Aspirational Districts Outpace State Averages In Poverty Reduction; Finds Moneycontrol Analysis

Almost half of India’s 106 most under-developed districts have recorded a faster decline in poverty between FY16 and FY21 than the average for their respective states, according to an analysis based on the NITI Aayog’s Multidimensional Poverty Index (MPI) 2023 report.

The data reveals that 46% of aspirational districts – a term used for districts targeted under a flagship development program experienced more rapid improvements in poverty levels, particularly in Madhya Pradesh, Andhra Pradesh, Assam, and Tamil Nadu.

What Is Multidimensional Poverty?

The Multidimensional Poverty Index goes beyond income-based assessments and evaluates deprivation across key socio-economic indicators like education, health, nutrition, and sanitation.

Also Read: India Adds Record 29.52 GW Renewable Energy In FY25; Total Capacity Hits 220.10 GW

This comprehensive metric helps identify and address the root causes of poverty, offering a clearer picture of development in India’s most marginalized regions.

PM Modi Highlights Aspirational Districts At Rising Bharat Summit

Addressing the News18 Rising Bharat Summit on April 8, Prime Minister Narendra Modi lauded the transformation of backward districts through focused intervention.

“Earlier, the government labeled 100 districts as backward, many in tribal and Northeastern areas. We changed the narrative and called them ‘aspirational’, implementing schemes in mission mode. International institutions have praised this approach,” he said.

The Aspirational Districts Program, launched in 2018, aimed to fast-track development in India’s poorest regions through real-time data monitoring, targeted schemes, and local-level empowerment.

Andhra Pradesh Leads With Remarkable Improvement

In Andhra Pradesh, all three aspirational districts recorded over 50% reduction in multidimensional poverty, outperforming the state average decline of 48.5%.

Notably, YSR Kadapa district saw a 64% drop in poverty – from 9.14% in 2015-16 to 3.34% in 2019-21.

Overall, aspirational districts in the state showed a 54.7% average decline, outpacing the state’s performance.

Madhya Pradesh And Assam Also Show Strong Gains

Similarly, in Madhya Pradesh, aspirational districts reported a 46.9% drop in poverty, compared to the state’s average fall of 40.6%.

Assam and Tamil Nadu were also among the top-performing states where aspirational districts either met or exceeded the state’s average improvement in reducing poverty levels.

National Trends Reflect Broad Progress

Between FY16 and FY21, India’s overall multidimensional poverty fell from 24.85% to 14.96%, reflecting significant progress in basic services and livelihoods across the country.

Moneycontrol’s analysis further shows that the proportion of aspirational districts with lower poverty levels than their state averages has increased.

In 2015-16, 17% of aspirational districts had a lower poverty headcount than the state average. By 2019-21, this figure rose to nearly 20%.

Bijapur An Outlier Amid National Gains

Despite the overall positive trend, Chhattisgarh’s Bijapur district emerged as an exception.

Instead of declining, its multidimensional poverty rose from 41.2% to 49.7% over the five-year period—making it the only aspirational district where poverty worsened.

A Model For Inclusive Development

The data underscores the impact of the Aspirational Districts Program as a scalable model for inclusive growth, especially when combined with targeted policy intervention and real-time monitoring.

With continued focus, India’s most under-developed regions are steadily catching up, bridging gaps in opportunity and access for millions.