Reducing poverty

News: NITI Aayog has come up with India’s first multi-dimensional poverty index (MPI).

It is a useful report for policymakers and NGO’s to know about the well-being of Indians on a wider set of indicators other than income.

More about the report:

The report figured usual states like Bihar, Jharkhand, and UP as India’s poorest states.

Read – NITI report on Poverty

The Indian MPI is based on the same UN’s dimensions of poverty which are health, education, and the standard of living with the weighting of one-third ascribed to each.

However, two additional indicators are placed under health and standard of living in the Indian index which are ante-natal care and bank accounts, respectively.

What is the problem with new data?

The report reveals that 25% of Indians are multi-dimensionally poor. This is nearly 3% points lower than the UN survey.

This might be because of the above two new indicators introduced, where India has done well.

What is the challenge of sustainability?

The real test of success in reducing multi-dimensional poverty lies in its sustainability. Some projects like “har ghar me nal” for safe drinking water is a good move, however, the challenge lies in ensuring that the taps, do not run dry because of a rapidly falling water table in parts of India.

The target of electrifying all households, while admirable, demands the provision of 24×7, good-quality power.

Similarly, maintaining a gas connection after Ujjwala scheme providing a connection is a challenge.

Source: This post is based on the article “Reducing poverty” published in Business Standard on 29th Nov 2021.