October 23, 2025 | Law Entrance

Quick Overview

The Global Multidimensional Poverty Index (MPI) 2025, jointly released by UNDP and Oxford Poverty and Human Development Initiative (OPHI), highlights persistent and overlapping global deprivations. The 2025 report—titled “Overlapping Hardships: Poverty and Climate Hazards”—reveals that 1.1 billion people (18.3%) live in multidimensional poverty, with many exposed to multiple climate risks. India’s poverty levels have sharply declined from 55.1% (2005–06) to 16.4% (2019–21), but the intersection of poverty and climate vulnerability remains a major policy concern.

Key Findings of the Global MPI 2025

Global Scenario: Among 6.3 billion people in 109 countries, about 1.1 billion (18.3%) live in acute multidimensional poverty. These populations are predominantly rural, young, and concentrated in countries with low human development.
India’s Progress: India witnessed a major poverty reduction—from 55.1% (2005–06) to 16.4% (2019–21)—but large populations continue to face compounding challenges from heatwaves, floods, and air pollution.
Climate-Poverty Linkages: The report highlights that 309 million poor people live in regions exposed to three or more overlapping climate hazards. Without adequate climate adaptation measures, extreme poverty could nearly double by 2050.
Global Trends: Approximately 64.5% of the world’s poor reside in middle-income nations, revealing that poverty persists even amid national economic growth.
Major Deprivations: Key indicators of deprivation include lack of clean cooking fuel (970 million people), inadequate housing (878 million), poor sanitation (830 million), undernutrition (635 million), and out-of-school children (487 million).

Understanding the Multidimensional Poverty Index (MPI)

The MPI goes beyond income to measure deprivations in Health, Education, and Standard of Living through 10 key indicators.

Health (2 indicators): Nutrition, Child Mortality
Education (2 indicators): Years of Schooling, School Attendance
Standard of Living (6 indicators): Cooking Fuel, Sanitation, Drinking Water, Electricity, Housing, Assets

A household is considered poor if its deprivation score is 33.3% or higher. The MPI value (H × A) reflects both the proportion (H) and intensity (A) of poverty.

This approach provides policymakers a comprehensive diagnostic tool to identify overlapping deprivations and design integrated interventions.

India’s Efforts toward Poverty Alleviation

India’s multidimensional poverty strategy combines income support with targeted social protection. Key initiatives include:

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – ensures rural employment.
Pradhan Mantri Jan Dhan Yojana (PMJDY) – fosters financial inclusion.
National Rural Livelihood Mission (NRLM) – strengthens self-help groups and rural enterprises.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) – enhances employability through skill training.
Lakhpati Didi and PM-KISAN – promote income growth and agricultural support.

Challenges and the Way Forward

Challenges	Measures Needed
Multidimensional Deprivations – Health, education, sanitation	Integrated welfare convergence (POSHAN Abhiyan, PM Awas Yojana, Samagra Shiksha)
Climate Vulnerability – Exposure to floods, heat, droughts	Climate-resilient agriculture, risk insurance, and green infrastructure
Informal Sector Employment – Lack of safety nets	Universal social protection via e-Shram and Shram Yogi Maan-dhan
Regional Disparities – Concentration of poverty in eastern states	Aspirational Districts Programme and targeted affirmative action
Agrarian Distress – Low productivity and income	PM-KISAN, FPOs, and Agriculture Infrastructure Fund

Case Study: Kerala’s Poverty Eradication Model

On 1st November 2025, Kerala will become India’s first state officially free from extreme poverty, as defined by the World Bank threshold of USD 3/day (PPP 2021).
The state identified 64,000 extremely poor families and implemented micro-plans addressing housing, health, and livelihood needs.
Kerala’s model demonstrates how localized data-driven planning can achieve inclusive development goals.

Conclusion

The 2025 Global Multidimensional Poverty Index serves as a stark reminder that economic progress alone cannot eliminate deprivation. The intersection of poverty and climate risks threatens to undo years of global development gains. India’s progress in reducing poverty is commendable, but the persistence of overlapping vulnerabilities calls for integrated, climate-conscious, and region-specific policy frameworks. As Kerala demonstrates, eradicating extreme poverty is possible when socioeconomic inclusion and sustainability go hand in hand.

CLAT/Exam Relevance Summary

UPSC GS Paper 2 & 3:

Topics: Poverty, Inclusive Growth, Human Development, Social Justice, and Climate Resilience.
Concepts: MPI Methodology, Poverty Alleviation Schemes, SDGs (Goal 1 & 13).
Relevance: Direct link to poverty measurement beyond income, policy convergence, and climate-poverty interlinkages.

CLAT & Other Law/Policy Entrance Exams:

General Awareness: International Reports (UNDP, OPHI), India’s Poverty Data, Kerala’s Extreme Poverty Eradication.
Legal Relevance: Understanding socio-economic rights, State welfare obligations, and global development frameworks under international law.