Multidimensional Poverty Index vs World Bank Data: Key Contrasts for Exams: Sample Q&A

The New Poverty Landscape
World Bank’s Revised Threshold: $3/day (up from $2.15) → extreme poverty drops to 5.3% (2022-23 vs 27.1% in 2011-12)
Absolute Numbers: Only 75.24 million now below extreme poverty line (down from 344 million)
Lower-Middle Income Benchmark: At $4.20/day, poverty fell from 57.7% to 23.9%

Why This Matters for UPSC GS-II
Data Interpretation Skills:
Same data, different thresholds: $2.15/day shows 2.3% poverty vs $3/day at 5.3%
Adjustment for inflation explains variations
Beyond Income Poverty:
World Bank MPI: Non-monetary poverty fell from 53.8% (2005-06) to 15.5% (2022-23)
NITI Aayog MPI: Uses 12 indicators (health/education/living standards) – fell to 11.28% (2022-23)

Key Committees Every Aspirant Must Know
Tendulkar Committee (2009): Introduced health/education into poverty calculation
Rangarajan Committee (2014): Set ₹47/day urban & ₹32/day rural thresholds
Lakdawala (1993): Calorie consumption focus
Alagh (1979): First official poverty line (2,400 kcal rural / 2,100 kcal urban)

Government Schemes Driving Change
Direct Benefit Transfers: PM-KISAN, pensions
Employment Guarantee: MGNREGA (267 crore person-days in 2023-24)
Food Security: NFSA covering 80 crore people
Housing: PMAY-Gramin (2.9 crore houses built)
 

5 Sample Q&A for UPSC/SSC
Q1: What triggered India’s poverty drop to 5.3% in World Bank data?
A: Revised poverty threshold from $2.15 to $3/day (2021 inflation adjustment).
Q2: How does NITI Aayog’s MPI differ from Global MPI?
A: NITI Aayog uses 12 indicators (vs Global MPI’s 10), adding maternal health/bank accounts.
Q3: Which committee linked poverty to calorie intake?
A: Alagh Committee (1979) – 2,400 kcal (rural) and 2,100 kcal (urban).
Q4: At $2.15/day, what % of Indians live in extreme poverty?
A: 2.3% (33.66 million people) as per 2022-23 data.
Q5: Name two schemes reducing multidimensional poverty.
A: NFSA (food security) and PM Ujjwala Yojana (clean cooking fuel).