-niti-report/article67743089.ece

Mehrota, S. (2024, January 16). Everything wrong with Niti Aayog’s claim of 24.8 crore emerging out of poverty in 9 years. The Wire. https://thewire.in/political-economy/niti-aayong-national-poverty-indicator