Economic growth refers to an increase in a country's real GDP and can be caused by increases in resources, quantity of resources, or improvements in technology. It is measured by increases in GDP. Economic development refers to qualitative improvements in areas like literacy rates, healthcare, standard of living, production, poverty reduction, and fair income distribution. Key factors that influence economic development include natural resources, human capital, physical capital formation, technology, market organization, economic planning, and political, social, and cultural factors. The main difference between economic growth and development is that growth looks only at increases in GDP, while development considers broader social and human indicators and quality of life improvements.

1. ECONOMIC DEVELOPMENT
AND GROWTH
By: Swati Sharma

2. Economics Growth
Economic Growth is a narrower concept than
economic development.
It is an increase in a country’s real level of
national output which can be caused by an
increase in the quality of resources, increase in
the quantity of resources and improvements in
technology. Economic growth can be measured
by an increase in a country’s GDP

3. Economic Development
Economic Development refers to
qualitative changes that bring
improvement in literacy rate, health care
facility , standard of living, production,
reduction in poverty, ensure fair
distribution of income.

4. Factors of Economic Development
• Natural Resources
• Human Capital
• Physical Capital Formation
• Technology
Economic
• Market Organisation
• Economic Planning
• Economic Agencies
Institutional
• Political Environment
• Social Change
• Dynamic/Orthodox outlook of the people
• Devotion/Sincerity to work
• Honesty
Non-
Economic

5. Economic Factors
1. Natural Resources:
India's major mineral
resources include Coal
(4th largest reserves in
the world)
Russia
Coal, oil, gold,
gas and timber
$75 trillion
USA
Natural gas,
gold, copper
and oil
$45 trillion
Saudi Arabia
Gas, timber
and oil
$34.4 trillion
Canada
Uranium,
timber, oil,
phosphate and
gas$33.2
trillion

6. 2.Human Capital
Large labour power in some of
the under developed country is
great economic asset. Proper
utilisation of it helps in the
promotion of capital
formation.
India was today ranked low
at 105th position globally on
a worldwide Human Capital
Index, which measures
countries’ ability to nurture,
develop and deploy talent for
economic growth and was
topped by Finland

7. 3.Physical Capital Formation
Lack of capital means
low capital availability
per worker. This
hampers productivity of
labour. In India , rate of
capital formation is
found to be insufficient
because of low saving
capacity of the people
CIRCL E OF
POVERTY
LOW
INCOME
LOW
PRODUC
TION
LOW
INVEST
MENT
LOW
SAVING

9. 4.TECHNOLOGY
• Technical progress is brought about by
innovation through introducing new products,
new ways of producing existing products and
new forms of business organisation.
• Technological progress enables a country to
produce more goods and services even when
the quantity of factors of production remains
constant.

10. Institutional Factors
1. Market Organisation:
If the market structure is organised , then rational allocation
of resources can be achieved, which can go long way in
promoting economic development.
2. Economic Planning:
Through economic planning various priorities of production
are fixed, keeping in mind the available amount of resources
in the country.
3. Economic Agencies:
These agencies comprise of banks and other financial
institutions such as insurance companies and marketing
societies.

11. Non-Economic Factors
1. Political Environment
2. Social Change
3. Dynamic Outlook

12. Difference between Economic Growth
& Development
Economic Growth
• A narrow viewpoint/ single
dimensional approach.
• Speaks about quantitative
increase in GDP.
• Independent of social and
human indicators.
• The concept of economic
growth is related to
economically advanced
countries.
Economic Development
• A broad viewpoint/
multidimensional approach.
• Explains the change in the
quality of life.
• Reflected in decline in
poverty , illiteracy, hunger ,
rise in standard of living etc
• Applicable to Poor ,
backward and developing
countries

13. THANK YOU