Multidimensional poverty in India: A study on rural-urban disparity analysis

Multidimensional poverty (MP) is a comprehensive measure that captures the various deprivations experienced by individuals and households, including health, education, and living standards. This study examines the status and improvement of multidimensional poverty across states and Union Territories (UTs) in India using secondary data from the fourth and fifth rounds of the National Family Health Survey (NFHS), conducted in 2015-16 (NFHS-4) and 2019-21 (NFHS-5), respectively. It also investigates the rural-urban disparity in MP. The study employs NITI Aayog's Multidimensional Poverty Index (MPI) to measure MP. The results indicate that MP is a widespread issue in India, with the highest rates in Bihar, Meghalaya, Jharkhand, Uttar Pradesh, and Rajasthan. There is a substantial decline in poverty incidence, poverty intensity and multidimensional poverty index across states and UTs between NFHS-4 and NFHS-5. However, the study highlights the consistent poverty intensity between rural and urban areas during the study period. Additionally, it reveals a higher incidence of poverty in rural areas than in urban areas across states. In contrast, the poverty intensity remains the same in both areas during the study period. These findings have important implications for policymakers and government agencies aiming to reduce poverty and inequality in India.