Following indicators are used to measure economic growth.
- Increase in Gross Domestic Product (GDP)
- Increase in Per Capita Income (PCI)
- Increase in Per Capita Consumption (PCC)
1. Increase in Gross Domestic Product (GDP): Some economists have defined economic growth in terms of national income aggregates. They defined economic growth as a process whereby, an economy’s Gross Domestic Product increases over a long period of time. It means economic growth implies increased output of goods and services. Here it is necessary to mention that the increase in GDP must be steady and long term.
2. Increase in Per Capita Income (PCI): Some economists believe that economic growth can be measured in terms of per capita Income. An increase in PCI indicated an increase in economic growth. The PCI is obtained by dividing the national income of the country by its total population. A rise in Per Capita income is possible when the growth of national income is more than the growth of population. According to Economic survey of 2010 - 11, the PCI is Rs. 40,745 in 2009 - 10.
3. Increase in Per Capita Consumption (PCC) : The main objective of every economy is to increase the standard of living and welfare of the people. This, in turn, depends upon a higher per capita consumption. Per capita consumption of a country is obtained by dividing the total private consumption expenditure by total population. According to Economic Survey of 2010 - 11, PCC of India is Rs. 23626 in 2009 - 10.