Kerala Declared Free from Extreme Poverty – First Indian State to Do So (2025)

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On November 1, 2025 (Kerala Piravi Day), Chief Minister Pinarayi Vijayan declared Kerala as free from extreme poverty, making it the first state in India to achieve this milestone.
The announcement followed the successful implementation of the Extreme Poverty Eradication Programme (EPEP).

What is Extreme Poverty?

Defined by the World Bank as living on less than $3 per day (as per 2021 PPP rates).
Earlier (before June 2025), the global line was $2.15 per day (2017 PPP).
It represents the inability to meet basic human needs such as food, health, housing, and education.

Kerala’s Broader Poverty Reduction Journey

NITI Aayog’s MPI 2021:

• • Kerala’s poverty rate – 0.7%, the lowest in India.
  • National average then was 25.01%.

Historical Progress:

• Poverty in Kerala declined from 59.8% in the 1970s to near zero by 2025.
• Achieved through continuous social welfare reforms, education and healthcare expansion, and decentralized local governance.

Kerala’s Method (EPEP):

• The Extreme Poverty Eradication Programme (EPEP) used its own criteria — food, health, housing, and income — not the MPI framework.
• This localized, participatory approach was key to declaring Kerala free from extreme poverty in November 2025.

Kerala’s Extreme Poverty Eradication Programme (EPEP):

Launch & Implementation

• Launched: 2021
• Nodal Department: Local Self-Government Department (LSGD)
• Execution: Through local self-governments with active participation of Kudumbashree workers, volunteers, and elected representatives.
• Capacity Building: Over 4 lakh individuals trained for identification and monitoring.

Identification Process

• Initial Survey: 1.18 lakh families identified as extremely poor.
• Final Verification: Narrowed to 59,000 families (1,03,099 individuals) after multiple checks.
• Approach: Multi-dimensional assessment including income, health, housing, and education.

Major Interventions

1. Food Security

• Regular meal supply ensured for 20,648 families through Kudumbashree network.

2. Health Care

• Free medical services, palliative care, essential medicines, and even organ transplants provided.

3. Housing

• 4,677 families received houses under the LIFE Mission.
• 2,713 families given land and house together.

4. Livelihood Support

• 4,394 families received direct livelihood assistance.
• 35,041 families linked to MGNREGS employment.

5. Education

• 5,583 children received special educational support.
• 331 students awarded scholarships; free travel facilities provided.

6. Documentation & Inclusion

• Under “Avakasam Athivegam” (Rights Fast) campaign:
  Basic documents like Aadhaar, ration cards, MGNREGS job cards, and bank accounts issued to unregistered families.

Avakasam Athivegam

“Rights at Speed” — Kerala’s campaign to quickly provide essential documents and basic services to poor families under the poverty eradication mission.

7. Shelter & Safety

• 428 single-member families relocated to safe shelter homes.

8. Continuous Monitoring

• Regular follow-up to prevent relapse into extreme poverty.

Significance of the Declaration

• First Indian state to declare zero extreme poverty.
• Reinforces the Kerala Model of Development — rooted in agrarian reforms, public health, universal education, and decentralized governance.
• Strengthens Kerala’s image as a leader in human development and social welfare.
• Provides a replicable model for other states tackling multi-dimensional poverty.

Criticism and Opposition View

• UDF Opposition: Called it a “hollow proclamation”, alleging political motives before local elections.
• Government’s Response: Stated that the declaration is data-backed, based on field verification and measurable indicators.

UPSC PYQ

Q. The Multidimensional Poverty Index (MPI) published by NITI Aayog is based on which global methodology?
(a) Sachs and Stiglitz Method
(b) Alkire and Foster Method
(c) Kuznets and Lewis Method
(d) Sen and Mahbub-ul-Haq Method

Answer: (b) Alkire and Foster Method

CARE MCQ

Q) With reference to Kerala’s declaration of being free from extreme poverty, consider the following statements:

1. The state’s identification criteria followed the World Bank’s income-based poverty line.
2. The programme focused on food, health, housing, and income as key distress indicators.
3. Kerala became the first Indian state to achieve this status in 2025.
4. The Extreme Poverty Eradication Programme (EPEP) was launched under the LIFE Mission in 2018.

Which of the above statements are correct?
(a) 1 and 4 only
(b) 2 and 3 only
(c) 1, 2 and 3 only
(d) 2, 3 and 4 only

Answer: (b) 2 and 3 only

Explanation:

(1) ❌ Kerala used its own multidimensional indicators, not World Bank’s.

(2) ✅ The focus areas were food, health, housing, and income.

(3) ✅ Kerala declared itself free from extreme poverty on Nov 1, 2025.

(4) ❌ The EPEP was launched in 2021, not under LIFE Mission in 2018.

MAINS MODEL QUESTION

1. “Kerala’s declaration of being free from extreme poverty highlights the success of decentralised governance and data-driven welfare delivery in India.” Discuss.

Introduction

On November 1, 2025, Kerala became the first Indian state to declare itself free from extreme poverty, under the Extreme Poverty Eradication Programme (EPEP).
This achievement reflects how decentralised governance, community participation, and data-driven microplanning can make welfare delivery more effective and inclusive.
It demonstrates a shift from top-down schemes to evidence-based, locally executed social policy.

Body

1. India’s Poverty Context

• According to the World Bank (2025), India’s extreme poverty fell from 16.2% (2011–12) to 2.3% (2022–23).
• However, inequality, informality, and unemployment persist, highlighting the need for targeted state-level interventions.

2. Kerala’s Model – Extreme Poverty Eradication Programme (EPEP)

• Launched in 2021, as one of the first decisions of the LDF government.
• Implemented by the Local Self-Government Department (LSGD).
• Method:
  • Used data from panchayats and ward committees to identify families lacking food, housing, health, and income.
  • 59,000 families (1,03,099 individuals) were identified and assisted through micro-level plans.
  • Convergence of welfare schemes like LIFE Mission (housing), Kudumbashree (livelihood), MGNREGS (employment), and Avakasam Athivegam (documentation).

3. Role of Decentralised Governance

• Panchayats and local bodies played a central role in planning, verification, and implementation.
• Kudumbashree networks mobilised women’s participation and ensured accountability.
• This bottom-up governance model allowed policies to address real local needs, ensuring last-mile delivery.

4. Data-Driven and Inclusive Welfare

• The programme relied on community-collected data rather than outdated poverty line surveys.
• Families were tracked using digital databases and micro-plans, ensuring no duplication or exclusion.
• The focus shifted from income poverty to multidimensional deprivation — food, housing, health, and education.

5. Significance and Replicability

• Proved that decentralised, data-based governance can make poverty eradication measurable and verifiable.
• Aligns with UN Sustainable Development Goal 1 – No Poverty.
• Serves as a replicable model for other Indian states aiming for inclusive development.

Conclusion

Kerala’s success in eliminating extreme poverty marks a new paradigm of governance — where local participation, digital data, and integrated welfare systems drive inclusive growth.
It shows that poverty eradication is not merely a policy goal but a governance process that works best when power and planning are devolved to the grassroots.
If adopted nationally, this model can transform India’s welfare delivery from scheme-based relief to rights-based empowerment.