Explain the meaning of economic developments.

Economic development is a situation characterised by the shift of the economy from a lower income group of people to a higher income group of people, thereby, improving the standard of living of the citizens. It is a broader concept than economic growth as it contains more parameters in it. There are many methods to calculate the level of economic development. One such popular method is the Human Development Index or HDI which calculates it on the basis of life expectancy, birth rate, death rate, literacy ratio, sex ratio, etc.