Kerala: Extreme Poverty-Free

Recently the Chief Minister of Kerala announced in the State Assembly that Kerala has eradicated extreme poverty, becoming India’s first “extreme poverty-free” state.

What Is “Extreme Poverty”?

• Global Definition (World Bank, 2025): Individuals living on less than USD 3 per day (PPP, 2021 prices) are considered to be in extreme poverty.
  • This benchmark replaced the earlier threshold of USD 2.15 per day (PPP, 2017 prices).
• Comparison with Broader Poverty Lines:
  • Lower-middle-income countries: $4.20/day
  • Upper-middle-income countries: $8.30/day
  • Anyone earning below these thresholds but above $3/day is considered poor but not extremely poor.
• India’s Measurement Approach:
  • The NITI Aayog uses the Multidimensional Poverty Index (MPI) based on the Alkire-Foster methodology, which assesses 12 indicators across health, education, and living standards.
  • Thus, “extreme poverty” encompasses not only low income but multidimensional deprivation—nutrition, shelter, health, and dignity.

India and Global Context

• Global Scenario: As per World Bank estimates, 838 million people globally lived in extreme poverty in 2022, up from 713 million (based on the older $2.15/day metric).
• India’s Progress: India’s extreme poverty rate declined from 16.2% (2011–12) to 2.3% (2022–23), lifting 171 million people out of extreme poverty.
  • However, concerns remain regarding youth unemployment (13.3%), gender disparity, and informal labour dependence.

Kerala’s Distinct Approach

• Kerala did not adopt the World Bank or MPI criteria for defining extreme poverty.
• Instead, the State’s Local Self-Government Department (LSGD) developed four core parameters to identify families in distress:
  • Income deprivation
  • Health vulnerability
  • Housing insecurity
  • Food insufficiency
• Key Features of Implementation:
  • Micro Plans were prepared for each family based on their specific needs and situation.
  • Sub-plans integrated into local self-government annual plans.
  • Digitised Monitoring (MIS): Each family’s needs and the extent of fulfilment are tracked digitally.
  • Kudumbashree acts as both community monitor and service provider.

About Athidaridrya Nirmarjana Project (Extreme Poverty Alleviation Project – EPEP)

• Launch: May 2021, by the Department of Local Self-Government (LSGD).
• Objective: To identify, address, and eliminate extreme poverty through localised, data-driven interventions.
• Implementation Mechanism:
• • Training: Around 4 lakh people, including local officials, elected representatives, and volunteers, were trained to conduct surveys and verify beneficiaries.
  • Initial Identification: 118,309 families were initially identified as living in extreme poverty.
  • Identification: 1.18 lakh families initially identified → After multiple rounds of field verification, the number reduced to 59,000 families after field checks.
  • Microplanning: Each Panchayat and Municipality prepared family-specific action plans covering food, health, housing, and education.
  • Community Institutions : Kudumbashree networks ensured door-to-door engagement, while Gram Sabhas validated lists for transparency.

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Key Measures Undertaken

• Food Security: 20,648 families identified as food-insecure received daily meal support from local bodies.
• Housing: Of 4,677 homeless families, 4,005 were provided houses under the Life Mission (state housing scheme).
• Healthcare Support: Families burdened by chronic or costly illnesses were provided financial and medical assistance.
• Avakasam Athivegam (Rights Fast) Campaign:
• • Ensured every beneficiary family possessed civic and welfare entitlements, including: MGNREGS job cards, Voter IDs, Aadhaar cards, bank accounts, and social security pensions.
  • Guaranteed access to electricity and LPG connections.

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