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The regional disparities within a country is increasing become a matter of great concern for policy makers in most of the developing countries. It is argued by the economists the progress of the nation depends in a real sense on the development of weaker states. The large and persistent disparities in economic development and well being of different states are viewed many a times as an annoying source for political tension and a danger to national integrity and strength. The problem of regional inequalities associated with development is universal and not new. In developed economies, the problem is confined to a few depressed areas and areas and areas which for geographical and others reasons, are found to be lagging in the process of development but in developing countries, the size and nature of problem is different in the sense that there are only a few highly developed areas in the midst of large areas which are underdeveloped. Reduction in regional inequalities and accelerated economic growth are complementary to each other.