For a proper understanding of complex economic changes. we have to be familiar with some important economic concepts two of which are economic growth and economic development. develop and prosper continuously and consistently. .INTRODUCTION In economics. Economies don·t grow. There can be periods of negative growth and cyclical fluctuations. we are concerned with changes during shorter durations.

GDP is the money value of all goods and services produced in the domestic territory of a country in one year excluding income received from abroad like NRI remittance. .ECONOMIC GROWTH It is the rate of growth of GDP (Gross Domestic Product) expressed in terms of percent per year or per annum. Economic growth maybe seen as a long term tendency reflected by increase in flow of goods and services produced by the economy.

Long term tendency is positive growth. When the potential is not realized. When the potential is being realized the growth is positive. Some economists look at economic growth in terms of growth potential of the economy. Negative growth is temporary. . growth is negative (depression or recession).

Economic Growth Plus:.ECONOMIC DEVELOPMENT Economic development includes: Structural change:. Economists emphasized the need for institutional changes to bring about structural transformation like appropriate policies. attitudinal changes etc. .it is reflected in increase in the proportion of non-agricultural output and increase in employment in non agricultural activity.Economic development is defined as economic growth plus. markets. systems on governance.

.Development will not be complete without taking into account the welfare of the people and making sure they are not left behind in the wake of tremendous economic development. Angle of welfare:.

. The economic growth leads to increase in income and that gets spent on human development like education and health.DOES GROWTH CREATE DEVELOPMENT? Poor countries have experienced economic growth with a little economic development as they act as resource-providers to the wealthy countries.

3% in 2009-10 Growth in manufacturing sector in January to March is 16.2%) Per capita income grew at 5.8% in 2008-09 to 7.3% Industrial output grew by 17.6% .INDIAN ECONOMY OVERVIEW 2009-10 (ESTIMATES BY MINISTRY OF STATISTICS AND PROGRAM IMPLEMENTATION) GDP growth rate is 7.6% GNI is estimated to rise from 6.4% (expected 7.

.8% against a contraction of 5. Due to higher purchase of electronics goods consumer durables output continued to grow at a fast pace of 37%.09 billion.88 billion on June. an increase of US$9.888 million. According to RBI·s weekly statistical supplement. India received foreign direct investment worth US $25. Capital goods production grew by 72. India·s foreign exchange reserve totaled US$ 271.9% a year ago.


fisheries etc have faced increasing betterment. Because of this increase in growth. The stock exchange has also recorded better and more consistent growth in the long run.CONCLUSION Indian economy has undergone leaps of growth in 2009-2010. industries like iron and steel. This is slowly resulting in economic development also. .