Indian History

Poverty Gap Index

The poverty gap index is defined by the mean distance below the poverty line expressed as proportion of that line. Poverty Gap=(Poverty line-Average consumption expenditure of the poor)/Poverty line.

Human Development Report 1997 introduced a Human Poverty Index (HPI) in an attempt to bring together in a composite index the different features of deprivation in the quality of life to arrive at an aggregate judgement on the extent of poverty in a community.

Human Development Report 2010 introduced the concept of Multidimensional Poverty Index (MPI) to replace HPI. The MPI is the product of multidimensional poverty head-count and the average number of deprivations each multidimensionally poor household experiences. It has three dimensions mirroring the HDI-health, education and living standards-which are reflected in 10 indicators.

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