Global Multidimensional Poverty Index (MPI) 2025
30.10.2025
- Global Multidimensional Poverty Index (MPI) 2025
Context
The United Nations Development Programme (UNDP) and Oxford Poverty & Human Development Initiative (OPHI) released the 2025 MPI Report, “Overlapping Hardships: Poverty and Climate Hazards,” assessing poverty across health, education, living standards and climate vulnerability.
About the Report
Definition
The MPI is a global index measuring acute poverty through multiple deprivations in health, education, and living standards, beyond income poverty. Jointly published since 2010, it guides policy aligned with SDG-1 (No Poverty).
Scope
The 2025 report covers 109 countries, incorporating updated climate hazard data, with 1.1 billion people (18.3%) living in acute multidimensional poverty.
Key Findings
- Severe Poverty:
43.6% of poor people (over 500 million) suffer severe poverty—deprived in half or more MPI indicators. - Children Most Affected:
Children under 18 make up just 33.6% of the population but account for 51% of the multidimensionally poor, locking families into cycles of poverty. - Middle-Income Epicentre:
Nearly two-thirds (64.5%) of global poor live in middle-income countries, showing monetary measures miss hidden deprivation. - Geographical Divides:
Sub-Saharan Africa and South Asia together host 83% of the poor; Sub-Saharan Africa alone houses nearly half. - Rural Burden:
83.5% of multidimensionally poor people live in rural areas, which account for just 55% of the global population. - Climate-Poverty Nexus:
Nearly 80% of poor people live in areas exposed to one or more climate hazards, facing a double burden of deprivation and environmental risk. - Stagnation Post-Pandemic:
Progress on poverty reduction has slowed or reversed since COVID-19, worsened by inflation, conflict, and climate disruptions.
India: Major Trends
- Rapid Progress:
India reduced multidimensional poverty from 55.1% (2005–06) to 16.4% (2019–21), lifting 414 million out of deprivation. - Persistent Child Poverty:
Child malnutrition, lack of sanitation, and unsafe fuel remain major challenges despite improvements. - Climate Risks:
Nearly all of India’s poor live in climate-vulnerable regions—affected by heatwaves, floods, or air pollution. - Policy Impact:
Schemes like PM-Awas Yojana, Swachh Bharat Mission, Ujjwala, and Jal Jeevan have directly targeted multidimensional deprivations.
Challenges
- Rural–Urban Gap:
Rural areas lag in health, education, and infrastructure, despite urban growth. - Climate Vulnerability:
Poverty is compounded by repeated climate shocks that threaten livelihoods and development gains. - Data Gaps:
Outdated household-level data impedes effective policy and SDG monitoring. - Gender and Child Deprivations:
Malnutrition and gender inequality hinder overall human development. - Fiscal Capacity:
Limited budgetary autonomy of states restricts investment in social protection and climate resilience.
Way Forward
- Integrate Poverty and Climate Policies:
Develop climate-resilient poverty strategies, combining green infrastructure and disaster preparedness. - Localized Monitoring:
Launch district-level MPI dashboards for real-time tracking and precision targeting. - Green Livelihoods:
Promote eco-jobs and sustainable employment for the poor. - Global Support:
Mobilize climate finance and concessional aid to help developing nations address poverty and climate challenges. - Focus on Gender and Children:
Expand nutrition, sanitation, and maternal health programs for inclusive development.
Conclusion
Global MPI 2025 highlights poverty as a multidimensional and climate-driven phenomenon. India’s rapid progress is encouraging, but future strategies must link poverty reduction with climate resilience to ensure sustainable human development.