Economic growth of a country is defined by an increase in its output which is measured by calculating the Gross Domestic Product (GDP). The economic development on the other hand is a broader concept .It reflects the social and technological progress of the economy and is an indicator of the quality of life led by the citizens of the economy. The two terms referred to above need not always go hand in hand. Economic development refers to improvements in indicators such as literacy rates, health conditions, and poverty rates. A quantitative measure of GDP does not take into account these factors and hence the debate. It is often believed that economic growth can only be a precursor to economic development and the latter cannot happen without the former. The logic is that higher levels of output can be redirected into higher spending on education, health and poverty alleviation which will eventually impact the productivity of the citizens leading to higher growth. A group of economists do argue that economic growth can be significant when countries act as resource providers to rich economies and no gain in wealth gets diverted to the parent economy thus causing a scenario of growth without development.