On December 18th, the Reporters' Collective, a journalist group reportedly funded by the American Deep State, released a report accusing the Narendra Modi government of manipulating a "Homemade Poverty Index" to falsely depict a significant reduction in poverty in India. The report disputes the government's claim that 25 crore people have been lifted out of poverty over the past decade, suggesting that the government altered the global index by introducing two key parameters.
According to the report, unable to manipulate international agencies that publish global rankings, the Modi government created its own index and tampered with the results to present a more favorable outcome. It claims, “the government had rigged the results of its poverty index long before even the framework for the new poverty index was finalised. The index on poverty was pre-ordained to show poverty is reducing because of government interventions.”
OpIndia
The report further asserts that India's low ranking in global poverty indices makes the government's report false, claiming it is based on manipulated data. However, it shockingly fails to provide any evidence for these claims of rigged data, offering only vague allegations. It further argues that the data is manipulated because the Indian index uses more parameters than the Global Multidimensional Poverty Index (MPI).
It’s important to note that the Global MPI was developed by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP). The Reporters' Collective itself acknowledges that NITI Aayog, the creator of India's MPI, collaborated with OPHI and UNDP in developing the index. Therefore, the creators of the global index support the inclusion of additional parameters in India's version. Despite this, the Reporters’ Collective continues to label the data as manipulated.
The report also claims that by adding the "maternal health" indicator to the Health parameter, the government reduced the weight of existing parameters like "nutrition" and "child mortality." Additionally, it argues that the inclusion of a new "standard of living" indicator—such as the availability of a bank account in a household—led to a reduction in the weight of other parameters.
The Reporters' Collective further contends that the inclusion of the 'bank account' indicator under the Standard of Living dimension led to a remarkable improvement in the poverty index, calling this an "absurdity." They argue that the significant drop in the percentage of people with bank accounts, from 58% to 3.69%, has no relevance to the reduction in poverty levels.
However, the Reporters' Collective's critique of India's National MPI is flawed, revealing several methodological and conceptual misunderstandings. Their accusations of manipulation overlook the rationale behind the government's approach, and their rejection of new parameters shows a lack of understanding of the complex, multidimensional nature of poverty.
Inclusive Maternal Health
The article criticizes the inclusion of maternal health in the National MPI, claiming it distorts the results by artificially lowering poverty levels. However, this criticism is unfounded for several reasons.
Poverty is a complex issue, and maternal health is closely linked to poverty, as it reflects access to healthcare, economic stability, and education. Previously, the Health Indicator included nutrition and child mortality, so adding maternal health is a logical and necessary step. A mother’s health significantly impacts a household’s well-being, affecting birth outcomes and the productivity of family members.
The fact that the inclusion of this parameter may show improvement in the index does not imply manipulation. Rigging data refers to creating false information, not using real, field-gathered data. If the maternal health indicator is based on authentic data, it cannot be considered manipulated.
While the global index may not include maternal health, its exclusion does not invalidate its use. In fact, overlooking such a vital aspect would make any poverty index for a developing country like India incomplete.
It is important to note that although the Global Multidimensional Poverty Index does not include maternal health, other global initiatives do. For instance, the United Nations’ Sustainable Development Goals (SDGs) place maternal health at the core of efforts to combat poverty. The SDGs recognize the specific risks pregnancy and childbirth pose to women and aim to reduce maternal mortality rates.
International organizations like WHO, UNICEF, and UNDP have dedicated programs to improve maternal health, underscoring the importance of this parameter. Therefore, the Indian government’s inclusion of maternal health aligns with global best practices. Programs like Janani Suraksha Yojana and Pradhan Mantri Matru Vandana Yojana have significantly improved maternal health outcomes, making the inclusion of maternal health in the MPI a valid and meaningful measure of poverty reduction.
Financial Inclusion as a Measure
The article ridicules the inclusion of financial inclusion, such as access to bank accounts, in the National MPI, claiming it artificially inflates poverty reduction statistics. It suggests that the availability of banking services is irrelevant to the poverty index and argues that the Modi government included it merely because it was able to bring millions of people into the formal financial sector. This argument is fundamentally flawed.
Globally, financial inclusion is widely acknowledged as a crucial driver of poverty alleviation. Bank accounts provide individuals with access to savings, credit, and government welfare schemes directly, reducing corruption and eliminating middlemen. In India, bank accounts have allowed beneficiaries to receive government benefits, such as subsidies and grants, directly, effectively preventing large-scale leakages that occurred previously.
Over the last decade, India has used technological innovations and policy initiatives to address poverty on an unprecedented scale. Three key initiatives—Direct Benefit Transfer (DBT), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Aadhaar—have created a transformative ecosystem, promoting financial inclusion, reducing inefficiencies, and empowering the most vulnerable populations.
Through DBT, facilitated by PMJDY accounts and Aadhaar, welfare schemes were revolutionized by directly transferring benefits into recipients’ bank accounts. This shift has been pivotal in India's battle against poverty, eliminating intermediaries, curbing corruption, and ensuring that subsidies for fertilizers, LPG, pensions, and scholarships reach the right beneficiaries.
