The proposal to cover 1.7 crore BPL households by 2015 under skill development and placement is to be seen as an encouraging step (GoI, 2008). Well designed poverty alleviation programmes, if effectively implemented, not only supplement the poverty reducing effects of growth but also could promote pro-poor growth.
There is need to design financial instruments that would help people to reduce their risk and vulnerability whether it is for smoothening incomes or ensuring higher education for family members or reducing exposure to health shocks.