UPSC Exam  >  UPSC Notes  >  Indian Economy for UPSC CSE  >  Economic Growth & Development: Economics

Economic Growth & Development: Economics | Indian Economy for UPSC CSE PDF Download

Economic Growth

An increase in the economic variable over a period of time is economic growth. The term can be used in as individual case or in the case of important aspect of growth it its quantifiability i.e. one can measure it in absolute terms. Though growth is a value neutral term i.e. it might be positive or negative for an economy for a period, we generally use it is the positive sense.

Economic Growth & Development: Economics | Indian Economy for UPSC CSE

Economic Development

For economists development indicates the quality of life in the economy which might be seen in accordance with the availability of so many variables such as:
  • The level of nutrition.
  • The expansion and the reach of healthcare facilities- hospitals, medicines, safe drinking water, vaccination, sanitation, etc.
  • The level of education among the people.
  • There might be many more variables on which the quality of life depends.

Question for Economic Growth & Development: Economics
Try yourself:
What is economic growth?
View Solution

It means before assuring development we need to assure growth. And higher economic development requires higher economic growth. But it does not mean that a higher economic development. we may have some diverse cases of growth and development:

  • Higher growth and higher development
  • Higher growth and lower development
  • Lower growth but higher development

Economic development is quantitative as well as qualitative progress in an economic. It means, when we use the term growth we mean quantitative progress and when we use the term development we mean quantitative as well as qualitative progress. If economic growth is suitably used for development it comes back to accelerate the growth and ultimately greater and greater population brought under the arena of development. Similarly, high growth with low development and ill-cared development finally results into fall in growth. Thus, there is a circular relationship between growth and development.

Human Development Index

The United Nations Development Programme (UNDP) published its first Human Development Report (HDR) in 1990. The report has a human development index (HDI) which was the first attempt to define and measure the level of development. The 'index' was a product of selected team of leading scholars, development practioners and members, development practioners and members of the Human Development Report office of the UNDP. The first such team which developed the HDI was led by Mahbub UI Haq and Ing Kaul. The term 'human development' is a corollary of 'development' in the index. The HDI went on to select three broad parameters and allotted them an equal weightage on the scale of one and measured the development of countries included in the report. The three parameters are given below:

Economic Growth & Development: Economics | Indian Economy for UPSC CSE

  • Standard of living: to be indicated be the real per capita income adjusted for the differing purchasing power parity (PPP).
  • Knowledge: to be measured by indicators related to the level of education.
  • Educational attainment among the adults (given 2/3rd weightage).
  • School enrollment (given 1/3rd weightage).
  • Life Expectancy: to be calculated at the time of birth.

Question for Economic Growth & Development: Economics
Try yourself:
What is the difference between economic growth and economic development?
View Solution

The UNDP ranked the economies in accordance of their achievements on the above-given three parameters on the scale of one (i.e.0.000 -1,000). As per their achievements the countries were broadly classified into three categories with a range of points on the index.

  • High Human Development Countries: 0.800-1.000 points on the index.
  • Medium Human Development Countries: 0.500-0.799 points on the index.
  • Low Human Development Countries: 0.000-0.499 points on the index.

Gross National Happiness

Bhutan has developed a new concept of development in early 1970s- the Gross National Happiness (GNH).

Without rejecting the idea of human development propounded by the UNDP, the kingdom has been officially following the targets set by the GHN. Bhutan has been following up the GNH since 1972. Which has the following parameters to attain happiness/ development.

  • Higher real per capital income.
  • Good Governance.
  • Environment Protection.
  • Cultural Promotion (i.e. inculcation of ethical and spiritual values in life without which, it says, progress may become a curse rather than a blessing).

The document Economic Growth & Development: Economics | Indian Economy for UPSC CSE is a part of the UPSC Course Indian Economy for UPSC CSE.
All you need of UPSC at this link: UPSC
165 videos|297 docs|142 tests

FAQs on Economic Growth & Development: Economics - Indian Economy for UPSC CSE

1. What is economic growth?
Ans. Economic growth refers to an increase in the production and consumption of goods and services in an economy over a certain period of time. It is usually measured by the growth rate of the Gross Domestic Product (GDP), which is the total value of all goods and services produced within a country's borders.
2. What is economic development?
Ans. Economic development is a broader concept than economic growth. It not only focuses on increasing the production and consumption of goods and services but also on improving the living standards of people in a society. It involves sustainable growth, reducing poverty, improving education and healthcare, and promoting social equity and environmental sustainability.
3. What is the Human Development Index (HDI)?
Ans. The Human Development Index (HDI) is a composite index that measures the average achievements of a country in three basic dimensions of human development: a long and healthy life, knowledge, and a decent standard of living. It takes into account factors such as life expectancy, education level, and income per capita. The HDI is widely used to compare the development levels of different countries.
4. What is Gross National Happiness (GNH)?
Ans. Gross National Happiness (GNH) is a development philosophy and an alternative approach to measuring the progress of a country. It was introduced by the King of Bhutan in the 1970s. GNH focuses on the overall well-being and happiness of the people, rather than just economic indicators. It considers factors such as psychological well-being, cultural preservation, environmental conservation, and good governance.
5. What is the difference between economic growth and economic development?
Ans. Economic growth refers to the increase in the production and consumption of goods and services in an economy, as measured by the growth rate of GDP. It primarily focuses on the quantitative aspect of economic progress. On the other hand, economic development is a broader concept that encompasses not only economic growth but also the improvement of living standards, reduction of poverty, promotion of education and healthcare, and sustainable development. Economic development takes into account both the quantitative and qualitative aspects of growth.
165 videos|297 docs|142 tests
Download as PDF
Explore Courses for UPSC exam

How to Prepare for UPSC

Read our guide to prepare for UPSC which is created by Toppers & the best Teachers
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!
Related Searches

Economic Growth & Development: Economics | Indian Economy for UPSC CSE

,

Summary

,

Important questions

,

Economic Growth & Development: Economics | Indian Economy for UPSC CSE

,

Free

,

Objective type Questions

,

study material

,

ppt

,

past year papers

,

Sample Paper

,

Viva Questions

,

Previous Year Questions with Solutions

,

mock tests for examination

,

video lectures

,

practice quizzes

,

MCQs

,

Economic Growth & Development: Economics | Indian Economy for UPSC CSE

,

pdf

,

Extra Questions

,

Semester Notes

,

shortcuts and tricks

,

Exam

;