Economic Development an Indian Economy

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Economic development is wider concept than the concept of economic growth. Country is categories into developed and developing economy on the basis of per capita income. Indian economy has all the characteristics of a developing economy.

Meaning of Economic Growth:

Economic growth refers to the increase in total physical production and not to the increase in value of total production over a long period.

  • It means continuous increase in total volume of production over a long period.

  • Volume of goods and services produced by a nation is expressed in value (money).

Meaning of Economic Development:

Economic growth with increase in real per capita income, reduction in inequalities of income and in the number of poor people and generating institutional changes and development of technology that affect growth is called economic development.

Simply, economic development is an economic growth + change. Here, the term change refers to the qualitative changes in the economy.

Developed and Developing Economies

Countries are generally categories into:

  • Less developed: Under developed or developing countries

  • More developed: Developed countries

Characteristics of Developing Countries

Various characteristics of developing countries

Characteristics of Developing Countries

Various characteristics of developing countries

Characteristics of Developed Countries

Various characteristics of developed countries

Characteristics of Developed Countries

Various characteristics of developed countries