Correct Option
The correct option is (c).
Explanation
The National Multidimensional Poverty Index (NMPI) is a poverty measurement tool released by NITI Aayog. It is based on the Alkire-Foster methodology and seeks to measure poverty not just through income, but through overlapping deprivations in health, education, and living standards.
Statement-wise Analysis
- Statement 1 is Correct: The NMPI is calculated based on three equally weighted dimensions: Health, Education, and Standard of Living. These three dimensions are further subdivided into 12 specific indicators (such as Nutrition, School Attendance, Sanitation, etc.) aligned with the Sustainable Development Goals (SDGs).
- Statement 2 is Incorrect: The NMPI does not replace the consumption expenditure-based poverty measurement (historically estimated by committees like Tendulkar or Rangarajan). Instead, it serves as a complementary perspective. While consumption expenditure measures monetary poverty (means), the NMPI measures direct deprivations (outcomes).
- Statement 3 is Correct: Unlike income-based poverty measures which use money as a proxy for well-being, the NMPI captures deprivations directly. It identifies households that lack specific essentials like clean fuel, housing, nutrition, or schooling, regardless of their income level.
Key Takeaway: The National MPI assesses non-monetary poverty through three dimensions (Health, Education, Standard of Living) and 12 indicators. It complements, rather than replaces, traditional income or consumption-based poverty estimates.