Bihar & Jharkhand suffers from acute economic and social disparities. This Research Paper addresses two dimensions of such disparities, viz. Land Holding Capacity & Condition of Dwelling House. There is empirical evidence to indicate, since decades all these disparities have been increasing. This has led to widening gap in income, poverty and other indicators of development between the two regions. Rural-urban divide also widened in the wake of reforms. While large and medium cities experience unprecedented economic prosperity, the rural areas experience economic stagnation. STs have often been victims of development as a result of displacement. It emphasizes the need for bridging the divides discussed in this article. Unless these are achieved in a time-bound manner, there could be serious adverse implications for the Indian economy, society and polity.