The NITI Aayog has fast-tracked the creation of the poverty index, which will rank states on the basis of steps taken to curb poverty.
The ranking, in line with the Global Multidimensional Poverty Index (MPI), is intended to push states to take measures to tackle poverty, according to a report by The Economic Times.
Moneycontrol could not independently verify the story.
The NITI Aayog recently held a meeting with representatives from stakeholder ministries as well as from the United Nations Development Programme (UNDP), the report said.
Targets, reform action and progress by states were discussed at the meeting, a government official told the paper. The targets that were mentioned included income, heath, education and standard of living.
"The plan is to get the index and first ranking out by this year's end," the official was quoted as saying.The International Labour Organisation (ILO) had in April said around 40 crore workers in India's informal sector are at risk of falling further into poverty due to the economic fallout of the COVID-19 pandemic.