Drivers of Deprivation: Analysing Multidimensional Poverty in India

Abstract

Poverty extends beyond income deprivation and encompasses shortfalls in health, education, and living standards. This study examines the principal socio-economic determinants of multidimensional poverty across Indian states and assesses changes between the 2015–16 and 2019–21 rounds of the National Family Health Survey. The Multidimensional Poverty Index is treated as the dependent variable, while selected indicators of economic conditions, demographics, health, labour-market participation, school dropout, higher-education enrolment, and food production are used as explanatory variables. Given the short panel structure, pooled ordinary least squares with clustered standard errors is estimated as the baseline specification, alongside fixed-effects and random-effects models for robustness. The results indicate that higher per capita income, greater food production, longer life expectancy, and higher gross enrolment are associated with lower multidimensional poverty. Population growth and infant mortality show positive associations with the poverty index, while the estimated relationships for unemployment, labour-force participation, and secondary school dropout are comparatively weak. The Hausman test supports the random-effects specification. Overall, the findings suggest that multidimensional poverty across Indian states is associated with interconnected economic, agricultural, health, educational, and demographic conditions. The study therefore emphasises the relevance of coordinated policy measures that strengthen inclusive income growth, food security, healthcare, nutrition, and educational participation while addressing demographic pressures.