Multidimensional Poverty in India

Abstract

This study estimates the Multidimensional Poverty Index (MPI) of India and the MPI of 6 Zonal councils of India using the data set India Human Development Survey(IHDS-2), spanning all states and union territories of India except Andaman and Nicobar Islands and Lakshadweep. The results are then compared with India’s first–ever National MPI report and the United Nations Development Programme (UNDP) Global MPI report. The methodology used to calculate the MPI is the Alkire -Foster Dual cutoff counting method. It involves 10 indicators grouped among 3 indicators, Health, Education, and Standard of Living. Each dimension is weighted equally at of the MPI. MPI can provide a different perspective to the policymakers and highlight the poor individuals that were missed by the unidimensional monetary poverty indexes.The results indicate India has an MPI score of 0.136 with 30.6% of the population being multidimensional poor . Among the Zonal Councils of India, the Central Zonal Councils had the highest MPI score at 0.21 and the highest headcount ratio at 46.41% among India's zonal councils. The Southern zonal council had the lowest MPI score at 0.55 and the lowest proportion of the poor population with only 14.06% of the population being multidimensional poor. The results and analyses in this study hope to provide policymakers with a comprehensive view of poverty to help them draft policies that reduce multidimensional poverty across India.