ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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NITI Aayog’s Multidimensional Poverty Index

Some Methodological Issues

The multidimensional poverty index computed by the Niti Aayog suffers from several methodological shortcomings as well as wrong or improper selections of indicators. The most glaring mistake in the report is the inclusion of multidimensional deprivation index estimates for urban areas for all districts. This reduces the validity of the findings for policy intervention as well as international comparison.

During the last decade or so, the use of multidimensional poverty index (MPI) has become popular in academic and policymaking circles all over the world. The MPI is a much wider concept than the income poverty concept as it captures multiple and overlapping deprivations faced by the poor. The MPI is based on the aggregation of multiple indicators related to three aspects: (i) health, (ii) education, and (iii) standard of living. The MPI, thus, provides a more comprehensive depiction of poverty, which can serve as a policy tool to tackle poverty in each dimension at different levels.

The multidimensional poverty measure was first developed by the Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) for inclusion in UNDPs flagship Human Development Report in 2010, where it has been published since then (Alkire and Foster 2011; Godinot and Walker 2020).

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Published On : 9th Mar, 2024

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