Kerala Becomes India’s First State to Eradicate Extreme Poverty

Nov. 2, 2025

Why in News?

On Kerala Piravi Day or Kerala Day (November 1, 2025), Chief Minister Pinarayi Vijayan declared that Kerala has eradicated extreme poverty, making it the first Indian state to achieve this milestone.
The achievement follows a targeted four-year effort under the Extreme Poverty Eradication Programme (EPEP) led by the Left Democratic Front (LDF) government.
This marks a significant development in India’s poverty alleviation journey, offering insights into localized, data-driven, participatory governance models, and aligning with UN Sustainable Development Goal 1 (No Poverty).

What’s in Today’s Article?

Understanding Extreme Poverty:

Global definition:
- As per the World Bank’s (June 2025) revision, anyone living on less than $3 per day (2021 PPP) is considered to be in extreme poverty. Earlier, the benchmark was $2.15/day (2017 PPP).
The poverty line for:

Difference between poverty and extreme poverty:
- Those earning below $4.20 but above $3 are poor, not extremely poor.
- Extreme poverty captures the most deprived segment in terms of basic human needs—food, shelter, health, and education.

India’s Position in the Global Context:

World Bank estimates (2025):
- 838 million people globally lived in extreme poverty in 2022 (using $3/day standard).
- In India:
  - Extreme poverty declined from 16.2% (2011–12) to 2.3% (2022–23).
  - About 171 million people were lifted out of extreme poverty.
Drivers of improvement: Rising employment and urbanization. For example, urban unemployment reduced to 6.6% (Q1 FY24/25) — lowest since 2017–18.
Persistent challenges:
- Youth unemployment: 13.3% (29% among graduates).
- Gender disparity: Female employment rate 31%.
- Informality: 77% of non-farm jobs and most farm jobs remain informal.
- Critics argue that official poverty reduction estimates may not fully capture multidimensional deprivations.

Measuring Poverty in India - The Multidimensional Approach:

NITI Aayog’s Multidimensional Poverty Index (MPI):
- It is based on Alkire-Foster methodology (Global MPI), and uses 12 indicators across three dimensions -
  - Health: nutrition, child mortality, maternal health.
  - Education: years of schooling, school attendance.
  - Standard of living: housing, sanitation, assets, and cooking fuel.
Kerala’s broader poverty reduction journey:
- NITI Aayog’s 2021 MPI: Kerala’s poverty rate was 0.7% — lowest in India.
- Poverty declined from 59.8% in the 1970s to near zero due to successive governments’ welfare policies in education, health, and social security.
- However, Kerala’s extreme poverty identification method differed from the NITI Aayog’s MPI framework.

Kerala’s Model - Extreme Poverty Eradication Programme (EPEP):

Launch and implementation:
- Announced in 2021, soon after the LDF government began its second term.
- The Local Self-Government Department was the nodal agency.
- Around 4 lakh personnel—officials, elected representatives, and volunteers—were trained.
Identification process:
- Initial identification: 1.18 lakh families.
- After verification and migration checks: 59,000 families confirmed.
- Criteria: Income, health, housing, and food insecurity.
Key interventions:
- Housing: 4,677 homeless families identified; 4,005 provided homes under Life Mission Scheme.
- Food security: 20,648 families lacking stable food access were given meals by local bodies.
- Essential documents and services: Under Avakasam Athivegam (Rights Fast) campaign, families were ensured access to - Aadhaar, voter ID, bank accounts, MGNREGS job cards, social pensions, electricity, and LPG connections.
Institutional collaboration:
- Local governance, community participation, and data verification ensured inclusivity.
- Opposition parties also extended bipartisan support for implementation.

Significance of Kerala’s Achievement:

Kerala becomes the first Indian state to claim zero extreme poverty.
Reflects success of localized planning, micro-level targeting, and welfare convergence.
Reinforces Kerala’s legacy in human development, education, and social justice.

Critical Perspectives and Challenges:

Tribal representation concerns:
- Adivasi Gothra Mahasabha alleged that only 5% of identified families were Scheduled Tribes, despite high deprivation among Paniya, Adiya, and Kattunaikkar communities in Wayanad and Attappady.
- Criticism of survey methodology for not ensuring tribal-specific inclusion parameters.
Labour and welfare gaps: ASHA workers criticized the government’s poverty claims, demanding better honorarium (₹223/day). The government responded by increasing their pay by ₹1,000/month.
Sustainability challenge: LSGD is now planning Phase II to ensure beneficiaries do not relapse into poverty, focusing on long-term livelihood stability.

Way Forward:

Institutionalise micro-planning: Integrate micro-level data systems within broader State and NITI Aayog MPI frameworks.
Tribal and marginal inclusion: Create dedicated tribal sub-plans to ensure fair representation and land rights.
Livelihood security: Focus on job creation, skill development, and micro-enterprise financing to prevent relapse into poverty.
Sustainability audits: Regular monitoring and impact assessment of rehabilitated families.
National replication: Kerala’s model offers a template for other states—combining decentralised governance, data-based targeting, and community-driven execution.

Conclusion:

Kerala’s EPEP marks a milestone in India’s fight against extreme poverty — showcasing how decentralised governance, human-centric micro-planning, and participatory implementation can transform lives.
While political criticism and inclusivity gaps persist, the model provides a replicable framework for sustainable and equitable poverty eradication in India.
By blending welfare delivery with dignity and empowerment, Kerala reaffirms its place as a social development pioneer.

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