Growth vs Development

The term "growth" emerged in the late 14th century and initially referred to the physical process of increasing in size. In ancient civilizations, such as the Egyptians, Greeks, and Romans, the idea of growth was often associated with agricultural practices and the natural world. The growth of crops, plants, and animals was essential for survival and prosperity, leading to the development of techniques to enhance growth, such as irrigation and selective breeding.? It represents the continuous process of improvement, expansion, and development that is essential for the survival, progress, and well-being of individuals, communities, and the world as a whole. In the 18th and 19th centuries, biologists began studying how organisms grow and change over time. This process, known as "development," refers to the series of progressive and sequential changes that occur from the time of conception to the mature form of an organism. Development means an event constituting a new stage in a changing situation. In the early 20th century, psychologists began studying the cognitive, emotional, and social changes that occur throughout an individual's lifespan. This process of psychological growth and maturation became known as "development”. It is evident that in the fields of psychology and biology, the terms "growth" and "development" are often used interchangeably when conceptualizing themselves. However, when discussing economics, it is imperative to exercise caution when employing these terms.

Growth is more quantitative in that it is concerned with numbers and Development is qualitative. Growth measures the number of increases in transactions that are happening in the economy or the amplification of economic activities that are happening in the economy, whenever there is economic growth in the country, this means people have started spending because of which aggregate demand for the products increases due to which aggregate supply triggers and results in job creation.

There are various indicators to measure the Growth of the country so it became crucial to select one of the indicators which is an actual depiction of the growth standardize it and apply it across the globe

1)Gross Domestic Product: All the economic activities happening within the geographical boundaries of the country are known as GDP

2)Gross Net Product: when we add the effect of export, import, and foreign investments in the country's GDP, we get GNP

3)Per capita income: national income when divided equally among the population we get the per capita income

Of the above three we have to use one indicator for the measurement of the growth of the country,

We should exclude the GNP from our analysis, as it necessitates taking into account the import, export, and foreign investment and trade that are denominated in dollars. As we are aware, the forex market is highly volatile due to the fluctuating demand and supply of dollars. Consequently, GNP is an inadequate indicator of growth.

PCI and GDP are analogous to income statements and balance sheets, like income statement is annualized and is for the present year same as the PCI. The balance sheet is a snapshot and represents the hard work since the start of the company and GDP is like the balance sheet it represents the hard work of the past. When we look at the country as a whole it is?a?financial biography, for example, the introduction and liberalization of the LPG (Liberalization, Privatization, Globalization) reforms in the 1990s significantly transformed the economic landscape of the country. These reforms were aimed at opening up the Indian economy, reducing government intervention, and fostering a more market-oriented approach LPG reforms facilitated increased globalization and trade. The opening up of the economy allowed Indian companies, including those in the IT sector, to compete on a global scale. This resulted in an expansion of the market for IT services, with Indian companies finding opportunities to provide software development, maintenance, and other IT-related services to clients worldwide.

??This means the growth of the country is generational and not yearly therefore GDP is a better measure of growth. It's?a good thing that India is the fastest-growing economy with a GDP value of around 3.75 trillion but we can’t say this is a completely great thing for India because GDP is a quantitative measure and not a qualitative measure. For Qualitative measurements measurement we use Development indicators because these indicators?measure how economic growth has impacted the lives of people, when the country has high HDI values then we can say that there is proper functioning of the government and there is balanced and equitable distribution of wealth among all individuals.

The United Nations Development Programme (UNDP) introduced the Human Development Index (HDI) in 1990 as a comprehensive measure of a country's human development. It extends beyond economic metrics to consider three critical dimensions: health, education, and standard of living. Life expectancy at birth is used to measure health, whereas education is measured by the mean years of schooling for persons aged 25 and older and the predicted years of schooling for children starting school. The gross national income (GNI) per capita, adjusted for purchasing power parity (PPP), is used to calculate the standard of living. The HDI provides an overall assessment of a nation's development by integrating these three characteristics, representing average achievements in health, education, and standard of life

The aforementioned table provides a clear depiction of the economy's health, both in quantitative and qualitative terms. Upon analyzing the table for India and China, it becomes evident that despite being among the top 5 countries in terms of GDP, their development index rankings are relatively low. This suggests that a significant portion of these countries' populations remain underdeveloped, with the benefits of economic growth not reaching the most vulnerable individuals. Several potential solutions for India's development include ensuring political stability, providing education for all, and ensuring universal access to essential day-to-day utilities. Additionally, efforts should be made to reduce corruption, promote harmonious family relationships to foster a stronger societal fabric and prioritize long-term vision over short-term appeasement for sustainable progress.

It is logical for developing nations to utilize development and growth indicators to ensure that the advantages derived from economic growth are distributed to the most impoverished individuals in the country, rather than solely benefiting a select few at the top. Conversely, for developed countries, it is more appropriate to focus on GDP as they have already achieved a certain level of development. Their primary responsibility now lies in sustaining this growth. Although there may still be a segment of the population facing poverty in developed economies, they are comparatively better addressed than those in developing countries.

?