Kerala Emerges as India’s Leader in Poverty Reduction and Social Development:  NITI Aayog's Report

Thiruvananthapuram: Kerala has once again set a benchmark in social and economic development, securing the title of the state with the lowest poverty rate in India, according to the NITI Aayog’s 2023 National Multidimensional Poverty Index (MPI) report. With only 0.55% of its population classified as multidimensionally poor, Kerala has outperformed other states, reaffirming its position as a model for inclusive growth and sustainable development.

The state's poverty rate has been steadily declining. In the first edition of the MPI report in 2021, Kerala's poverty rate stood at 0.71%. Currently, it has dropped to 0.55%. Following Kerala, Goa ranks second with a poverty rate of 3.76%, trailed by Sikkim (3.82%), Tamil Nadu (4.89%), and Punjab (5.59%). The report attributes Kerala’s success in poverty reduction to its progressive policies, including land reforms, universal education, accessible healthcare, decentralization of power, social security initiatives, public distribution systems and women’s empowerment.

While progress has been impressive, there are still some areas in the state where poverty remains a challenge. Communities such as the Scheduled Castes (SC), Scheduled Tribes (ST), fishermen, and artisans are among those who continue to face difficulties. The government is working steadily through various welfare programs to support these groups, with a focus on fostering inclusivity and shared progress for all.

44,539 Families Lifted Out of Extreme Poverty

In a significant milestone, Kerala has lifted 44,539 families out of extreme poverty.  A total of 64,006 families across 1,032 local self-governments were identified as extremely poor. The government aims to completely eradicate extreme poverty in the state by November 1st.

The state has taken significant measures to ensure their upliftment. Initially, it was discovered that a considerable number of identified household members lacked fundamental civic documents that allowed them to access necessary services such as social security pensions, ration cards, election identity cards, Aadhar cards, MGNREGS job cards, and so on. To address this issue, a campaign called ‘Avakasham Athivegam’ was launched. This campaign began to assist persons living in severe poverty with their urgent and long-term needs, particularly in the form of identification cards and benefits.

Additionally, health insurance and social security pensions have been extended to vulnerable groups. The ‘Ujjivanam’ project, led by the Kudumbashree Mission, has helped 3,155 families secure sustainable livelihoods. This initiative focuses on providing job training and support to families in need, helping them achieve long-term income and integrate into society.

Kerala’s Healthcare Revolution: A Model for the Nation

Kerala’s healthcare system continues to set an example for the nation. The state has transformed 694 public health centers into family health centers, with plans to upgrade 886 centers in total. According to the Economic Review Report, 78.32% of these centers have completed their construction work, while 62 centers are still under construction, and work has yet to begin in 130 centers. Furthermore, 75 community health centers have been upgraded to block family health centers, enhancing healthcare delivery across the state. Medical colleges and other healthcare facilities have also seen significant improvements in outpatient (OP) services.

Kerala also leads in ensuring timely medical assistance. The state has a significantly lower percentage of deaths due to lack of medical care compared to the national average. According to the report, 80.70% of its population receive medical attention before death, whereas the national average is only 48.70%.

Wage Rates Surpass National Average

Kerala’s wage rates are more than double the national average, reflecting the state’s high Human Development Index (HDI) and strong labour rights framework.  In rural areas, the average daily wage stands at ₹771.10, compared to the national average of ₹372.05. Male agricultural labourers earn ₹807.2 per day, significantly higher than the national average of ₹372.7. In the non-agricultural sector, male workers in rural Kerala earn an average of ₹735 daily, while the national average is ₹371.40. Jammu & Kashmir and Tamil Nadu follow Kerala in wage rates, but the gap remains substantial.

According to the Economic Review Report, Kerala’s high wage rate is attributed to factors such as its progressive social environment, political outlook, labour union activism, and the intervention of welfare boards. State has implemented minimum wages across 85 employment sectors and operates 28 labour welfare funds, benefiting 5.87 million workers.

A Beacon of Development

Kerala’s achievements in poverty reduction, healthcare, environmental conservation, and labour welfare underscore its commitment to inclusive and sustainable development. As the state continues to address remaining challenges, it stands as a shining example of how progressive policies and people-centric governance can transform lives and set new benchmarks for the nation.