Multidimensional Poverty in India

How India Is Tackling Poverty Beyond Income Measures

What is Multidimensional Poverty?

Multidimensional Poverty goes beyond income levels to assess poverty based on deprivations in health, education, and living standards. The Multidimensional Poverty Index (MPI) evaluates how many people are poor and the intensity of their poverty.

India's Progress in Reducing MPI

India has made remarkable progress in the last two decades in lifting millions out of poverty, especially in rural regions and backward states.

MPI Headcount Ratio:

2015-16: 24.85%
2019-21: 14.96%
Nearly 10% drop in just five years, showing significant progress.

Population Lifted Out of Poverty:

2015-16 to 2019-21: 13.5 crore people
2005-06 to 2019-21: 41.5 crore people
India is well on its way to achieving UN SDG Target 1.2 (halving poverty by 2030) much earlier.

Rural vs Urban: Where Are the Gains?

Rural Areas:

2015-16: 32.59% poor
2019-21: 19.28% poor
Biggest improvement seen in villages due to schemes like rural electrification, sanitation, and health missions.

Urban Areas:

2015-16: 8.65% poor
2019-21: 5.27% poor
Better access to education and jobs continues to benefit urban poor.

Children & Vulnerable Groups: A Mixed Picture

Children in Poverty:

1 in every 5 children in India lives in multidimensional poverty
➡️ Despite improvement, child deprivation remains a major concern.

Intensity of Poverty:

2015-16: 47%
2019-21: 44%
Even among the poor, the level of deprivation has slightly reduced.

State-Wise Performance

Top Performing States:

Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, Rajasthan
These states showed the most significant decline in MPI, thanks to targeted schemes like PM Awas Yojana, Ujjwala, and Ayushman Bharat.

Hidden Costs: Healthcare & Poverty

63 million Indians are pushed into poverty every year due to out-of-pocket healthcare expenses.
That’s almost 2 people every second, underlining the need for robust public health infrastructure.

Caste-Based Disparities in MPI

Poverty by Social Group:
- Scheduled Tribes (STs): 50.6%
- Scheduled Castes (SCs): 33.3%
- Other Backward Classes (OBCs): 27.2%
  5 out of every 6 multidimensionally poor Indians belong to historically disadvantaged communities.

Global Perspective

85% of the world’s multidimensional poor live in South Asia and Sub-Saharan Africa.

Key Takeaways for Students & Aspirants

India is ahead of its SDG poverty targets.
Rural regions are improving but still lag behind urban centers.
Health costs remain a major cause of poverty.
Social equity in policy delivery is essential to bridge caste-based disparities.
Understanding MPI is critical for UPSC, SSC & State Exams.

Final Words

India’s journey from widespread deprivation to focused improvement in multidimensional poverty reduction is a story of policy effectiveness, inclusive development, and sustained efforts. Yet, there’s much more to achieve—especially in addressing healthcare costs and children’s deprivation.

Join Our Official WhatsApp Groups for Free Learning & Career Guidance!

Stay updated with important exam tips, scholarship alerts, motivation, and growth opportunities – directly on your phone. Choose your channel and start your journey with us: