POVERTY IN KERALA
The eradication of extreme poverty in Kerala
has garnered international attention, marking a
significant milestone in the state’s historic efforts
to alleviate poverty since its formation. This
experiment has also shown the world that there
are alternative and speedy pathways to achieving
this important goal, which are possible when
governments demonstrate a resolute commitment
to prioritising a pro-poor agenda. This achievement
of Kerala assumes great importance in India,
which has a long history of implementing targeted
programmes to reduce poverty.
The Government of India’s initiatives for poverty
alleviation since independence could be classified
under four categories: self-employment, wage-
employment, food-security, and social-security
schemes. However, despite the large number of
programmes and the significant resources invested
in them, their overall impact has been limited.
Many authors have noted that they were hindered
by poor targeting and fragmented execution,
resulting in an inability to address the underlying
problem directly. As a result, a substantial
segment of the population continues to live in
poverty. Although recent national estimates of
multidimensional poverty by NITI Aayog suggest
that poverty in India has declined from 29.17
per cent in 2013-14 to 11.28 per cent in 2022-23,
these figures warrant cautious interpretation. Many
authors have pointed out that these estimates are
based on NFHS 2020–21 data collected during
the COVID-19 pandemic and may therefore not
accurately reflect the actual poverty situation in
the country. This implies that the country needs
to focus more on realistic estimation of poverty
and to reduce it in a time bound manner to ensure
equitable growth, rather than the skewed and
uneven growth model that currently predominates.
Globally, it has been claimed that extreme poverty
has been declining rapidly since 1990, lifting more
than 1 billion people out of deprivation, according
to the World Bank’s Poverty, Prosperity, and
Planet report (2024). Accordingly, the world
was closer than ever to ending extreme poverty
by 2019. However, the COVID-19 pandemic
and subsequent economic shocks have reversed
this progress, and extreme poverty has risen for
the first time in decades. In 2024, it is estimated
that approximately 8.5 per cent of the world’s
population-around 692 million people-still lived on
less than $2.15 a day, with recent declines stalling
due to slower economic growth, inflation, conflict,
and fragility. It is evident that these disruptions
would have likely influenced poverty levels in
India, and consequently in Kerala, as the pandemic
had a significant impact on both.
It is in this context that Kerala’s experience
with poverty reduction becomes particularly
noteworthy. In fact, this marks a significan
milestone in the state’s ongoing commitment to
the well-being of its people. As it is widely known,
in Kerala, poverty reduction has been an integral
part of economic policy since the formation of
the first Ministry in 1957. Early government
initiatives, including land reforms, a robust public
distribution system, universal education, social
security measures, and health services, laid a solid
foundation for improving the lives of the poor.
It was on this bedrock that later interventions,
such as the comprehensive literacy campaign,
democratic decentralisation, and a range of welfare
measures, were able to take root and transform
social outcomes. Over the last nearly three
decades, Local Governments, in particular, have
played a pivotal role in advancing this mission by
implementing a broad spectrum of social welfare
programmes on their own, alongside various
thoughtfully devised state-sponsored schemes
and a few centrally sponsored programmes. It is
these multiple approaches adopted by successive
governments that have substantially reduced
poverty levels in the state, culminating in the
declaration of the eradication of extreme poverty
on November 1, 2025.
Major initiatives for poverty alleviation in the
past
As stated above, the state government has
implemented several programmes for poverty
alleviation, with varying results. Various poverty
alleviation programmes sponsored by the
central government have also been implemented
from time to time. Among these efforts, the
establishment of Kudumbasree was a major
catalyst in Kerala’s poverty alleviation efforts,
significantly strengthening community-based
interventions. Kudumbasree originated with the
rollout of the historic People’s Plan Campaign,
which redefined the development paradigm of
Kerala. Both the People’s Plan programme and
the efforts of Kudumbasree have contributed
significantly to poverty reduction, with the
poor households being given opportunities for
livelihood.
One of the innovative poverty alleviation
programmes implemented by the state government
with the help of the Kudumbasree network
was Ashraya, which was launched to address
the needs of the poorest and most vulnerable-
destitute families and those with physical or mental
disabilities-who often remained excluded from
mainstream anti-poverty schemes and lacked the
awareness or ability to claim their entitlements.
