NCERT Solutions Class 12th Economics (India Economic Development) Chapter – 10 Comparative Development Experience of India and its Neighboring
| Textbook | NCERT |
| class | Class – 12th |
| Subject | Economics (India Economic Development) |
| Chapter | Chapter – 10 |
| Chapter Name | Comparative Development Experience of India and its Neighboring |
| Category | Class 12th Economics Notes |
| Medium | English |
| Source | Last Doubt |
NCERT Solutions Class 12th Economics (India Economic Development) Chapter – 10 Comparative Development Experience of India and its Neighboring
?Chapter – 10?
✍Comparative Development Experience of India and its Neighboring✍
?Notes?
Development path of India, Pakistan and China
All the three countries started moving towards the development path almost at the same time. India and Pakistan became independent in 1947, while the Republic of China was established in 1949.
The three countries started formulating their development policies in the same way.
India announced its first five year plan in 1951, Pakistan in 1956 and China announced its first five year plan in 1953.
India and Pakistan adopted similar policies such as creation of a larger public sector and public expenditure on social development.
Both India and Pakistan adopted the mixed economy model while China adopted the guided economy model of economic growth.
By 1980, all three countries had almost the same growth rate and per capita income. Economic reforms were achieved in China in 1978, in Pakistan in 1988 and in India in 1991.
Growth Strategies in China
After the establishment of the Republic of China under one-party rule, all important sectors of the economy, enterprises and land owned and operated by individuals have been brought under government control.
In 1958, a campaign called The Great Leap Forward was started, whose objective was to industrialize the country on a large scale. Under this campaign people were encouraged to set up industries in the backyards of their homes.
In 1965, Mao Zedong started the ‘Great Proletarian Cultural Revolution’. Under this, students and experts were sent to work and study in rural areas.
Farming was introduced in rural areas from the nature of the commune. Under this, people used to do farming collectively.
In the reform process, the ‘Double Pricing System’ was introduced. This means that the price was determined in two ways. Farmers and industrial units were expected to buy and sell the quantities prescribed by the government and the rest were bought and sold at market prices.
Special economic zones were established to attract foreign investors. Such geographical areas in which the general economic laws of the country are not fully implemented for the purpose of promoting foreign investment are called special economic zones.
Development Strategies in Pakistan
Pakistan adopted a mixed economy system with the co-existence of public and private sector.
Pakistan adopted policies of tariff protection for the manufacture of consumer goods and direct import controls on competing imports.
The advent of the Green Revolution and increased public investment in infrastructure in selected areas led to an increase in the production of food grains.
Capital goods industries were nationalized in the 1970s.
Structural economic reforms were introduced in 1988. Main thrust private sector. was to be encouraged.
Development Strategies in India – After independence, India has adopted mixed economy as the economic development strategy. Both the public and private sectors exist side by side. To achieve rapid economic growth, planned development economy was introduced.
Post-independence economic development strategy
Both the public and private sectors were allocated for carrying out business activities. The public sector was allocated activities like coal, mining, steel, power, roads etc. The private sector was allotted to set up industries under control and rules in the form of law.
The major push was given by the government to the public sector. Maximum revenue was invested in this sector which increased from Rs. From Rs 81.1 crore in the First Five Year Plan (1951-56) to Rs 34,206 crore in the Ninth Five Year Plan (1992-97).
To eliminate poverty, unemployment, etc., importance was given to the public sector.
The public sector contributed to the industrialization of the economy. It helped the Indian economy to achieve self-reliance to a great extent.
Comparative Study India, Pakistan and China
Demographic Indicators
The population of Pakistan is very small and it is about one tenth of the population of India or China.
Although China is the largest nation among these three countries, it has the lowest population density. Population growth is highest in Pakistan, followed by India and China.
The reason for the low growth rate of population in China is the only one child policy implemented in the late 1970s. But due to this the sex ratio (i.e. the ratio of females per 1000 males) declined.
The sex ratio in all three countries is low in favor of women. The main reason for this is the strong desire to have a son in all the three countries.
Fertility rate in China is very low whereas in Pakistan it is very high.
Urbanization is high in both China and Pakistan while urbanization (ie percentage of population in urban areas) in India is 28 percent.
Gross Domestic Product (GDP) and Sector
China’s GDP estimated in 2013 was $9.24 trillion while that of India and Pakistan were 1. 877 trillion USD and 232 . 3 William was estimated to be US$.
China’s average annual growth for all these years on this path of development process is about 9. 5% of India approx 5. 8% and Pakistan’s about 4. has been 1%.
In 2011, about 37 percent of the workforce in China was engaged in agriculture, which contributed to about 9 percent of the GDP. The contribution of agriculture to GDP in India and Pakistan is about 14% and 25% respectively, but in Pakistan 43 percent of the people are employed in this sector whereas in India 49 percent of the people are engaged in this sector (ie agriculture).
The manufacturing sector is the largest contributor to the GDP in China.
Whereas in India and Pakistan, the highest contribution (more than 50 percent) to the GDP is from the service sector.
However, China adopted the traditional policy which tended to move gradually from agriculture to manufacturing and then to the service sector. But India and Pakistan went directly from the agricultural sector to the service sector.
In the 1980s, the service area in India, China and Pakistan increased by 17 respectively. 12 , and 27 percent of the workforce was engaged. In the year 2011, it has increased to about 31, 37 and 35 percent respectively.
The main basis of China’s economic growth is the manufacturing sector, while the main basis for the growth of India and Pakistan is the service sector.
Human Development Indicators
China has performed better than India and Pakistan in most areas of human development. This is true for many indicators , such as per capita G . D . P . Percentage of the population below the poverty line and health indicators such as mortality, sanitation, access to literacy, life expectancy or malnutrition.
Pakistan is ahead of India in reducing the proportion of people below the poverty line. Its performance is better than India in terms of sanitation and access to good water sources.
In contrast, the record and performance of investment in education in India is better than that of Pakistan. Apart from this, India is also ahead of Pakistan in providing health facilities.
India and Pakistan are ahead of China in providing the best water sources.
conclusion
India – India’s performance with democratic institutions has been mediocre. This is clear from the following facts
- Most of the population is still dependent on agriculture.
- Infrastructure is lacking in many parts.
- Today about 22% of the population is below the poverty line which needs to be raised.
Pakistan – The performance of Pakistan has been very poor. The reasons for the decrease in Pakistan’s growth and again increase in poverty are as follows political instability .
Unstable performance of agriculture sector.
Excessive dependence on remittances and foreign grants.
Increasing dependence on foreign loans on the one hand and increasing difficulty in repaying old debts on the other.
China – The performance of China has been the best. This is clear from the following facts Success in eradicating poverty as well as increasing the growth rate.
Without losing its political commitment, the market system has been used for additional socio-economic opportunities.
China has ensured social security in rural areas by maintaining community land ownership and allowing people to farm the land.
Government intervention in providing social infrastructure has yielded positive results in human development indicators.