i heard there is no more IP reservations for mbbs seat . How does it affect the admission of students through AIQ? Do people with rank below 32,000 in neet 2020 with no reservations have a chance of getting a seat in govt college through AIQ. i am from kerala state.

Yes you have heard correctly
There is no more ip quota through all india counseling. This changes the the process that those holding ip certificate will also have to meet the cutoff for general categories.

This will make it difficult for those ip students to get into better College than the previous year ip students. It is highly unlikely to get into government college with a rank of 32000 to get in gov College .

However having belonging to kerala state where the ip quota is valid . You have a high chance in state quota