Economic Survey 2024: 13.5 Crore Indians Escaped Multidimensional Poverty Between 2015-16 And 2019-21

In a notable development, an estimated 13.5 crore Indians have emerged from multidimensional poverty between 2015-16 and 2019-21.

This substantial progress is highlighted by a sharp decline in the National Multidimensional Poverty Index (MPI), which nearly halved from 0.117 in 2015-16 to 0.066 in 2019-21.

The reduction in the MPI reflects both a decrease in the headcount ratio and a significant drop in the intensity of poverty, setting India on a path toward achieving the Sustainable Development Goal of cutting multidimensional poverty by at least half by 2030.

The MPI, calculated by NITI Aayog and aligned with the global MPI framework published by UNDP, employs three equally weighted dimensions: health, education, and standard of living. These dimensions are further divided into 12 weighted indicators to assess poverty levels.

The headcount ratio gauges the prevalence of multidimensional poverty, while the deprivation score measures its intensity — the number of deprivations a poor individual experiences.

To be classified as MPI-poor, a household must have a weighted deprivation score of 0.33. The MPI index is derived by multiplying the headcount ratio by the intensity score.