[Answered] Explain the concept of the Multidimensional Poverty Index (MPI) and how it is used to estimate poverty in India. How does India’s MPI differ from the Global MPI?

The Multidimensional Poverty Index (MPI) is a comprehensive indicator of poverty that looks at more factors than just income or consumption. For a more complete knowledge of deprivation and poverty, it considers several aspects of poverty, such as health, education, and style of life. The index is based on the methodology used by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) to construct the Global MPI.

How it is used to estimate poverty in India?

• Health Dimension: This dimension considers factors such as nutrition, child mortality, and maternal health. It examines whether individuals have access to adequate nutrition and healthcare services.
• Education Dimension: The education dimension assesses whether individuals have access to education and can complete at least six years of schooling. It also considers the enrolment and attendance rates of school-age children.
• Standard of Living Dimension: This dimension includes indicators related to access to clean water, sanitation, electricity, housing quality, and assets. It looks at the living conditions of individuals and households.

How does India’s MPI differ from the Global MPI? 

• Indicators: The national MPI measures deprivations across the three dimensions of health and nutrition, education, and standard of living. But India’s MPI is not the same as the Global MPI. For instance, India’s MPI has 12 variables, while the Global MPI has 10. The two additional variables in India’s MPI are maternal health and bank account.
• Index Preparing agency: Global MPI is based on the methodology used by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP). While national MPI is framed by NITI Aayog.
• Policymaking: Policymakers can pinpoint the precise dimensions and indicators of deprivation that are most pervasive in India according to the national MPI. This information makes it easier to customize treatments to address the unique problems faced by various communities and regions in India. On the other hand, the global MPI offers a uniform framework for contrasting poverty across nations and monitoring worldwide advancements in eliminating multidimensional poverty.
• External factors: India’s diverse population and vast geographical variations contribute to a wide range of living conditions and challenges. The Indian MPI takes into account these contextual factors to provide a more accurate and nuanced picture of poverty within the country. The global MPI, while comprehensive, does not capture the full spectrum of India’s diverse circumstances.

Conclusion:

The MPI for India is a country-specific adaption of the global MPI framework that has been altered to take into account the particular socioeconomic circumstances, difficulties, and goals of India. It contributes to the larger global endeavour to comprehend and confront multidimensional poverty from a variety of angles while providing a more specialized method for measuring and addressing it within the nation.