By:

Dr.Anamica Chopra

It is an increase in a countrys real level of national
output which can be caused by an increase in the
quality of resources (by education, etc)
Increase in the quantity of resources &
improvements in technology.
Increase in the value of goods & services produced
by every sector of an economy.
The goal of economic growth is to increase the
production and consumption of goods & services.
Economic Growth:

Economic growth is a function of :

Improvements in technology
Increase in productivity
Increase in factors of production
Effective govt. policies & efficient administration
Investment


1) GDP Gross Domestic Product
The value of output produced within a country during a time period

2) GNP Gross National Product
The value of output produced within a country plus net property
income from abroad

3) GDP/GNP per head/per capita
Takes account of the size of the population

4) Real GDP/GNP
Accounts for differences in price levels in different countries

Indicators of Economic Growth
The Gross Domestic Product (GDP) in India was worth 1858.70
billion US dollars in 2013. The GDP value of India represents 3.03
percent of the world economy. GDP in India averaged 517.27 USD
Billion from 1970 until 2013, reaching an all time high of 1876.80
USD Billion in 2013 and a record low of 63.50 USD Billion in 1970.
The Gross Domestic Product per capita in India was last recorded at 3277.01 US
dollars in 2012, when adjusted by purchasing power parity (PPP). The GDP per
Capita, in India, when adjusted by Purchasing Power Parity is equivalent to 15
percent of the world's average. GDP per capita PPP in India averaged 1698.33
USD from 1980 until 2012, reaching an all time high of 3340.60 USD in 2013 and
a record low of 880.78 USD in 1980.


Economic Development is an increase in living
standards, improvement in self-esteem needs,&
freedom from oppression as well as a greater choice.

According to Michael Todaro,
Development must, therefore, be conceived as a
multi-dimensional process involving major changes in
social structure, popular attitudes and institutions as
well as acceleration of economic growth, reduction of
inequality and eradication of absolute poverty
Economic Development

Three core values of Development:


Sustenance: Fulfillment of basic needs.
Self-Esteem: Feeling of worth, independence
& self-respect.
Freedom from Servitude: Freedom from
evils of want & ignorance. Freedom of
expression, political participation, equality of
opportunity, rule of law, etc.

Physical Quality of Life Index (PQLI)

Human Development Index (HDI)
Indicators of Economic Development

Physical Quality of Life Index
(PQLI)

Human Development Index (HDI)

Desired Outcomes for Development
in Developing Countries
Characteristics Desired Outcomes
Low standard of living



Increase in per capita income. Greater
equality of income.
High levels of
unemployment
Increased employment an self-
employment.
Low levels of
productivity
Increased knowledge and improved skill
(through education and training). Greater
motivation to work.


Desired Outcomes for Development
in Developing Countries
Characteristics Desired Outcomes
High birth rates

Planned families. Improved health care.
Dependence on the
primary sector
Improved agricultural production. Growing the
secondary and tertiary industries. Connecting
globally.

Deficient infrastructure Improved elements of physical and other
infrastructure.
Reduce the cost of doing business.



Difference Between Economic
Growth & Economic Development
Dimensions Economic
Growth
Economic
Development
Implications It refers to an increase in
the real output of goods
& services in the country
It implies changes in income,
savings & investment along
with progressive changes in
socio-economic structure of
country (institutional &
technological changes)
Factors Growth relates to the
gradual increase in one of
the components of GDP:
consumption, govt.
spending, investment, net
exports.
Development relates to
growth of capital indexes, a
decrease in inequality figures
& structural changes that
improve the general
populations quality of life.
Measurement Quantitative: Increase in
GDP
Qualitative: Human
Development Index, Physical
Quality of life Index

Dimensions Economic
Growth
Economic
Development
Effect Brings quantitative changes in
the economy
Brings qualitative &
quantitative changes in the
economy
Relevance It is more relevant metric for
progress of developed
countries. But its widely used
in all countries because
growth is a necessary
condition for development.
It is more relevant to
measure progress &
quality of life in developing
nations
Scope Growth is concerned with
increase in economys output
Development is concerned
with structural changes in
the economy
Difference Between Economic
Growth & Economic Development