Either your friend is speaking with limited information, or you are presenting a fabricated story. People in India, in every nook and corner, possess Aadhar cards regardless of their financial status. It is necessary to obtain rations, pensions, and many other government benefits. Along with Aadhar, everyone has documents such as a ration card, sales deed, PAN card, and caste certificates (for minorities, tribals, and SC/ST/BC). The likelihood of having no documents is highly improbable unless a person is a roadside beggar. Even those without any documents can obtain a residency certificate from the local panchayat office if they have been living there for a long time, by providing some proofs like utility bills, etc.
You have no understanding of how the beneficiary system operates with documents at the ground level in India, yet you are posting and arguing as if you are an expert. let's give it a rest.