KERALA’S DHARMADAM DECLARED EXTREME POVERTY-FREE - ECONOMY
NEWS: Kerala Chief Minister Pinarayi Vijayan’s Dharmadam constituency in Kannur has been declared the state’s first ‘extreme poverty-free’ constituency (April 2025). This milestone is part of Kerala’s broader plan to eradicate extreme poverty across the state by 1 November 2025, making it a model for inclusive development.
WHAT’S IN THE NEWS?
Definition of Extreme Poverty
• Extreme poverty refers to a condition where a household is unable to meet the most basic needs required for human survival. This includes access to:
• Food availability: Sufficient and nutritious food for daily sustenance.
• Healthcare: Access to essential healthcare services for maintaining physical and mental well-being.
• Basic income: An income that is sufficient to meet the fundamental needs of the household.
• Adequate housing: Living conditions that ensure safety, hygiene, and protection from the elements.
• Kerala Government's Approach: Kerala used these four indicators to identify and classify extremely poor families through a grassroots-level survey, emphasizing a more localized, detailed approach to identifying extreme poverty.
Global and National Poverty Lines
• Global Poverty Line: The United Nations defines extreme poverty as living on less than USD 1.90 per day.
• India’s Official Poverty Line:
• India’s poverty line is based on the Tendulkar Line, which is close to the global poverty threshold of USD 1.90 per day.
• In 2009, the Tendulkar Expert Group, chaired by economist Suresh Tendulkar, reviewed the methodology for poverty estimation in India.
• Tendulkar Committee Recommendations:
• The committee recommended per person per day consumption figures of Rs 32 for urban areas and Rs 26 for rural areas.
• For the 2011-2012 period, the national poverty line was estimated at Rs 816 per capita per month for rural areas and Rs 1,000 per capita per month for urban areas.
Rangarajan Committee Report
• Formation of Rangarajan Committee: In 2012, due to widespread criticism of the Tendulkar Committee’s poverty line approach, the Rangarajan Committee was formed to reassess the poverty line.
• Rangarajan Committee Recommendations:
• The committee proposed an increase in the daily per capita expenditure to Rs 47 per day for urban areas and Rs 32 per day for rural areas.
• They recommended a monthly per capita consumption expenditure of:
Rs 972 in rural areas
Rs 1,407 in urban areas.
• Despite these recommendations, the government did not adopt the Rangarajan Committee's report and has continued using the Tendulkar Line for poverty estimation.
Major Government Initiatives to Eradicate Poverty in India
1. Pradhan Mantri Awas Yojana (PMAY):
• Aimed at providing affordable housing to the urban and rural poor, ensuring better living conditions for economically disadvantaged families.
2. National Food Security Act (NFSA):
• Ensures subsidized food grains are provided to low-income families, securing food access for millions of people, particularly in rural areas.
3. Ayushman Bharat - PM-JAY:
• A health insurance scheme designed to provide healthcare coverage to economically vulnerable families, ensuring access to medical care without financial hardship.
4. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS):
• Guarantees 100 days of wage employment per year to rural households, improving livelihoods and providing financial support through rural work opportunities.
5. Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM):
• Focuses on promoting self-employment and women’s Self-Help Groups (SHGs) in rural areas, aiming to empower women and create sustainable livelihood opportunities.
6. PM Garib Kalyan Yojana:
• Aimed at providing economic support and free food grains during the COVID-19 pandemic, helping vulnerable populations withstand the financial challenges of the pandemic.
7. Direct Benefit Transfer (DBT):
• Transfers subsidies directly to beneficiaries, eliminating intermediaries and reducing the chances of leakage or misuse, ensuring that financial aid reaches the intended recipients.
Source: https://indianexpress.com/article/india/kerala-declares-cms-dharmadam-constituency-extreme-poverty-free-9942666/