The national policy and programs for a successful rural development task should aim at diversification of economic activities, minimizing the dependence of rural households on agriculture and bringing about a significant increase in the share in both output and employment of allied activities, rural industries, business and service components of the rural economy. If this is not pursued, rural development merely remains as agricultural development and neither solves the problem of rural employment and poverty nor of equitable distribution of resources and income-generating assets. This article reviews broadly Government's initiatives to accelerate the process of rural development, programs and performance of the integrated Rural Development and Swaranjayanti Gram Swarozgar Yojana and makes suggestions to improve the effectiveness of the National Rural Livelihood Mission currently being implemented.