By 2015, Ashraya had reached over 72,000
families across nearly all local governments, with
projects worth Rs. 4,107.6 million. However, the
programme faced limitations, including a lack of
ownership by local self-government institutions,
a narrow focus on housing and food rather than
comprehensive poverty alleviation, and insufficient
community participation.
In 2017, Ashraya was restructured as Agathirahitha
Keralam (Destitute-Free Kerala) to expand
its scope and improve targeting. The revised
framework broadened the criteria for vulnerability-
such as including fisherfolk along with SC/ST
communities-and strengthened coordination
between Kudumbashree, Local Governments,
and other development departments. In this
ongoing programme, Kudumbashree provides
a challenge fund (40 per cent of the total project
cost, up to Rs40 lakh for general projects and Rs
50 lakh for ST projects), with the remaining funds
contributed by Local Governments. Assistance
is delivered through customised plans tailored
to the specific needs of each household. Unlike
the earlier version, Destitute-Free Kerala has
also incorporated digital tools, including a mobile
application for beneficiary identification and
project preparation, enhancing both efficiency and
transparency.
These sustained efforts have had a significant
impact on reducing poverty in Kerala. Kerala’s
absolute poverty ratio fell from 59.9 per cent
in 1973–74 to 25.43 per cent in 1993–94, and
further to 11.3 per cent by 2011–12. As of 2011–
12, rural poverty had decreased to 7.3%, while
urban poverty remained at 15.3 per cent. The
state has also consistently performed well on
multidimensional poverty indicators. According to
NITI Aayog’s inaugural Multidimensional Poverty
Index (MPI) 2021, Kerala recorded the lowest
multidimensional poverty levels in the country,
with minimal deprivation across indicators such as
child and adolescent mortality (0.19%), maternal
health (1.73%), years of schooling (1.78%),
school attendance (0.3%), and sanitation (1.86%).
Only a small fraction of households experienced
deprivation in nutrition, housing, drinking water,
electricity, assets, or access to banking.
The progress continued in subsequent years.
In NITI Aayog’s latest report, National
Multidimensional Poverty Index: A Progressive
Review 2023, Kerala’s multidimensionally poor
population further declined from 0.71% to 0.55%
between 2015–16 and 2019–21, reaffirming the
state’s position as a national leader in poverty
alleviation.
Why the Extreme Poverty Eradication
Programme?
Although Kerala has consistently performed
better than most Indian states in reducing average
poverty levels, a marginal section of its population
has continued to experience extreme deprivation,
requiring targeted interventions to overcome it.
Viewed in the context of the broader global effort
to eradicate extreme poverty, this persistence
-despite Kerala’s comparatively strong social
indicators-underscored the need for focused
policies to ensure that the benefits of development
reach those who remain most vulnerable.
Recognising this, the re-elected government
resolved at its very first cabinet meeting on 20
May 2021 to implement a five-year programme to
eradicate extreme poverty in the state-an initiative
that later would be regarded as a landmark in
Kerala’s development trajectory. The Extreme
Poverty Eradication Programme (EPEP) aims
to identify extremely poor households and the
root causes of their deprivation, and address the
specific causes in each household by integrating
social welfare programmes, livelihood generation
schemes and access to essential services.
Unique features of Kerala’s Extreme Poverty
Eradication Programme
Kerala’s Extreme Poverty Eradication Programme
is distinguished by a set of core features that make
it unique in its approach. Firstly, the programme
addresses all categories of people who have
been historically and socially extremely deprived.
Secondly, the programme follows a participatory
identification process, which relies on community-
level engagement and the involvement of elected
representatives and ordinary citizens, to ensure
that the details of even the most vulnerable and
voiceless households are collected. Thirdly, this
process is multidimensional, focusing on four
critical indicators-food insecurity, unsafe housing,
lack of basic income and severe health distress-
thereby ensuring that those who are genuinely
experiencing extreme deprivation are accurately
identified and targeted.
Another defining feature is the automatic inclusion
of families experiencing severe distress, such
as those affected by chronic illness, disability,
or destitution. This safeguards against the
exclusion of individuals who are unable to seek
assistance or articulate their needs. Fourthly, this
programme prioritises convergence across sectors
and departments, integrating interventions from
health, social welfare, housing, local governance
and livelihood. This enables a unified response,
addressing the multiple deprivations faced by
households rather than offering fragmented,
scheme-based support.
