135 million Indians escaped poverty since 2015, NITI Aayog report finds

Around 135 million people in India have escaped multidimensional poverty since 2015, a recent report by NITI Aayog found. The fastest reduction in poverty rates was observed in Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan.

The report, titled 'National Multidimensional Poverty Index: A Progress Review 2023', was released by NITI Aayog and its Vice-Chairman Suman Bery on Monday. It highlights India's significant decline in multidimensional poverty from 24.85 percent in 2015-16 to 14.96 percent in 2019-21, marking a decrease of 9.89 percentage points.

Rural areas experienced the most rapid decline in poverty, dropping from 32.59 percent to 19.28 percent, while urban areas saw a reduction from 8.65 percent to 5.27 percent.

The report comes just days after the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) released their Multidimensional Poverty Index. They reported that a total of 415 million people had moved out of poverty in India within 15 years from 2005-2006 to 2019-2021.

The National MPI, per the NITI Aayog report, evaluates deprivations in health, education, and standard of living through 12 sustainable development goal (SDG)-aligned indicators.

The 12 indicators, which are weighted differently, include:

1. Nutrition

2. Child and adolescent mortality

3. Maternal health

4. Years of schooling

5. School attendance

6. Cooking fuel

7. Sanitation

8. Drinking water

9. Housing

10. Electricity

11. Assets

12. Bank account

The report provides multidimensional poverty estimates for all 36 states and union territories, as well as 707 administrative districts. It highlights Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan as the states with the fastest reduction in the proportion of multidimensional poor.

Uttar Pradesh registered the highest decline in number of poor people by 34.3 million of the total 135 million, followed by Bihar and Madhya Pradesh.

Over the five years, the MPI value decreased by half, from 0.117 to 0.066, and the intensity of poverty decreased from 47 percent to 44 percent. This progress places India well on track to achieve SDG Target 1.2, which aims to reduce multidimensional poverty by at least 50 percent before 2030.

The report credits the government's dedicated focus on improving access to sanitation, nutrition, cooking fuel, financial inclusion, drinking water and electricity for the significant advancements in these areas. Notably, all 12 parameters of the MPI exhibited marked improvements.

The press release on the report highlights some key government initiatives such as the Poshan Abhiyan, Anaemia Mukt Bharat, Swachh Bharat Mission and Jal Jeevan Mission in improving health and sanitation across India.

Furthermore, the report emphasises the role of improved nutrition, years of schooling, sanitation, and cooking fuel in driving the reduction of poverty rates.