Indian Economy·Revision Notes

Poverty Measurement — Revision Notes

Updated 19 Oct 2026

⚡ 30-Second Revision

  • MPI = H × A; intensity A is among those identified as poor.
  • Three dimensions, twelve indicators; dimension weights equal, indicator weights not uniform.
  • NFHS 2015–16 to 2019–21: 24.85% → 14.96% in the 2023 report.
  • 2024 discussion-paper extensions are estimates.
  • June 2025: World Bank USD 3.00/day in 2021 PPP terms.

2-Minute Revision

A poverty measure needs a definition, threshold, source and period. Headcount can miss worsening shortfalls among the same people. MPI adds weighted intensity, while monetary measures address resources. Survey observations and estimates extended from trends provide different evidence. Compare consistent measures and use their differences to diagnose policy needs.

5-Minute Revision

Calculate MPI for H = 25% and A = 40%. Then find the percentage-point and relative reductions from a hypothetical 20% headcount to 15%. Label a direct survey, an extrapolated estimate and a publication date correctly in three separate sentences.

Vyyuha Quick Recall

M–T–S–P = Measure, Threshold, Source, Period. H×A = How many are poor × Average intensity among them; neither letter can be omitted when interpreting MPI.