The concept of Growth & Development is a fundamental concept in Indian economics, distinguishing between quantitative and qualitative progress. Economic Growth is a quantitative measure, defined as the increase in a country's total output of goods and services, typically measured by the rise in real Gross Domestic Product (GDP) or per capita income. Economic Development, conversely, is a broader, qualitative concept that includes growth alongside improvements in living standards, education, healthcare, and a reduction in poverty and inequality.
The application of this concept in India began after independence in 1947 to address the profound underdevelopment and stagnation inherited from colonial rule. India adopted a model of planned economic development, starting with the First Five Year Plan in 1951, which focused on state-directed industrialisation. The mechanism for development is rooted in the Directive Principles of State Policy (DPSPs) of the Indian Constitution. For instance, Article 39 highlights the importance of distributing wealth and resources, while Article 41 directs the state to secure the right to work, education, and public assistance. Development is measured using multi-dimensional indicators like the Human Development Index (HDI).
This concept connects directly to the 1991 economic liberalisation reforms, which marked a major shift from the planned economy model by removing the "License Raj" and encouraging private and foreign investment. Recent changes include the focus on sustainable development and inclusive growth. Furthermore, the 73rd and 74th Constitutional Amendments devolved economic planning to local governance bodies like Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs), enhancing participatory democracy in development.