Chile constitutes a remarkable demonstration of the inevitable triumph of economic and political liberalism. Since its transition to democracy from authoritarian rule in 1990, Chile has made significant progress in economic development, poverty reduction and democratic consolidation. The country enjoys a consolidated democracy, as there is no fear of reversal to authoritarianism. Chileans value democracy and autonomous institutions and working balance of power have stabilized the political system. The Concertaci{\'{o}}n coalition government which came after the authoritarian rule of Augusto Pinochet followed the new discourse of " growth and equity " which meant giving market driven distribution a helping hand through limited social programmes targeted at the poorest sectors. Today, Chile can look back at last three decades of economic growth, very much in contrast to most other Latin American countries for which the 1980s and 90s have been a lost decade in economic terms. This paper will look into the Chilean success story and the lessons we can draw for India. The analysis will focus upon the nature of the link between consolidation of democracy through consensus politics and economic growth with the idea of equity. It will also highlight their social programmes of providing education, health facility and housing facilities to the poor which finally resulted in the drastic poverty reduction.