Multidimensional Poverty Index and Need to Revise the Methodology for Counting Poor

The largest share in Mineral Gross Domestic Product is from Jharkhand; it has 33% of Indian mineral reserve. Still, one out every three people is living below the poverty line; the fact is that 37% state population is below the poverty line. The Jharkhand state problem is its poverty decline rate is slowest; growth depends on industrial performance that too shows volatility. The paper focuses on critical areas of education, health and living standard by applying the Alkire-Foster (AF) methodology. The paper covers 24 districts of Jharkhand state with inference stress on rural-urban divide and population under five categories of wealth index (poorest, poorer, middle, rich and richest).