Kudumbashree - State Poverty Eradication Mission is an innovative system established in 1998 by the State Local Self Government Department with the objective of poverty eradication. Taking poverty alleviation as its primary responsibility, this mission implements its action programs through a community-based organization formed under the leadership of Local Self Government Institutions. Kudumbashree's activities have grown strong and expansive, turning into a powerful organizational structure for women to achieve economic, social, and women empowerment goals.

The basic unit of this organizational setup is Neighborhood Groups (NHGs) consisting of 10 to 20 members, including one adult woman (aged 18 or above) from each family in a locality. These NHGs are federated into Area Development Societies (ADS) at the ward level and Community Development Societies (CDS) at the Panchayat level. The leadership at all three levels is democratically elected women. Members of Local Self Government Institutions lead this community-based organization as ADS Patrons and LSG Institution Chairpersons / Kudumbashree CDS Evaluation Committee Heads. Over 4.3 million economically backward families are members of Kudumbashree. Along with mainstream NHGs, special NHGs have also been formed for families with physical, mental, and intellectual challenges, transgender communities, and elderly individuals.