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Economy2026
Consider the following statements about Multidimensional Poverty Index (MPI):
  1. MPI is calculated using Alkire-Foster methodology.
  2. MPI calculated by NITI Aayog has a total of twelve indicators.
  3. Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP).
Which of the statements given above is/are correct?

Explanation

The correct option is 1 and 2 only. The Multidimensional Poverty Index (MPI) utilizes the Alkire-Foster methodology, which allows for a comprehensive analysis of poverty by considering multiple deprivations across health, education, and living standards. While the MPI calculated by NITI Aayog indeed employs a set of twelve indicators that reflect India's unique socio-economic context, the common indicators of Maternal Health and Bank Account are not shared between NITI Aayog's MPI and the UNDP’s MPI, which focuses on different dimensions of poverty. This distinction underscores the varying approaches to measuring poverty tailored to specific regional and global concerns, essential knowledge for UPSC aspirants.

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