Comparative performance, character association and contribution of component characters towards grain yield were studied in hybrid rice (EX. HY.1, EX. HY. 2 and PA 6201) vis-a vis inbred (Leimaphou, Sanaphou and Tamphaphou) rice varieties under rainfed conditions of Manipur Valley. Hybrid rice recorded significantly higher yield by 52.14% along with 20% increase in ear bearing tillers hill-1. The correlation and path analysis for hybrid and inbred rice revealed that ear bearing tillers hill-1, grains panicle^-1 and 1000 grain weight were the most important component traits for grain yield improvement in both hybrid and inbred rice varieties. However, the magnitude of contribution of these three components toward grain yield in hybrid were in the order of ear bearing tillers > grain weight > grains panicle^-1 while their contribution in the inbred were in order of grain weight > ear bearing tillers > grains panicle^-1. Thus, selected lines possessing higher number of productive tillers, high grain weight and maximum number of filled grains panicle^-1 would be ideal for developing high yielding rice varieties.