Global Multidimensional Poverty Index (MPI) 2025: Concept, Findings, and Implications
- GS Paper 2: Welfare Schemes, Poverty Measurement, SDGs
- GS Paper 3: Inclusive Growth, Development, Social Indicators
- Essay: Poverty, Inequality, Human Development
- Prelims: MPI Agencies (UNDP/OPHI), Data, Indicators, India’s Rank
Introduction
Multidimensional poverty goes beyond income deprivation, reflecting a person or household’s lack of access to basic needs, health, education, and living standards. Traditional poverty measures, which focus only on income, miss critical aspects of disadvantage, making the Multidimensional Poverty Index (MPI) a significant advancement. Jointly developed by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI), the Global MPI offers comprehensive insights into global poverty. The 2025 report comes at a pivotal time, addressing post-pandemic challenges and progress towards Sustainable Development Goal 1 (No Poverty).
Methodology of MPI
Three Dimensions
- Health
- Nutrition
- Child mortality
- Education
- Years of schooling
- School attendance
- Standard of Living
-
- Cooking fuel
- Sanitation
- Drinking water
- Electricity
- Housing
- Assets
The MPI uses ten indicators distributed across these three dimensions, each weighted for deprivation measurement.
Alkire-Foster Method
This method identifies households as ‘multi-dimensionally poor’ based on deprivation cutoffs for each indicator and combines these through a weighted average. Those deprived in one-third or more of the weighted indicators are classified as multidimensionally poor.
Global MPI 2025 Highlights
- Scope: Covers 109 countries, assessing data for 6.3 billion people.
- Poor Population: 1.1 billion people (18.3%) globally are in acute multidimensional poverty.
- Regional Distribution: 83% of multidimensionally poor live in Sub-Saharan Africa (565 million) and South Asia (390 million).
- Trends: 76 out of 88 countries showed improvement at least once in recent years. However, the double burden of poverty and climate hazard is intensifying, with 80% of the world’s poor exposed to climate risks.
- COVID-19 Impact: Pandemic slowed progress and disproportionately affected the poorest through health, education disruption, and living conditions.
- Climate and Conflict: Data overlays climate hazards with poverty, revealing huge vulnerability in Africa, South Asia, and low-income countries.
India’s Performance in MPI 2025
- Current Ranking & Score: India’s progress continues, with multidimensional poverty declining from 55.1% (2005-06) to 16.4% (2019-21).
- Comparative Performance: India is among the fastest globally in reducing multidimensional poverty. Recent NITI Aayog findings show continued improvement in Bihar, Uttar Pradesh, and Jharkhand, historically poor states.
- India’s Contribution: India accounts for a significant share of global poverty reduction due to effective social schemes and rapid urbanization.
- National MPI: India’s own National MPI launched by NITI Aayog mirrors the global index and provides district/state-wise granular data for policy action.
Government Initiatives to Reduce Multidimensional Poverty
Health
- Ayushman Bharat: Free health insurance for poor families.
- Poshan Abhiyan: Tackling child malnutrition and maternal health.
Education
- Samagra Shiksha: Integrated school education improvement.
- PM eVIDYA: Digital learning and access to technology.
Living Standards
- PM Awas Yojana: Subsidized housing.
- Ujjwala Yojana: Safe LPG connections for cooking.
- Swachh Bharat Mission: Universal sanitation coverage.
- Saubhagya: Rural electrification.
- Jal Jeevan Mission: Universal piped water supply.
Social Protection
- Targeted subsidies for vulnerable groups.
- DBT (Direct Benefit Transfer) platforms and Aadhaar integration for transparency.
Challenges
- Inequality: Persistent urban-rural and inter-state disparities in health, education, and living standards.
- Regional Imbalance: Some states lag behind despite national progress.
- Climate Vulnerability: Poorest exposed to agriculture shocks, water scarcity, floods, and heatwaves.
- Data Accuracy: Large size and diversity challenge survey collection, reliability, and updating.
Global Comparisons & Diplomacy
- SDG 1 Commitment: MPI provides evidence for international cooperation towards “No Poverty.”
- India’s Role: As one of the largest contributors to global poverty decline, India sets an aspirational model for developing nations.
- International Policy Influence: MPI informs aid programs, resource allocation, and G20 dialogue on poverty eradication.
Way Forward
- Targeted Interventions: Data-driven policy actions to reach pockets of deprivation.
- Gender & Rural Focus: Measure and address poverty among women and rural populations.
- Digital Integration: Universal Aadhaar-linked platforms allow real-time monitoring and delivery of benefits.
- Climate Adaptation: Policy must integrate climate resilience with poverty reduction.
- Global Partnerships: Enhance cooperation with UNDP, OPHI, World Bank, and others for resources and expertise.
Conclusion
India’s robust multipronged efforts against multidimensional poverty, as recognized by global indices, affirm its rise as a model for transforming lives at scale. Progress aligns with the vision of Viksit Bharat @2047 and SDG-1. As Sabina Alkire notes, “Ending multidimensional poverty is not just about raising incomes—it’s about transforming lives by addressing deprivations in health, education, and living conditions.”
India’s MPI 2024 vs 2025
| Year | MPI Score | % of Population in Poverty |
|---|---|---|
| 2024 | 0.064 | 17.6% |
| 2025 | 0.061 | 16.4% |
Notable Quotes
“Ending multidimensional poverty is not just about raising incomes—it’s about transforming lives by addressing deprivations in health, education, and living standards.”
– Dr. Sabina Alkire, OPHI
FAQs
Q1: What makes MPI superior to traditional poverty measures?
MPI covers wider deprivation—health, education, living standards—instead of just monetary poverty, offering a more holistic perspective.
Q2: What is the role of the Alkire-Foster Method in MPI?
It aggregates multiple deprivations, applies cutoffs, and weights to compute an adjusted headcount ratio reflecting real multidimensional poverty.
Q3: What are the ten indicators under the MPI?
Nutrition, child mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets.
Q4: How has India performed in the Global MPI 2025?
India shows a sharp decline in poverty, with significant improvement in several states and a leading contribution to global poverty reduction.
Q5: Why is climate vulnerability integrated into MPI methodology?
Intersections between climate change and poverty compound risk; the 2025 index now tracks how exposure to climate hazards intensifies deprivation.
“How is poverty measured in India beyond income levels? Discuss the advantages of a multidimensional approach.”
