Comparative Development Experiences of India Class 11 Notes CBSE Economics Chapter 8 (Free PDF Download)

Development Path of India, Pakistan and China 

• All three countries began their development journeys at the same time. India and Pakistan gained independence in 1947, and China established the People's Republic of China in 1949.

• All three countries had begun to plan their development strategies in a similar manner. India unveiled its first Five Year Plan in 1951, Pakistan in 1956, and China in 1953.

• India and Pakistan pursued similar strategies, such as establishing a large public sector and increasing government spending on social development.

• While India and Pakistan followed the ‘mixed economy' model, China followed the ‘command economy' model of economic growth.

• Prior to the 1980s, all three countries had comparable growth rates and per capita incomes.

• China implemented economic reforms in 1978, Pakistan in 1988, and India in 1991.

Development Strategies of India

1. A Sound Trade System: India was a country with a history of closed trade. Because of this historical context, India faces a critical challenge in developing a new policy that can support the new trade system. This new trade reform has been implemented in the Indian economy and has accelerated India's growth.

2. Poverty Reduction: To reduce poverty in India, several poverty alleviation programs have been implemented. This would aid in increasing per capita income, improving nutrition, and reducing poverty in some states.

3. Rural Development: As a part of this strategy, India implemented a variety of measures to develop areas that are lagging behind in the overall development of the village economy.

4. Employment Generation: Several economic reforms have been initiated in order to generate employment in the country, with the goal of providing gainful self-employment and skilled wage employment opportunities.

Development Strategies of China 

1. Giant Leap Forward: Launched in 1958, this campaign aimed at massively industrializing the country. People were encouraged to establish large-scale industries in their own backyards.

2. Great Proletarian Cultural Revolution (1966-1976): In 1965, Mao Se Tung launched a large-scale cultural revolution. During the revolution, students and professionals were sent to the countryside to work and learn.

3. 1978 Reforms: Beginning in 1978, China began to implement many reforms in stages. These reforms have been implemented in the agricultural, foreign trade, and investment sectors. The goal of Chinese economic reforms was to generate enough surplus to finance the modernization of the Chinese economy on the mainland.

Development Strategies of Pakistan 

1. Mixed Economy: Pakistan has a mixed economy in which the public and private sectors coexist.

2. Import Substitution: In the late 1950s and early 1960s, Pakistan established a regulatory framework for import industrialization. The policy combined tariff protection for consumer goods manufacturing with direct import controls on competing imports.

3. Green Revolution: This was implemented to increase food productivity and self-sufficiency, and increased food grain output. This had a significant impact on the agrarian system.

Economic Development Strategy after Independence 

• Business activities were assigned to both the public and private sectors. Coal, mining, steel, power, roads, and other activities were assigned to the public sector. The private sector was given the authority to establish industries that would be subject to legal control and regulations.

• The government gave a big push to the public sector. The highest revenue was invested in this sector, which increased from Rs. 81.1 crore in the First Five-Year Plan (1951-56) to Rs 34,206 crores in the Ninth Five-Year Plan (1992-97).

• The public sector was prioritized in order to eliminate poverty, unemployment, and other social ills. 

• The public sector aided in the industrialization of the economy. It also aided the Indian economy in achieving a high level of self-sufficiency.

Comparative Study – India, Pakistan and China: 

1. Pakistan's population is very small, accounting for roughly one-tenth of that of China and India.

2. Despite being the largest country geographically, China has the lowest population density of the three.

3. Pakistan has the fastest population growth, followed by India and China. The one-child policy, which was implemented in China in the late 1970s, is the primary cause of low population growth. However, this measure resulted in a decrease in the sex ratio, or the proportion of females per 1000 males.

4. In all three countries, the sex ratio is low and biased against females. In all of these countries, there is a strong preference for sons.

5. The fertility rate in China is low, but it is very high in Pakistan.

6. Both China and Pakistan have high levels of urbanisation, with India having 28 percent of its population living in cities.

Gross Domestic Product (GDP) and Sectors 

1. China had the world's second largest GDP (PPP) of 10.1 trillion in 2013, followed by India's GDP (PPP) of 1.86 trillion and Pakistan's GDP (PPP) of 0.47 trillion.

2. On this path of development, China's average growth rate is approximately 9.5 percent, while India's and Pakistan's average growth rates are approximately 5.8 percent and 4.1 percent, respectively.

