Q.1. Give a brief account of developmental path of India, China and Pakistan.
Ans. India, Pakistan and China embarked on planned development at roughly the same historical moment. India and Pakistan became independent in 1947, while the People's Republic of China was founded in 1949. India launched its first Five Year Plan in 1951-56, China in 1953 and Pakistan in 1956. During the early decades all three countries relied heavily on state-led strategies: emphasis was placed on a substantial public sector, public investment and higher public expenditure on social services. China, however, was the first among the three to introduce significant reforms in agriculture and industry, moving gradually towards more market-oriented policies and opening up to external trade and investment. Up to the 1980s, their growth rates and per capita incomes showed many similarities; thereafter their paths diverged as China accelerated its structural reforms and economic modernisation.
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 $8,905.3 billion. The national income of India in the same year was $1,960.1 billion and that of Pakistan was $251 billion. Thus, in absolute terms China's national income was far larger than India's and Pakistan's, while India's aggregate size was considerably bigger than Pakistan's.
(ii) Gross National Income in PPP (Purchasing Power Parity): GNI (PPP) of China in 2013 was $16,080.6 billion. The GNI (PPP) of India in the same year was $6,697.9 billion and that of Pakistan was $897 billion. In PPP terms also China's economy was much larger, indicating higher domestic purchasing power on average.
(iii) Per Capita Income: According to the World Development Report, 2014, the per capita income was $6,560 for China, $1,560 for India and $1,380 for Pakistan. China was clearly ahead on average income per person, while India and Pakistan were closer to each other at much lower levels.
(iv) Percentage Growth of GDP per Capita: During 2000-10, the percentage growth of GDP per capita was about 10.3 per cent per annum in China, about 7.4 per cent in India and about 4.7 per cent in Pakistan. These growth differentials help explain why China pulled ahead in both aggregate and per capita terms. India's Twelfth Five Year Plan set an ambitious target of around 9 per cent growth, reflecting policy aims to raise the growth trajectory.
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 of development:
(i) India: India has recorded moderate but uneven performance while preserving democratic institutions. A large proportion of the population continues to depend on agriculture. Major gaps remain in infrastructure across regions, and more than one-fourth of the population continues to live below the poverty line. Although living standards have improved for many, substantial progress is still required to raise incomes and expand social services uniformly.
(ii) Pakistan: Pakistan's economic performance has been constrained by political instability, a dependence on remittances and foreign assistance, and variable agricultural output. The earthquake of 2005 caused severe loss of life and property and posed a major setback to development; recovery required significant resources and posed long-term challenges. Pakistan has made efforts to sustain higher GDP growth, but structural vulnerabilities remain.
(iii) China: China has achieved rapid growth and large-scale poverty reduction over the past three decades. By combining market mechanisms with strong state direction, China expanded manufacturing and exports, raised incomes and created widespread economic opportunities. Nevertheless, concerns persist regarding limited political freedoms and human rights. Overall, China's economic transformation has been the most pronounced among the three countries.
