The government's attack on poverty had three dimensions:

1. Growth-oriented approach: Trickle down effect an economic theory that says that the growth of gross domestic product and per capita income by allowing the rich to flourish, would eventually benefit lower income groups also through increased economic activity and reduced unemployment.

It was government's approach to poverty reduction. It was felt that rapid industrial development and transformation of agriculture through green revolution would benefit the underdeveloped regions and the more backward sections of the community.

2. Creation of income generating assets and poverty alleviation programmes: Creation of income generating assets like land, social networks which encourage empowerment and community services, fixed public assets like wells, clinics, schools, bridges which generate employment. The access to these assets and their use serves as a foundation for earning a livelihood. Rural households in a traditional Indian society produce their own food and diversify their productive activities in every possible way to ensure earning Potential.

3. Providing minimum basic amenities: The third approach is to provide minimum basic amenities to the people, through public expenditure on social consumption needs, provision of foodgrains at subsidised rates, education, health, water supply and sanitation. Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and bring about improvements in health and education.