Multidimensional Poverty Index and Rural Development of India

Context: 

Recently, NITI Aayog has released the Report “National Multidimensional Poverty Index: A Progress Review 2023” which states that nearly 13.5 crore people were lifted out of poverty in the five-year period till 2019-21. 

About NITI Aayog’s Multidimensional Poverty Index (MPI):

• Modeled on: The Global Multidimensional Poverty Index (jointly published by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP)). 
• 3 Dimensions: Health, education, and living standards.
• 12 Indicators: These include nutrition, child and adolescent mortality, maternal health, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets, and bank accounts.

Key Findings: 

• Decline in Poverty: Proportion of the population in multidimensional poverty declined from 24.85% to 14.96% (2015-16 to 2019-21).
• Status of States: In terms of number of MPI poor, Uttar Pradesh saw the steepest decline with 3.43 crore people moving out of multidimensional poverty, followed by Bihar (2.25 crore) and Madhya Pradesh (1.36 crore).

Positive Changes in Rural Areas: 

• Rise in ‘pucca’ and semi-pucca houses.
• Increased cell phone usage and ownership of smart devices. 
• Shift from bicycles to motorbikes for transportation. 
• Well-stocked village shops with branded consumer goods. 
• Girls’ education and Modern wedding practices (DJ systems, videography). 

Reasons for Reduction in Multidimensional Poverty in India:

• Government’s targeted policies, schemes and development programmes.
• Key Government Schemes: Such as Swachh Bharat Mission (SBM), Jal Jeevan Mission (JJM), Poshan Abhiyan, Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), Pradhan Mantri Ujjwala Yojana (PMUY), Pradhan Mantri Jan Dhan Yojana (PMJDY) among others.

Concerns and Challenges: 

• Rural-Urban Migration: 
  • Larger number of locked houses due to migration.
  • Shortage of labor affects farming, especially vegetable cultivation.
  • Farmers’ declining interest in agriculture. 
  • More land under ‘lease’ arrangement, leading to lower investment and productivity. 
• Addiction to Harmful Substances: 
  • Rising addiction to tobacco, gutka, and liquor. 
  • Wide availability of liquor in villages. 
  • Adverse impact on work capacity and productivity. 
• Digital Addiction: 
  • Widespread addiction to smartphones and social media apps. 
  • Negative effects on physical and mental health. 
  • Social fabric erosion, leading to crimes against women and Scheduled Castes. 
  • Spread of misinformation and rumors. 
• Hygiene and Sanitation: 
  • Swachh Bharat Mission improved home toilets, but common areas remain unclean. 
  • Waste disposal at a nascent stage in villages. 

Possible Solutions: 

• Increase employment opportunities near villages. 
• Control availability of tobacco products and liquor. 
• Awareness campaigns on excessive internet use. 
• Launch Swachh Abhiyan 2.0 with focus on village-level waste management. 
• Role of NITI Aayog:
  • NITI Aayog can create a comprehensive blueprint. 
  • Active stakeholder consultation for addressing concerns. 
  • Focus on holistic improvement of personal lifestyles. 

Conclusion: It is critical to monitor progress, assess gaps and address emerging channels amidst global macroeconomic scenarios to achieve India’s aim to reduce poverty in all its forms by at least half by 2030 in line with SDG target 1.2.

News Source: The Hindu BusinessLine

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