Class 12 Economics Long Questions with Answers - Comparative Development Experiences of India and its Neighbours

Q.1. Give a brief account of developmental path of India, China and Pakistan.
Ans. India, Pakistan and China have followed almost similar path for development. All the three nations started towards their developmental path at the same time. India and Pakistan became independent nations in 1947 while People’s Republic of China was established in 1949. India announced its first Five Year Plan for 1951–56, Pakistan announced its first five year plan in 1956 and China announced its First Five Year Plan in 1953. India and Pakistan adopted similar strategies such as creating a large public sector and raising public expenditure on social development. China was the first among the three nations to adopt reforms in its agricultural and industrial sectors. All the three countries had similar growth rates and per capita incomes till the 1980s.

Q.2. Bring out the comparison between the economic growth of India, China and Pakistan.
Ans. The comparison between the economic growth of India, China and Pakistan is discussed below:
(i) National Income: The national income of China in 2013 was $8905.3 billion. The national income of India in the same year was $1960.1 billion and that of Pakistan was only $251 billion. Thus, in terms of national income, China’s position is much better than India and Pakistan. In this context, we can say that India’s position in comparison with Pakistan is much better.
(ii) Gross National Income in PPP (Purchasing Power Parity): GNI of China in PPP in the year 2013 was $16080.6 billion. The GNI of India in PPP in the same year was $6697.9 billion and that of Pakistan was only $ 897 billion. Thus, in terms of GNI in PPP also, China’s position is much better than India and Pakistan.
(iii) Per Capita Income: World Development Report, 2014 depicts that the per capita income of China is $6560 while that of India and Pakistan is $1560 and $1380 respectively. Although India and Pakistan are at par in terms of per capita income, China is far ahead of both of these countries.
(iv) Percentage Growth of GDP per Capita: During 2000–10, percentage growth of GDP per capita in China was about 10.3 per cent per annum. In India, it was about 7.4 per cent while that in Pakistan it is only 4.7 per cent. India is also targeting to achieve the growth rate of 9 per cent in the Twelfth Five Year Plan. China’s position in terms of growth rate is much better than India and Pakistan.

Q.3. Assess the performance of India, China and Pakistan over the last three decades.
Ans. The last three decades have taken India, China and Pakistan to different levels.
(i) India: India’s performance has been moderate with its democratic institutions. However, a majority of India’s population is still dependent on agriculture. Infrastructure lacks in many parts of the country. More than one-fourth of its population lives below the poverty line. The level of living is yet to be raised.
(ii) Pakistan: The Pakistan economy has slowed down due to political instability, over-dependence on remittances and foreign aid along with volatile performance of agriculture sector. The devastating earthquake of 2005 resulted in enormous loss to life and property. Recovering from this calamity was a great challenge for Pakistan. However, it is making efforts to improve the situation by maintaining high rates of GDP growth.
(iii) China: China has been successful in raising the level of growth along with alleviation of poverty. China has used the market system to create additional social and economic opportunities for its people. However, lack of political freedom and its implications for human rights are still major concerns in China.