Exercises · Q10
Q.Distinguish between economic growth and inclusive growth.
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Start your 14-day free trial to unlock the full solution →Economic growth refers to a sustained rise in a country's real Gross Domestic Product (GDP) or national income over time. It measures the quantity of goods and services an economy produces, but growth in GDP can occur even while employment does not grow proportionately, or while income gains are concentrated among a relatively small section of the population.
Inclusive growth, by contrast, refers to growth whose benefits — in income, employment, and improved standard of living — reach all sections of society, across income groups, regions, and social groups, rather than being concentrated among a few.
| Basis | Economic Growth | Inclusive Growth |
|---|---|---|
| Meaning | A sustained rise in real GDP/national income | Growth accompanied by broad-based improvement in living standards and opportunity |
| Focus | Quantity of output produced | Distribution of the benefits of that output |
| Can it bypass sections of society? | Yes | No, by definition |
| Key concern | Rate of growth | Rate of growth AND equity/access |
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