Explain the concept of Economic Growth – Indian Economy UPSC Notes

Economic Growth: Definition and Meaning UPSC  Economic growth refers to an increase in the production of goods and services in a country over time. It is often measured by the rise in a country's Gross Domestic Product (GDP), which reflects the total monetary value of all final goods and services produced within a nation during a specific period. Higher economic growth usually indicates better living standards, increased employment, and improved infrastructure. Why is GDP Used to Measure Economic Growth? GDP is a widely used indicator because: Comprehensive Measure : It captures the overall economic activity in monetary terms. Ease of Comparison : It allows comparisons across countries and over time. Policy Tool : Governments and policymakers use GDP growth to design and implement policies. However, relying solely on GDP as a measure of growth has several limitations and challenges that hinder a holistic understanding of economic progress. Multiple Challenges of Measuring Growth through GDP I…