This report is written as part of the Livelihood Options Study of the Overseas Development Institute. It focuses on three different welfare policy areas, namely the government’s response to the crisis in the handloom weaving sector, the Public Distribution System (PDS), and a credit scheme for women through self-help groups (DWCRA = Development of Women and Children in Rural Areas). The paper discusses the way in which these policies are operationalised in Andhra Pradesh (AP) in India, and investigates the various political aspects of these three policies. The ultimate purpose of the report is to inform ODI’s ongoing research in the three districts in which it is working in Andhra Pradesh, namely Medak, Chittoor and Krishna.