Q.Distinguish between Economic Growth and Economic Development, with one example of each.

The two terms are often used as if they mean the same thing, but economics draws a sharp line between a purely quantitative rise in output and a broader qualitative improvement in living standards.

Economic growth is a sustained increase in a country's real national income or real GDP over time. It is a quantitative measure, expressed directly in monetary/output terms, and can be tracked purely from national income statistics — for example, a country whose real GDP rises from ₹100 lakh crore to ₹107 lakh crore in a year has grown by 7%.

Economic development is a wider concept. It includes the growth of national income, but requires in addition: a rise in the real standard of living of the average person, a fairer distribution of income and wealth across the population, improvements in health, nutrition, literacy and life expectancy, falling poverty and unemployment, and structural change (for instance, a shift of workers from low-productivity agriculture into higher-productivity industry and services).

Example: A country's GDP growing 7% a year while poverty, illiteracy and infant mortality remain largely unchanged and the additional income is concentrated among a small wealthy class is a case of growth without development. The same country additionally seeing rising literacy, falling infant mortality and a narrowing income gap alongside its 7% growth would be development.

Treating 'growth' and 'development' as interchangeable synonyms — growth is a necessary but not sufficient condition for development; a country can grow without developing.