World bank is earlier known as International Bank for Reconstruction and Development (IBRD) setup to assist the reconstruction of war -affected countries and to facilitate the development of the under-developed nations of the world. Now, the world bank turned its attention to the development of underdeveloped nations. Apart from investing in infrastructure development, agriculture, health and industry, the World Bank is significantly involved in programmes to remove poverty, increasing the income of the poor and providing technological support.

Poverty refers to the inability to fulfill the basic necessities of life such as food, clothing, shelter and education. It is a situation in which people face severe destitution and suffer from misfortune and thus are insufficient to find basic subsistence level of living. Poverty is an age-old phenomenon in India and exists in both rural as well as urban areas.