Question

Distinguish between the following:  

Economic Growth and Economic Development.

Answer 1

Sr. No.	Economic Growth	Economic Development
i.	Economic growth means an increase in the real national income of the country.	Economic development implies economic growth along with progressive changes in certain areas which determine the well being of the people.
ii.	It is narrow in scope and has a quantitative dimension.	It is wide and broader in scope and has a qualitative dimension.
iii.	Economic growth is possible without economic development.	Economic development is not possible without economic growth.
iv.	It is relevant for developed countries wherein the quality of life is highly developed.	It is more required in less developed countries (LDC’s) as development can result in improved standard of living.
v.	Here, more priority is given to the production of goods and services.	Here, more priority is given to the distribution of goods and services.
vi.	Here, the share of agricultural sector is more in National Income.	Here, the share of industrial and service sector is more in National Income.
vii.	It is one dimensional concept as it considers only economic factors.	It is multi‐dimensional concept as it considers both economic as well as non‐ economic factors.