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Pregnancy induced hypertension is one of the common condition of unknown etiology which increases the maternal and perinatal morbidity and mortality. The present study was carried out to find the perinatal outcome in intrauterine growth retarted (IUGR) babies born to 110 mothers with pregnancy induced hypertension (PIH) and 100 normotensive mothers. The incidence of small for gestational age (SGA) was four times more in the hypertensive group; outcome in terms of morbidity and mortality was also statistically significant. The study further revealed that 57.1% babies were preterm and intra-uterine growth retarded (IUGR) in the study group, 71% of them being asymmetrical. The study was aimed to know the problems likely to be encountered in early neonatal period.