While there is evidence of some positive change as a result of economic development and some of the anti-poverty strategies implemented in India, the overall effect is fairly limited, especially among the poor. Some of the less favoured rural areas have faced deterioration due to a shrinking land base and restricted access to forest resources. The slow pace of economic growth only partly explains the exclusion of certain categories of households, indicating that parts of the rural community, particularly the landless and the small-marginal farmers, remain unaffected by even a moderately faster growth rate. This paper examines changes in poverty and related poverty factors in South West Madhya Pradesh, and it aims to further an understanding of poverty typology and poverty dynamics by focusing on a micro setting. Findings indicate that there is a need for establishing basic infrastructures, especially for health and education, and that crop- productivity and market support do not develop at a sufficient rate to impact on the reduction of chronic poverty.