ECONOMIC REVIEW 2017 | State Planning Board, Thiruvananthapuram, Kerala, India (2024)

Poverty

Poverty is a multifaceted concept, which may include social, economic and political elements. Prof. Amartya Sen terms poverty as “not just a lack of money; it is not having the capability to realise one’s full potential as a human being”. The global poverty line set at $1.90 using 2011 prices estimates that over 900 million people globally lived under this line in 2012. The World Bank estimate shows that one in five Indians are poor and 80 per cent of them are in rural areas. The incidence of poverty is high among the Scheduled Tribes followed by Scheduled Castes. By virtue of the unique development path followed in the State, the poverty index of Kerala shows that only 11.3 per cent of population falls under the poverty line as compared to 29.5 per cent in the country in 2011-12. The success of Kerala in poverty reduction is reflected in the sharp reduction in the proportion of poor both in rural and urban areas.

In Kerala, factors such as land reforms, spread of education, and health care, decentralisation, pension schemes, public distribution system, Kudumbashree, and the consolidated efforts through Plan schemes have played an effective role in reducing the poverty ratios. The absolute poverty rate (as per the Rangarajan report) in Kerala and India from 1973-74 to 2011-12 are given in Figure 1.9 and Appendix 1.30.

Figure 1.9
Proportion of Poor in India and in Kerala, 1973-74 to 2011-12, in per cent*

ECONOMIC REVIEW 2017 | State Planning Board, Thiruvananthapuram, Kerala, India (1)

Source: Planning Commission, GOI, 2014. *(Rangarajan Committee) Report of The Expert Group to Review the Methodology for Measurement of Poverty, Government of India, Planning Commission, June, 2014



Socio Economic and Caste Census (SECC), 2011 was the new exercise conducted by Government of India to identify households living below the poverty line in India. SECC gives a broader and dynamic definition of poverty. SECC estimates the deprivation index based on the following seven criteria.

  1. Only one room with kucha walls and kucha roof.
  2. No adult member between age 16 and 59.
  3. Female headed households with no adult male member between age 16 and 59.
  4. Disabled member and no able bodied adult member.
  5. SC/ST households.
  6. No literate adult above 25 years.
  7. Landless households deriving major part of their income from manual casual labour.

According to the SECC (2011) data, out of the 76.99 lakh households in Kerala, 63.19 lakh (82.08 per cent) live in rural areas. Of this, 10.32 per cent are Scheduled Castes households and 1.63 per cent was Scheduled Tribes households. Out of the total rural households, 19.16 lakh (30.33 per cent) rural households are deprived. The highest deprivation rate is seen in Palakkad (42.33 per cent) followed by Thiruvananthapuram (38.36 per cent) and Wayanad (36.33 per cent) districts. And the lowest deprivation rate is seen in Ernakulam (20.30 per cent), Kottayam (23.02 per cent) and Kannur (24.25 per cent) districts. Out of the total rural SC and ST households, 57.66 per cent of Scheduled Caste households and 61.68 per cent of Scheduled Tribe households are included under deprived categories. District-wise details about the percentage of deprived rural households in Kerala against their total number of rural household across different categories are given in Appendix 1.31 and the percentage of deprived rural households in India and Kerala against their total number of rural household across different categories are given in Figure 1.10.

Figure 1.10
Percentage of Deprived Rural Households in India and Kerala Against Total Number of Rural Household Across Different Categories

ECONOMIC REVIEW 2017 | State Planning Board, Thiruvananthapuram, Kerala, India (2) Source: Socio Economic and Caste Census (2011).

District-wise details about the percentage of deprived rural households based on different deprivation index are given in Appendix 1.32 and the percentage of deprived rural household in Kerala and India based on different deprivation index are given in Figure 1.11.

Figure 1.11
Deprived Rural Households in Kerala and India as per Different Deprivation Indices, in per cent

ECONOMIC REVIEW 2017 | State Planning Board, Thiruvananthapuram, Kerala, India (3) Source: Socio-Economic and Caste Census (2011).

Approach of 13th Five-Year Plan

Although the head count ratio (HCR) of poverty was 11.3 in Kerala in 2011-12 as per Rangarajan Committee Estimate, the incidence of absolute poverty is high in some pockets of the State, among the tribes and fisherfolks. Kerala Government is initiating measures for eliminating poverty from the State to make Kerala the first State in India to eliminate absolute poverty. The government will extend full support of its machinery to the local governments to formulate new programmes to expand rural production and eliminate multiple forms of deprivations, especially where the tribes reside. The State will support local governments’ efforts in their core areas of activity, including housing, sanitation, electrification, access to food, healthcare, and insurance, access to school education, employment guarantee, welfare pensions and special care for the disabled, aged and infirm. A combined effort involving local governments, the Kudumbashree mission, departments of the State Government, people’s organisations and individuals will take on the task of eliminating absolute poverty in the State.

Nava Keralam Karma Padhathi (NKKP)

Nava Keralam Karma Padhathi (NKKP) is a new initiative implemented through four innovative Missions in the State for the benefit of the vulnerable sections. Haritha Keralam, Aardram, LIFE and Education Rejuvenation are the four missions. Haritha Keralam is an environment friendly approach, focusing on organic farming, water conservation and waste management. The Mission Aardram aims to create ‘People Friendly’ Health Delivery System in the State through improving universal healthcare and addressing second generation health care issues. LIFE (Livelihood, Inclusion and Financial Empowerment) Mission aims to provide safe and secure house for all landless and homeless family. Education Rejuvenation Mission aims to take forward the State from universalisation of education to modernisation of education, with smart classrooms, digital libraries, IT enabled learning and contemporary syllabus.

