After a long phase of colonization the independent state in all countries accepted the Western paradigm of development. It was supported by foreign trained experts/academicians, political leaders, international development organizations and even local leaders. Best reflected in the First Five Year Plan of India, the goal was to build a strong urban, industrial society. There is no doubt that India has modernized to a great extent and its impact on various aspects of society is clearly visible. Yet it failed to meet people’s aspirations and solve the twin problem of poverty and inequality. This context gives rise to several dilemmas. The country had to choose between conflicting demands of the states, regions, social groups, advanced and subsistence economies, and metropolitan and rural areas. Modernization changed the psycho-social character of man in the erstwhile traditional society. It led to overreactions. Under postmodern condition the problem of transformation has become more complicated. Society is so much divided along cultural, linguistic, religious, age, gender, class, party and many other lines that unanimity about the visions of the future has become impossible. Undoubtedly, due to widespread poverty and unemployment the developmentalist agenda has not lost significance. It seems to be on the top of all political visions despite a clear understanding that development is responsible for many problems of society today and it has not satisfied the aspirations of the poor (Kothari, 1990b).