The correct statement is option 'C', which means that both statements 1 and 2 are correct.

Explanation:
1. The concept of economic growth is quantitative whereas economic development is qualitative:
- Economic growth refers to an increase in the quantity of goods and services produced in an economy over a period of time. It is usually measured by the growth rate of GDP (Gross Domestic Product).
- On the other hand, economic development refers to the improvement in the standard of living, well-being, and quality of life of the people in an economy. It involves not only the increase in income but also the improvement in healthcare, education, infrastructure, social services, etc.
- Therefore, economic growth is primarily focused on the increase in output and income, whereas economic development encompasses a broader range of factors and indicators that reflect the overall progress of a country.

2. The concept of inclusive growth is associated with economic development:
- Inclusive growth refers to a type of economic growth that is broad-based and benefits all segments of society, particularly the vulnerable and marginalized groups. It aims to ensure that the benefits of economic growth are shared equitably among all sections of society, leading to a reduction in poverty, inequality, and social exclusion.
- Inclusive growth is closely associated with economic development because it goes beyond the mere increase in GDP and incorporates aspects such as reduction in income disparities, improvement in access to basic services, empowerment of disadvantaged groups, and promotion of social cohesion.
- By focusing on inclusive growth, countries aim to achieve sustainable and balanced development that is socially, economically, and environmentally inclusive. It recognizes that economic progress should not be pursued at the expense of social justice and environmental sustainability.
- Inclusive growth is often seen as a means to achieve economic development that is sustainable and beneficial for all members of society, rather than just a select few.

In conclusion, economic growth and economic development are two related but distinct concepts. Economic growth is quantitative, focusing on the increase in output and income, while economic development is qualitative, encompassing a broader range of factors and indicators that reflect the overall progress of a country. Inclusive growth, which aims to ensure equitable distribution of the benefits of economic growth, is closely associated with economic development.