In ordinary discussion, people use Economic growth and economic development interchangeably. But economists argue that economic development is not identical with growth. These are two slightly different concepts which Easyshiksha will decribe below.
Economic growth may be defined as a sustained increase in its population and product per capita. But economic development is not the same thing as economic growth. Economic development implies progressive changes in the socio-economic structure of a country. Economic growth implies not only more output, but also more inputs and more efficiency, i.e., an increase in output per unit of input, or, in other words, an increasing productive capacity of the economy. Development, however, is something more than that.
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Economic growth and economic development are, thus, not synonymous. Economic growth may be a necessary condition for economic development of countries, but it is not a sufficient condition.
