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The basic difference between growth and development lies in the scope and nature of economic progress. Economic growth refers to the quantitative increase in a country’s output, primarily measured through indicators such as Gross Domestic Product (GDP), Gross National Product (GNP), and per capita income. It is a narrow concept focusing mainly on the rise in national income and the expansion of an economy's productive capacity. Growth can occur without any significant change in the standard of living of the masses, as it does not consider inequality, distribution of wealth, or improvements in human welfare. On the other hand, economic development is a broader, qualitative concept that encompasses not only growth in output and income but also improvements in the quality of life. This includes factors like reduction of poverty, access to education and healthcare, employment generation, equitable income distribution, social justice, and overall enhancement of human capabilities. Economic development involves structural transformation of the economy from agriculture to industry and services, along with institutional reforms and changes in socio-economic structures. Development, therefore, is a multi-dimensional process. While growth is necessary for development, it is not sufficient. An economy may register _________ _________ ____ ________ ______ _______.
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