Abstract
The paper critically examines the understanding, approach and indicators that have been used to measure the degree of disparity. It is true that disparity exists everywhere. However, this paper focuses on disparities existing between rural and urban areas. In this context, the paper talks about ‘why’ and ‘how’ disparities exist between rural and urban areas. The study suggests that ‘income’ is not a sufficient indicator to capture the magnitude of disparities at any level. It is, therefore, necessary to develop some other indicators representing human resource development and infrastructure facility to understand the growing rural-urban divide.