Indian Journal of Economics and Development, Vol 5 (3), March 2017 ISSN (online): 2320-9836 ISSN (Print):2320-9828 Bridging the disparity with state balanced growth fund in Tamil Nadu, India J. Ana Raj 1 ,P. Sumathi 2 1 PG Scholar, 2 Professor, Department of Agricultural Extension and Rural Sociology, Tamil Nadu Agricultural University, Coimbatore – 3, Tamil Nadu. India. anaraj2012@gmail.com, sumathiperiyasamy@yahoo.co.in Abstract Background/Objectives:India is a fastest growing country in the world with its economic growth projection of 7.7% for the 2017 financial year. While being satisfied and proud of this enormous growth, one must remind themselves as whether this growth is qualitative. This paper aims at understanding the nature of growth of Indian economy and the impact of State Balanced Growth Fund (SBGF) programme of Tamil Nadu. Inorder to study the impact of SBGF, out of 105 SBGF blocks, the Kadamalaikundu – Myladumparai block of Theni district was selected purposively for the study. Methods/Statistical analysis:This block is backward in three parameters viz, Poverty, Industrially Backward and Health. Out of these three parameters, Poverty and Industrially Backwardness are studied by following proportionate random sampling; whereas Health parameter is studied by analysing the available secondary data. Results/Findings:As a result of the study, all the three development parameters experienced positive growth due to the development projects implemented for each. The Poverty parameter is analysed by studying the annual income of the respondents, which showed that it was doubled in the past one year. Industrially Backwardness is studied by knowing the increase in employment in the block and the additional employment generated is around 70. The third parameter health also indicated growth after SBGF in sub – parameters like Infant Mortality Rate, Disease Incidence Rate and number of out – patients. Improvements/Application:Though the projects are localized and flexible, there remain the constraints of hectic procedures and side-lining need-of-the-hour projects. This can be overcome by employing participatory project development and decentralizing the fund under Panchayat level. Keywords:Inclusive Growth, SBGF, Development parameters, Regional disparities, Poverty. 1. Introduction The Indian economy, which has over the last six decades passed through various phases of growth, is now all set to enter an altogether different orbit: one marked by a high rate of expansion, combined with ‘inclusive growth’. In the last few years, inclusive growth has been at the forefront of studies sponsored by multilateral aid agencies, such as the United Nations, the World Bank, Asian Development Bank, and several Non-Governmental Organizations (NGOs). The ‘inclusive growth’ as a strategy of economic development received attention owing to a rising concern that the benefits of economic growth have not been equitably shared. Growth is inclusive when it creates economic opportunities along with ensuring equal access to them [1]. Apart from addressing the issue of inequality, the inclusive growth may also make the poverty reduction efforts more effective by explicitly creating productive economic opportunities for the poor and vulnerable sections of the society. Inclusive growth entails comprehensive growth, shared growth, and pro-poor growth.It lessens the fast growth rate of poverty in a country and upsurges the participation of people into the development of the country. Inclusive growth infers an impartial allocation of resources with benefits incurred to every section of the society. Human development index (HDI) of India The need for inclusive growth in India can be emphasized strongly by comparing the Human Development Index of India with its neighbours as shown in the Table 1.This data indicates the performance of India among the South Asian nations for the year of 2015[2]. 1 www.iseeadyar.org