The problem of Regional disparities in the level of economic development is almost universal. Its extent may differ in different economies. But its existence can hardly be challenged seriously in any country of respectable size. The achievement of Empowered Action Group (EAG) states (Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Rajasthan, Orissa, Uttar Pradesh and Uttarakhand) in the area of social sector indicators have not come up to the desired level. Since Mid 1980’s Ashish Bose ‘BIMARU’still prevailed. The study revealed that overall female literacy has shown strong correlation with indicators of development, means low income persist but amidst all the shortcomings, the female literacy can drag these states on the path of development with a healthy labor force. More emphasis should be laid on female literacy programs so that these states can also be pulled out of abject poverty. Although Government has stated „Beti Padyoo Beti Bachoo“ and Sarv Shiksha Abhiyan/Right To Education, But ground realities are too far from the slogan given by the Government.