Despite unbelievable economic growth rates averaging between 8-10% in 2009 and bright economic prospects, China and India have become two of the largest contributors to world poverty. However, China has been able to alleviate more poverty than India. I believe that there are lessons to be learnt from China’s success. Thus, I will compare both nations and examine the impact of provincial politics (decentralization) on poverty alleviation to determine why China has been able to alleviate more poverty than India. Since China and India are populous, large countries, there is a strong presence of state-level political institutions, which guide policy implementation. I will, thus, examine the cases of Sichuan and Anhui in China and Kerala andBihar in India. The contrast between the success of Sichuan and Kerala and failures of Anhui and Bihar will provide insight on the impact of decentralization and effectiveness of policy implementation towards poverty alleviation.