Multidimensional poverty data reopens a great debate
The Niti Aayog has published a discussion paper titled ‘Multidimensional Poverty in India since 2005-06.’ It is a technical paper that examines our poverty trend over the past two decades. It estimates that nearly 250 million people escaped multidimensional poverty in the last nine years. This estimation is done by interpolating poverty numbers for 2013-14 and 2022-23, based on data extracted from National Family Health Survey rounds 3, 4 and 5 (i.e.
from 2005 till 2021). What does it mean to be multidimensionally poor? It means poverty as measured not only by lack of income, as conventionally understood, but also along other dimensions of deprivation. These include indicators like health, schooling, sanitation and even bank accounts.
The interpolation is linear, weights for various dimensions are equal and deprivation cut-offs are specified. One can quibble about finer methodological points, but let us leave that discussion for another occasion. A multidimensionally poor person is one who is deprived (i.e.
below the cut-off) on at least four of 12 dimensions. Measured thus, the proportion of Indians below the poverty line fell from 29.17% in 2013-14 to 11.28% in 2022-23, translating to roughly 248 million. That’s an impressive achievement in a short period.
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