Multidimensional Poverty Index (India-Specific, NITI Aayog)
Current Affairs & Government Schemes › Important Reports, Indices and Surveys · Topic 18.8
The National Multidimensional Poverty Index (MPI) is NITI Aayog's measure of poverty that looks beyond income, using 12 indicators across health, education and standard of living, and the Alkire-Foster method developed by the Oxford Poverty and Human Development Initiative (OPHI). The baseline report in November 2021, using NFHS-4 (2015-16), found 25.01 per cent of Indians multidimensionally poor. The 2023 progress review, using NFHS-5 (2019-21), put the headcount at 14.96 per cent. A January 2024 discussion paper estimated a fall from 29.17 per cent in 2013-14 to 11.28 per cent in 2022-23, with 24.82 crore people moving out of poverty.
5 min read · UPSC Prelims · Current Affairs & Government Schemes · Important Reports, Indices and Surveys
At a Glance
- Publisher NITI Aayog
- Method Alkire-Foster, with UNDP and OPHI
- Indicators 12 across 3 dimensions
- Baseline (NFHS-4) 25.01 per cent
- NFHS-5 review 14.96 per cent
- Exam link UPSC Prelims, Current Affairs and Government Schemes: Important Reports, Indices and Surveys
Where Does It Fit?
This topic uses NFHS data directly. It sits beside the SDG India Index that NITI Aayog also publishes, and it feeds the national debate on poverty that the Economic Survey also covers. Previous topic: National Crime Records Bureau (NCRB) Report. Next topic: Sustainable Development Goals India Index.
What Does the National MPI Measure?
| Dimension | Indicators |
|---|---|
| Health (one third weight) | Nutrition, child and adolescent mortality, and maternal health |
| Education (one third weight) | Years of schooling and school attendance |
| Standard of living (one third weight) | Cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account |
| Identification | A household is multidimensionally poor if its weighted deprivation score is one third or more |
| Headcount ratio | Share of the population that is multidimensionally poor |
| Intensity of poverty | The average share of deprivations that poor people face. The MPI value is headcount multiplied by intensity |
What Do the Reports Show?
- Baseline report (November 2021): Using NFHS-4 for 2015-16, 25.01 per cent of the population was multidimensionally poor. Bihar, Jharkhand and Uttar Pradesh had the highest headcounts, and Kerala the lowest
- Progress review (July 2023): Using NFHS-5 for 2019-21, the headcount fell to 14.96 per cent, and about 13.5 crore people escaped poverty between the two rounds
- State ranks in the review: Bihar had the highest headcount at about 33.76 per cent, then Jharkhand and Uttar Pradesh, and Kerala was lowest at about 0.55 per cent, as reported
- Discussion paper (January 2024): Estimated headcount of 29.17 per cent in 2013-14 and 11.28 per cent in 2022-23, with 24.82 crore people moving out in nine years, as reported
- Nature of 2013-14 and 2022-23 values: They are projections made in the discussion paper and not survey results, because no NFHS round exists for those years
- Largest decline: Uttar Pradesh recorded the largest fall in the number of poor, about 5.94 crore, ahead of Bihar and Madhya Pradesh, as reported
- Newer data: No newer NITI Aayog national MPI report was verified as of November 2026, and NFHS-6 data may be used in future updates
- Verification: Readers should check the NITI Aayog website for revised estimates
What Else Should You Remember?
- Global MPI: The Global MPI is published by UNDP and OPHI each year and covers over 100 countries. It also has 10 indicators, with a few differences from the national index, so the numbers differ, as reported
- National versus global: The national index has 12 indicators, adding maternal health and bank account to the global ten
- Data source: Both rely on the National Family Health Survey, as in National Family Health Survey (NFHS)
- Official poverty line: The earlier Tendulkar and Rangarajan committees used consumption expenditure, while MPI uses non-income deprivations
- Consumption surveys: The Household Consumption Expenditure Survey of 2022-23 and 2023-24 renewed the debate on poverty measurement
- Policy link: Schemes affecting indicators include Poshan Abhiyaan, Swachh Bharat Mission, Ujjwala, Jal Jeevan Mission, Saubhagya, PM Awas Yojana and Jan Dhan Yojana
- Monitoring tool: Several states, such as Maharashtra and Assam, have also developed state MPIs, and NITI Aayog has asked states to use the index in planning
- Link to SDG goals: MPI tracks Sustainable Development Goal 1 on poverty, as in Sustainable Development Goals India Index
- Criticisms: Critics argue it counts assets and access rather than quality of services, and that the index may not capture short-term shocks
- Common mistakes: Reading MPI as income poverty or giving the global MPI numbers for the national index
Why Does It Matter for the Exam?
