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Synopsis Poverty is both widespread and intensive and intrinsically related to socio-cultural, socio-political and socio-economic factors which indicate the contemporary ideologies and policies followed by a society. After Independence, India adopted a model of planned economic development to eliminate the poverty of its masses. This has shown some important as far as general economic activities and raising of per capita income are concerned. But facts remain that the problem of poverty has not been solved so far despite planned efforts spanning over four and a half decades. In this study, an attempt has been made to examine the extent of poverty at macro level. A critical appraisal of the government policies and programmes for eradication of poverty and rural development at various levels has also been attempted. A new approach i.e. to coordinate local self-government especially panchayat raj institutions to eradicate poverty and rural development has been attempted.