For more than a century, poverty was measured in one dimension — income. Amartya Sen's capability approach challenged that reduction, and Sabina Alkire and James Foster's Alkire-Foster (AF) method (2007) operationalised it into a measurable index. Since 2010, the UNDP Human Development Report has used the AF method to publish the Global Multidimensional Poverty Index (MPI). The 2025 edition, titled Overlapping Hardships: Poverty and Climate Hazards, counted 1.1 billion people across 109 countries in acute multidimensional poverty and, for the first time, laid climate-hazard exposure over the poverty map. India's headline finding is unchanged from earlier editions — about 415 million people exited multidimensional poverty between 2005-06 and 2019-21, the largest country-level decline recorded — and it is unchanged for a reason worth stating: the Indian numbers still rest on NFHS-5 fieldwork from 2019-21.
This guide explains the methodology, India's performance and the policy implications.
Why Multidimensional Poverty?
Income-based poverty measures fail to capture:
- Simultaneous deprivations — a household with enough income can still lack nutrition or schooling.
- Public goods access — water, sanitation, electricity are not purchased daily.
- Non-cash deprivations — child mortality, years of schooling.
- Capability gaps — functionings and freedoms (Sen).
Multidimensional poverty captures who is poor and how they are poor.
The Alkire-Foster Methodology
Developed by Sabina Alkire and James Foster (OPHI, Oxford) in 2007. The method:
- Identifies deprivations across specified indicators.
- Applies weights to each indicator.
- Computes a weighted deprivation score for each household.
- A household is MPI-poor if its score crosses a threshold (usually 33.3%).
- Headcount (H) and Intensity (A) are combined: MPI = H × A.
Global MPI — 10 Indicators Across 3 Dimensions
Health (weight: 1/3)
- Nutrition.
- Child mortality.
Education (weight: 1/3)
- Years of schooling.
- School attendance.
Living Standards (weight: 1/3)
- Cooking fuel.
- Sanitation.
- Drinking water.
- Electricity.
- Housing.
- Assets.
Each of the six living-standards indicators is weighted at 1/18; health and education indicators at 1/6 each.
Data Sources for India
- National Family Health Survey (NFHS) — household-level data on health, nutrition, child indicators.
- Household Consumption Expenditure Survey (HCES) — for complementary measures.
- PLFS / NSS — employment and earnings.
Global MPI uses NFHS-4 (2015-16) and NFHS-5 (2019-21) as the primary comparison points for India.
India's Global MPI 2024 Findings
- Total MPI-poor in 2019-21: 23.45 crore (16.4% headcount) — down from 55.1% in 2005-06.
- 415 million exited between 2005-06 and 2019-21.
- MPI value fell from 0.283 to 0.069.
- Intensity of poverty (A) — 42% of possible deprivations among the poor (marginal decline).
- Fastest improvements: sanitation, cooking fuel, electricity, housing, nutrition.
- Slowest improvements: years of schooling, child mortality in specific regions.
State-Wise Highlights
- Bihar — highest MPI headcount in 2019-21 (~34%).
- Jharkhand and Uttar Pradesh — recorded the largest absolute exits (by number of people).
- Kerala, Tamil Nadu, Himachal Pradesh, Sikkim — lowest MPI values.
- North-east — significant progress but concentrated deprivation in some districts.
NITI Aayog's National MPI (India)
NITI Aayog adapted the global framework for India with 12 indicators (adding maternal health and bank accounts/financial inclusion) across the same three dimensions:
- Baseline MPI 2021 (based on NFHS-4, 2015-16) — 24.85% headcount.
- National MPI Progress Review 2023 (based on NFHS-5, 2019-21) — 14.96% headcount.
- 13.5 crore exited multidimensional poverty between 2015-16 and 2019-21.
- Target: half the headcount (7.48%) by 2030 — linked to SDG 1.2.
Additional Indicators in National MPI
- Maternal health — antenatal care, institutional delivery.
- Bank account / financial inclusion.
Drivers of India's MPI Exit
- Swachh Bharat Mission — sanitation coverage rose sharply.
- Pradhan Mantri Ujjwala Yojana — LPG access reduced cooking fuel deprivation.
