DEVELOPMENT EXPERIENCES OF INDIA: A COMPARISON WITH

NEIGHBOURS
REGIONAL ECONOMIC GROUPS
❑All the economies are classified into developed and developing
nations

❑World economies are trying to adopt various means which will

strengthen their own domestic economy.

❑They themselves form regional and economic groupings such as

SAARC, European union ,ASEAN ,G-8,G-20,BRICS

❑Various economies trying to understand the developmental

processes pursued by their neighbouring countries as it
allows them to realise their own strengths and weaknesses
in comparison to their neighbours.
INDIA PAKISTAN CHINA 15TH

15TH AUG 1947 14TH AUG 1947 1ST OCT 1949

ASIA ASIA ASIA

MIXED MIXED MIXED

POP- 135 CR POP- 21CR POP – 139 CR

AREA- 3,287 MILLION KM 888,913 KM2 9,597 MILLION KM2

 Focus of this
lesson

We will be comparing the trends in various

economic and human development
indicators of India with its two principal
neighbours.
DEVELOPMENT PATH OF CHINA
 People’s Republic of China was established in
1949.
CHINA China went under one party rule- People’s
Republic of China
China adopted Socialism as its economic
HISTORICAL BACKGROUND
system.
• China is one of the oldest All important sectors, enterprises, lands were
civilization ,consisting of brought under Government control.
states and cultures dating
back more than six
millennia.
 GREAT LEAP FORWARD
IN 1958
Initiated the Great Leap
Forward (GLF)

The aim of this campaign was to transform

agrarian economy into a modern economy
through the process of rapid
industrialization.

MAO ZEDONG
 The Great Leap Forward (GLF)

• This campaign was started in 1958.

• It aimed at industrializing the country on a large scale.
• People were encouraged to set up industries in their backyards.
• In rural areas, communes were started.
• Under the Commune system, people collectively cultivated
lands.
• In 1958, there were 26,000 communes covering almost all the
farm population.
 • Problems faced by GLF campaign

•A severe drought (due to decline in food output) caused damages in China 30 million people
lost their lives.

• Conflicts started between Russia and China.

• In 1965, Mao introduced the Great Proletarian Cultural Revolution (1966–76) under which
students and professionals were sent to work and learn from the countryside.

• Russia withdrew its professionals who had earlier been sent to China to help in the
industrialization process.
Under this programme, people were encouraged to set up
industries in their backyards
COMMUNE SYSTEM
In rural areas ,communes were started. Under the commune system,
people collectively cultivated lands. In 1958 ,26000 communes were
there.
Reforms introduced in china (1978)

In the initial phase In the later phase

• Reforms were initiated in the
• Reforms were initiated in industrial sector.
agriculture, foreign trade
and investment. • Private sector firms and township
and village enterprises were allowed
• Commune lands were divided to produce goods.
into small plots which were
allocated to the individuals • At this stage ,enterprises owned by
.People can keep their income government (SOE) were made to
after paying taxes. face competition.
• Special Economic zones were
created.
DUAL PRICING IN THE FIXING PRICES IN TWO
REFORMS PROCESS. WAYS.

❑ Farmers and industrialists units were required to

buy and sell fixed quantities of inputs and outputs
on the basis of prices fixed by the government.

❑ For other transactions , the inputs and outputs

were purchased and sold at market prices.
DEVELOPMENT PATH OF PAKISTAN
PAKISTAN
HISTORICAL BACKGROUND
• Islamic Republic of Pakistan gained
independence on 14th aug 1947
• 1971 civil war in east Pakistan
resulted in the independence of
Bangladesh.
• Military rule and political instability.
 Public sector
ECONOMY

Mixed economic system

Co-existence of
public and Private sector
private sector.
 • PAKISTAN

• Pakistan follows mixed economy.

• Late 1950s and 1960s, Pakistan introduced regulated policy framework (for import
substitution-based industrialization).

• Tariff protection was introduced.

• Restrictions on imports like quota and licensing were introduced.

• Green Revolution resulted in increased agricultural output.

• In 1970’s capital goods industries were nationalized.

• In late 1970’s and 1980’s there was a major policy change. De-nationalization and
encouragement of private sector started.

• Pakistan received financial support from western countries.

