Ans. Development has traditionally meant achieving sustained rates of growth of per capita income to enable a nation to expand its output at a rate faster than the growth rate of its population. Levels and rates of growth of real per capita income (GNI) are then used to measure the overall economic well-being of a population. Since then the economic welfare was associated with the increase in the output of an economy with a period of time but it had been observed that many developed countries (according to this approach ) was lacking many other necessary aspects of development. They reached their economic growth targets but the standard of living was remained unchanged for the majority of population . It revealed that this approach is missing something. The approach was itself too narrow because rising inequitable incomes , absolute poverty and rising unemployment was common in these countries. Hence , economic growth was defined at such narrow view and policymakers introduced the new concept (New approach) of Economic Development . That's why it is said development must be conceived as a multi-dimensional process because it includes rise in the output in the economy as well as eradication of mass poverty with its correlates of illiteracy , disease and early death and finally alleviation of unemployment and income inequality . 

Economic Growth is the aggregate increase in the production in an economy. Increase in the amount of physical capital goods in the economy , technological improvement , grow the labor force and increase in the human capital leads to increase in the economic growth. 

Economic Development is far more extensive than economic growth . Apart from rise in output , it involves changes in composition of output as well as a shift in the allocation of productive resources so as to ensure social justice ."A development without growth is inconceivable . A sustainable rise in a country`s GNP is required before it can hope to expand its industries, financial institutions , trade , public utilities , and government administration."

Factors affecting Economic Development 
  1. Low GNP per capita 
  2. Scarcity of capital 
  3. Rapid population growth and high dependency burden 
  4. Low level of production 
  5. Technological backwardness 
  6. High level of Unemployment and Underemployment
  7. Lower level of human well-being 
  8. Wide income inequalities 
  9. High incidence of poverty 
  10. Agrarian economy 
  11. Lower participation in foreign trade 
  12. Dependence