This paper examines changes in poverty and inequality at the all-India level during the period 1983 to 2004-05. Concentrating on a number of different time periods throughout the 21st century, the paper examines changes in the very poor category for these years. Trends in inequality measured by the Gini coefficient in consumption is also analysed, in addition to the sources of growth in poverty by decomposing poverty changes due to growth and distribution. Detailed conclusions are given at all-India level and at state level but the authors also reach two unambiguous conclusions: there is no evidence of a higher rate of decline in poverty in the post-reform period (1993-2004) as a whole as compared to the pre-reform period (1983-1993) inequality increases significantly in the post-reform period as compared to the earlier decade. The authors suggest that policies that increase growth and equity have to be followed simultaneously and that low relative food prices are another important variable that reduces income poverty. There is also a need for focused intervention on the 115 million hardcore poor.