An experiment was conducted in the Zonal Agriculture Research Station, Vishweshvariah Canal Farm, Mandya during kharif 2008 to study the effect of zinc, iron and microbial inoculants on growth, yield and economics of aerobic rice and relationship between growth and yield attributes on yield. The nutrients Iron, Zinc and microbial inoculants along with major nutrients NPK and FYM as an organic source were all integrated. A total of ten treatments with three replications laid out in randomized complete block design. The results revealed that among the different treatments RDF + FYM @ 10 t ha-1 + ZnSO4 @ 20 kg ha-1 + VAM + Azospirillum + PSB recorded significantly higher growth parameters like plant height (68.08 cm), number of tillers hill-1 (40.37), leaf area (2198.58 cm2), leaf area index (2.44), total dry matter accumulation (116.99 g plant-1). Hence, the same treatment recorded significantly higher grain yield (43.63 q ha-1), gross returns (` 44637 ha-1) and net returns (` 30472 ha-1) compare to farmers practice (150:37:37 N: P2O5:K2O kg ha-1). Grain yield of paddy was significantly and positively correlated with growth and yield attributing characters viz. plant height (r = 0.705), numbers of tillers (r = 0. 437), leaf area (r = 0.653), dry matter accumulation (r = 0.637), panicle length(r = 0.695), productive tillers (r = 0.742), grain weight per panicle (r = 0.552), test weight (r = 0.535) and numbers of grains per panicle (r = 0.638). But the significant negatively correlated parameter with grain yield was found to be sterility percentage (r = -0.789). Among the significant parameters, test weight, number of grains per panicle and sterility percentage showed significant linear and quadratic relationships.