• Remittances from Pakistanis working in middle east also helped in economic growth.

• In 1988, economic reforms were introduced.

 • Similarities in developmental strategies of India, Pakistan and China

• All the three countries started their journey towards development at the same time. India and Pakistan
got freedom in 1947. Communist Party came to power in China in 1949.

• All the three countries adopted Economic Planning to achieve development. India in 1951, China in
1953 and Pakistan in 1956.

• India and Pakistan adopted Mixed Economy. China adopted a Socialist system.

• Public sector is give greater role in the economies of all the three countries.

• Till 1980, all the three countries had similar economic growth rates and per-capita incomes.

• All the three adopted liberalization, privatization and globalization in order to achieve faster economic
development
COMPARATIVE ANALYSIS
• 1. DEMOGRAPHIC INDICATORS

• 2. GROWTH INDICATORS (GDP AND SECTORS)

• 3. HDI (HUMAN DEVELOPMENT INDEX) INDICATORS

DEMOGRAPHIC COMPARISON OF INDIA, PAKISTAN
AND CHINA
COUNTRY ESTIMATED ANNUAL DENSITY PER SEX RATIO FERTILITY URBANISATIO
POPULATION GROWTH OF SQ,KM 2015 RATE N
IN MILLIONS POPULATION 2015 2015
2015

INDIA 1311 1.2 441 929 2.3 33

CHINA 1371 0.5 146 941 1.6 56

PAKISTAN 188 2.1 245 947 3.7 39

 1. POPULATION

China is the most populous next is

India .
Every six person living in this world one is
an Indian and another Chinese.
The population is very small and accounts for
roughly about one-tenth of china or India.
 2. Growth rate of population

China’s annual population growth rate is

the lowest (0.5). This is due to one child
norm introduced in China in 1970s.

India’s population growth

rate is 1.2%

Pakistan is with 2.1%

One-child policy
Advantage :
❑ Reduced the population
growth rate.
❑ Provides a better health
service for women and has
reduced the risk of death and
injury associated with
pregnancy.

Disadvantage:
❑ After few decades there will be
more elderly people in
proportion to young people in
china
❑ China has to spend more on
social security scheme.
 3. Density of population
China is the largest country in the world by area and
growth rate of population is less. As a result density of
population is the lowest(146 persons per sq.km)

India (441 sq,km)

Pakistan (245 persons

sq,km)
 4. Sex ratio

➢ Due to preference of son, sex ratio is low and biased

against females in all the three countries.

➢ Sex ratio is the lowest in India with 929 females per 1000
males
➢ China 941 female per 1000 male

➢ Pakistan 947 female per 1000 male.

 5. Fertility rate

Fertility rate is calculated as the

number of children borne by a
woman in the reproductive age
(15-45) on an average

China fertility fallen from 3 births

per woman to 1.6 births
Pakistan 3.7 births per women
India comes second with
2.3 per woman
 6. URBANIZATION

Highest in china (56%)

India 33%

Pakistan
39%
 GROWTH INDICATORS
COUNTRY 1980-90 2011-15

INDIA 5.7 6.7

CHINA 10.3 7.9

PAKISTAN 6.3 4.0

 DURING 1980- 90 DURING 2011-15

o There was a drastic fall in china’s

o china was having double digit growth growth rate from 10.3% to 7.9%
of 10.3%

o Pakistan's growth rate was6.3% o Pakistan also met with a drastic

decline in growth rate from 6.3%
to4% .as per some scholars, reform
o India was at the bottom with just processes in 1988 and political
5.7% growth rate instability were the main reasons
behind this decline.

o India recorded an increase from

5.7% to 6.7%
 CONTRIBUTION IN GDP DISTRIBUTION OF
WORKFORCE
Sector India China Pakistan India China Pakistan

AGRICULT 17 9 25 50 28 43
URE

INDUSTRY 30 43 21 21 29 23

SERVICE 53 48 54 29 43 34

TOTAL 100 100 100 100 100 100`

 AGRICULTURE (PRIMARY SECTOR)

