1. Economic Growth

2. Economic Growth v/s Development
 Economic Growth is supposed to be a natural or normal
process requiring no special efforts on the part of the
community.
 Economic Development involves certain structural
changes without which the inertia of the social system
cannot be overcome and a decisive break with the past
achieved.

3. Meaning:-
 An increase in the capacity of economy to produce goods
and services, compared from one period of time to
another. Economic growth can be measured in nominal
terms, which include inflation, or in real terms, which are
adjusted for inflation.
 Economic growth can be defined as increase in a
country's productive capacity as measured by comparing
gross national product (GNP) in a year with the GNP in
the previous year.

4.  Economic growth can be defined as an increase in
aggregate output of real goods and services during a given
period of time, generally a year. Output is measured in
terms of money, but the value of money changes with
changes in price level.
 The initial estimate of aggregate output prepared at
current prices for a given period is adjusted for price
level changes during the period, which indicates the real
output in terms of the prices of the base year.
 The method of adjusting the total output for a given
period in terms of prices of the base year is as follows:-
Agg. Prod. @ constant prices
= Agg. Prod. @ current prices x 100
Price index of current period

5. Determinants of Economic Growth:-
 Economic Factors:-
 Rate of Capital Formation:- Capital formation is one of the most
important and strategic determinant of economic growth.
Generally, economic growth can be regarded as the direct
function of the rate of capital formation.
 Capital output ratio:- The growth of output in an economy also
depends upon the capital-output ratio. It is also known as the
‘Investment Income’ of ‘Capital Coefficient’. It shows the
relationship between capital investment and the emergent output
consequent upon the investment.
 Rate of growth of population:- The rapid growth of population in
most of the countries neutralizes an initial economic
improvement which takes place on account of economic growth.

6.  Political and administrative Factors:-
 Social Factors:-
 Socio cultural attitudes of the people.