Correct Option (c)
Economic growth, represented by an increase in absolute and per capita real Gross National Product (GNP), is a quantitative measure. Economic development, however, is a broader, qualitative concept that encompasses not only economic growth but also improvements in the overall well-being of the population. If a rise in GNP is accompanied by an increase in poverty and unemployment, it indicates that the benefits of growth are not widely distributed or inclusive. Such a scenario suggests a failure to achieve fundamental development goals like poverty reduction, job creation, and improved living standards, thereby negating the idea of higher economic development despite growth in national income.
Incorrect Options:
Options (a) and (b): Sectoral imbalances, such as industrial output failing to keep pace with agricultural output or vice versa, can indicate structural issues in an economy and may hinder balanced growth. However, these imbalances do not inherently negate economic development if other indicators like poverty reduction, employment generation, and human development are progressing. While a concern for sustainable growth, they are not direct measures of the overall development status in the same way as poverty and unemployment.
Option (d): If imports grow faster than exports, it leads to a trade deficit, which can affect a nation's balance of payments and macroeconomic stability. While a persistent trade deficit can pose challenges to long-term economic sustainability, it does not automatically imply a lack of economic development. A country might be importing capital goods for industrialization or essential consumer goods, which could contribute to development in other ways, provided that domestic welfare and human development indicators are improving.