India is a land of village communities. “The predominantly rural character of India’s National economy is reflected in the very high proportion of its population living in rural areas, and with more than 740 million of its people living in rural areas, and with rural sector contribution about 29 per cent of its gross domestic product. Rural development in India is identified largely with the poverty alleviation policies. Perhaps no country in the world has invested so much time and resources on poverty alleviation. “During the initial stages of rural development through community development Programmer (CDP), a holistic approach to develop agriculture, infrastructure and basic facilities in the villages was adopted. When the country faced with food crisis in the development of agriculture. After decades of limited success in eliminating rural poverty new ideas about rural development are emerging. One such idea is sustainable livelihood approach. The approach works with the people supporting them to build upon their own strengths and realize the potentialities while at the same time acknowledging the efforts of policies and institution, external shocks and trends. The aim is to do away with pre conceptions about what exactly rural people are seeking and how they are most likely to achieve their goals and to develop an accurate and dynamic picture of them in their extent. This provides the basis for identifying the constraints to livelihood development and poverty reduction.