EconomIc growth
A term coming from the life sciences, ‘growth’ in economics means economic growth. An increase in economic variables over a period of time is economic growth. The term can be used in an individual case or in the case of an economy or for the whole world. The most important aspect of growth is its quantifiability, i.e., one can measure it in absolute terms. All the units of measurement may be applied, depending upon the economic variable, where growth is being studied. We have a few examples:
(i) An economy might have been able to see growth in food production during a decade which could be measured in tonnes.
(ii) The growth of road network in an economy might be measured for a decade or any period in miles or kilometres.
(iii) Similarly, the value of the total production of an economy might be measured in currency terms which means the economy is growing.
(iv) Per capita income for an economy might be measured in monetary terms over a period.

We may say that economic growth is a quantitative progress. To calculate the growth rate of an economic variable the difference between the concerned period is converted into percentage form. For example, if a dairy farm owner produced 100 litres of milk last month and 105 litres in the following month, his dairy has a growth rate of 5 per cent over a period of two months. Similarly, we may calculate the growth rate of an economy for any given successive periods. Growth rate is an annual concept which may be used otherwise
with the clear reference to the period for which it is used.

Though growth is a value neutral term, i.e., it might be positive or negative for an economy for a specific period, we generally use it in the positive sense. If economists say an economy is growing it means the economy is having a positive growth otherwise they use the term ‘negative growth’. Economic growth is a widely used term in economics which is useful in not only national level economic analyses and policymaking, but also highly useful in the study of comparative economics. International level financial and commercial institutions go for policymaking and future financial planning on the basis of the growth rate data available for the economies of the world.

EconomIc development
For a comparatively longer period of time after the birth of economics, economists remained focused on aspects of expanding the quantity of production and income of a country’s economy. The main issue economists discussed was—how to increase the quantity of production and income of a country or a nation-state. It was believed that once an economy is able to increase its production, its income will also increase and there will be an automatic betterment (quality increase) in the lives of the people of the economy. There was no conscious discussion over the issue of quality expansion in the lives of the people. Economic growth was considered as a cause and effect for the betterment of the lives of the people. This was the reason why economists, till the 1950s, failed to distinguish between growth and development, though they knew the difference between these terms.

It was during the 1960s and in the later decades that economists came across many countries where the growth was comparatively higher, but the quality of life was comparatively low. The time had come to define economic development differently from what the world meant by economic growth.
For economists, development indicates the quality of life in the economy, which might be seen in accordance with the availability of many variables such as:
(i) The level of nutrition
(ii) The expansion and reach of healthcare facilities—hospitals, medicines, safe drinking water, vaccination, sanitation, etc.
(iii) The level of education
(iv) Other variables on which the quality of life depends

Here, one basic thing must be kept in mind that if the masses are to be guaranteed with a basic minimum level of quality-enhancing inputs (above-given variables such as food, health, education, etc.) in their life, a minimum level of income has to be guaranteed for them. Income isgenerated from productive activities. It means that before assuring development we need to assure growth. Higher economic development requires higher economic growth. But it does not mean that a higher economic growth automaticallybrings in higher economic development—a confusion the early economists failed to clarify. We may cite an example here to understand the confusion: two families having same levels of income, but spending differing amounts of money on developmental aspects. One might be giving little attention to health, education and going for saving, and the other might not be saving but taking possible care of the issues of health and education. Here the latter necessarily will have higher development in comparison to the former. Thus, we may have some diverse cases of growth and development:
(i) Higher growth and higher development
(ii) Higher growth but lower development
(iii) Lower growth but higher development

Sectors of an Economy
Every economy tries to maximise the returns of economic activities in which it is involved. Whatever be the organising principles of an economy, the economic activities are broadly classified into three broad categories, which are known as the three sectors10 of the economy.
1. Primary Sector
This sector includes all those economic activities where there is the direct use of natural resources as agriculture, forestry, fishing, fuels, metals, minerals, etc. In some of the economies, mining activities are considered as part of the secondary sector, though we see direct use of natural resources here. Broadly, such economies term their agricultural sector as the primary sector. This is the case in India.

2. Secondary Sector
This sector is rightly called the manufacturing sector, which uses the produce of the primary sector as its raw materials. Since manufacturing is done by the industries, this sector is also called the industrial sector—examples are production of bread and biscuits, cakes, automobiles, textiles, etc.

3. Tertiary Sector
This sector includes all economic activities where different ‘services’ are produced such as education, banking, insurance, transportation, tourism, etc. This sector is also known as the services sector.

TYPES OF ECONOMIES
Depending upon the shares of the particular sectors in the total production of an economy and the ratio of the dependent population on them for their livelihood, economies are categorised as:
1. Agrarian Economy
An economy is called agrarian if its share of the primary sector is 50 per cent or more in the total output (the GDP) of the economy. At the time of Independence, India was such an economy. But now it shows the symptom of a service economy with the primary sector’s contribution falling to almost 18 per cent of its total produce, while almost 49 per cent of the population depends on the primary sector for their livelihood. Thus, in monetary terms India is no more an agrarian economy, however the dependency ratio makes it so—India being the first such example in the economic history of the world.

2. Industrial Economy
If the secondary sector contributes 50 per cent or more to the total produce value of an economy, it is an industrial economy. Higher the contribution, higher is the level of industrialisation. The western economies which went for early industrialisation earning faster income and developing early are known as developed economies. Most of these economies have crossed this phase once the process of industrialisation saturated.

3. Service Economy
An economy where 50 per cent or more of the produced value comes from the tertiary sector is known as the service economy. First lot of such economies in the world were the early industrialised economies. The tertiary sector provides livelihood to the largest number of people in such economies.

4) Quaternary activities:
The  quaternary sector of the economy consists of  intellectual activities often associated with  technological  innovation . It is sometimes called the  knowledge economy. There has been a very high growth in demand for and consumption of  information-based services  from mutual fund manager to tax consultants, software developers and statisticians.
Personnel  working in office buildings, elementary schools and university classrooms, hospitals and  doctors’ offices, theatres, accounting and brokerage firms all belong to this category of services.

5) Quinary activities:
This sector includes top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture and the media. It may also include police and fire departments, which are public services as opposed to for-profit enterprises. The  highest level of decision makers or  policy maker perform quinary activities. Economistssometimes also include domestic activities (duties performed in the home by a family member or dependent) in the quinary sector. These activities, such as childcare or housekeeping, are typically not measured by monetary amounts but contribute to the economy by providing services for free that would otherwise be paid for.The people engaged in Quinary activities are called Gold collar professionals.