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Poverty: The Multidimensional Trap

Lack of access to Education, Health, and Standard of Living.

What are the trends in India's multidimensional poverty rate and wealth distribution? -

Visual: Multidimensional Poverty Decline & Wealth Concentration Split

Multidimensional Poverty Index (MPI) Rate (%)

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National Wealth Distribution Share (%)

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Source: NITI Aayog National MPI / Oxfam India Wealth Report.

Key Insight: India has witnessed a steep structural decline in multidimensional poverty, dropping from 29.17% in 2013-14 to 11.28% in 2022-23, lifting over 24.8 crore people out of poverty. However, high vertical inequality remains a core challenge, with the top 1% possessing 40.1% of national wealth, highlighting the need for inclusive economic growth and robust redistributive social welfare schemes.

What are the key poverty and hunger metrics (MPI, GHI) and capability concepts? - National MPI (NITI Aayog): Multidimensional poverty declined from 24.85% (2015-16) to 14.96% (2019-21); translating to 24.8 crore people moving out of poverty (SDG 1 Progress Report 2025). - Global Hunger Index 2024: India ranked 105th out of 127 nations (Score: 27.3); category: Serious. - Amartya Sen's Capabilities Approach: Poverty is the deprivation of basic freedoms/capabilities (Political, Economic, Social) rather than just lack of income. - Triple Burden of Malnutrition: Simultaneous presence of Undernourishment, Micronutrient deficiency (Hidden Hunger), and Obesity (Silent Epidemic).
How do 12th Plan poverty targets compare with the current multidimensional approach?

12th FYP vs. Current Metrics (Source: 12th FYP Vol. I / NITI Aayog)

12th Plan Progress Indicators:

- Poverty Line: ₹3,900/mo (Rural); ₹4,800 (Urban) → Replaced by Multidimensional Poverty Index (MPI) - Poverty %: 29.8% (Tendulkar) → 19.8% → 11.28% (NITI MPI 2023-24 projection) - Poverty Decline Rate: 0.74 ppt/year (1993-2004) → 1.5 ppt/year (2004-09) → ~2.1 ppt/year (Post-2014 trajectory) - Child Malnutrition: NFHS-3 Levels → Reduce by 50% → 35.5% Stunting (NFHS-5)

Key Takeaway for Mains: The transition from Income Poverty (Tendulkar/Rangarajan) to Multidimensional Poverty (NITI/MPI) reflects a shift toward addressing deprivations in health, education, and standard of living simultaneously.


Interview Ready: "While 12th FYP targets were purely consumption-based, today's 'Saturation Approach' focuses on ensuring 100% delivery of basic services (water, electricity, gas) as the primary tool for poverty exit."


Bridging Note: 12th FYP (2012–17) proposed the Dr. C. Rangarajan Committee to review the poverty line, which eventually gave way to NITI Aayog’s reliance on the Global MPI framework.

What flagship solutions, safety nets, and financial inclusion programs address poverty and hunger? - PMAY: Affordable housing for all. - Jal Jeevan Mission: Piped water to ensure health and hygiene. - PM-GKAY: Free food grain security for 80 crore people. - NFSA 2013 (Section 13): Empowers women by designating the eldest woman (18+) as the head of household for ration cards. - 12th FYP Proposal (Para 1.66): Recommended shifting from physical delivery of subsidized commodities (PDS) to a Cash Transfer system linked to Aadhaar to reduce leakages. This laid the conceptual foundation for Direct Benefit Transfer (DBT). - MGNREGA: Reduced poverty by 32% and prevented 14 million people from falling into poverty (significant impact on SC/ST participation). - Financial Inclusion: - PMJDY (Jan Dhan): Direct Benefit Transfer (DBT) via 50+ crore bank accounts. - PM Svanidhi: Micro-credit facility (Rs 10,000) for street vendors to resume livelihoods post-pandemic. - Urban Employment Guarantee: States like Kerala (Ayyankali), Odisha (Unnati), and HP (MMSAGY) have launched urban versions of MGNREGA to address urban distress. - e-SHRAM Portal: National database of unorganized workers (30 crore+ registered) to facilitate delivery of social security schemes and facilitate portability. - Civil Registration System (CRS): Revamped for real-time recording of births and deaths (RGI mandate) to ensure accurate identification for entitlements. - Insurance/Pension: PMJJBY (Life), PMSBY (Accident), and APY (Organized/Unorganized sector pension).
List the related modules and key phrases for mains. - GS3 Economy: [Poverty & Unemployment](/upsc/gs3/economy-mains/03_poverty_and_unemployment_mains) - GS2 Health: [Health Justice](/upsc/gs2/social-justice-mains/health-mains) - GS2 Governance: [Self Help Groups (SHGs)](/upsc/gs2/governance-mains/shgs-mains)
Mains Keywords

Capabilities Approach (Sen); GHI 107th; Silent Epidemic (Obesity); Section 13 (NFSA); MGNREGA 32%; PM Svanidhi; e-SHRAM; Urban Employment (Ayyankali/Unnati); CRS Revamp; Zero-Hunger-Saturated.