ERADICATION OF EXTREME POVERTY IN KERALA

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