ECONOMIC GROWTH and ECONOMIC DEVELOPMENT

Economic growth refers to an increase in the real output of an economy over a period of time. It is usually measured in terms of growth in real Gross Domestic Product or real national income.
Economic growth represents a quantitative change in the economy, as it focuses on the expansion in the volume of goods and services produced. This change can be measured over both short-term and long-term periods.
Indicators such as Gross Domestic Product, Gross National Product, and per capita income are commonly used to assess economic growth.
Economic growth is concerned primarily with the scale of economic activity, that is, how large the economy becomes over time, without necessarily indicating how the benefits of growth are distributed among the population.

Economic development is a broader and more comprehensive concept than economic growth. It refers to a continuous and long-term process of improvement in the overall quality of life and living standards of people in an economy.
Economic development signifies a qualitative transformation of the economy. It focuses not only on income growth but also on improvements in health, education, nutrition, gender equality, social security, and access to basic amenities.
It reflects how people live, rather than merely how much the economy produces.
Indicators such as the Human Development Index, Gender Inequality Index, and Gross National Happiness Index are commonly used to measure economic development, as they capture social and human dimensions of progress.
Economic development can be understood as economic growth accompanied by improvements in key socio-economic parameters such as employment, equity, human capital, and institutional quality.

Economic growth provides the financial and productive base necessary for development by generating resources for investment in health, education, infrastructure, and social welfare.
However, economic growth alone does not automatically lead to development. Growth that does not generate adequate employment, reduce poverty, or improve living standards may fail to translate into meaningful development.
Sustained economic development requires a certain level of economic growth, but it also depends on how effectively growth is utilized to improve human well-being.
In 2013, a committee chaired by Raghuram Rajan proposed a Composite Development Index to assess the relative level of development and underdevelopment of Indian States by incorporating multiple socio-economic indicators.
Economic growth is an important instrument for achieving development, but it is not an end in itself. Development represents the ultimate objective of economic policy, as it focuses on enhancing human well-being and social outcomes. While growth without development is possible, long-term and inclusive development cannot be sustained without a reasonable pace of economic growth to support it.