ECONOMIC DEVELOPMENT AND GROWTH (Pages 49-58) by Dr. N. M. Makandar in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

Economic development is fundamentally a process of structural transformation. Our Indian economy has undergone a tremendous change with the implementation of various economic reforms. This involves the reallocation of productive factors from traditional agriculture to modern agriculture, industry and services, and the reallocation of those factors among industrial and service sector activities. If successful in accelerating economic growth, this process involves shifting resources from low- to high-productivity sectors. Industrial sector plays an important role in realizing higher economic growth in the country. The main objective of this paper is to provide a longer-term perspective on economic growth so we can better understand the key drivers of economic growth. Industrialization plays a vital role in the development of developing countries because they can solve their problems of general poverty, unemployment, backwardness, low production, low productivity and low standard of living etc. It is equally important for developed countries as it helps them not only to maintain their existing growth but also to enjoy still higher standards of living to avoid cyclic fluctuations. Economic growth is the increase in a country’s net output i.e. the production of goods and services A closer review of the performance of the Indian economy, however, suggests a continuing increase in real GDP growth over each decade since Independence. Returning India to a high growth path is, therefore, quite feasible but it will need much more focused attention to the structural reforms than the policy reforms
Keywords: Economy, GDP, Growth, Sector, Industry, Service