The "Zero Income" Paradox: New 2026 Data on India’s Most Vulnerable Households

State wise Share of Households with No Income in India (2025)

Rank	Region Name	Percentage households
1	Bihar	3.8
2	Jharkhand	3.2
3	Uttar Pradesh	2.9
4	Odisha	2.7
5	Chhattisgarh	2.5
6	Madhya Pradesh	2.4
7	Assam	2.2
8	West Bengal	2.1
9	Rajasthan	2.0
10	Tripura	1.8
11	Manipur	1.7
12	Meghalaya	1.6
13	Nagaland	1.5
14	Arunachal Pradesh	1.4
15	Mizoram	1.3
16	Telangana	1.2
17	Andhra Pradesh	1.1
18	Karnataka	1.0
19	Tamil Nadu	0.9
20	Maharashtra	0.8
21	Gujarat	0.7
22	Punjab	0.6
23	Haryana	0.6
24	Himachal Pradesh	0.5
25	Uttarakhand	0.5
26	Jammu and Kashmir	0.4
27	Sikkim	0.4
28	Kerala	0.3
29	Goa	0.3
30	Delhi	0.2
31	Chandigarh	0.2
32	Puducherry	0.2
33	Andaman and Nicobar Islands	0.1
34	Lakshadweep	0.1
35	Ladakh	0.1
36	DNHDD	0.1

India is making significant strides in decreasing the number of households without income by 2025.

This reduction is fueled by government initiatives, economic expansion, and welfare programs across the nation. A table categorizes states and union territories based on the estimated percentage of households reporting no income.

Overall, the figures remain low, indicating a near elimination of extreme poverty. Bihar ranks highest with a larger share due to ongoing challenges, while more developed areas like Kerala and Goa exhibit very few cases.

The forecasts for 2025 are based on recent data from consumption surveys and poverty assessments. These statistics reveal persistent inequalities but also considerable advancements throughout the country.

Regional Disparities in Zero-Income Households

Experts attribute the higher rates of zero-income households to reliance on agriculture, limited industrial development, and a history of underdevelopment.

Bihar stands out with 3.8 percent, as millions depend on subsistence farming, which is susceptible to climatic and market changes. Low literacy levels and poor infrastructure impede job creation in non-agricultural sectors.

Jharkhand and Uttar Pradesh exhibit similar trends. Tribal communities and economies reliant on resource extraction encounter employment shortages that government efforts find challenging to address swiftly.

In contrast, southern and western states show lower percentages due to their diversified economies.

Kerala reports only 0.3 percent, benefiting from substantial remittances from workers abroad and strong human development metrics. Investments in education and health foster resilient households that can withstand income shocks.

Goa thrives on tourism and boasts a high per capita income, which offers safety nets. Maharashtra and Gujarat successfully attract industries and urban opportunities that effectively engage the labor force.

Impact of Government Initiatives

Nationally, central schemes are driving a reduction in zero-income cases. The provision of free food grains through the Pradhan Mantri Garib Kalyana Yojana aids vulnerable families during times of crisis.

Direct benefit transfers via Jan Dhan accounts guarantee that cash reaches households without any leakage. The MGNREGA program ensures rural wage employment, helping to prevent seasonal income declines in states like Odisha and Rajasthan.

According to NITI Aayog reports, reductions in multidimensional poverty are directly linked to the decrease in zero-income shares.

From 2015-16 to 2019-21, India successfully lifted 135 million individuals out of poverty by enhancing access to sanitation, electricity, and banking services.

States such as Uttar Pradesh and Bihar are experiencing the most rapid declines from previously high levels as these schemes expand.

Union territories like Delhi and Chandigarh are nearing zero levels of poverty, benefiting from urban advantages and targeted welfare initiatives.

Economic Growth and Projections for 2025

Increasing per capita incomes and consumption expenditures generate optimism for the year 2025.

Household Consumption Expenditure Surveys indicate that the gap between rural and urban spending is closing, with rural expenditures rising at a quicker pace.

There is a notable rise in non-food spending, which suggests a shift towards durable goods and services that help stabilize incomes.

Projections are based on the expectation of sustained GDP growth of 7-8 percent and the expansion of social protection measures.

Northeastern states such as Manipur and Meghalaya are making progress through improved connectivity and tourism initiatives. Coastal areas and islands continue to have low economic shares despite their natural advantages.

Challenges remain in landlocked agrarian states; however, inclusive policies are expected to lead to further improvements.

India is reshaping its economic landscape by reducing the number of zero-income households.

Focused investments in education, skills development, and infrastructure are unlocking potential in underdeveloped regions. Ongoing efforts are positioning the country to completely eliminate this issue in the years ahead.