The word Underdevelopment does not refer to a stage, a precondition or lack of development. On the contrary, it stands for all pervasive distorted development. The first broad objective of the study require a need for re contextualizing underdevelopment in terms of colony, state apparatus and potential economic surplus meaning thereby that the meaning and role of colony and state have changed over a period of time. The second objective states that underdevelopment needs to be analysed in terms of social capital. Social Capital is an important critical resource of the indigenous societies....