Factors affecting economic growth and economic development 

(1):-Natural resources (land, soil, minerals) are one of the main factors affecting the development of any economy. Abundance and quality of natural resources is essential for economic development.

(2):-Capital formation is a process by which the savings of a community are used for investment in capital goods, such as plants, land, machines, which increase the production capacity of the country and the efficiency of workers. Often, when a large part of the national income is saved and reinvested, the pace of economic development accelerates.

(3):-The rate of industrialization should also be high for rapid economic growth. As the level of industrialization in a country increases, new employment opportunities will be created and production will continue to increase in the same proportion.

(4):- The role of the service sector in the economy is important.Presently the service sector is contributing about 50 percent of India's GDP. New employment opportunities are created in the service sector and due to this, there is a continuous increase in GDP.

(5):- Technological advancement is a very important factor in influencing economic growth.With the use of good technology, it becomes possible to produce more with the help of given resources to produce enough with less quantity of resources.

(6):- The rate of economic growth also depends on the nature of the economy.Today the private sector plays an important role in the capitalist economy.The availability of resources in the economy increases with the help of private sector and foreign investment. This results in an increase in the rate of capital formation and investment.

(7):-Political stability and strong governance are essential and help full in economic growth. This increases the confidence of investors and attracts domestic and foreign capital.

(8):-Population is an important factor in economic development.Labor is available for production work from human beings. If the labor force in a country is efficient, then its production capacity will definitely be high.