Economic Growth | Economic Development

Economic growth

•  Economic growth can be defined as the increasing in countries real national and per capita income over a certain period of time.
•  It can be measured increasing in production of goods and services of any economic our country.
• Economic growth consist of gradually increasing in consumption, Government expenditure, Net Exports etc.
• Economic growth changes the quantitative factor of any country or economy.
• Due to the measuring the quantitative component such as increase in real GDP or nominal GDP.
• Consequently increasing of the total production in an economy can be understand as the economic growth.
• It can be understand as the growth of national income too.
• Solely it can be referred as increase in capital goods in an economy and increase the economic growth. however technological improvement and skilled workforce can play a vital role in economic growth.

 Economic development

• Economic development is a broad concept of economic growth.
• In this Economic development consists of both the the increase in production of goods and services and increase in social welfare.
• It is a a qualitative concept of any economy.
• It consists of changing in saving, investment, income along with progressive changing in socio economic dimension of any economy.
• Economic development can be understand as reducing of inequality, promoting social welfare which makes the life of individual sustained.
• Qualitative measure consist of gender gap index, Human Development Index, multidimensional poverty index, literacy rate etc.
• Economic development boost the tax collection and assist government with extra money for the spending of social welfare project such as Pradhan Mantri Aavas Yojana saubhagya Yojana, Aayushman Bharat scheme etc.

Inclusive growth 

Inclusive growth consists of economic growth that assist in eliminating poverty and creates job opportunity.

According to the definition of UNDP the process and the outcome where all groups of people have participated in growth and have benefited equitably from it.

According to the definition of OECD Economic growth that creates opportunity for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society.

Main Features of Inclusive Growth

• It ensures the Participation of all sections from society.
• It Reduces the inequality among per capita incomes between Different sectors of economy ,urban and rural areas, society, genders etc.
• It Addresses the duress of the Marginalized and excluded people.
• Its Non-partiality in nature.
• It reduces poverty at high rate scale.
• Its Ensure access of people to basic infrastructure and basic services such as basic health and education. This access include both the quantity and quality of respective services.
• Overall its improve the Socio-Economic condition of the people of any country whose are much away from the benefits of the development.

Components of Inclusive growth

Financial Inclusion It ensures access to financial services to the marginalized section of society at affordable price.

Skill development

It will promotes a large scale of human work force to the main stream of development.

According to the reports of UNICEF 2019  that at least 47% youths of India are not well skilled to have the education and skills necessary for employment in 2030.

Technological Advancement Being an unified world due to the technology we have reached in era of Industrial revolution 4.0.These sort of technologies have potential to reducing the inequality and increasing the inequality. It depends upon the operation.

For reducing the gap of digital divided Govt of India has certain step towards literating people in technological sector.

Uses of technology is in various sector like Education, Agriculture, Transportation,  Communication, Governance etc has uplifted and developed the lives of human being.

Govt. of India has taken several concrete initiative for achieving Inclusive growth

• Bharat Nirman
• Ayushman scheme
• Prime Minister’s Employment Generation Programme 
• Mahatma Gandhi National Rural Employment Guarantee Act Scheme
• Sarva Siksha Abhiyan 
• Swachh Bharat Mission

Human Development

In 1990 the first Human Development Report introduced a new approach for advancing human wellbeing. According to the definition of UNDP Human Development is about expanding the richness of human life, rather than simply the richness of the economy in which human beings live.
In An Economy if there will human development there will Economic development.

Human development is based on three parameters Education, decent standard of living and healthy life. without these three parameters there is less possibility of individual's development. these parameters broaden the one's choice. 

Usually in economics terms development meant growth of per capita real income. in later years a broader definition of development proposed that focused on distributional objectives. Economic development, in other words, came to be redefined in terms of reduction or elimination of poverty and inequality.

These are, after all a goods-oriented view of development. True development has to be people-centric. When development is defined in terms of human welfare it means that people are put first. This people-centric perception of development is to be called as human development.

Its clear that per capita income does not meant of development of any country. To overcome this problem and to understand the development. United Nations Development program (UNDP) proposed the concept of Human Development Index in the year of 1990.

According to Amartya Sen basic objective of development is the expansion of human potential. The capability of a person reflects the various combinations of doings and beings that one can achieve. Potential thus describes a person’s freedom to choose between different ways of living. 

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