Kerala Declare Free from Extreme Poverty

  • 03 Nov 2025

In News:

On Kerala Piravi Day (1 November 2025), Kerala declared itself free from extreme poverty, becoming the first Indian state to achieve this milestone. The achievement is the outcome of a four-year Extreme Poverty Eradication Programme (EPEP) led by the state government and marks a key step toward SDG-1 (No Poverty).

What is Extreme Poverty?

Global Definition

  • As per the World Bank’s 2025 revision, extreme poverty refers to living on less than $3/day (2021 PPP).
  • Earlier benchmark: $2.15/day (2017 PPP).
  • Additional poverty lines:
    • Lower-middle-income countries: $4.20/day
    • Upper-middle-income countries: $8.30/day

Difference Between Poverty & Extreme Poverty

  • Individuals between $3–$4.20/day are poor but not extremely poor.
  • Extreme poverty captures severe deprivation in food, health, shelter, and education.

India in the Global Context

  • 838 million people lived in extreme poverty globally in 2022 (World Bank).
  • In India, extreme poverty fell from 16.2% (2011–12) to 2.3% (2022–23).
  • Around 171 million Indians moved out of extreme poverty over the decade.
  • Improvements were driven by rising employment, urbanisation, and economic recovery.
  • Persistent issues include:
    • Youth unemployment: 13.3% (29% among graduates)
    • Female labour force participation: 31%
    • Informal employment: 77% of non-farm jobs

Measuring Poverty in India – The MPI Framework

NITI Aayog’s Multidimensional Poverty Index (MPI) uses the Alkire–Foster method, covering:

  • Health: nutrition, maternal health, child mortality
  • Education: years of schooling, attendance
  • Living Standards: sanitation, housing, fuel, drinking water, bank accounts, assets

Kerala already had India’s lowest poverty rate (0.7%) in NITI Aayog’s 2021 MPI.

Kerala’s Approach: Extreme Poverty Eradication Programme (EPEP)

Launch & Implementation

  • Launched in 2021 under the Local Self-Government Department (LSGD).
  • 4 lakh personnel (officials, elected representatives, volunteers) trained for implementation.
  • Aimed at family-specific micro-interventions rather than income-only metrics.

Kerala’s Local Definition of Extreme Poverty

Unlike World Bank or MPI, Kerala used four local indicators:

  1. Food insecurity
  2. Poor access to healthcare
  3. Lack of housing
  4. Absence of income and livelihood security

Identification of Beneficiaries

  • Initial survey: 1.18 lakh families identified.
  • Verification and migration checks narrowed it to 59,000 families.
  • Conducted through a bottom-up, participatory exercise by local bodies.

Key Interventions

  • Food and Nutrition Security: 20,600+ families ensured regular meals through Kudumbashree community kitchens and LSGD support.
  • Housing for the Homeless: Of 4,677 homeless families, 4,005 received houses under the LIFE Mission.
  • Access to Essential Services – Avakasam Athivegam (Rights Fast): Ensured:
    • Aadhaar, voter ID
    • Bank accounts, social pensions
    • MGNREGS job cards
    • Electricity & LPG connections
  • Micro-Plans for Every Household: Customized plans addressing food, shelter, health, education, and income security.
  • Institutional Convergence: Collaboration among local governments, Kudumbashree, health services, and welfare departments.

Significance of the Achievement

  • India’s first state to officially eliminate extreme poverty.
  • Demonstrates effectiveness of localized targeting, data-driven governance, and micro-level planning.
  • Reinforces Kerala’s long-standing strengths in education, health, and social welfare.
  • Provides a replicable model aligned with SDG-1 targets.