Fifthly, the implementation is decentralised,
with Local Governments playing a central role
in planning, execution, and monitoring. Each
identified household receives a customised
intervention plan, tailored to its specific needs-
ranging from food support and health care to
housing assistance, livelihood creation, and long-
term care services. Continuous follow-up by
frontline workers ensures timely interventions and
prevents families from slipping back into extreme
deprivation.
This approach undoubtedly emphasises Kerala’s
commitment to inclusive growth, aligning with
the United Nations Sustainable Development
Goals. It signifies a shift from generalised poverty
alleviation to precision-targeted interventions,
thereby ensuring that no citizen is left behind
due to their inability to raise their voices. The
programme has attempted to distinguish between
poverty and extreme poverty, rather than treating
these two conditions as one and the same. This
has clarified the nature of interventions, enabling
the implementation of targeted interventions
specifically designed to address extreme poverty.
It has been concluded from the field observations
and close reviews that those in extreme poverty
cannot progress in life or transcend poverty
without substantial governmental and societal
support. This scheme was initiated to rescue such
families from the threat of extreme poverty.
Extreme Poverty Identification Programme
(EPIP)
The Extreme Poverty Eradication programme was
first implemented on a pilot basis in three different
corners of the state-Vadakkanchery Municipality
(Thrissur), Anchuthengu Gram Panchayat
(Thiruvananthapuram), and Tirunelli Gram
Panchayat (Wayanad). Based on this, the project
was extended to all local governments in the
state. Thus, a Statewide survey was conducted to
identify extremely poor households based on four
key deprivation categories: lack of food, income,
health, and shelter. The Local self-government
department was the nodal agency that conducted
the survey. The survey targeted households not
previously covered under the Ashraya programme,
the State’s flagship programme for identifying the
destitute, which had 1.57 lakh beneficiaries.
Basic approaches to identifying the extremely
poor
Extreme poverty is the most severe form of socio-
economic deprivation, occurring when individuals
or families are unable to secure adequate food,
access healthcare, obtain safe housing, or earn a
basic income. Among these, food insecurity is a
prime determinant, as households may slip into
starvation when they cannot afford sufficient
food, especially when public food supplies are
unavailable, or when they lack the means or
physical ability to cook and consume it. Health-
related distress is another major driver. High
morbidity rates and chronic illnesses-such as
kidney, liver, and heart diseases, stroke, and
severe mental health conditions-frequently reduce
individuals’ ability to work. Persons with severe
disabilities also face significant barriers to earning a
livelihood. As a result, health problems often push
families into extreme poverty. Income distress,
whether due to reduced work capacity, loss of
income from assets, or overwhelming debt, further
exacerbates vulnerability. Housing deprivation
is another serious concern. Families unable to
afford safe shelter are forced to live in dangerous,
temporary or public spaces. In summary, the most
critical factors leading to extreme poverty are food
insecurity, unsafe housing, inadequate income and
poor health status. These four determinants were
therefore adopted as key indicators of extreme
poverty. In addition to these criteria, the extent of
social discrimination experienced due to historical,
socio-economic, and gender-related factors was
also considered.
Criteria adopted to identify the extremely poor
The extremely poor households were selected
based on well-defined criteria. To start with, each
of the four general factors contributing to extreme
poverty was divided into sub-factors. These factors
were further categorised into two: distress factors
and extreme distress factors. Extreme distress
factors were the primary criteria used to identify
households with extreme poverty. Distress factors,
on the other hand, were given the next priority.
Both extreme distress factors and distress factors
were given different weightages accordingly. A
brief description of the extreme distress factors
and distress factors is given in Table2.1
Table 2.1 Extreme Distress Factors and distress factors used to identify extreme poor in the state
Extreme Distress Factors Distress Factors
Food/Nutrition availability
Families who are unable to cook on their own, buy
food from outside due to old age or physical or mental
challenges or those who cannot pay for some one to cook
Families with children aged six or below and having
Severe Acute Malnutrition (SAM), as per Anganwadi
records
Families who do not regularly receive food due to living
on the street or in public places, or who receive free meals
from public institutions
Health
Families who have completely lost their income earning
capacity (from employment, assets, or investments) due to
serious illness or have been bedridden for reasons other
than those mentioned above
A family that has lost assets and livelihood due to
indebtedness caused by illness or accident
Families who have lost income from employment,
investments or assets, as part of taking care of family
members who face physical or mental challenges or 80% of
physical challenges at home
Income#
A family without any member with income earning
capacity and no income from assets or investments
A family where the primary income earner is dead or have
abandoned the family
A poor family with only members over 60 years and is
with physical difficulties is employed, while no other
income-earning members/avenues are present
A family that has lost work equipment and livelihood
opportunities in a disaster and those with no other means
of income
A poor family without any income source and with
members (s) above 70 years of age
Place for Residence
Wanderers (those who have been in the local government
area for the last year) without shelter.
