This work describes the importance of people Participation in public administration and Microfinance in reducing poverty in india context. It substantiate with hands on illustration and Cases. Poverty is a situation where people are deprived of income generating activities, access to formal financial system etc. Strategies to tackle poverty include promoting opportunity, participation, etc. Poverty amongst forest dwelling communities in India, presents challenge for administrators. Exploitation, ineffective public service delivery etc., are factors affecting poverty reduction efforts for forest dwellers (FD).