| Definition |
An increase in the real output of goods and services in an economy over time. |
A broader process involving improvement in living standards, education, health, and income distribution. |
| Measurement |
Measured by changes in GDP or GNP. |
Measured by Human Development Index (HDI), literacy rate, life expectancy, and income levels. |
| Focus |
Quantitative—focused on output and income. |
Qualitative—focused on well-being and quality of life. |
| Nature |
Short-term and narrow in scope. |
Long-term and multidimensional in scope. |
| Indicators |
GDP growth rate, per capita income. |
HDI, literacy rate, poverty rate, access to healthcare, gender equality. |
| Income Distribution |
May lead to income inequality. |
Aims for equitable income distribution. |
| Social Aspects |
Ignores social welfare, focuses on economic output. |
Includes social, cultural, and environmental improvements. |
| Inclusiveness |
May benefit limited sections of society. |
Targets inclusive growth for all sections. |
| Sustainability |
Can be achieved without considering environmental impact. |
Focuses on sustainable and inclusive development. |
| Government Role |
Focus on fiscal and monetary policies to boost production. |
Focus on social policies, welfare schemes, and infrastructure development. |
| Employment Impact |
Growth may not always create sufficient jobs (jobless growth). |
Development includes employment generation and labor welfare. |
| Poverty Reduction |
May or may not reduce poverty. |
Directly aims to reduce poverty and improve living standards. |
| Time Frame |
Can be achieved in a short period. |
Requires long-term structural changes and planning. |
| Urban-Rural Impact |
Often concentrated in urban areas. |
Balanced focus on both urban and rural development. |
| Quality of Life |
Not necessarily improved. |
Core objective is to enhance the quality of life. |
| Environmental Concerns |
Often overlooked in pursuit of output. |
Considers ecological balance and resource conservation. |
| Examples |
A country achieving 8% GDP growth with high inequality. |
A country with moderate GDP growth but high HDI and low poverty. |
| Policy Orientation |
Growth-oriented policies: tax cuts, subsidies, investment incentives. |
Development-oriented: education, healthcare, social justice policies. |
| Human Capital |
Not necessarily improved. |
Improvement in health, education, and skills is central. |
| Infrastructure |
May focus more on industrial and transport infrastructure. |
Includes physical, social, and digital infrastructure. |
Economic Growth vs Economic Development
