What in the World Did India just end poverty in Kerala?
Dec 3, 2025
Journalist Shruti Menon, a BBC correspondent from Kerala, dives into the state's bold claim of ending extreme poverty. She clarifies what extreme poverty really means based on World Bank standards. With Kerala's unique blend of high literacy and public health services, she explores how these factors alongside national initiatives have contributed to significant poverty reduction in India. Menon also raises critical questions about the government's claims, including concerns over transparency and the risk of families slipping back into poverty.
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Global Definition And India’s Big Drop
- The World Bank defines extreme poverty as living on less than US$3 a day and about 800 million people still meet that threshold globally.
- India cut its extreme poverty rate from ~27% to just over 5% in a decade through economic growth and social programs.
Three Drivers Behind India’s Progress
- India's decline in extreme poverty combined economic growth, expanded subsidies and pensions, and mass rollouts of basic services.
- Digitalisation and direct transfers reduced leakages so benefits reached households faster, helping prevent deep poverty.
Why Kerala Stands Apart
- Kerala has long been an outlier due to early land reforms, high literacy and remittances from people working abroad.
- Those structural advantages kept Kerala's poverty levels lower than many large northern states historically.