Define economic development. Do you agree with the view that India has experienced growth but no economic development? Give reasons for your answer.
Economic development is a normative concept which takes into account both qualitative and quantitative aspects. Economic development is an increase in overall living standards and quality of life of the people. It is measured in terms of rise in real national income, increase in real per capita income, and increase in economic welfare and structural, institutional and technical Changes in economic planning. Economic growth is possible without development and like many others, Indian economy also presents a growth development paradox. India has shown economic growth since independence, with increase in GDP and national income. But, economic development in the country still remains a problem. India is still home to a large concentration of people living in debilitating poverty and poor human development index. The key reasons for this paradox are inequitable distribution of land and income, lack of adequate funding on social development, adverse impacts of liberalization on poor, lack of political will, lack of economic agenda towards etc. and to a great extent the trade regime led by WTO. With more than 45% of working people engaged in agriculture sector and maximum industries still being labour intensive rather than capital intensive, still there is need for structural, technical and institutional changes in the economy for economic development.