Economic growth refers to an increase in the amount of goods and services produced in a country over a specific period of time. It has a quantitative dimension.

The important indicators used to measure the Economic Growth are as follows:

i. Increase in Gross Domestic Product (GDP):

• GDP is the monetary value of all the finished goods and services produced within a country’s borders, during a period of one year.
• Increase in Gross Domestic Product (GDP) is the main indicator of economic growth. 
• Economists define economic growth in terms of National Income aggregates. According to them, economic growth is a   process whereby, an economy’s GDP increases over a long period of time. 
• It means, economic growth implies increased output of goods  and services. Also, it is necessary to ensure that the increase in GDP must be steady over a long period of time.

ii. Increase in Per Capita Income (PCI):  

• Per Capita Income (PCI) refers to the annual average income of a person.
• An increase in PCI indicates an increase in the economic growth of an economy.
• It can be calculated as:

PCI = \(\cfrac{National\,Income}{Totel\,Population}\)

• A rise in PCI is possible when the growth of national income is more than the growth of population.
• As per the Economic Survey of 2010‐11, the PCI (in India) was Rs 40,745 in 2009‐10.

iii. Increase in Per Capita Consumption (PCC):

• Per Capita Consumption (PCC) basically indicates the extent of material well‐being and the standard of living of the people in an economy.
• Consumers intend to increase their standard of living by increasing their spending viz. by consuming more goods and services. Hence, an increase in PCC is considered as an indicator of economic growth.  
• PCC in simple terms refers to the quantum of money spent by an individual in a year on consumption of goods and services.
• Increased standard of living and welfare of the people in an economy depends upon the higher Per Capita Consumption (PCC).
• It can be calculated as:

PCC = \(\cfrac{Totel\, Private\, Consumption\, Expenditure}{Total\, Population}\)

• As per the Economic Survey of 2010‐11, the PCC of India was Rs 23,626 in 2009‐10.