ECONOMIC GROWTH AND

ECONOMIC DEVELOPMENT
Economic Growth
the rise in the money value of goods and services produced by
all the sectors of the economy per head during a particular
period.
It is a quantitative measure that shows the increase in the
number of commercial transactions in an economy.
Economic growth can be expressed in terms of gross domestic
product (GDP) and gross national product (GNP), that helps in
measuring the size of the economy.

***India’s GDP is estimated to have increased 6.6 per cent in

2017-18 and is expected to grow 7.3 per cent in 2018-19. In
April-July quarter of 2018-19, the GDP grew by 8.2 per cent.
 Economic Development
the process of increase volume of production along with the
improvement in technology, a rise in the level of living,
institutional changes, etc
It is the progress in the socio-economic structure of the
economy.
Human Development Index (HDI) is the appropriate tool to
gauge the development in the economy.
It considers the overall development in an economy
regarding the standard of living, GDP, living conditions,
technological advancement, improvement in self-esteem
needs, the creation of opportunities, per capita income,
infrastructural and industrial development and much more.
Development Measurable Factors
Per capita income: national income/ total population (including children)
of the country. It shows the per head availability of goods and services, or
the average income earned by a person.
Life expectancy : the average life period a normal person is expected to
live. It mainly indicates the level of medical facilities available to the
people and the general health level.
Literacy rate : the proportion of the population aged above a particular
age (in India it is 7 year +) that can read and write with understanding.
Skilled population : how much of the available work force includes
skilled workers, and unskilled workers.
Employment rate : the percentage of the working population (able and
willing to do work) who are actually employed.
Infant mortality rate (IMR) : the mortality within 1 year of age per
1000 live births in a year.
 BASIS FOR COMPARISON ECONOMIC GROWTH ECONOMIC DEVELOPMENT

Meaning Economic Growth is the positive Economic Development involves

change in the real output of the rise in the level of production in an
country in a particular span of time. economy along with the
advancement of technology,
improvement in living standards
and so on.

Concept Narrow Broad

Scope Increase in the indicators like GDP, Improvement in life expectancy
per capita income etc. rate, infant mortality rate, literacy
rate and poverty rates.

Term Short term process Long term process

Applicable to Developed Economies Developing Economies
How it can be measured? Upward movement in national Upward movement in real national
income. income.
Which kind of changes are Quantitative changes Qualitative and quantitative
expected? changes
Type of process Automatic Manual
When it arises? In a certain period of time. Continuous process.
Determining Factors

Supply of Natural Resources

Capital Formation
Technological Progress and Economic Growth
The Growth of Population
India's ranking in the world has improved to 126 in terms of its
per capita GDP, based on purchasing power parity (PPP) as it
increased to US$ 7,170 in 2017, as per data from the
International Monetary Fund (IMF).
Around 10.8 million jobs were created in India in 2017.
Retail inflation in the country was at 3.69 per cent in August
2018.
wholesale inflation was at 4.53 per cent.
Exports from India increased 20.7 per cent year-on-year to US$
221.83 billion in April-August 2018.
India’s GDP is estimated to have increased 6.6 per cent in 2017-
18 and is expected to grow 7.3 per cent in 2018-19.
In 2011, India had a literacy rate of 74%: 82% for men and 65%
for women. The literacy rate varies wildly by state. Bihar is the
least literate with a rate of 63.82%.Sep 17, 2018