Based on multidimensional poverty measurement, the Poverty Ratio (Head Count Ratio) in Tamil Nadu declined from 4.89% in 2015-16 to 1.57% in 2020-21, based on the fourth and fifth rounds of the National Family Health Survey (NFHS) data. Is this too good to believe? Maybe so. Academics have questioned the quality of NFHS data for various reasons, based on the previous four rounds of NFHS databases. Such questions may be raised against the NFHS 5 database also. But first, let us explore the poverty statistics derived from NFHS 5 data using the multidimensional poverty measurement suggested by NITI Aayog and its pointers for policy intervention. After this, we will raise questions about the quality of NFHS data with the aim of using it with caution and to improve data quality keeping the future in mind.
On the MPI
NITI Aayog, armed with a fairly large sample survey data of NFHS 4 (with more than six lakh households in India), estimated the Multidimensional Poverty Index (MPI) and published the baseline report in 2021. The rationale for the MPI was derived from the concept that poverty is the outcome of simultaneous deprivations in multiple functions such as attainments in health, education, and standard of living. The NITI Aayog identified 12 indicators in these three sectors and calculated the weighted average of deprivations in each of these 12 indicators for all men and women surveyed in NFHS 4. If an individual’s aggregate weighted deprivation score was more than 0.33, they were considered multidimensionally poor.
