Multidimensional Poverty Reduction in India between 1999 and 2006 : Where and How ?

India has witnessed high economic growth since the 1980s, and a reduction in the share of income poor, though the measured extent of this reduction varies, has been confirmed by different methods. Poverty, however, has multiple dimensions, hence this paper explores the improvement in other social deprivations. An analysis of poverty from a multidimensional perspective shows the prevalence of multiple overlapping deprivations among the poor. This paper analyses the change in multidimensional poverty in India between 1999 and 2006 using National Family and Health Surveys. We find a strong reduction in national poverty driven relatively more by some of the standard of living indicators, such as electricity, housing condition, access to safe drinking water and improved sanitation facilities, than other social indicators. The reduction, however, has not been uniform across different population subgroups and the pattern of reduction across states has been less pro-poor that of income poverty. In addition, the poorer subgroups have shown slower progress, widening the inter-group disparity in multidimensional poverty. In order to examine trends among the poorest of the poor, we define two additional subgroups of the poor and find that multidimensional poverty reduction has been accompanied by even stronger reductions in the share of the poorest of the poor by both definitions. The in-depth analysis pursued in this paper can also be conducted for other developing countries. ∗ Oxford Poverty & Human Development Initiative (OPHI), Queen Elizabeth House (QEH), Department of International Development, University of Oxford, UK +44 1865 271915, [email protected]. Alkire and Seth Multidimensional Poverty Reduction in India between 1999 and 2006 The Oxford Poverty and Human Development Initiative (OPHI) is a research centre within the Oxford Department of International Development, Queen Elizabeth House, at the University of Oxford. Led by Sabina Alkire, OPHI aspires to build and advance a more systematic methodological and economic framework for reducing multidimensional poverty, grounded in people’s experiences and values. This publication is copyright, however it may be reproduced without fee for teaching or non-profit purposes, but not for resale. Formal permission is required for all such uses, and will normally be granted immediately. For copying in any other circumstances, or for re-use in other publications, or for translation or adaptation, prior written permission must be obtained from OPHI and may be subject to a fee. Oxford Poverty & Human Development Initiative (OPHI) Oxford Department of International Development Queen Elizabeth House (QEH), University of Oxford 3 Mansfield Road, Oxford OX1 3TB, UK Tel. +44 (0)1865 271915 Fax +44 (0)1865 281801 [email protected] http://ophi.qeh.ox.ac.uk/ The views expressed in this publication are those of the author(s). Publication does not imply endorsement by OPHI or the University of Oxford, nor by the sponsors, of any of the views expressed.