Poverty Eradication: Measurement and Outcomes

5.1 Multidimensional Poverty Index — MPI

The Multidimensional Poverty Index (MPI), developed by NITI Aayog for India (National MPI), measures poverty across three dimensions (health, education, living standards) and 12 indicators including:

• Nutrition, child mortality, school attendance
• Cooking fuel, sanitation, drinking water, electricity
• Housing, bank accounts, and assets

Rajasthan's MPI trajectory:

Survey Period	MPI Score	% Multidimensionally Poor	Intensity
NFHS-4 (2015-16)	0.117	28.86%	40.6%
NFHS-5 (2019-21)	0.066	15.31%	43.0%
Reduction	↓44%	↓47%	—

Source: NITI Aayog National MPI 2023; MPI India Progress Report

The 47% reduction in the headcount ratio — from 28.86% to 15.31% in just 5 years — places Rajasthan among India's top-performing states on poverty reduction. This is consistent with the national trend of lifting 13.5 crore people out of multidimensional poverty between 2015-16 and 2019-21 (NITI Aayog). Districts with highest poverty include Barmer, Jaisalmer, Banswara, Dungarpur, and Pratapgarh — predominantly western desert and southeastern tribal districts.

5.2 Income Poverty and Food Security

National Food Security Act (NFSA) 2013: Covers up to 75% of rural and 50% of urban population with subsidised grains (rice/wheat at ₹2-3/kg, coarse grains at ₹1/kg).

• Rajasthan's NFSA beneficiaries include over 4.5 crore individuals under the Priority Households (PHH) and Antyodaya Anna Yojana (AAY) categories.
• BPL ration cards provide access to Public Distribution System (PDS) benefits; Rajasthan uses the One Nation One Ration Card (ONORC) system allowing portability across states — critical for Rajasthan's large migrant labour population.

MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme): Guarantees 100 days of unskilled manual work per year to rural households.

• Rajasthan is historically one of the largest MGNREGS-utilizing states given its large rural semi-arid population.
• The scheme functions as direct poverty mitigation by providing a minimum wage floor (₹255/day in Rajasthan for FY 2024-25).

Ladli Protsahan Yojana: Provides ₹1.5 lakh to girl children from economically weaker families through 7 instalments (from birth through Class 12 graduation) — launched 1 August 2024 as part of CM Bhajanlal Sharma's women empowerment package.

5.3 HDI and Human Development

The Human Development Index (HDI), published by UNDP, combines life expectancy, mean/expected years of schooling, and per capita GNI. India's 2023 HDI rank is 134 out of 193 countries (HDI value: 0.644). Rajasthan's state-level HDI reflects below-average performance due to the female literacy deficit and health outcome gaps. For detailed HDI concepts, see Topic #22.

Rajasthan's composite development picture:

• Youth population: 27.8% of state population — a demographic dividend if productively absorbed
• Life expectancy improvement driven by IMR reduction and improved maternal health
• Per capita income: ₹1,85,053 (2024-25) — below national average of ₹2,00,162 (see Topic #31)

Source: NITI Aayog MPI India 2023; UNDP Human Development Report 2023-24; Rajasthan Economic Review 2025-26

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