The blindspots in India’s calculation of poverty reduction

Poverty estimates have long been a political battleground in India. The recent Multidimensional Poverty Index findings have been critiqued not just for methodological flaws but also for potentially serving political narratives.

Political critics of the government point out, “It was a report prepared by NITI Aayog (Central government’s think tank), (based on) a survey done by them and reported by them.”

To be fair, the study of multidimensional poverty was led by the NITI Aayog in collaboration with UNDP and the Oxford Poverty and Human Development Initiative.

However, such a self-referential loop does raise questions about transparency and objectivity of India’s recent claims of a sharp reduction in multidimensional poverty.

Major gains have been reported in states long considered poverty hotspots – Uttar Pradesh, Bihar, and Madhya Pradesh. But behind these statistics lies a more complex story.

While the numbers may suggest progress, there are significant methodological and contextual concerns that cast doubt on the depth and durability of this achievement.

Evolution of poverty metrics

India’s poverty discourse has evolved from focusing solely on income or consumption to incorporating multidimensional indicators like education, health, and standard of living. This shift began with the pioneering work of Amartya Sen and Mahbub ul Haq in the 1990 UNDP Human Development Report.

It later matured into the Global Multidimensional Poverty Index, or...

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