Official UPSC Format

Consider the following statements about Multidimensional Poverty Index (MPI) :
1. MPI is calculated using Alkire-Foster methodology.
2. MPI calculated by NITI Aayog has a total of twelve indicators.
3. Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP).
Which of the statements given above is/are correct ?

1. MPI is calculated using Alkire-Foster methodology.

2. MPI calculated by NITI Aayog has a total of twelve indicators.

3. Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP).

⚡ Quick Recall Snippet

Both the Global and National Multidimensional Poverty Indices use the Alkire-Foster methodology. While the UNDP Global MPI uses 10 indicators, India's National MPI, formulated by NITI Aayog, uses 12. The two exclusive additions for India are Maternal Health and Bank Account access.

Lock your answer to view explanation

Detailed Solution & Authority Citations

Correct Answer is Option A
Let's analyze the frameworks used to measure multi-dimensional poverty by the UNDP and NITI Aayog:
  • Statement 1 is Correct: Both the Global MPI and India's National MPI rely on the Oxford Poverty and Human Development Initiative's Alkire-Foster (AF) methodology. This mathematical framework calculates poverty not by income, but by measuring the intensity of overlapping deprivations a household faces simultaneously across various dimensions.

  • Statement 2 is Correct: The Global MPI utilizes 10 standard indicators. However, NITI Aayog's National MPI retains these 10 and adds two more to better reflect national priorities, bringing the total to 12 indicators.

  • Statement 3 is Incorrect: The two indicators added by NITI Aayog are Maternal Health (under the Health dimension) and Bank Account (under the Standard of Living dimension). Therefore, these are exclusive to the Indian National MPI. They are not 'common' indicators because the UNDP Global MPI does not include them.
    • Conclusion: Statements 1 and 2 accurately describe the methodological framework.

    🚨 The Examiner's Trap

    Statement 3 is the trap. It relies on the candidate knowing that Maternal Health and Bank Accounts are indicators in India, but hoping they mistakenly assume these are universal metrics shared with the UN, rather than India-specific additions.

    Active Recall Flashcard

    Tap to Flip

    Which two specific indicators were added by NITI Aayog to create the 12-indicator National MPI, distinguishing it from the 10-indicator UNDP Global MPI?

    Maternal Health and Bank Account.

    Concept Flow Mapping

    Multidimensional Poverty Index
    Uses
    Alkire-Foster Methodology
    NITI Aayog National MPI
    Contains
    12 Indicators
    UNDP Global MPI
    Does Not Contain
    Maternal Health Indicator

    Logic Quest

    "Why did NITI Aayog add 'Bank Account' to the poverty index?"

    Not analyzing core concepts like Localization of Global Development Metrics through the lens of Previous Year Questions is a serious miss-out. This PYQ engine is specifically designed to help you decode the examiner's mindset and master highly probable Economy questions for your upcoming Prelims.