This document compares the economic development experiences of India, Pakistan, and China. It notes that all three countries adopted economic planning after gaining independence around the same time in the mid-20th century. While India and Pakistan pursued mixed economies, China adopted socialism. Reforms in China in 1978 focused on agriculture, private industry, and foreign investment, fueling rapid growth. However, political and human rights issues remain problems in China. Overall economic performance has been moderate in India and poor in Pakistan due to factors like political instability and infrastructure issues.

1. DEVELOPMENT EXPERIENCES OF INDIA: A COMPARISON
WITH NEIGHBOURS
KRISHNAKUMAR C S
PGT ECONOMICS
DAV-BHEL SCHOOL, RANIPET

2. REGIONAL ECONOMIC GROUPS

3. • Economic and regional groups like SAARC,
European Union, ASEAN, G – 8, G – 20, BRICS
have been formed to promote international trade.
• They promote economic co-operation among
member countries.
• They are also aimed at strengthening the economies
of member countries.

4. Steps taken by Nations for their economic
progress
• Formation of Economic and Regional Groups like
SAARC, European Union, ASEAN, G – 8, G – 20,
BRICS etc.
• Promote international co-operation.
• Promote foreign trade.
• Analyse the development strategy of neighbours.
• Evaluate their own strengths and weakness and
decide policies.
• Liberalisation
• Globalisation

5. • 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.

6. • 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 liberalisation, privatisation
and globalisation in order to achieve faster
economic development

7. PEOPLE’S REPUBLIC OF CHINA

8. CHINA
• People’s Republic of China was established in 1949.
• China went under one party rule.
• China adopted Socialism as its economic system.
• All important sectors, enterprises, lands were
brought under Government control.

9. GREAT LEAP FORWARD

10. The Great Leap Forward (GLF)
• This campaign was started in 1958.
• It aimed at industrialising 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.

11. • Problems faced by GLF campaign
• A severe drought caused damages in China 30
million people lost their lives.
• Conflicts started between Russia and China.
• Russsia withdrew its professionals who had earlier
been sent to China to help in the industrialisation
process.
• 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.

12. ECONOMIC REFORMS IN CHINA

13. • Economic Reforms
• In 1978, China introduced Economic Reforms.
• Reforms resulted in rapid industrial and economic
development.
• Economic reforms were introduced in phases.
• In the first phase, reforms were introduced in
agriculture, foreign trade and investment
sectors.
• In the later phase, reforms were introduced in
the industrial sector.

14. • Reforms in Agriculture in China
• Commune lands were divided into small plots.
These lands were given to individual families to
cultivate.
• Farmers were allowed to keep all income from
the land after paying taxes.

15. Reforms in Industrial Sector
• Private sector was allowed to produce industrial
goods.
• Villages enterprises owned by local collectives were
promoted.
• State owned enterprises were made to compete
with private firms.
• Dual pricing was introduced. 50% of agricultural and
industrial goods had to be bought and sold at the
Government fixed prices. Remaining could be
bought and sold at the market fixed prices.
• Special Economic Zones were set up to attract
foreign investment.

16. PAKISTAN

17. • PAKISTAN
• Pakistan follows mixed economy.
• Late 1950s and 1960s, Pakistan introduced
regulated policy framework (for import
substitution-based industrialisation).
• 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 nationalised.

18. • In late 1970’s and 1980’s there was a major policy
change. De-nationalisation 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.

19. DEMOGRAPHIC COMPARISON OF INDIA,
PAKISTAN AND CHINA

20. COMPARISON OF DEMOGRAPHIC SITUATION
• Out of every six persons living in this world, one
is an Indian and another a Chinese.
• The population of Pakistan is very small and
accounts for roughly about one-tenth of China
or India.

22. • One child norm introduced in China in the late
1970s is the major reason for low population
growth.
• One child norm led to a decline in the sex ratio.
• One child norm and the fall in the growth of
population have other implications.
• For instance, after a few decades, in China,
there will be more elderly people in proportion
to young people.
• This led China to allow couples to have two
children.

