Economic growth and development

1. Economic Growth and
Development
PRESENTED BY
Dipanway Bhabuk

2. Economic Growth
 Economic growth refers to an increase in the real output of goods
and services in the country
 Growth relates to a gradual increase in one of the components of
Gross Domestic Product: consumption, government spending,
investment, net exports
 Brings quantitative changes in the economy
 It is concerned with increase in the economy's output

3. Economic Development
 Economic development implies changes in income, savings and
investment along with progressive changes in socio-economic
structure of country (institutional and technological changes).
 Development relates to growth of human capital indexes, a decrease
in inequality figures, and structural changes that improve the general
population's quality of life.
 Brings qualitative and quantitative changes in the economy
 Concerned with structural changes in the economy

4. Economic Growth without Development
 It is possible to have economic growth without development. i.e.
an increase in GDP, but most people don’t see any actual
improvements in living standards
 Examples
 More oil but one firm owns it
 High GDP but the benefits are with politicians
 More production, but no buying
 More military spending than education and health care

5. Growth and Development Link
 Growth is narrower concept than Development
 Growth can lead to development. i.e. India
 Development can also lead to Growth. i.e. America
 Higher per capita would make people buy, spend and invest on
health, education and living so they become developed

6. About Our Country
 India is the tenth-largest economy in the world and the third
largest by purchasing power parity
 But its not developed till now because of corruption, population,
poverty and infrastructure
 The growth rate and inflation is very high compared to
development rate because of these factors

7. THANK YOU!!
THANK YOU!!