Examining multidimensional poverty reduction in India 2005/6–2015/16: Insights and oversights of the headcount ratio

Following Amartya Sen’s pioneering ideas on poverty and inequality measurement, the development economics literature proposes diverse classes of measures as well orderings. Yet in Sustainable Development Goals (SDGs), headcount ratio is primary statistic for measuring monetary multidimensional poverty. Rigorously analysing trends India between 2005/6 2015/16, we illustrate how not able to observe certain centrally important requirements SDGs – such whether anyone being left behind, or deprivations are interlinked. We propose using adjusted Multidimensional Poverty Index (MPI) measure policy assessment, supplemented by ratio, intensity, number poor, composition poverty, provide more accurate analyses. Exploiting cross-sectional data comprising than three million individuals a panel 29 states several socio-economic subgroups, show empirically reduction 271 unfolded within decade. In contrast earlier periods time, find that poorest poor saw largest reductions due falling levels intensity feature alone cannot portray. Despite importance MPI recognise inherent enduring need probe statistics. Hence corroborate these stark findings with an assessment dominance distribution attainment scores which establishes relationship H both periods. To assess robustness leaving 19 additional MPIs constructed, each having different indicator definitions combinations, it found all but one these, 270 people