This paper presents an analysis of the performance of India's poverty alleviation programmes during the first three years of the Sixth Five Year Plan based on the mid term appraisal published by the Planning Commission. In relative terms, our poverty alleviation programmes have performed much less satisfactorily than the conventional economic and infrastructure programmes and sectors. This paper then examines the underlying causes and argues that the orientation and process of Indian planning must be changed radically in order for our poverty alleviation strategies and programmes to perform better.