It refers to the increase in the country's capacity to produce the output of goods and services within the country.

Economic growth

The correct answer is Option 1: Economic Growth.

Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a larger stock of productive capital, or a larger size of supporting services like transport and banking, or an increase in the efficiency of productive capital and services. A good indicator of economic growth, in the language of economics, is steady increase in the Gross Domestic Product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. You can think of the GDP as a cake and growth is increase in the size of the cake. If the cake is larger, more people can enjoy it. It is necessary to produce more goods and services if the people of India are to enjoy (in the words of the First Five Year Plan) a more rich and varied life.

The other options are not suitable.

1. Modernisation: Modernization refers to the process of adopting modern technologies, practices, and systems in various aspects of society, including economics, politics, culture, and social structure. It often involves transitioning from traditional or outdated methods to more efficient and contemporary approaches.

2. Equity: Equity in economics refers to fairness and justice in the distribution of resources, opportunities, and benefits within society. It emphasizes the importance of ensuring that everyone has access to essential goods, services, and opportunities, regardless of their background, income, or social status.

3. Self-reliance: Self-reliance is the ability of a nation or individual to fulfill its own needs and requirements without relying excessively on external assistance or imports. It involves developing and maintaining sufficient capabilities, resources, and infrastructure to support domestic production and meet essential needs independently. Self-reliance is often considered as a goal in economic policy-making to promote national autonomy and resilience.