Global Multidimensional Poverty Index (MPI) 2025

30.10.2025

1. 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.​