Latest Planning Commission estimates suggest a major setback to Gujarat as far as poverty reduction is concerned. If between 2004 and 2010, Gujarat witnessed 8.6 per cent reduction in poverty, which was higher than the national average of 7.4 per cent, between 2010 and 2012 not only the percentage of poverty reduction come down to 6.4 per cent, it was below the national average of 7.9 per cent, too. Worse, if during 2004-10 Gujarat’s poverty reduction rate was higher than in as many as eight states, the number of states which saw a higher poverty reduction in the 2010-12 phase went up to 10 out of 20 major states.