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Exercises · Q10

Q.Distinguish between economic growth and inclusive growth.

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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.

BasisEconomic GrowthInclusive Growth
MeaningA sustained rise in real GDP/national incomeGrowth accompanied by broad-based improvement in living standards and opportunity
FocusQuantity of output producedDistribution of the benefits of that output
Can it bypass sections of society?YesNo, by definition
Key concernRate of growthRate of growth AND equity/access

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