The article studies the dynamics of chronic poverty in rural India. The article attempts to analyse the factors influencing the incidence and mobility of poverty and the changes in the influence of these factors over time. This article uses the household panel survey data collected by NCAER. It examines whether there has been change in the influence of factors such as village level infrastructure, household size and composition, and economic growth on poverty dynamics in different periods of time. The impact of a number of factors changes over time implying that the strategies for poverty reduction would have to take into account the changing economic environment. The article further presents an analysis of growth rate of per capita expenditure for the same set households to analyse the extent of consumption growth, which is also an indicator of poverty reduction for rural India. Copyright © 2011 John Wiley & Sons, Ltd.