23. COMPARISON OF GDP AND CONTRIBUTION OF
EACH SECTOR TO GDP

24. • GROSS DOMESTIC PRODUCT AND
SECTORS
• China has the second largest GDP (PPP) of $22.5
trillion in the world.
• India’s GDP (PPP) is $9.03 trillion.
• Pakistan’s GDP is $ 0.94 trillion, roughly about 11
per cent of India’s GDP.
• India’s GDP is about 41 per cent of China’s GDP.

26. • Reform processes introduced in Pakistan and
political instability over a long period are the
reasons behind the declining growth rate in
Pakistan.

28. • Area suitable agriculture in China is just 10% of its
total land.
• China’s agricultural land is just 40% of India’s
agricultural area.
• Till 1980, nealy 80% of China’s population was
engaged in agriculture.
• The Government encouraged farmers to shift to
other occupations like handicrafts, trade and
transport.
• 2018 – 19 only 27% of its population was in
agriculture.

30. • In all the three countries the service sector is
emerging as a major player of development. It
contributes more to GVA and, at the same time,
emerges as a prospective employer

32. COMPARISON OF HUMAN DEVELOPMENT

34. Factors that are not included while calculating
HDI
• ‘People’s participation in social and political
decision-making’
• ‘Liberty indicators’ like Constitutional protection
given to rights of citizens’ or Independence of the
Judiciary and the Rule of Law’ have not even been
introduce.
• In the above factors India stands ahead of her

35. Why did China introduce structural reforms in
1978?
• Slow economic growth
• Lack of modernisation
• Maoist vision of economic development based
on decentralisation, self sufficiency and
rejection of foreign technology, goods and
capital had failed.
• Despite extensive land reforms, collectivisation,
the Great Leap Forward and other initiatives,
the per capita grain output in 1978 was the
same as it was in the mid-1950s.

36. Reforms benefited China in the following ways:
• Development of educational and health infrastructure,
land reforms, decentralised planning and the
development of small enterprises resulted in rapid
economic growth.
• Reforms were introduced in smaller level and then
extended on a massive scale.
• Distribution of commune lands to individual families
helped in the economic condition of farmers.
• These policies also led to the growth of rural industries.

37. Pakistan and Economic Reforms
• Growth rate of GDP and the contribution of all the
three sectors to GDP decreased in Pakistan after the
Economic Reforms were introduced.
• Poverty also started increasing in Pakistan in the
recent period.
• Increase in agricultural output was due to good
harvest not because of technological and
institutional changes. Food scarcity emerged during
the periods of bad harvest.
• Pakistan has taken huge amounts as loans from IMF
and World Bank. Repayment of loans is a heavy
burden on the economy.

38. • Recent developments in Pakistan
• In the last few years, Pakistan started making
progress.
• GDP growth rate increased to 5.5% in 2017 - 18
• Industrial sector grew at the rate of 4.9.
• Service sector grew at the rate of 6.2 %.

40. • INDIA
• India’s performance in economic development has
been moderate.
• Lack of sufficient infrastructure has been a factor
that prevents India’s growth.
• One-fourth of the population is still living under
poverty line.
• India guarantees democratic rights and freedoms to
her citizens.

41. • PAKISTAN
• Following factors are responsible for poor
performance of Pakistan:
• Political Instability
• Over dependence on foreign aid and remittances
from abroad.
• Poor condition of agriculture.
• However, in the recent years, Pakistan has shown
better growth rate.

42. CHINA
• In China lack of political freedom and violation of
human rights are serious issues.
• Economic reforms helped them to achieve rapid
economic growth rate.
• Reforms under a committed Government also
resulted in the reduction of poverty.
• They maintained collective ownership of land and at
the same time allowed individual families to
cultivate.
• Government introduced several social security
measures to improve the living standard of the
people.