Mint Explainer | Has Kerala really eradicated extreme poverty?
The Kerala government claims to have eradicated extreme poverty, but economists question the validity of this assertion. Did Kerala really achieve this feat? If so, how significant is the achievement?
The Kerala government’s claim that it has eradicated extreme poverty in the state has been met with scepticism among economists and other experts. They have questioned the empirical basis of this declaration and the process that was followed to achieve it. Mint examines the issue.
What was the Kerala government's claim on poverty eradication?
On 1 November, which also happened to be the Kerala formation day, chief minister Pinarayi Vijayan declared that the state was free from extreme poverty. In other words, no households in the state lacked basic necessities of life.
The Left Democratic Front (LDF) government attributed this success to its extreme poverty eradication project (EPEP) initiated in 2021. Kerala became the first state in the country to do so.
What is extreme poverty?
According to the World Bank, anyone subsisting on less than $3 per day is considered to be in extreme poverty. In June 2025, the multilateral institution had revised the criteria, from the earlier threshold of $2.15 per day, based on 2021 purchasing power parity.
How did Kerala achieve this feat?
EPEP was one of the first decisions taken by the LDF government after it retained power in 2021. With the help of local body representatives, volunteers and government officials, people who are extremely poor were identified.
The Niti Aayog’s multi-dimensional poverty index was used as a measure, and criteria included access to food, health, housing and income. The 1.03 lakh individuals, involving 64,006 families, identified were provided essential documents such as ration card/Aadhaar and access to food and healthcare. Land, houses and livelihood support were offered too. In all, ₹1,000 crore was spent on the project.
How significant is the achievement?
If true, it is a significant achievement. According to a recent report by the World Bank, as of 2024, there are still 839 million people globally living in extreme poverty (on less than $3 per day).
Kerala, as mentioned earlier, has become the first state to eradicate extreme poverty in India where 5.3% of the population, as of 2022-23, is still very poor. This figure was much higher at 16.2% in 2011-12.
Not everyone agrees with this claim. Why?
Many economists, professors and other experts have questioned the Kerala government’s claim and have urged it to make the study report public. They want to understand the criteria used to identify those who are extremely poor as it was not based on any formal survey and is at odds with official figures.
For instance, the state has 592,000 extremely poor people as per the official definition under National Food Security Act 2013 and are being given food grains under the Antyodaya Anna Yojana. Opposition parties have called the declaration a "pure fraud".
What is the extreme poverty situation elsewhere?
Globally, extreme poverty has seen a significant reduction. It has declined from 47.1% in 1981 to 10.3% in 2024. Almost half of them are in sub-Saharan Africa, 46% to be precise.
West Asia, North Africa, Afghanistan and Pakistan account for the next big share of 12%. South Asia is home to 6% of the extremely poor, while Latin America and Caribbean house 4% of them. Europe, North America and Central Asia account for just 1% each.
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