• The concept of economic development is a wider concept than economic growth. 
• It implies economic growth along with progressive changes in certain areas which determine the well being of the people. Thus, it has a qualitative dimension rather than a quantitative one.
• There are two main approaches to the concept of Economic Development viz. Traditional approach and Modern approach.  

Traditional Approach:

• Traditional approach is one of the main approaches to the concept of economic development.
• According to this approach, economic development implies sustained annual increase in Gross Domestic Product (GDP) at 5% to 7% or more along with changes in the structure of employment and production.
• It indicates a fall in the share of primary sector and an increase in the share of manufacturing as well as tertiary sector
• However, under such an approach, the objectives relating to eradication of poverty, reduction of inequalities and unemployment failed to receive the required importance.

Modern Approach:

Modern economists such as Charles P. Kindleberger and Bruce Herrick have given the concept of economic development. 

According to their approach, economic development is generally defined to include the following:

• Improvement in the standard of living of people or material welfare, especially for low income groups.
• Reduction of unemployment, infant mortality rate etc.  
• Eradication of mass poverty, illiteracy, disease etc.
• Changes in the share of various sectors in National Income i.e. dominance of industry rather than agriculture.
• Functioning of economy for welfare of the people.

Definitions of Economic Development

• In the words of Meier and Baldwin, “Economic development is a process whereby an economy’s real national income increases over a long period of time”.
• According to Michael Todoro, “Development must be conceived of as a multi‐dimensional process involving changes in structure, attitudes, institutions as well as the acceleration of economic growth, the reduction of inequality and eradication of absolute poverty”.
• According to Milton Friedman, “Economic development is an innovative process that leads to the structural transformation of social system”.