Infant mortality rate and literacy rates are among the crucial socio economic factors that explains the heath of a nation. Reduction of infant and child mortality has been an important tenet of the Government of India right from the early stages of development. Lot many policies have been introduced to bring an improvement in these variables. This include, The National Population Policy (NPP) 2000, the National Health Policy 2002 and National Rural Health Mission (NRHM – 2005 to 2012). Improving the literacy rates and also reduction of IMR have been included in the Millenium Development Goals adopted by the United Nations in 2000. The present study analyses whether there exist any relation between these two variables. Also this paper suggests important policy implications that could bring out and improvement in both the areas.