Since the launch of the Pradhan Mantri Jan Dhan Yojana, more than 480 million bank accounts have been opened, with millions benefiting from direct benefit transfers (DBTs). These accounts have a tangible impact on poverty reduction, ensuring that households receive subsidies and support without systemic inefficiencies. These initiatives have not only empowered millions of individuals but have also laid the foundation for sustainable and inclusive growth.
Global Indices Disregard Local Realities
The Reporters’ Collective argues that global indices exclude financial inclusion as a parameter, and claims the Modi government manipulated India’s MPI by incorporating it. However, financial inclusion is crucial for a developing country like India, and the inclusion of this parameter in the National MPI highlights the country’s commitment to addressing specific local challenges, rather than adhering to a global standard.
Other indicators in the Standard of Living dimension, such as Housing, Assets, and Electricity, are directly tied to access to banking services, making financial inclusion an important factor.
The Reporters’ Collective criticizes India’s deviation from global indices, suggesting these global standards are inherently superior. This view is flawed. Many global MPIs use outdated or overly broad data, leading to inaccurate portrayals of poverty in nations like India. For example, limited household surveys often fail to capture regional variations.
Furthermore, numerous global indices are produced by organizations with ideological biases, which can affect the choice and weight of indicators. For instance, democracy indices from left-wing organizations place India significantly lower in their rankings, showing how skewed some global evaluations can be. India’s National MPI, on the other hand, focuses on practical, data-driven metrics that align with the country’s specific socio-economic realities and government priorities.
Unfounded Claims of Weightage Manipulation
The report criticizes the National MPI for modifying indicator weightages, suggesting that this resulted in the undervaluation of other crucial factors, thus claiming the data is manipulated. However, this is an unfounded accusation.
Adjusting the weights of indicators is a common practice in index design. Naturally, when new parameters are introduced, the weightings of existing ones are recalibrated. The National MPI incorporates indicators such as maternal health and financial inclusion, as they are key obstacles to poverty alleviation in India.
By including these new parameters, the National MPI also reflects the impact of several flagship programs initiated by the Modi government, which address deprivation in ways that global MPIs fail to capture effectively.
Global Index Reports Decline in Poverty Levels in India
The Reporters Collection notes that India ranked 53rd out of 105 countries in the 2018 Global Index, but it does not provide data from the most recent 2024 report. More importantly, it overlooks the significant improvement in the country’s actual index.
According to the Global Multidimensional Poverty Index (MPI) report for India, the country’s MPI dropped from 0.122 in 2015-16 to 0.069 in 2019-2021, reflecting a substantial reduction over five years. This indicates that while India’s index was quite poor before the Modi government took office, it has improved markedly since then.
The article suggests that poverty levels in India may have stagnated or even worsened, yet it fails to provide evidence to support this claim. The Global MPI, which the report references as authoritative, shows a reduction in India’s poverty index from 0.122 in 2015-16 to 0.069 in 2019-2021, averaging a decrease of 0.016 points annually. If this trend continues, the estimated index for 2024 would be approximately 0.035.
Nevertheless, the report does not highlight any of these positive developments.
Neglecting Transparency in National MPI
The article suggests that the National MPI lacks credibility, overlooking the transparency of its methodology. The National MPI is derived from the National Family Health Survey (NFHS), one of India’s most comprehensive and reliable datasets. In contrast, global MPIs often rely on limited and inconsistent data from developing countries, with the data from conflict-affected regions in Africa and the Middle East frequently being questionable.
The methodology and calculations for the National MPI have been published, offering independent researchers the opportunity to examine and verify the findings. This transparency refutes any claims of manipulation.
Thus, the Reporters' Collective's article is filled with unfounded allegations and ideological biases. Its characterization of India's National MPI as "rigged" is not only without merit but also disregards the significant progress made in addressing multidimensional poverty. By customizing the MPI to address India’s specific challenges, the government has adopted a practical approach to poverty measurement and intervention, ensuring more targeted and effective solutions. The Reporters' Collective offers little more than speculation and ideological objections, failing to provide credible evidence or viable alternatives.
India's poverty reduction efforts are tangible and measurable, and the National MPI accurately reflects the country's progress toward a more inclusive and equitable society.
The Reporters' Collective and the Deep State
The report aligns with the ongoing global efforts by far-left organizations to tarnish India's image, highlighting the importance of examining the groups behind the Reporters' Collective. A review of the donors supporting its parent organization reveals that it is backed by the usual entities involved in the ongoing anti-India campaign.
The Reporters' Collective is managed by the National Foundation for India, an FCRA-registered NGO. A look at its list of donors shows that the National Foundation for India receives funding from entities such as the Ford Foundation, George Soros' Open Society Foundation, the Omidyar Network, and the Rockefeller Foundation, among others. These organizations are all part of the American Deep State network and have been involved in financing numerous anti-India initiatives.
Consequently, the article by the Reporters' Collective is simply another aspect of the broader anti-India agenda promoted by the American Deep State. It follows recent reports funded by the US-based OCCRP targeting India and its business community.
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