Introduction
Traditional income-based poverty lines, such as those formulated by the Tendulkar Committee, measure the monetary means required for basic subsistence, often overlooking the qualitative dimensions of human development. Amartya Sen radically transformed this perspective by defining poverty as the deprivation of basic capabilities. This paradigm shift forms the conceptual foundation of the Multidimensional Poverty Index (MPI), which assesses non-monetary deprivations across health, education, and standard of living.
Amartya Sen’s Capability Approach
Amartya Sen's framework redirects the focus from material commodities or income to what individuals can actually do and be with their resources:
- Capabilities versus Functionings: 'Functionings' are the achieved states and activities that make up well-being, such as being well-nourished, healthy, and literate. 'Capabilities' represent the substantive freedom or real opportunities a person has to achieve these functionings.
- Income as a Means, Not an End: Income is merely an instrument. Poverty manifests when individuals face systemic barriers that prevent them from converting income and resources into a dignified life, such as poor healthcare or inadequate public schooling.
MPI as a Measure of Capability Deprivation
The Multidimensional Poverty Index operationalises Sen's framework by assessing simultaneous deprivations experienced by households. While the UNDP's Global MPI uses 10 indicators, NITI Aayog's National MPI tracks 12 indicators across three core dimensions tailored to India's context:
- Health (Survival Capabilities): Assesses deprivations in nutrition, child and adolescent mortality, and the India-specific indicator of maternal health.
- Education (Social Participation Capabilities): Measures household educational attainment through years of schooling (deprived if no member has completed six years) and school attendance.
- Standard of Living (Environmental and Living Capabilities): Examines access to seven basic amenities: cooking fuel, sanitation, drinking water, electricity, housing, assets, and the India-specific addition of bank accounts.
Empirical Impact and Policy Transition
India's welfare policy has progressively transitioned from pure monetary transfers to targeted capability-enhancing interventions, such as the Pradhan Mantri Jan Dhan Yojana (PMJDY) for financial inclusion, the Jal Jeevan Mission for potable piped water, and Poshan Abhiyaan for nutritional support.
According to NITI Aayog, this capability-centric approach contributed to 24.82 crore people escaping multidimensional poverty between 2013-14 and 2022-23. Over this period, the national multidimensional poverty headcount dropped significantly from 29.17% to 11.28%, demonstrating that resolving institutional deprivations directly translates into human freedom and capability enhancement.
Conclusion
Poverty in contemporary India is intrinsically a multidimensional failure of capabilities rather than a mere deficit of purchasing power. Addressing persistent disparities necessitates continued public investment in health, education, and basic infrastructure to achieve Sustainable Development Goal 1.2 and ensure substantive freedom for every citizen.