Describing the manner in which poverty is incorporated as a parameter in planning, this chapter delineates the use of poverty estimates in policy-making, and in tracking progress of development over time and space. It dwells on the methodological issues related to measurement of poverty, and identification of poor households, comprehensively summarizing the debates surrounding it. Viewing the pace of poverty reduction as the ultimate test of planning, it quantifies the level and change in poverty since the 1970s. It analyses the state of poverty at national and state level, and assesses the impact of economic growth and income redistributive measures on poverty reduction. It brings out that the phenomenal decline in poverty in the reforms-era took place exclusively due to increase in income, eventuated by high rate of economic growth. Finally, it states that despite the decline, poverty remains a major concern.