India’s Integrated Rural Development Program (IRDP) is among the world’s most ambitious efforts at credit-based poverty alleviation. The IRDP was initiated a decade ago and has reached 27 million poor households through commercial banks which provide finance for investment in income-generating assets. Credit is matched by capital subsidies of 33-50 % on household investment.

This paper examines the impact of the IRDP and the long-term viability of credit-led approaches to poverty alleviation. Success is assessed against the program’s objectives including the productivity of investments, real income gain by households, and credit repayment. Drawing on new data from the first-panel survey of beneficiaries over a four-year period, the analysis identifies household characteristics, program features, and economic conditions that contribute to the success.