1.6    Developmental Path based

.  Developmental Path based on GDP and Employment In the development path of India, it first undertook the policy of closed trade. This was to give a thrust to domestic industries and reduce dependence on foreign products and companies. Trade and interaction with the outside world remained limited. This outlook Differences between Economic Growth and Economic Development Comparison between Economic Growth and Economic Development Economic Growth Economic Development Definition / Meaning It is the positive quantitative change in the output of an economy in a particular time period It considers the rise in the output in an economy along with the advancement of HDI index, which considers a rise in living standards, advancement in technology and overall happiness index of a nation. Concept Economic growth is the “Narrower” concept Economic development is the “Broader” concept Nature of Approach Quantitative in nature Qualitative in nature Scope Rise in parameters like GDP, GNP, FDI, FII, etc. Rise in life expectancy rate, infant, improvement in literacy rate, infant mortality rate and poverty rate etc. Term / Tenure Short, term in nature Long-term in nature Applicability Developed nation Developing economies Measurement Techniques Increase in national income Increase in real national income, i.e., per capita income Frequency of Occurrence In a certain period of time Continuous process Government Aid It is an automatic process so may not require government support/aid or intervention Highly dependent on government intervention, as it includes widespread policies changes, so without government intervention it is not possible continued till , when India finally decided to open its borders to free trade and liberalized its economy by allowing foreign companies to enter the Indian economy. A thrust was given to employment generation under the Five-Year plans. This was to make up for a rising population and lacking jobs to absorb the increased workforce size. Rural development was also given importance in India, for the important constituent it was of the Indian landscape. Poverty alleviation came as a corollary of rural development and a part of the development path of India. India inherited a poverty-stricken economy from the British rule, which had