Those who live in miserable conditions in dangerous
and unhygienic places (such as railways, roads, rivers,
swamps, fields, near garbage dumps, edges of dirt canals,
bus stands and markets).
(Conditions other than sea turbulence)
Poor families who lost their homes due to debt and natu-
ral disasters
Source: Hand book on extreme poverty identification, KILA, #Social security pentsion is not considered income
A poor family without any income source and with
members (s) above 70 years of age
Place for Residence
Wanderers (those who have been in the local government
area for the last year) without shelter.
Those who live in miserable conditions in dangerous
and unhygienic places (such as railways, roads, rivers,
swamps, fields, near garbage dumps, edges of dirt canals,
bus stands and markets).
(Conditions other than sea turbulence)
Poor families who lost their homes due to debt and natu-
ral disasters
Source: Hand book on extreme poverty identification, KILA, #Social security pentsion is not considered incom
n addition, special consideration was given
to socially backward and marginalised groups
to address extreme poverty, and a few other
indicators were included for such specific social
groups. They, however, will also be eligible for
consideration in terms of the general extreme
distress factors and distress factors mentioned
in Table 2.1, in addition to the distress factors
outlined in Table 2.2
Moreover a set of criteria was also considered
for those who are socially vulnerable for various
reasons, to facilitate the selection process. This list
included poor families with HIV-positive people,
poor families with orphaned children, and poor
families with LGBTQIA+ people. This ensures
that poor people experiencing social isolation
due to infections like HIV or gender specific
discrimination are given special consideration as
part of this programme. (Table 2.3).
Urban poverty was also considered as a distinct
category, and special consideration was given to
the condition of eight or more people having
to live together in a house measuring under 150
square feet, which was regarded as an extreme
form of poverty.
A poor family with only members over 60 years and is
with physical difficulties is employed, while no other
income-earning members/avenues are present
A family that has lost work equipment and livelihood
opportunities in a disaster and those with no other means
of income
A poor family without any income source and with
members (s) above 70 years of age
Place for Residence
Wanderers (those who have been in the local government
area for the last year) without shelter.
Those who live in miserable conditions in dangerous
and unhygienic places (such as railways, roads, rivers,
swamps, fields, near garbage dumps, edges of dirt canals,
bus stands and markets).
(Conditions other than sea turbulence)
Poor families who lost their homes due to debt and natu-
ral disasters
Source: Hand book on extreme poverty identification, KILA, #Social security pentsion is not considered income
Table 2.2 Distress Factors for Scheduled Tribe and Scheduled caste families and coastal residents
Distress Factors for Scheduled Tribe Families
• Living in the forest, at least three kilometres from basic amenities such as public transport, primary health centres,
schools, ration shops, and a scheduled tribe family with less than 25 cents of land.
• Particularly Vulnerable Tribal Groups (PVTG – Kaadar, Cholanaikkan, Kattunaikkan, Koraga, Kurumba)
• Families with no other source of income and dependent only on forest produce.
• Families with no one educated above the primary level (seventh standard) of schooling.
• Families with a person who has to move to the neighbouring states for employment as unskilled agricultural labour
and has less than 25 cents of agricultural land and no other employer in the family.
• Family with a person who has a height-to-weight ratio (BMI) of less than 16 or persons with chronic
energy deficiency.
• A family with no land to live in or that lives in a residential area of less than 150 square feet with eight or more
members.
Distress Factors for Scheduled Caste Families
• Those who lost their homes due to disasters.
• Family living in an area with no transportation within 500 meters, no access to drinking water within
100 meters and no electrification.
• Families with no one educated above the primary level (seventh standard) of education.
Coastal Residents
• People are regularly threatened by the sea or those who have lost their habitat due to the coastal hazards.
• Families with no one educated above the primary level (seventh standard) of education.
Source: Hand book on extreme poverty identification, KILA
