Nearly all poverty alleviation programs target a particular sub-population. This feature is most readily apparent in programs designed to aid those who have suffered a particular tragedy, such as grants to widows of debt-ridden Maharashtra farmers, but is also generally true of large, broad based development interventions. At first blush, this may seem unremarkable and not to warrant particular consideration. But effective identification of the target population is crucial to the success of aid programs. If, for instance, households which are adequately nourished are identified as eligible for subsidized food, the program is unlikely to significantly reduce malnutrition.

When the targeted population is not distinguished by a well-defined, observable trait, however, identification of the intended population may be complicated. Evidence suggests that the targeting efficiency of aid programs is less than perfect. A report by the Indian National Sample Survey Organization found that 18% of the wealthiest 20% of the rural population (ranked by monthly per capita expenditure) held Below Poverty Line (BPL) rationing cards. That targeting inefficiency has real consequences is apparent from a 2006 story in The Hindu which reported on street protests carried out by families who had been denied their ration cards.