Economy, Economic growth and Economic development

It is important to understand the definition of India’s Booming economy to highlight the differences between the different terms related to economy. An economy includes consumers, who buy products and services, enterprises that manufacture goods and employs consumers and the governments at different levels that employs labour, procure the products and levy taxes. The collective interactions of these three entities make a simplified economy. Hence, an economy is made up of various markets that are a gathering of buyers and sellers and the economic markets are the mechanisms that allocate scanty resources within an economy. Thus, it is the conditions or structure of economic life in an area, country or period.

Having India’s Booming defined economy, now it is pertinent to understand economic growth which can be defined as an increase in the capacity of an economy to manufacturing goods and services as compared from one time period to another. Hence, it is the increase in the value of an economy’s goods and services resulting in more profit for businesses. As a result, more jobs are created and stock prices and incomes rise. It provides investment capital to companies for hiring more employees. Thus, consumers have surplus money which effectively drives higher growth. This makes economic growth a keenly monitored economic indicator for any country.

On the other hand, economic development relates to the activities, policies or programmes that try to improve the India’s Booming economic condition and quality of life within a community. Every community may have its own priorities, challenges and opportunities and so the meaning of the term may depend on the community that a person lives in. Therefore, the planning related to economic development must include the individuals who live and work within the community. The economic development work is carried out by lots of different groups that include provincial and federal governments, business incubators, chambers of commerce, humanitarian organizations, community colleges, etc.

Thus, a clear distinction may be needed to understand India’s Booming economic growth versus economic development to put them in proper context. Economic growth refers to the increase in the volume of goods and services offered by an economy while economic development is the qualitative and quantitative changes within the economy. For a growing economy, economic development refers to the reduction and elimination of poverty, inequality and unemployment.