What is the National Multidimensional Poverty Index? - Social Issues | UPSC Learning
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What is the National Multidimensional Poverty Index?
Medium⏱️ 8 min read
social issues
📖 Introduction
<h4>What is the National Multidimensional Poverty Index?</h4><p>The <strong>National Multidimensional Poverty Index (MPI)</strong> is a crucial tool designed to measure simultaneous deprivations experienced by individuals. It provides a more holistic view of poverty than traditional monetary measures.</p><p>This index assesses poverty across <strong>three equally weighted dimensions</strong>: <strong>Health</strong>, <strong>Education</strong>, and <strong>Standard of Living</strong>. These dimensions are further broken down into <strong>12 specific indicators</strong>.</p><div class='info-box'><p>The <strong>National MPI</strong> aligns its indicators with the global <strong>Sustainable Development Goals (SDGs)</strong>, ensuring a comprehensive and internationally comparable framework for poverty measurement.</p></div><h4>Dimensions and Indicators of National MPI</h4><p>The <strong>12 indicators</strong> covered by the National MPI span various aspects of human well-being. They are carefully chosen to reflect the acute deprivations faced by the poor.</p><ul><li><strong>Health Dimension:</strong> Includes indicators such as <strong>Nutrition</strong>, <strong>Child and Adolescent mortality</strong>, and <strong>Maternal Health</strong>.</li><li><strong>Education Dimension:</strong> Consists of <strong>Years of schooling</strong> and <strong>School Attendance</strong>.</li><li><strong>Standard of Living Dimension:</strong> Encompasses <strong>Cooking fuel</strong>, <strong>Sanitation</strong>, <strong>Drinking water</strong>, <strong>Electricity</strong>, <strong>Housing</strong>, <strong>Assets</strong>, and <strong>Bank Accounts</strong>.</li></ul><div class='key-point-box'><p>Each of the three dimensions (Health, Education, Standard of Living) carries an <strong>equal weight</strong> in the calculation of the <strong>National MPI</strong>, emphasizing their balanced importance.</p></div><h4>Methodology: Alkire and Foster (AF) Method</h4><p>The global methodology underpinning the MPI, including the National MPI, is based on the robust <strong>Alkire and Foster (AF) method</strong>. This method is renowned for its ability to identify people as poor based on multiple deprivations.</p><p>The <strong>AF method</strong> uses universally acknowledged metrics to assess <strong>acute poverty</strong>. It offers a complementary perspective to conventional monetary poverty measures, which often only consider income or consumption.</p><div class='info-box'><p>The <strong>Alkire and Foster method</strong> identifies individuals as multidimensionally poor if they are deprived in a certain number or combination of indicators, going beyond a simple headcount.</p></div><h4>National MPI vs. Global MPI</h4><p>While the National MPI adopts the core methodology of the global MPI, there are differences in the number of indicators used. This adaptation allows for better reflection of national contexts and policy priorities.</p><div class='key-point-box'><p>The <strong>National MPI covers 12 indicators</strong>, whereas the <strong>global MPI covers 10 indicators</strong>. This distinction is crucial for understanding the scope of poverty measurement in India.</p></div><div class='exam-tip-box'><p>For <strong>UPSC Prelims</strong>, remember the <strong>three dimensions</strong> and the <strong>12 indicators</strong> of the <strong>National MPI</strong>. For <strong>Mains</strong>, understand its methodology and how it complements monetary poverty measures. The difference in indicator count between National and Global MPI is also a potential Prelims question.</p></div>

💡 Key Takeaways
- •National MPI measures simultaneous deprivations across Health, Education, and Standard of Living.
- •It uses 12 indicators, aligned with Sustainable Development Goals (SDGs).
- •Methodology is based on the robust Alkire and Foster (AF) method.
- •National MPI covers 12 indicators, while the global MPI covers 10 indicators.
- •It provides a complementary perspective to conventional monetary poverty measures.
- •NITI Aayog is the nodal agency for the National MPI in India.
🧠 Memory Techniques

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📚 Reference Sources
•Oxford Poverty and Human Development Initiative (OPHI) - Global MPI resources
•United Nations Development Programme (UNDP) - Human Development Reports
•Drishti IAS study material (provided source content)