3. In China in 2011, agriculture employed 37 percent of the workforce and contributed 9 percent to GDP (approximately). In India and Pakistan, the agricultural sector accounts for approximately 19% and 21% of GDP, respectively. In India, approximately 56% of people work in agriculture, whereas in Pakistan, approximately 45% work in agriculture.

4. In China, manufacturing accounts for 47 percent of GDP, whereas in India and Pakistan, the service sector accounts for the majority of GDP (more than 50 percent of GDP).

5. Unlike China, which followed the traditional development pattern of shifting from agriculture to manufacturing and then to services, India and Pakistan have moved directly from agriculture to the service sector.

6. In the 1980s, the service sector employed 17, 12, and 27 percent of the workforce in India, China, and Pakistan, respectively. In 2011, it was 25 percent, 33 percent, and 35 percent, respectively (approximately).

7. The manufacturing sector is primarily responsible for China's growth, whereas the service sector is emerging as a major player in development in both India and Pakistan.

Human Development Indicators 

1. China has outperformed India and Pakistan in most areas of human development. This is true for many indicators, including per capita GDP and the proportion of the population living in poverty, as well as health indicators such as mortality rates, access to sanitation, literacy, life expectancy, and malnourishment.

2. Pakistan is ahead of India in terms of reducing the proportion of people living in poverty, as well as its performance in shifting labor from the agricultural to the industrial sectors and access to water.

3. In contrast, India outperforms Pakistan in the education and health-care sectors.

4. India and Pakistan are ahead of China in terms of improved water sources. 

Conclusion 

• India performed moderately, as is clear from:

a. Agriculture continues to be the primary source of income for the vast majority of its people.

b. Infrastructural facilities are insufficient in many parts of the country.

c. It has yet to improve the standard of living for more than 22 percent of its population, which is below the poverty line.

• Pakistan has had a poor performance. 

The reasons for Pakistan's economy slowing growth and reemergence of poverty are as follows: 

a. Political insecurity.

b. The agricultural sector's volatile performance.

c. Excessive reliance on remittances.

d. Increasing reliance on foreign loans on the one hand, and increasing difficulty in repaying the loans on the other.

• China has performed comparatively the best, as is clear from:

a. Achievement in raising the level of growth while also alleviating poverty.

b. It used the market mechanism to generate additional social and economic opportunities without committing to any political action.

c. By retaining collective land ownership and allowing individuals to cultivate land, China has ensured rural social security.

d. In China, public intervention in the provision of social infrastructure has resulted in positive results in human development indicators.

Indian Economic Development Class 11 Notes PDF

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Revision Notes of Comparative Development Experiences of India and its Neighbours

The crucial notes cover everything in this chapter in great detail.

After the end of the Cold World War, all countries worldwide started to adopt means to achieve economic development. India, China, and Pakistan also started to incorporate similar economic development strategies during this time.

Development Strategy

China

China got all its critical sectors under the control of the government. Various reforms were introduced in different phases. This also included dual pricing. China also set up special economic zones to attract foreign investors.

Pakistan

Pakistan had a mixed economy stricture where the public and the private sectors co-existed. The country introduced a protecting tariff for the manufacturing of consumer goods. The country also promoted the Green revolution. Pakistan received a lot of financial support from the western countries, which helped the country to establish economic growth.

India

India adopted a mixed economy as its economic development strategy. The public and the private sector ran simultaneously in the country. The country also introduced a planned, developed economy to achieve rapid growth.

The Performance of India was Moderate

India had a major performance in the years after the economic strategy was adopted. The majority today are still into agriculture. The country also sees a lack of infrastructure development. Around 22% of the people still live under the poverty line. This means that the country still has many catch-ups to do to increase the standard of living of its people.

Pakistan is a Poor Performer

Pakistan did not perform as per expectations. The reason for the slow growth of this country is because of its political instability. The agricultural sector had a volatile performance, and there was an over-dependent of the country on remittances. The country is heavily dependent on foreign loans, and on the other hand, it is mostly incapable of paying off those loans.

China is a Clear Winner

China has stood the best in terms of economic performance. The country has been able to raise its growth level and has been able to alleviate poverty to a good extent. It has used the mechanism of the market to create many social and economic opportunities. This was possible even without any kind of political commitment. The country showed the concept of collective ownership of land and allowed the individuals to cultivate the land. China was also able to ensure the social security of its people living in rural areas. The public intervention to provide better social infrastructure also brought many positive results to the country and helped in its human development.