i) India first undertook the policy of closed trade. This was to give a thrust to domestic industries and reduce dependence on foreign products and companies.
ii) Trade and interaction with the outside world remained limited.
iii) In 1991 India began to follow the policy of free trade and liberalization and allowed foreign companies to enter the Indian economy.
iv) Under Five year plans a thrust was given to employment generation. This was to give the rising population job opportunities.
v) Rural development was also given importance.
vi) Poverty alleviation came as a result of rural development and a part of the development path of India.
vii) The public sector was given significant importance.
viii) Private companies and industries were subject to strict regulations and standards.
ix) It was believed that the government was the sole protector of the people and would work towards social welfare.
x) For the two decades there has been a rise in the GDP and per capita income.
xi) India had attained the status of middle income country category
xii) The life expectancy at birth is 65 years. India has followed a different path of development from many other countries.

S. No	Comparison between Economic Growth and Economic Development	Economic Growth	Economic Development
i)	Definition / Meaning	It is the positive quantitative change in the output of an economy in a particular time period.	It considers the rise in the output in an economy along with the advancement of HDI index which considers a rise in living standards, advancement in technology and overall happiness index of a nation.
ii)	Concept	Economic growth is the 'Narrower' concept	Economic development is the 'Broader' concept
iii)	Nature of Approach	Quantitative in nature	Quantitative in nature
iv)	Scope	Rise in parameters like GDP, GNP, FDI, FII etc.	Rise in life expectancy rate, infant, improvement in literacy rate, infant mortality rate and poverty rate, etc.
v)	Term / Tenure	Short term in nature	Long term in nature
vi)	Applicability	Developed nation	Developing economics
vii)	Measurement Techniques	Increase in National Income	Increase in real National Income(i.e.) Per capita Income
viii)	Frequency of occurrence	In a certain period of time	Continuous process.
ix)	Government Aid	It is an automatic process so may not require government support /aid or intervention	Highly dependent on government intervention as it includes widespread policies changes so without government intervention it is not possible

a. Primary sector:
i) Agricultural operations are undertaken.
ii) Allied activities of production of raw materials are concentrated
iii) Examples: Agriculture, cattle farm, fishing, mining, forestry, corn, coal
b. Secondary sector:
i) It is an industrial sector
ii) Commodities are produced by transforming the raw materials.
iii) Examples: Iron and steel industry, cotton textile, jute, sugar, cement, paper, petrochemical, automobile and small scale industries.
c. Tertiary sector:
i) It is known as service sector,
ii) Examples: Service of Government, Scientific research, Transport, communication, trade, postal and telegraph, banking, education, entertainment, healthcare and information technology.

Synopsis:
a) Expenditure Approach
b) The income Approach period.
c) Value added Approach
a. Expenditure Approach:
In this method GDP is measured by adding the expenditure on all the final goods and services produced in the country during a specific period.
Y= C + I + G + (X - M)
b. The income Approach:
In this method GDP is calculated from the perspective of the earnings of the men and women who are involved in producing goods and services.
Y = wages + rent + interest + profit
c. Value added Approach:-
In this method GDP is calculated by including the values of intermediate goods to estimate the value of final goods.

a) National Income:-
National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year. It is also called as National Dividend.
b) Gross National Product (GNP) :
Gross National Product is the total value of goods and services produced and income received in a year by domestic residents of a country. It includes profits earned from capital invested abroad.
GNP =C+I+G+(X-M) + NFIA
C = Consumption
G = Government Expenditure
NFIA = Net Factor Income from Abroad
I = Investment
X-M = Export-Import
c) Gross Domestic Product (GDP) :
Gross Domestic Product (GDP) is the total value of output of goods and services produced by the factors of production within the geographical boundaries of the country.
d) Net National Product (NNP) :
Net National Product (NNP) is arrived by making some adjustment with regard to depreciation we arrive the Net National Product (NNP) by deducting the value of depreciation from Gross National Product (NNP = GNP -Depreciation)
e) Net Domestic Product (NDP) :
Net Domestic Product (NDP) is a part of Gross Domestic Product, Net Domestic Product is obtained from the Gross Domestic Product by deducting the quantum of tear and wear expenses (depreciation)
NDP = GDP - Depreciation
f) Per Capita Income (PCI) :
Per capita Income or output per person is an indicator to show the living standard of people in a country. It is obtained by dividing the National Income by the population of a country.
Per capita Income = National Income / Population
g) Personal Income (PI) :
Personal income is the total money income received by individuals and households of a country from all possible sources before direct taxes.
h) Disposable Income (DI) :
Disposable income means actual income which can be spent on consumption by individuals and families, thus, it can be expressed as DPI = PI -Direct Taxes
(From consumption approach DI = Consumption Expenditures + Savings )