Multidimensional Poverty Index (MPI):

 Multidimensional Poverty Index (MPI):

 United Nations in 2010 introduced this concept to measures poverty as an acute deprivation of essential aspects of life.

 It measures three key targets – living standards, education and healthcare.

Income based approach do not reveal the nature of poverty and the human sufferings. Poverty is basically denial of a range of material needs such as nutritious food, shelter, health care, education, drinking water etc. It is based on cost of subsistence in a given country. 

Worldwide approximately one billion people live on less than US $1.00 a day. From the year 2010 the HPI index has been replaced by a better and more comprehensive poverty measure the Multidimensional Poverty Index (MPI) which goes beyond income poverty and gives a better understanding of different types of deprivation the poor may face. It incorporates 10 weighted indicators:

Table: 2 Weights assigned to various indicators

Serial No.	Indicator	Weight	Serial No.	Indicator	Weight
1	Years of Schooling	1/6	6	Flooring	1/18
2	Child enrollment	1/6	7	Drinking Water	1/18
3	Child mortality	1/6	8	Sanitation	1/18
4	Nutrition	1/6	9	Cooking Fuel	1/18
5	Electricity	1/18	10	Assets	1/18

The MPI reflects both the extent of poverty and its intensity and throws up some new light on Indian poverty. A person is poor in this index if he is deprived on at least 30% weighted indicators. By this definition 55% of India is poor twice the official figure released by Planning Commission based on the calorie norm.

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