Measurement of Multi-Dimensional Poverty in India: A state level analysis

The paper measures the multidimensional poverty index (MPI) in India by considering National Sample Survey (NSS) data on ‘Consumption Expenditure’ for the period of 2004-05 and 2011-12 by using Alkire and Foster’s (2011) methodology and by considering three main indicators i.e., standard of living, education and income at the household or persons level. The results show that multidimensional poverty head count has declined from 62.2 percent in 2004-05 to 38.4 percent in 2011-12. However, rural/ urban separate analysis clearly indicates a sharp decline in rural poverty compared to urban poverty reduction. Lack of education of the household members made the highest contribution to poverty, followed by income and standard of living in India. State level analysis show that Jharkhand, Uttar Pradesh, Rajasthan, Orissa, Bihar, Chhattisgarh, and Arunachal Pradesh, have a higher poverty head count ratio while Kerala, Mizoram, Nagaland, Punjab, Himachal Pradesh, and Haryana have lower poverty rate. Promoting local resource and tourism based industries through urbanization, higher and job oriented education, and long term saving for creating funding are required to reduce poverty in India.