The second five year plan (1956-61) has pointed out that 'the benefits of economic development must accrue more and more to the relatively less privileged classes of society'.

The government's approach to poverty reduction is of three dimensions:

1. Growth-oriented approach : It is based on the expectation that the effects of economic growth that is rapid increase in the gross domestic product and per capita income of a nation would spread to all sections of society. Rapid industrial development and transformation of agriculture through Green Revolution in select regions would benefit under developed regions and more backward sections of the community.

2. Food for work : In 1970, food for work programme was started. The policy-makers started thinking that incomes and employment for the poor could be increased through the creation of incremental assets and by means of work generation through specific poverty alleviation programmes. Under self-employment programmes, financial assistance is given to families or individuals.

3. Provision of minimum basic amenities : Through public expenditure on social consumption needs such as education, health, water supply and sanitation, people's standard of living could be improved. Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and improvements in health and education. For this purpose Pradhan Mantri Gram Sarak Yojna, Pradhan Mantri Gramodaya Yojna, Valmiki Ambedkar Awas Yojna and National Social Assistance Programme were started.