Is Economic Development Possible Without Economic Growth?

Delhi, exemplary in going economic development and growth together

By Madhu

Economic growth and economic development are misunderstood as similar terms and it is often used as a replacement of one another in political debates and discussions. To make this point clear for you, we have come up with some points that state how economic development is different from economic development.

In this article, we will also explain how Delhi is setting an example in growing economic growth and economic development together.


  • Economic development
  • Economic growth
  • Causes of economic growth
  • Causes of economic development
  • Economic development and economic growth is not the same
  • The connection between inequality and economic growth
  • Delhi, a good example of economic growth and development.

Every political party which fills their nomination for the election process does promise to develop their countries better than any other government which is in the ruling in the past times. The elected government claims that they can develop their countries to superior levels. This long and catchy line mesmerizes the listeners and their followers when they listen to them in an assembly.

What is economic development?

The economic development of the countries is estimated by evaluating the increase in the citizens’ quality of life. There are different methods to calculate the quality of life. The human development index is mostly used for this calculating the quality of the life of the citizen. Under this index, the intrinsic factors like literacy rates, life expectancy, and poverty rates are not considered useful for economic growth.

What is economic growth?

A way to define economic growth is by calculating the country’s total output or the Gross domestic product (GDP). It is measured as the total increase in the country’s production.

What is the difference between Economic Growth and Development? We will start by defining Economic growth and development. Having economic growth without economic development is possible.

Causes of economic growth:

  • When there is a new discovery recorded in the form of mineral and metal deposits.
  • When the human resources in the country increase. This increase can be employed to increase the workforce of the country further. The human resources of the country need to be nurtured with proper training and health concerns.
  • When the capital and machinery of a country increases.
  • When the country advances technologically.

Causes of economic development

  • The economic development of a country can be recorded when the following phenomena occur
  • When GDP per capita increases i.e., real income per head.
  • When literacy and education standards of a country witness improvements.
  • When in a country, housing is easily available for its citizens irrespective of the financial strata from which they belong to.
  • When an improvement in the environment standard is recorded.
  • When life expectancy increases.
  • These factors are not independent; they all belong to the policies of the government and their proper implication on the field.

Economic growth and development are not the same!

  • There are some fields where economic development and economic growth work coherently and the results can be favored in the positive changes of both these factors.
  • The economic development transits the standard of the people from the low to the proper employment and proper shelter. Whether the economic growth does not account for the loss in natural resources, which might be the reason for the pollution, congestion, disease and the scarcity of resources in the future.
  • The development, on the other hand, adheres to reach the proper sustainable development standard. Sustainable development is meant to the developments that can meet the current requirements of the generations without compromising needs and resources for the future generation.

The Connection between Inequality and the Economic Growth

Inequality and economic growth are inversely proportional to each other. When there is an increase in inequality then the decrease in economic growth is witnessed. The poverty rates saw a rise when inequality witnesses the increase in the past. The savings rate, credit market constraints, and political economy are effective factors.

Delhi, a Good Example of Economic Growth and Development Together

Delhi, in the current times, has become exemplary in setting new ideals for the growth and development on a state level. Such exemplary level can’t be achieved without effective governance in the state. Presently, Delhi is enjoying the free health treatments, improved quality education in the government schools, minimum electricity and water consumption bills and fare-free buses for females.

All these facilities and policies of the Delhi government have resulted in the hike of economic growth and created the potential to witness economic development in the near future.

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