How Kerala is eradicating extreme poverty

By Atul Chandra

In a region too often consumed by the drums of war, particularly between nuclear-armed neighbours India and Pakistan, the importance of a sustained ceasefire cannot be overstated.

While military skirmishes and nationalistic posturing capture headlines, they divert critical attention and resources from the real battles against poverty, illiteracy, unemployment and public health crises.

A nation’s greatness lies not in its arsenal but in the wellbeing of its people. The ceasefire agreement between India and Pakistan in May 2025 offers an opportunity to reimagine national priorities, shifting focus from border conflicts to building equitable and just societies.

In this context, Kerala’s groundbreaking strides in poverty eradication underscore what becomes possible when governments choose welfare over warfare, social investment over military expenditure.

In a world grappling with entrenched inequality, the Indian state of Kerala has emerged as a beacon of hope. By November 2025, Kerala is set to become India’s first state to entirely eradicate extreme poverty, a milestone announced by Chief Minister Pinarayi Vijayan following the success of Dharmadam, the state’s first extreme-poverty-free constituency.

This achievement is not merely a statistical triumph but a testament to decades of socialist-inspired policies prioritising equitable development, grassroots democracy and human dignity.

Kerala’s journey offers critical insights into how systemic, community-driven strategies can uplift millions from deprivation, proving that poverty is a political choice and not an inevitable reality.

Data-driven approach to empowerment

Kerala’s success is rooted in its meticulous participatory approach to identifying and addressing poverty.

Launched in May 2021, the extreme poverty eradication project (EPEP) set a global benchmark for precision.

As per the Economic Review published in 2024 by the Kerala State Planning Board, the initiative began with the nomination of 118,309 poor households from local wards, followed by a rigorous four-stage verification process:

• scrutiny by local self-government subcommittees
• face-to-face interviews
• validation by grama sabhas (ward assemblies)
• a 20% audit to ensure accuracy.

The survey focused on four indicators – lack of food, income, shelter and healthcare. It excluded families already covered by existing welfare schemes to avoid duplication.

The final tally revealed 64,006 families living in extreme poverty, with 81% residing in rural areas. Malappuram district recorded the highest number (8,553 families), while Kottayam had the fewest (1071 families).

Health crises affected over 40,000 families, food insecurity plagued 34,523 households, and 15,091 lacked adequate shelter.

These numbers guided the creation of tailored micro-level plans for each household, blending immediate relief with short-term support and long-term solutions.

For instance, families facing medical emergencies received free treatment through Kerala’s revitalised public hospitals, while others gained access to self-employment opportunities through cooperatives.

Pillars of Kerala’s socialist legacy

Kerala’s anti-poverty framework is rooted in a sustained history of structural reforms led by the Communist Party of India (Marxist) and the Left Democratic Front (LDF).

These reforms have contributed to a dramatic decline in poverty in the state from 59.8% in the 1970s to just 11.0% by 2011.

This transformation was made possible through a combination of policy innovations that reshaped land relations, governance, welfare delivery and gender roles.

A cornerstone of Kerala’s progress was its sweeping agrarian reform programme. Land reforms dismantled entrenched feudal hierarchies by granting land ownership rights to tenant farmers, imposing ceilings on landholdings, and redistributing surplus land to landless agricultural workers.

These measures undermined the traditional dominance of upper-caste landlords, significantly improved living standards in rural areas, and enhanced the bargaining power of the peasantry and agricultural labourers.

Kerala’s experiment with decentralised governance further deepened democratic participation and strengthened local capacity. By devolving substantial financial and administrative authority to local self-governments, the state enabled panchayats (village councils) to design and implement welfare programmes attuned to local realities. During the Covid pandemic, this structure proved crucial as community kitchens were swiftly established and volunteers helped deliver meals to those in need.

The decentralisation process has also fostered transparency, heightened policy awareness among the people, and increased accountability in implementation.

The state’s longstanding emphasis on public health and education has created a strong foundation for human development. The Aardram Mission, launched in 2017, revitalised primary health centres by integrating mental healthcare and trauma services, making them more accessible and patient-friendly. Kerala’s 96.2% literacy rate is the outcome of decades of investment in universal education, vocational training and public schooling. This has contributed to a more informed, skilled and healthy workforce.

Women’s empowerment has been central to Kerala’s development model, particularly through the Kudumbashree programme launched in 1998. With over 4.5 million members, Kudumbashree represents one of the largest women-led poverty alleviation and empowerment initiatives in the world. Through a synergy of microfinance, entrepreneurship, collective farming, and local governance, the programme has enabled hundreds of thousands of women to secure livelihoods and challenge patriarchal social structures.

