Uttar Pradesh is India's largest state and also one of its poorest. Despite recent signs of progress, UP still faces significant challenges in reducing poverty in its various economic and non-economic dimensions and improving security and well-being for all citizens. The poor are a heterogeneous group: they are deprived not only in material terms, but also have low human development, and live in an uncertain and sometimes threatening environment. Lower caste individuals and women face particular difficulties. Poverty is caused by low levels of assets (private, public goods and services, and social capital) coupled with low and uncertain returns. The state faces three major challenges in redressing poverty - first, to expand economic opportunities, second to ensure that the poor are empowered to take advantage of new opportunities in a rapidly changing world, and third to ensure an effective safety net is in place to reduce vulnerability and protect the very poor and destitute.