This paper analyses the trends and patterns of economic inequality across Indian states since the early 1990s. The inter-state inequality in per capita income and consumption expenditure show a clear increasing trend during the first and second phase of structural reform. However, the strategy of inclusive growth and balanced regional development launched since 2003-04, has led to acceleration in the average growth in the less developed states, including those in the North-East. Unfortunately, however, this has made only a marginal impact in stalling the trend towards accentuation of regional imbalances. Further, poverty reduction has been relatively less in less developed compared to developed states, resulting in concentration of poverty in a few backward states. The composite indices of economic development, constructed based on a select set of indicators exhibit high correlations with that of social development. This is understandable as the capacity of the governments at the state level to make interventions and bring about social transformations is high in relatively developed states. The correlation of economic development with amenities, although statistically significant, is relatively low, which suggests that the problems pertaining to health, education, and access to other amenities cannot be effectively addressed just by focusing on economic development.