Complementing these efforts are robust social security schemes aimed at safeguarding vulnerable populations. Initiatives such as Agathi Rahitha Keralam provide a comprehensive safety net, offering pensions for the elderly, disability allowances, and scholarships for children from marginalised communities. These programmes reflect Kerala’s commitment to building a welfare state that prioritises inclusion, dignity and social protection.

Together, these pillars exemplify how a socialist-oriented developmental vision – grounded in equity, redistribution and participation – can offer a viable alternative to neoliberal models of growth, especially in the context of the Global South.

Parallels with Chinese socialist models

Kerala’s achievements mirror China’s unprecedented poverty eradication campaign. Kerala’s targeted campaign to eradicate extreme poverty finds meaningful resonance in China’s poverty alleviation programme.

While China’s broader poverty reduction trajectory began in the late 1970s, the decisive push between 2014 and 2020 was aimed at lifting the most marginalised – those still experiencing absolute poverty – through a coordinated, data-driven and locally embedded governance model. Kerala’s extreme poverty eradication project, launched in 2021, reflects many of the same institutional principles and methodologies, rooted in the ethos of socialist planning, state responsibility and participatory governance.

A key element common to both models is the precise identification of the poor. China’s campaign began with a massive national survey in 2014, which identified 89.6 million individuals living below the national poverty line. Similarly, Kerala conducted a multi-tiered verification process through local self-government institutions, village assemblies and social audits to identify 64,006 households living in conditions of extreme poverty.

A second shared characteristic lies in the emphasis on household-specific poverty alleviation plans. In China, each identified household received a customised strategy incorporating income generation, skills training, healthcare access, housing support and, in some cases, voluntary relocation. Kerala adopted a similar triadic model: immediate relief (such as food kits and emergency medical aid), short-term support (temporary housing and employment assistance), and long-term solutions (permanent housing, skills training and cooperative-led self-employment).

Both models also exemplified a strong role for local governance structures in delivering social protection. China deployed over three million grassroots officials and party cadres to implement and monitor poverty eradication efforts at the village level. In Kerala, elected panchayati raj (council of five officials) institutions, along with the women-led Kudumbashree movement, became key actors in identifying needs, delivering services and ensuring accountability.

However, challenges persist. Despite eradicating extreme poverty, China faces urban-rural income gaps, while Kerala battles rising living costs and an ageing population.

A 2024 study by the Centre for Socio-Economic and Environmental Studies found that nearly a third of extremely poor households were pushed into poverty following major shocks, such as the death of an earning member or severe health emergencies.

The study urged proactive identification of at-risk households and “distress relief funds” at local self-government levels to prevent backsliding – a reminder that poverty is dynamic, requiring continuous attention.

Beyond poverty: Redefining development

Kerala’s achievement in eliminating extreme poverty lays the groundwork for confronting a broader set of structural challenges that are increasingly relevant across the Global South.

These challenges are not simply the result of technological advancement, but rather of how such technologies are embedded in unequal social and economic systems.

Kerala’s evolving policy direction offers valuable insights into how states can embrace innovation while prioritising equity, sustainability and human wellbeing.

As automation and artificial intelligence begin to transform labour markets, Kerala has adopted a proactive stance.

Instead of resisting technological change, the state is investing in emerging sectors such as renewable energy and digital infrastructure. For instance, the Kerala Fibre Optic Network (KFON) initiative aims to provide free or affordable high-speed internet to underserved communities. This facilitates digital inclusion and employment opportunities.

At the same time, the state is strengthening gig economy protections, including the introduction of welfare boards for platform-based workers like auto drivers and delivery personnel. These initiatives echo elements of China’s ‘Common Prosperity’ strategy, which includes efforts to regulate tech giants and reduce wealth inequality through taxation and redistribution.

Kerala’s commitment to sustainable development is underpinned by its decentralised governance model. Through empowered panchayats and local self-governments, the state ensures that development is participatory and context-specific.

For example, the Haritha Kerala Mission integrates environmental protection into local planning by encouraging rainwater harvesting, organic farming and waste management at the community level. This approach aligns with China’s rural revitalisation strategy, which deploys digital technologies, agricultural extension programmes and infrastructure investment to narrow urban-rural divides.

Together, these initiatives underscore Kerala’s commitment to a development model that centres people, not merely production or profit. By weaving together economic justice, ecological sustainability and human dignity, the state is forging a path that challenges conventional capitalist metrics of success.

It signals that development can be reoriented towards public good, social ownership and participatory governance – principles that resonate across diverse contexts in the Global South seeking more humane and inclusive futures. – Globetrotter

Atul Chandra is a researcher at Tricontinental: Institute for Social Research. His areas of interest include geopolitics in Asia, left and progressive movements in the region, and struggles in the Global South.

The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.

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