The market age is beset with imperfections of all kinds, and the newly emerging human capital market (an outcome of rising privatisation and a highly complex as well as dynamic labour market) is no exception. The imperfections in human capital market are two-fold – supply side educational inequalities and demand side employment inequalities. The interplay of these two inequalities, in turn, propagates economic inequality, that becomes a vicious circle of unequal growth. Thus, it is being increasingly realised that post-2015 sustainable education goals should target for such an education system which is more inclusive so as to be able to take care of generations to come. In this context, the chapter explores the challenges that India faces in cutting through this vicious circle and embark on the path a virtuous cycle of inclusive development. It explores the relative status of Indian states in experiencing the Economic Growth-Human Development relationship in terms of a virtuous, vicious or lop-sided cycle of economic growth. It traces whether states experiencing a sustained higher growth rate are deemed to face lesser inequalities in terms of employment and education. It explores if targeting a higher rate of growth in itself is a sufficient condition to achieve better employment and a higher education status.