- Publisher and method: NITI Aayog, Alkire-Foster method
- Structure: 3 dimensions and 12 indicators, equal weight to each dimension
- Numbers: 25.01 per cent baseline, 14.96 per cent in NFHS-5, 11.28 per cent in 2022-23 paper
- States: Bihar highest and Kerala lowest in NFHS-5 review
- Common errors: Mixing national and global MPI or counting 10 indicators in the national index
As an analytical point, multidimensional poverty shows deprivation that income data misses, such as poor sanitation or lack of schooling. The index guides targeted action, yet it should be used with income and consumption data to give a full picture of well-being.
Why Is This Topic Important?
- Method Dimensions and indicators
- Numbers Headcounts
- Link Schemes and NFHS
What Came Next?
The next topic covers the SDG India Index. Next topic: Sustainable Development Goals India Index.
Key People and Terms
- Headcount ratio Share of people who are poor
- Intensity Average depth of deprivation
- Alkire-Foster Counting method for MPI
- OPHI Oxford Poverty and Human Development Initiative
- Deprivation Lack in an indicator
- MPI value Headcount times intensity
Exam Corner
Points to Remember
- Publisher: NITI Aayog.
- Indicators: 12, dimensions: 3.
- NFHS-4: 25.01 per cent; NFHS-5: 14.96 per cent.
- Paper 2024: 29.17 to 11.28 per cent.
- Poor if score is one third or more.
Do Not Confuse With
- National and global MPI NITI Aayog with 12 indicators versus UNDP and OPHI with 10
- MPI and poverty line Deprivation versus expenditure
- Headcount and intensity How many versus how deprived
Memory Hook
Health, education, living standards: twelve checks, one third score makes you poor.
Mains Angle
Mains questions ask about measuring poverty. These points give a balanced frame.
- Gains Fall in headcount
- Limits Income not captured
- Way Use many measures
A Question You May Face
An original practice question, not a past paper question.
“How does the multidimensional poverty index differ from income-based measures, and what does it show for India?”
How to Answer
- Concept Deprivation in 12 indicators.
- Data 25.01 to 14.96 per cent.
- Limit Not income.
- Way Combine measures.
GS Relevance
Frequently Asked Questions
What is the National Multidimensional Poverty Index?
The National Multidimensional Poverty Index is NITI Aayog measure of poverty based on 12 indicators in health, education and standard of living. It uses the Alkire-Foster method developed with OPHI and UNDP, and it identifies a household as poor if its weighted deprivation score is one third or more.
Who publishes the National MPI?
NITI Aayog publishes the National Multidimensional Poverty Index, with technical support from the Oxford Poverty and Human Development Initiative and the United Nations Development Programme. The Global MPI is a separate index published each year by UNDP and OPHI for over 100 developing countries.
What is India's latest national MPI headcount?
The 2023 progress review using NFHS-5 for 2019-21 put the headcount at 14.96 per cent, down from 25.01 per cent in 2015-16. A January 2024 NITI Aayog discussion paper estimated 11.28 per cent in 2022-23, as reported, and a newer national report was not verified as of November 2026.
Which are the indicators of the National MPI?
Twelve indicators are used: nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account. The health, education and standard of living dimensions each carry one third of the weight.
Which state has the lowest and highest MPI poverty?
In the NFHS-5 based progress review, Kerala had the lowest headcount at about 0.55 per cent, and Bihar had the highest at about 33.76 per cent, followed by Jharkhand and Uttar Pradesh, as reported. Uttar Pradesh recorded the largest fall in the number of poor between the two rounds.
PYQ Practice — Statement Analysis
1 The National MPI is published by UNDP.
It is published by NITI Aayog. UNDP publishes the Global MPI.
2 The national MPI uses 12 indicators.
The global MPI has 10.
3 Kerala had the lowest MPI headcount in the NFHS-5 review.
Bihar had the highest.
4 A household is poor if its deprivation score is one third or more.
Under the Alkire-Foster method.
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