In india what is happning that normally people think that just by giving money it is possibl to eradicate this bigger problem....

Everything that is rewarded grows.
if you reward poverty, how can you expect it to wither away?

now Indian Constitution Seeks to Change Things
And so, when India gains its independence in 1947, the leaders decide to make things right by giving reservation.
 

Situation After 61 Years
In 1991, there are 150 million Indians who claim themselves to be of the schedule caste quota. In 2001, the number rises up to 230 million Indians!

best way to eradicate poverty
“Don’t help people who need it, help people who deserve it.”
as said
“Give a man a fish and you feed him for a day. Teach a man how to fish and you feed him for a lifetime.” – Chinese Proverb.

so now the attitude should be changed.

People will change themselves if they believe that they can. If they believe that someone in their position has already achieved great feats.
• The worst thing you can do to eradicate poverty is start giving the poor people free rides.
• The best thing you can do to eradicate poverty is make the poor people believe that there were others in their situation that rose above poverty, worked hard and are rich today.

Its quite obvious that poverty cant be removed from the society by just passing on the money from rich to poor or just like those things.
What we need is sustained growth for those people so that they can stand alone on their legs. then only their contribution will add to GDP.
other view is by passing on the money to them without getting any work from them makes them lazy and unproductive which is very dangerous to our country, which happened to western countries by "dole money".

t b the same time i believe that Just giving away the money is not a good idea so we have to do an organised setup for helping. And in this process we should encourage education.
How can it be done ?
First we need to understand three levels of people who are appeling for help.
1. Graduates who are poor.
2. People who are not graduates but they are just above poor i.e who reach needy level approximately 5 times a month.
3. People who are completely poor and not educated.
Helping 1 criterion is easier, 2 is tougher and 3 is more tougher. So we have realise our strenghts to which level we can help with money.
Helping third criterion is very tough and it has to be done more organised way such as government. But contributing to first 2 levels we can think more. Because if we contribute to these first 2 levels they will support us(who want to help) in pushing the governement towards helping third creiterion people. We should not be more emotional in thinking that we are ignoring third level of people, because we are in that bad situation that we have no other way. But we should not forget them which will be driving force for us to constantly work for the first 2 criterioin. We have to search for the people in an organised way for first 2 creterion and should exactly help those who require help.
I am not denying to help third criterion but we need to recognise our strenghts and go accordingly. And push first and second criterion towards helping third criterion.

Along with it comes the proper NUTRITION for all including children and elders alike. Also most important is EQUAL OPPORTUNITY for all in all the sectors.(indirectly meaning the eradication of thoughts of 'high' and 'low' from the society)
This would make them self confidant to EARN their own proper portion of Money. And this will eradicate Poverty.
How we all put our own efforts in achieving this, is the most important.
It is the most important responsibility of all Educated people.

so atlast we can say and conlude that the solution is to provide PROPER EDUCATION for all..that only can really solve this problem.