________ emerged as the poorest state as per the first-ever Multi-dimensional Poverty Index (MPI) prepared by Niti Aayog and launched in November 2021.
Correct Answer :
Bihar
Solution :
The correct answer is Bihar.
Bihar emerged as the poorest state in India as per the first-ever Multi-dimensional Poverty Index (MPI) prepared by Niti Aayog, which was launched in November 2021.
What is the Multi-dimensional Poverty Index (MPI)?
The Multi-dimensional Poverty Index is a composite measure that goes beyond just income or monetary poverty. It captures poverty across multiple dimensions of well-being, assessing deprivations that people face simultaneously in areas such as:
• Health – nutrition, child and adolescent mortality
• Education – years of schooling, school attendance
• Living Standards – cooking fuel, sanitation, drinking water, electricity, housing, and assets
Why Bihar?
Bihar ranked as the most poor state because of its significantly high percentage of population experiencing deprivation across all these dimensions simultaneously. The key findings from the 2021 Niti Aayog MPI report regarding Bihar include:
• A very high Multidimensional Poverty ratio — approximately 51.91% of Bihar's population was classified as multidimensionally poor, the highest among all Indian states.
• Large segments of Bihar's population lacked access to basic necessities like proper sanitation, clean cooking fuel, adequate nutrition, and quality education.
• Bihar also showed a high intensity of poverty, meaning poor households were deprived in a large number of indicators simultaneously.
How was the MPI computed?
The MPI score is calculated using the formula:
Where:
• H = Headcount ratio (proportion of people identified as multidimensionally poor)
• A = Intensity of poverty (average share of weighted deprivations that poor people experience)
Bihar's high values for both H (headcount ratio) and A (intensity) resulted in an overall MPI score that placed it at the bottom among all Indian states.
Comparison with other states in the options:
• Madhya Pradesh – ranked as the second poorest state, with a high MPI score but lower than Bihar.
• Uttar Pradesh – also ranked very poorly, being one of the most populated states with widespread deprivations, but still above Bihar.
• Mizoram – a Northeastern state that fared significantly better than the above states in multidimensional poverty indicators.
Conclusion:
The 2021 Niti Aayog MPI was a landmark study as it was India's first official sub-national MPI, providing state-level and district-level poverty data. Bihar's consistently poor performance across all 12 indicators — especially in nutrition, sanitation, cooking fuel, and schooling — led to it being identified as the poorest state in India according to this index.
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