With reference to the recent findings on India's Multidimensional Poverty Index (MPI), consider the following statements:
1. The decline in MPI Headcount Ratio was faster between 2015-16 and 2019-21 compared to the period from 2005-06 to 2015-16.
2. As per the report, Cooking Fuel and Housing are among the indicators with the lowest levels of deprivation.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Explanation
NITI Aayog released a discussion paper titled ‘Multidimensional Poverty in India since 2005-06’.
Statement 1 is correct: India has registered a significant decline in multidimensional poverty in India from 29.17% in 2013-14 to 11.28% in 2022-23 i.e. a reduction of 17.89 percentage points. The pace of decline in poverty headcount ratio is much faster between 2015-16 to 2019-21 (10.66% annual rate of decline) compared to period 2005-06 to 2015-16 (7.69% annual rate of decline).
Statement 2 is incorrect: All 12 indicators of MPI have recorded significant improvement. Cooking Fuel and Housing have the highest deprivation level of deprivation.Child & Adolescent Mortality, Electricity, and Bank Account have the lowest deprivation levels. Within the standard of living dimension, highest levels of deprivation in 2005-06 were found in indicators such as Cooking Fuel (74.40%), Sanitation (70.92%), and Bank Account (58.11%) . On the other hand, Child & Adolescent Mortality (4.84%), School Attendance (21.27%), and Drinking Water (21.34%) had the lowest levels of deprivation in 2005-06. The latest estimates show that Cooking Fuel (43.90%) and Housing (41.37%) continue to have the highest deprivation, while indicators like Child & Adolescent Mortality (2.06%), Electricity (3.27%), and Bank Account (3.69%) maintain the lowest deprivation levels based on NFHS-5 (2019-21).
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