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Urban poverty alleviation is the major thrust of development planning in India. However, poverty eradication is a daunting task as the problem is gradually increasing due to migration of rural poor people in urban centres. Urban poverty is a major challenge before the urban managers and administrators of the present time. Though the anti-poverty strategy comprising of a wide range of poverty alleviation and employment generating programmes has been implemented but results show that the situation is grim. Importantly, poverty in urban India gets exacerbated by substantial rate of population growth, high rate of migration from the rural areas and mushrooming of slum pockets. Migration alone accounts for about 40 per cent of the growth in urban population, converting the rural poverty into urban one. Moreover, poverty has become synonymous with slums. The relationship is bilateral i.e. slums also breed poverty. This vicious circle never ends. Most of the world’s poor reside in India and majority of the poor live in rural areas and about one-fourth urban population in India lives below poverty line. If we count those who are deprived of safe drinking water, adequate clothing, or shelter, the number is considerably higher. Moreover, the vulnerable groups such as Scheduled Castes, Scheduled Tribes, minorities, pavement dwellers etc., are living in acute poverty. Housing conditions in large cities and towns are depicting sub human lives of slum dwellers. With the reconstruction of poverty alleviation programmes in urban India, it is expected that social and economic benefits will percolate to the population below the poverty line. However, eradication of poverty and improving the quality of life of the poor remain one of the daunting tasks. Government of India has introduced numerous centrally sponsored schemes from time to time. Rajiv Awas Yojana, Rajiv Rin Yojana and National Urban Livelihood Mission are the new addition for poverty alleviation in urban area.