English Hindi


Disaster Management

Prelims Capsule

Human Development

India’s first Multidimensional Poverty Index by NITI Aayog – Over 50% of Bihar poor

India’s first Multidimensional Poverty Index by NITI Aayog – Over 50% of Bihar poor


  • GS 2 || Governance & Social Justice || Human Development || Poverty

Why in the news?

  • The Government think-tank NITI Aayogrecently has released the National Multidimensional Poverty Index (MPI).
  • According to the NITI Aayog’s Index, Bihar is the poorest state in the country and Kerala is the least poor state in the country.


About the report

  • The United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative previously released the Global Multidimensional Poverty Index 2021.
  • The MPI aims to quantify poverty in all of its forms, complementing existing poverty statistics based on per capita consumption spending.
  • India is ranked 66th out of 109 countries in the Global MPI 2021.
  • The National MPI aims to deconstruct the Global MPI and create a globally aligned but customized India MPI for developing comprehensive Reform Action Plans, with the overall goal of improving India’s place in the Global MPI rankings.

Parameters used  for the measurement

  • Health, education, and standard of living are the three equally weighted dimensions.
  • Nutrition, school attendance, years of schooling, drinking water, sanitation, housing, and bank accounts are only a few of the 12 metrics that illustrate these three dimensions.
  • This baseline report for the national MPI measure is based on the National Family Health Survey’s reference period of 2015-16. (NFHS-4).
  • Why NFHS-4?
    • The NFHS-4 data was used to create a baseline multidimensional poverty estimate to understand the reality on the ground before the full implementation of several central government programmes.
    • However, it should be emphasized that the NFHS-5 data indicates that access to clean cooking fuel, sanitation, and electricity has improved, resulting in a reduction in impoverishment.

Poverty Criteria

  • The report took a person spending less than Rs 47 a day in cities and one spending less than Rs 32 a day in villages as poor.

Findings of the Index/report

  • Around 25.01% of the Indian population is multidimensionally poor.
  • Poverty Levels
    • Bihar has the highest proportion of people of the state’s population followed by Jharkhand and Uttar Pradesh who are multidimensionally poor.
      • Kishanganj is the poorest district of Bihar.
      • Patna is the least poor district of Bihar
    • Kerala registered the lowest population poverty levels, followed by Puducherry, Lakshadweep, Goa, and Sikkim.
  • Child and adolescent mortality category
    • Some 2.7% of households have reported child and adolescent mortality. A household is deprived if any child or adolescent under 18 years of age has died in the household in the five years preceding the survey.
    • Uttar Pradesh ranked the worst in the child and adolescent mortality category, followed by Bihar and Madhya Pradesh, while Jharkhand performed the worst when it comes to the percentage of population deprived of sanitation, followed by Bihar and Odisha.
  • Malnourished People
    • Bihar(51.88 ) also has the highest number of malnourished people followed by Jharkhand, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
  • Sikkim is the least malnourished state in the country.
  • Union Territories (UTs)
    • Among the Union Territories (UTs), Dadra and Nagar Haveli (27.36 per cent), Jammu & Kashmir, and Ladakh (12.58), Daman & Diu (6.82 per cent) and Chandigarh (5.97 per cent), have emerged as the poorest UTs in India.
    • The proportion of poor in Puducherry at 1.72 per cent is the lowest among the Union Territories, followed by Lakshadweep at 1.82 per cent, Andaman & Nicobar Islands at 4.30 per cent and Delhi at 4.79 per cent.
  • Education 
    • At least 13.9% of households have a member aged 10 years or older who has not completed six years of schooling. At least 6.4% of households have a school-aged child not attending school up to the age at which he/she would complete class 8.
  • Standard of Living
    • Source of Cooking Fuel:At least 5% of households have dung, crops, shrubs, wood, charcoal, or coal as their primary source of cooking fuel.
    • No Access to Drinking water:At least 14.6% of households do not have access to improved drinking water or a safe drinking water facility that is more than a 30-minute walk from home (as a round trip).
    • Inadequate Housing:Some 45.6% of households have inadequate housing. Their floor is made of natural materials, or the roof or walls are made of rudimentary materials.

The  Importance/Significance of the Index

  • Contribution to the Implementation of Public Policy Tool:
    • The Index’s creation is a significant step toward establishing a public policy instrument that tracks multidimensional poverty and guides evidence-based and targeted initiatives, ensuring that no one is left behind.
  • Presents a Comprehensive Picture of Poverty
    • This provides a comprehensive picture of poverty in the country while also allowing for more in-depth analyses of specific areas of interest, such as regions, states, or districts, and specific sectors, and complements existing monetary poverty statistics.
  • Monitoring the progress
    • It is a contribution to monitoring progress toward the Sustainable Development Goals (SDGs) goal 1.2, which aims to reduce “at least by half the proportion of men, women, and children of all ages living in poverty in all of its aspects.”


  • The development of the National Multidimensional Poverty Index of India is an important contribution towards instituting a public policy tool that monitors multidimensional poverty, informs evidence-based and focused interventions, thereby ensuring that no one is left behind. This report presents an in-depth analysis of the headcount ratio and intensity of multidimensional poverty at the national, State/UT, and district levels,