Poverty Measurement — Prelims Strategy

Prelims Strategy

For MPI calculations, write H and A as proportions before multiplying. A 30 per cent headcount and 40 per cent intensity produce 0.12; adding them or reading the product as a new headcount changes the measure. Remember that intensity is averaged among those identified as poor.

For changes in a poverty rate, distinguish subtraction from relative reduction. Moving from 24.85 to 14.96 per cent is a 9.89-percentage-point decline. A relative percentage requires division by the starting value. Check which quantity the question requests.

Attach survey periods to the NITI reports. The 2023 publication uses NFHS-4 and NFHS-5 observations; the January 2024 discussion paper extends the series through estimation. Publication year is not automatically survey year.

Finally, pair the international line with its PPP basis: USD 3.00 in 2021 international dollars following the June 2025 update. A current market exchange rate does not provide the appropriate purchasing-power conversion for that international comparison.