Kerala Becomes First Indian State to Eradicate Extreme Poverty: CM Pinarayi Vijayan

On the occasion of Kerala Piravi (Kerala Day) on November 1, Chief Minister Pinarayi Vijayan announced that Kerala has eradicated extreme poverty, becoming the first state in India to achieve this milestone.

Definition of Extreme Poverty

• According to the World Bank, anyone subsisting on under $3 per day (based on 2021 Purchasing Power Parity – PPP) is considered to be living in extreme poverty.
• The poverty threshold is derived from the median poverty line of 23 low-income countries, representing the cost of a standardised “basket of goods.”

World Bank’s Poverty Classifications (2025)

• Extreme Poverty: Below $3.00 per day.
• Lower-Middle-Income Poverty Line: $4.20 per day.
• Upper-Middle-Income Poverty Line: $8.30 per day.
• The international poverty line was revised in June 2025 from $2.15 (2017 PPP) to $3.00 (2021 PPP).

India’s National Poverty Measurement

• The NITI Aayog uses the Multidimensional Poverty Index (MPI) to measure poverty.
• The MPI is based on the Alkire-Foster methodology and includes 12 indicators across three dimensions:
  1. Health
  2. Education
  3. Standard of Living

Kerala’s Distinct Approach

• The Kerala government developed its own method for identifying families in extreme poverty.
• It did not rely on World Bank or NITI Aayog parameters.
• The Local Self-Government Department (LSGD) prepared micro-plans for each family, focusing on four distress factors:
  1. Income
  2. Health
  3. Housing
  4. Food

Global and National Context

• A World Bank report (October 2025) noted that India has significantly reduced poverty over the past decade.
• Extreme poverty in India fell from 16.2% (2011–12) to 2.3% (2022–23) — lifting an estimated 171 million people out of extreme poverty.
• Globally, 838 million people were estimated to be living in extreme poverty in 2022 (using the $3/day measure), compared to 713 million under the $2.15/day measure (September 2024 estimate).

Source: IE