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 ?

The correct answer is A) 1 and 2 only.

Statement 1 is correct: The Multidimensional Poverty Index (MPI) is calculated using the globally recognized Alkire-Foster (AF) methodology. Developed by Sabina Alkire and James Foster at the Oxford Poverty and Human Development Initiative (OPHI), this counting-based method assesses the simultaneous deprivations individuals face across core dimensions such as health, education, and living standards.

Statement 2 is correct: India's National MPI, published by NITI Aayog, utilizes a total of twelve indicators. It adapts the Global MPI framework to better reflect India's specific developmental priorities and track the progress of flagship government welfare schemes.

Statement 3 is incorrect: Maternal Health and Bank Account are not common indicators between the NITI Aayog MPI and the UNDP Global MPI. The UNDP's Global MPI relies on exactly ten indicators (such as nutrition, child mortality, years of schooling, and sanitation). NITI Aayog retained these ten global indicators but added two unique, India-specific indicators: Maternal Health (under the Health dimension) and Bank Account (under the Standard of Living dimension). Therefore, these two indicators are exclusive to India's National MPI and are absent from the UNDP's index.

Takeaway: To distinguish between the two indices, remember "Global 10, National 12". The Indian government explicitly added Maternal Health and Bank Accounts to the National MPI to measure localized financial inclusion and healthcare improvements.