As per National Multidimensional Poverty Index - Baseline Report, published by NITI Aayog in  2021, what percentage of population in urban areas is poor?

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  1. 10.32%
  2. 21.09%
  3. 8.81%
  4. 5%

Answer (Detailed Solution Below)

Option 3 : 8.81%
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Detailed Solution

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The correct answer is  8.81%.
 

Key Points

  •  National Multidimensional Poverty Index (MPI) is an initiative by the Government of India to measure poverty in a comprehensive manner, taking into account various factors such as health, education, and living standards.
  •  The baseline report of MPI was published by NITI Aayog in 2021 and covers both rural and urban areas of the country.
  • Therefore, the correct answer is option 3, i.e., 8.81%, which represents the percentage of the population in urban areas who are poor according to the MPI.

Additional Information Multidimensional Poverty Index(MPI)

  • It seeks to measure poverty across its multiple dimensions and in effect complements existing poverty statistics based on per capita consumption expenditure. 
  • It has three equally weighted dimensions –health, education, and standard of living.
  • These three dimensions are represented by 12 indicators: 
    • Such as nutrition, school attendance, years of schooling, drinking water, sanitation, housing and bank accounts among others.
  • According to Global MPI 2021:
    •  India’s rank is 66 out of 109 countries. 
  • The National MPI is aimed at deconstructing the Global MPI and creating a globally aligned and yet customized India MPI for drawing up comprehensive Reform Action Plans with the larger goal of improving India’s position in the Global MPI rankings.
  • Highest (multidimensional poverty)
    • Bihar has the highest multidimensional poverty proportion of people of the state’s population followed by Jharkhand and Uttar Pradesh.
  • Lowest (multidimensional poverty)
    • Kerala registered the lowest multidimensional poverty population poverty levels, followed by Puducherry, Lakshadweep, Goa and Sikkim.
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