Rural-Urban Transformation and Economic Development in India

The economic growth is related to a quantitative sustained increase in the countries per capita output or income accompanied by expansion in its labour force, consumption, capital and volume of trade. On the other hand, economic development is a wider concept than economic growth. According to Myrdal “It is taken to mean growth plus change” It is related to qualitative changes in economic wants, goods, incentives, productivity and knowledge or the “upward movement of the entire social system”. An economy can grow but it may not develop because poverty, unemployment and inequalities may continue to persist due to the absence of technological and structural changes. Transformation of the economy is quite apparent from the noticeable changes that have occurred in the sectoral composition of output. In order to be people friendly, its rapid growth path is expected to contribute towards poverty eradication.