About half of aspirational districts witness sharp drop in multi-dimensional poverty

IANS April 11, 2025 177 views

India is making remarkable strides in combating poverty through innovative approaches beyond traditional monetary measurements. The Multidimensional Poverty Index highlights significant progress in 46% of aspirational districts across different states. Prime Minister Narendra Modi's targeted intervention strategy has shown promising results in addressing economic challenges. The SBI Research report suggests poverty rates could be as low as 4-4.5%, indicating substantial economic transformation.

"We changed this approach and called them aspirational and implemented schemes in mission mode" - PM Narendra Modi
New Delhi, April 11: Nealy half of aspirational districts in the country have seen a quicker drop in multi-dimensional poverty levels, with Madhya Pradesh, Andhra Pradesh, Assam and Tamil Nadu leading the pack.

Key Points

1

Multidimensional Poverty Index reveals targeted poverty reduction strategy

2

Rural poverty dramatically drops to 4.86% in 2023-24

3

Government interventions prove effective in addressing economic disparities

4

Comprehensive approach captures diverse poverty dimensions

According to data from Niti Aayog’s ‘Multidimensional Poverty Index 2023,’ 46 per cent of the 106 aspirational districts have witnessed a drop in multidimensional poverty.

Traditionally, poverty has been measured by assessing monetary resources available for an individual or household. The Multidimensional Poverty Index (MPI) is now considered as a more direct and comprehensive measure of people’s deprivation and poverty.

It captures and reveals the outcome of economic growth and development, income and its distribution and various development initiatives of the State.

Besides, it has been globally realised that non-monetary measures complement monetary measures to capture diverse dimensions of poverty.

This granular approach proves essential in India’s diverse context, enabling targeted interventions to address acute poverty and uphold the principle of inclusivity, ensuring that “no one is left behind.”

According to Prime Minister Narendra Modi, some of the aspirational districts had done better than national and state average.

“Earlier, the government had announced 100 districts as backward, many of them in the Northeast and tribal belts. We changed this approach and called them aspirational and implemented schemes in mission mode. Reputed institutions and journals have praised India's aspirational districts move,” PM Modi said during an event in the national capital this week.

Meanwhile, an SBI Research report earlier this year showed that India's rural poverty ratio has registered a dramatic decline to 4.86 per cent in the financial year 2023-24 from 25.7 per cent in 2011-12 while urban poverty has fallen to 4.09 per cent from 4.6 per cent during this period.

"At an aggregate level, we believe poverty rates in India could now be in the range of 4 per cent-4.5 per cent with almost minimal existence of extreme poverty," the report said.

The sharp decline in the rural poverty ratio is on account of higher consumption growth in the lowest 0-5 per cent decile with significant government support.

Reader Comments

P
Priya K.
This is such encouraging news! The MPI approach makes so much more sense than just looking at income. Happy to see states like MP and Assam making progress. Hope this momentum continues! 🙌
R
Rahul S.
While the progress is commendable, I wonder how sustainable these improvements are. What's being done to ensure these districts don't slip back? Also curious about the methodology - how exactly are they measuring these non-monetary factors?
A
Ananya M.
The rebranding from "backward" to "aspirational" districts was such a smart move. It changes the whole narrative and mindset around development. Language matters more than we think!
S
Sanjay P.
From 25.7% to 4.86% in rural poverty is incredible! But I hope they're also tracking quality of life improvements - better schools, healthcare access, etc. The numbers are great, but what's the lived experience like?
M
Meena R.
My cousin works in one of these aspirational districts in TN. She says the difference in infrastructure and opportunities in just 5 years is night and day. More power to this initiative! 💪
K
Kiran D.
The MPI approach is definitely more holistic, but I worry about implementation gaps at local levels. Some districts might be gaming the system to show better numbers. Need more transparency in reporting.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
Poverty Reduction Niti Aayog Narendra Modi Multidimensional Poverty Index Rural Development Indian Economy
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