IN CHINA

4. Since then, government

1. Due to topographic and encouraged people to leave
climatic conditions, the area their fields and pursue other
suitable for cultivation is just activities ,such as
10% of its total land area. handicrafts, commerce and
2. The total cultivable area in china transport.
accounts for 40% of the cultivable
area in India .
5. As a result ,proportion of
workforce engaged in
3. Till 1980 , more than 80% of its agriculture reduced to 28%
population was dependent on in 2014-15 with contribution
farming as their sole source of to GDP at 9%
livelihood.
 IN INDIA IN PAKISTAN

The contribution of The contribution

agriculture to GDP was of agriculture to
17%. The proportion of GDP was same at
workforce engaged in 25% , but
agriculture was 50% proportion of
workforce
engaged in
agriculture was
43% as compared
to 50% of India.
 CHINA

China’s manufacturing
industries contribute to
43% to GDP.

China has shifted its

employment and output
from agriculture to
INDIA
Industry contributed 30% to the GDP with 23.8% of the workforce. industries.
Their contribution to GDP is higher than the output from agriculture
29% of china’s population
engaged in
PAKISTAN
,manufacturing
INDUSTRY CONTRIBUTED JUST MARGINALLY HIGHER THAN AGRICULTURE.
21% TO THE GDP BUT INVOLVED ONLY 3.7% OF THE WORKFORCE. sector(HIGHEST).
 Contribution to GDP
India and Pakistan are emerging
players in service sector with the GDP
contribution of 53% and 54%

IN CHINA the service sector contributes

to 32%.
Proportion of
workforce
Workforce engaged in tertiary sector are
17%,12%and 27% to 29% ,43% and 34%

In the 1980, Pakistan was faster in shifting

its workforce to service sector than India.
The contribution of agriculture sector with the largest
workforce had declined in all the countries.
In the industrial sector china maintained a double digit growth rate where as
India and Pakistan’s growth gone down

In case of service sector china was able to raise up its growth rate whereas
India and Pakistan remained stagnant in their growth rate.
HDI INDICATORS
Items India china Pakistan

Human development 0.624 0.736 0.550

index(value)

Rank (based on HDI) 131 91 146.3

Life expectancy at 68.3 76 66.5

birth(years)
Mean years of schooling (% 6.3 7.5 5.1
aged 15 and above)

People below poverty line 37% 32% 44%

(at $ 3.10 a day PPP) %
2011
Infant mortality rate 38 9 66

Maternal mortality rate 174 27 178

Population using 40 77 64
mproved
sanitation(%)

Population with 94 96 91
sustainable access to
mproved water source
(%)

Percentage of under 39 9 45
nourished children
GDP PER CAPITA 6092 14400 4866
China appraisal of development strategy(1978)
Pre reforms Post reforms
• Each reforms measure was implemented in
smaller level and extended to larger scale.
• Massive extension of basic
health services in rural areas. • Development in infrastructure(education,
health and land reforms)
• Through the commune
system there was equitable • Decentralised planning
distribution of food grains.
• Existence of Smallenterprises increased
• Due to collectivisation and social and income indicators.
great leap forward there was
no notable change in per • Agriculturalrevolution (handing over the
capita output. land to individuals improved the life of poor
people.
 Pakistan
Pre-reforms
Post reforms
• Agricultural growth and food • Pakistanhas recovered its
supply chain depend on good economic growth and has been
harvest and not on sustaining.
institutionalised process of
technical change . • Agriculture
,industry and service
• Foreign exchange earnings came sector shows a positive trends .
from the remittances of Pakistan
workers and not from export.
• Growing dependence of foreign
loans and increasing difficulty in
paying back the loans.
➢ India ➢ Pakistan ➢ China
➢ Majority of the people still ➢ Political instability, over- ➢ Lack of political freedom and
depend on agriculture. dependence on foreign human rights are major
remittances, poor performance concerns.
of agriculture – reasons for the
slow down of Pakistan
economy.
➢ Infrastructure is lacking in many ➢ Showing a positive trends in ➢ In recent years china used
parts of the country. GDP rate. market system without losing
political commitment and
succeeded in raising the level of
growth and poverty line.
➢ More than one –fourth of the ➢ Positive trends in growth ➢ Allowing individuals to cultivate
people living below poverty indicators shows Pakistan lands china has ensured social
line. economy is recovering. security in rural areas.

➢ Public intervention in providing

social infrastructure brought
positive results in human
development indicators in
china.