Economic development is a planned growth. It implies economic growth along with progressive changes in certain areas which determine the material well being of the people. Thus, it has a qualitative dimension rather than a quantitative one.

The features of Economic Development are as follows:

i. Sectoral Transformation:

• Economic development occurs due to shift of population from primary sector to the secondary and finally to service sector.
• Such a change indicates development of skills, discipline and modernity etc.

ii. Long Term Process:  

• Economic development implies that the increase in real national income should be sustained over a period of time. Thus, it is a long term process.

iii. Increase in Real National Income:

• Economic development considers an increase in the ‘real national income’ rather than increase in ‘nominal (monetary) national income’. 
• Here, the real national income refers to the total output of goods and services, whereas, nominal national income refers to real national income multiplied by the Price Level.

iv. Qualitative Concept:

• Economic development can be explained in qualitative terms such as changes in wants, goods, institutions etc.
• It possesses a qualitative dimension.

v. Role of Economic and Non‐economic Factors: 

• Both, economic as well as non‐economic factors play an important role in the development of the country
• Economic factors include foreign trade, supply of capital, sound infrastructure, talented entrepreneurs etc.; whereas, non‐economic factors include political freedom, stable government, efficient social structure and outlook of people etc.

vi. Structural Transformation:

• Economic development helps in changing the structure of the economy from agrarian to industrial economy and further into a large service sector. 
• Due to this, the share of agriculture declines and that of industrial and service sector increases in Gross Domestic Product (GDP).  
• In other words, higher the share of service sector in GDP, higher is the economic development of the nation.

vii. Public Participation:

• Economic development is possible only when citizens of the country participate and   co‐operate with each other in the process of development.