- Saubhagya Scheme — near-universal household electrification.
- Pradhan Mantri Awas Yojana — rural and urban housing.
- Jal Jeevan Mission — tap water coverage rising toward universal.
- Ayushman Bharat — health access for BPL households.
- Poshan Abhiyaan / Poshan 2.0 — nutrition outcomes.
- Samagra Shiksha — education indicators.
Methodological Critiques
- Weight arbitrariness. Weights are equal across dimensions; different weight choices change results.
- Static indicator set. Some indicators (like child mortality) are lagged; current data may not reflect the current household situation.
- Quality vs access. MPI measures access (school attendance) but not quality (learning outcomes).
- Urban-specific deprivations — MPI was designed for developing-world rural contexts; urban deprivations like overcrowding, insecure tenure, air pollution are not captured.
- Climate and environmental deprivations — not directly captured.
- Data vintage — NFHS-5 is 2019-21; next round not yet published.
Relationship with Income Poverty
MPI and income poverty overlap but are distinct:
- Some income-non-poor households are MPI-poor (e.g., income but no sanitation).
- Some income-poor households are MPI-non-poor (less common).
- HCES 2022-23 released in 2024 showed sharp declines in income/consumption poverty as well.
Global Context
- Global MPI 2024 — 1.1 billion people multidimensionally poor across 112 countries.
- Sub-Saharan Africa and South Asia together host over 80% of the global MPI-poor.
- India's progress is the largest country-level exit recorded in MPI history.
Latest Developments (2024-26)
MPI 2024 Publication. UNDP-OPHI Global MPI 2024 confirmed India's 415 million exit between 2005-06 and 2019-21.
HCES 2022-23. Household Consumption Expenditure Survey data released 2024 showed rural poverty below 5% and urban around 4% by Tendulkar-equivalent poverty lines.
NFHS-6. Field work for NFHS-6 began 2023-24; results will update MPI with 2023-24 household data.
National MPI Progress Review 2025. Expected from NITI Aayog with latest data.
Caste Census 2025. Union Cabinet approved caste enumeration in the next national census (April 2025) — will enable MPI disaggregation by caste for the first time at national scale.
Women's Reservation Act. The Nari Shakti Vandan Adhiniyam 2023 — post-delimitation, gender-sensitive MPI tracking becomes more policy-relevant.
Global Gender Gap Index 2024. India ranked 129/146; MPI gender disaggregation reveals women-headed households often have higher MPI values.
SDG Progress Tracking. MPI aligned with SDG 1.2 — "reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions by 2030."
Policy Directions
- Deepen interventions on slowest-improving indicators (schooling years, nutrition in specific states).
- Address urban deprivations not captured by MPI.
- Gender-disaggregated tracking.
- Integration with Aspirational Districts and Aspirational Blocks programmes.
- Climate-sensitive MPI indicators — air quality, water security.
- Real-time monitoring through administrative data (UDISE+, HMIS).
UPSC Relevance
GS Paper I — Indian Society
- Poverty and developmental issues.
GS Paper II — Governance, Social Justice
- Welfare schemes for vulnerable sections.
- Issues relating to poverty and hunger.
GS Paper III — Economy
- Inclusive growth; economic development.
Possible mains questions
- "Multidimensional poverty captures what income poverty misses. Discuss the Global MPI 2024 findings for India." (250 words)
- "The Alkire-Foster method is a rigorous tool for measuring complex deprivation. Examine with reference to India's National MPI." (150 words)
- "Despite MPI exit, India's poverty profile remains unfinished. Critically analyse." (150 words)
Prelims pointers. Global MPI — UNDP and OPHI; Alkire-Foster method (2007); 10 indicators, 3 dimensions; MPI = H × A; NITI Aayog National MPI — 12 indicators; NFHS-4 (2015-16) and NFHS-5 (2019-21); Global MPI 2024 — 415 million India exit; national headcount 2021 — 14.96%; SDG 1.2 target halving by 2030.
Essay themes. "Dimensions of dignity"; "Poverty is more than income"; "Measuring progress that lasts".
MPI has shifted the global poverty conversation from income to capabilities. India's 2024 numbers are a triumph worth celebrating — and a reminder of how much remains to be done.
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