Literacy is an important demographic element and it is a good measure of human progress. It is essential for social reconstruction, improvement in quality of life and preparation of womanpower for rapid development. Education inculcates new ideas for betterment of society in particular and nation in general. This paper is present the demographic changes and gender inequality in the Indian and the state of Madhya Pradesh from available data on education, enrolment ratio, sex ratio of the state and India. The Methodology is based on secondary data taken from census of India 2011 reports, NFHS-5 and other published documents. This study gives an overall demographic and gender inequality picture of Madhya Pradesh (M.P.) to draw government’s attention to the need and to bring down gender inequality. We recommend that government should promote female literacy through planned interventions by state level studies, augment social infrastructure and lay special emphasis on sex ratio and enrolment of student.