Current Affairs PDF

NITI Aayog’s 1st National MPI 2021: Kerala has Lowest Poverty while Bihar has Highest

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Niti Aayog's Poverty Index

On November 26, 2021, NITI (National Institution for Transforming India) Aayog released its first ‘National Multidimensional Poverty Index (MPI) 2021-Baseline report’ in which Bihar, Jharkhand and Uttar Pradesh (UP) ranked as the poorest state in India.

  • On the other hand Kerala has lowest poverty across India (0.71%), followed by Goa (3.76%), Sikkim (3.82%), Tamil Nadu (4.89%) and Punjab (5.59%).
  • This index is also India’s first ever national MPI measure based on the reference period of 2015-16 of the National Family Health Survey (NFHS).
  • Note-According to Global MPI 2021, India’s rank is 66 out of 109 countries.


It has been developed by NITI Aayog in consultation with 12 Line Ministries and in partnership with State governments and the index publishing agencies –Oxford University’s Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP).

  • It has three equally weighted dimensions, health, education and standard of living which are represented by 12 indicators namely nutrition, child and adolescent mortality, antenatal care, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank accounts.

Story of Union Territories (UTs):

Among Union territories, Dadra and Nagar Haveli (27.36%), Jammu & Kashmir and Ladakh (12.58%), Daman & Diu (6.82%) and Chandigarh (5.97%) have emerged as the poorest UTs.

  • Meanwhile, Puducherry with 1.72% of its population as poor, Lakshadweep (1.82%), Andaman & Nicobar Islands (4.30%) and Delhi (4.79%) have fared better.

Key Points:

i.In accordance with the report 51.91% of the population in Bihar is poor, followed by 42.16%  in Jharkhand, 37.79 % in UP, 36.65% in Madhya Pradesh (MP)and 32.67% in Meghalaya.

ii.The highest number of malnourished people are also reported in Bihar, followed by Jharkhand, MP, UP and Chhattisgarh.

iii.Bihar also ranked at the bottom in various other categories, including percentage of population deprived of maternal health, percentage of population deprived of years of schooling, school attendance and percentage of population deprived of cooking fuel and electricity.

iv.UP ranked the worst in child and adolescent mortality category, followed by Bihar and MP.

v.Jharkhand performed worst in percentage of population deprived of sanitation, followed by Bihar and Odisha.

vi.Manipur performed worst in percentage of population deprived of Drinking Water, followed by Meghalaya , Andhra Pradesh. Manipur performed worst in percentage of population deprived of Housing, followed by Arunachal Pradesh , Assam.

vii.Nagaland performed worst in percentage of population deprived of Assets followed by Meghalaya, Bihar. Nagaland performed worst in percentage of population deprived of Bank Acounts followed by Bihar, Manipur.

Need behind MPI of India:

It acts as the public policy tool which monitors multidimensional poverty, informs evidence-based and focused interventions. Mainly it defines poverty in simple terms.

  • In 2020, the Cabinet Secretariat had identified 29 global indices to monitor, analyse and evaluate with the aim of improving India’s position in global rankings.
  • Under this mandate, also known as the Global Indices for Reforms and Growth (GIRG) mandate, NITI Aayog was identified as the nodal agency for MPI.

Point to be noted:

Among the 17 sustainable Development Goals (SDGs) established by the United Nations General Assembly (UNGA) in 2015, SDG 1 aims to end poverty in all its forms everywhere.

Click here for official report

Recent Related News:

In accordance with the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, ‘Situation Assessment of Agricultural Households and Land Holdings of Households in Rural India, 2019’ released on September 10, 2021, more than half of India’s agricultural households were in debt, with an average outstanding of Rs 74,121 in 2018 as compared to Rs 47,000 in 2013, an increase of 57.7%.

About NITI (National Institution for Transforming India) Aayog:

Establishment– January 1, 2015
Headquarters– New Delhi, Delhi
CEO– Amitabh Kant