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Poverty is mainly concentrated in rural areas. Growth in non-agricultural sectors are increasing but the larger number of people remained as poor in rural area. About 81% of the world poverty reduction in rural areas during 1993-2002 is because of rural development and the remaining is due to migration. The most common features of rural poor are the landless or limited access to land larger family size with higher dependency ratios, lower educational attainment and higher underdevelopment. The major subgroups of the rural poor. Within the above subgroups women-headed households are particularly prone to poverty. During recent times more countries are adopting inclusive growth as the goal of development policy. India, which had poverty reduction as the long run objective of its development strategy over the last fifteen years has recently adopted a new strategy by focusing inclusive growth as a development concept is also being embraced by many development partners of developing countries including bilateral and multilateral aid agencies, international organizations nongovernment organizations and civil society.