Economic Growth & Development is a fundamental economic concept, not an act or provision. Economic Growth is a quantitative measure, defined as the increase in a country's production of goods and services, typically measured by the rise in Gross Domestic Product (GDP) or per capita income. Economic Development is a broader, qualitative concept that encompasses economic growth along with improvements in living standards, health, education, and social welfare, often measured by the Human Development Index (HDI).
The origin of economic planning in India dates back to the 1930s, with M. Visvesvaraya's book Planned Economy for India in 1934, and the formation of the National Planning Committee by the Indian National Congress in 1938. The formal mechanism began with the establishment of the Planning Commission in 1950 and the launch of the First Five-Year Plan in 1951, aiming for balanced socio-economic development. This initial approach was socialist-inspired, but the economy underwent more fundamental reforms after 1991, moving towards a free market system.
The mechanism works by using GDP to track quantitative expansion and HDI to track qualitative improvements, with government policies like Make in India aiming to boost growth and initiatives like the National Health Mission focusing on development. The central institution for guiding this process, the Planning Commission, was replaced by NITI Aayog in 2015, which adopts a more consultative approach to planning. While growth provides the necessary resources, development ensures the equitable and sustainable use of those resources for overall societal well-being.