While Kerala is better off than most other States in terms of average poverty estimates, there are still several pockets of deprivation in the State. Poverty in Kerala is mainly concentrated in some social categories and groups such as scheduled castes, scheduled tribes, fishermen communities, potters and artisans. This points to the need of additional central assistance to support the State programmes and redesigning livelihood programmes in these areas to eliminate absolute poverty from the State. The Scheduled Caste Development Department, Scheduled Tribes Development Department and Fisheries Department are implementing several poverty reduction/livelihood programmes for the upliftment of the people in these communities. Various schemes on poverty reduction have been dealt with in other chapters of this Review.

ECONOMIC REVIEW 2017 | State Planning Board, Thiruvananthapuram, Kerala, India (2024)

FAQs

What is the latest economic review of Kerala? ›

The Economic Review noted that this has been achieved in the face of “financial constraints and adversities.” Per capita income in Kerala has risen by 6.06% to ₹1,74,214 compared to ₹ 1,64,261 in 2021-22, according to the Economic Review tabled in the House by Finance Minister K. N. Balagopal.

What is the main income of the Kerala Government? ›

Lottery formed a major source for the state's Own Non-Tax Revenue. In 2022-23, receipts from state lotteries were Rs 11,892.88 crore showing an annual increase of 66.69 per cent, compared to 2021-22 (Rs 7,134.93 crore). This constitutes 78.67 per cent of the total non-tax revenue of the state.

Who is the chairman of State Planning Board in Kerala? ›

Chief Minister Pinarayi Vijayan, who chairs the Planning Board, Finance Minister K. N. Balagopal, Planning Board Vice Chairman V. K.

What is the main economy of Kerala? ›

The state's service sector which accounts for around 65% of its revenue is mainly based upon its Hospitality industry, Tourism, Ayurveda and Medical Services, Pilgrimage, Information technology, Transportation, Financial sector, and Education.

Is there financial crisis in Kerala? ›

Mired in a financial crisis, the State government had struggled to pay the salary and pension on March 1. The social security pensions have been in arrears since September 2023, but the government issued orders for releasing one pending instalment on March 15.

Is Kerala economy good? ›

Kerala has the eighth largest economy in India, with high GDP and productivity figures, Kerala is a role model dubbed the "Kerala Phenomenon" or the "Kerala Model" of development by economists, political scientists, and sociologists.

Is Kerala a rich or poor State? ›

Apparently, Kerala emerged as the least poor state in the country for a consecutive second time with 0.55 per cent in the Multidimensional Poverty Index (MPI) released by Niti Aayog. Ernakulam district in Kerala is the only district in India that has zero poverty.

Is Kerala in debt? ›

Similarly, Kerala's public debt-to-GSDP ratio was 24.26% during the 2021-22 period, while it was 27.07% in the 2020-21 fiscal. In short, the total accumulated public debt-to-GSDP ratio has also come down compared to the previous years.

What is the GDP of Trivandrum? ›

In the year 2020-21 the gross domestic product in the district was Rs. 72,22,657 lakhs at current price and Rs. 46,52,026 lakhs at constant prices in the year 2011-2012. The net domestic product in the district during the period 2020-21 was Rs.

Who formed Kerala State Planning Board? ›

The State Planning Board was first constituted in September, 1967 with Chief Minister Sri E M S Namboothiripad as its Chairperson.

Who is the vice president of Kerala Planning Board? ›

V K Ramachandran

What is the tenure of Kerala State Planning Board? ›

The term of the Board is customarily five years analogous with the term of the ruling Government. Since 1967 the Board has been reconstituted 15 times. The Board, through its expertise, facilitates good planning and better implementation of development schemes/ projects in the State.

Which city is rich in Kerala? ›

KOCHI: Which city do Kerala's billionaires prefer for residence? Surprisingly, it's Thrissur, not Kochi, the state's business hub. According to the latest report by 360 One Wealth-Hurun Kerala Rich List, Thrissur is home to five billionaires, while Ernakulam houses four.

What is Kerala rich in? ›

Water Resources. Kerala state is rich in water resources. Three tributaries of the river Cauvery originate in Kerala and flow eastward.

Which is the richest district in Kerala? ›

Ernakulam district yields the highest revenue and the largest number of industries in the state. Ernakulam is the third most populous district in Kerala, after Malappuram and Thiruvananthapuram (out of 14 districts). The district also hosts the highest number of international and domestic tourists in Kerala state.

What is Kerala's current debt? ›

Amid the financial strains that put the Kerala government in a fix making it difficult for it to meet its fiscal obligations efficiently, a document tabled by Finance Minister K.N. Balagopal in the Assembly on Tuesday revealed that the State's public debt has come down to ₹2.38 lakh crore at the end of March 2022-2023.

Which sector is doing well in Kerala? ›

Kerala is one of the significant IT destinations in India and ranks 8th in the export by Software Technology Parks of India (STPI) registered IT and ITeS (Information Technology enabled Services) units. Moreover, Kerala is fast emerging as a major player in the digital economy in India.

Which sector is doing well now in Kerala state? ›

Kerala's IT sector experienced growth in 2023, recovering from the pandemic.

Is unemployment increasing in Kerala? ›

Amid Kerala's envious achievements in human development indicators and the latest row over the Union government's alleged 'financial embargo' that stifles the economic growth rate of the State, Kerala continues to top the table of unemployment, according to the data on employment and unemployment collected through the ...

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