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Revision: Indian Economic Development >> Comparative Development Experiences of India and Its Neighbours Economics Commerce (English Medium) Class 11 CBSE

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Definitions [1]

Define liberty indicator. 

Liberty Indicator may be defined as the measure of the extent of demographic participation in the social and political decision making. In other words, it is an index used to measure the participation of the people in taking decisions. 

Key Points

Key Points: Comparative Development Strategies: India, China, and Pakistan
  • Globalisation has transformed economies and affected development strategies.
  • Countries form groupings like SAARC, EU, ASEAN, G‑8, G‑20, BRICS to strengthen domestic economies.
  • Developing countries face competition from developed nations and from each other.
  • Studying neighbours’ development helps assess strengths and weaknesses and supports human development in a shared environment.
  • India, Pakistan and China have contrasting political and economic systems, making their development strategies important to compare.
Key Points: Developmental Path – A Snapshot View
  • All three countries started development around the same time under planned economic strategies.
  • India and Pakistan had similar public-sector-led, social-expenditure-focused approaches and similar growth till the 1980s.
  • China’s early development involved GLF, communes, drought and the Cultural Revolution.
  • Post-1978, China adopted phased reforms, dual pricing and special economic zones.
  • Pakistan moved from regulated import substitution and nationalisation to denationalisation, private sector promotion and reforms supported by external finance and remittances.
Key Points: Demographic Indicators
  • India (1,428 mn) and China (1,411 mn) are close in population size; Pakistan (240 mn) is much smaller.
  • China's negative growth rate reflects the long-term impact of its one-child policy.
  • Pakistan has the highest annual growth rate (1.96%) and highest fertility rate (3.4) among the three.
  • All three countries show a sex ratio unfavourable to females.
  • China leads significantly in urbanisation at 65%, while India and Pakistan are comparable at 36% and 38%.
  • India's population density (473) is the highest of the three; China's (150) is the lowest.
Key Points: Gross Domestic Product and Sectors
  • China’s GDP is 35 trillion, India’s 15 trillion, Pakistan’s 1.5 trillion.
  • In the 1980s, China led in GDP growth; Pakistan was ahead of India; later India’s growth improved while China and Pakistan’s declined.
  • China has limited cultivable land but shifted workforce from agriculture to other sectors.
  • India and Pakistan keep high agricultural employment despite lower agriculture share in GVA; industry and services are more productive.
  • Service sector now contributes the highest share of GDP and employment growth in all three countries.
  • Agriculture and industry growth rates have fallen, with China and India driven by services and Pakistan slowing in all sectors.
Key Points: Indicators of Human Development
  • Human development is measured through income, health, education, sanitation and poverty.
  • China has the highest HDI (0.797, Rank 78); Pakistan has the lowest (0.544, Rank 168).
  • China has 0% extreme poverty and performs best in sanitation, drinking water and nutrition.
  • Pakistan has the highest infant and maternal mortality among the three countries.
  • Liberty indicators (democracy, rights, judicial independence and rule of law) are not included in HDI but are important for overall human development.
Key Points: Development Strategies - an Appraisal
  • Development strategies of neighbouring countries provide important lessons.
  • China's reforms succeeded due to strong social infrastructure and gradual experimentation.
  • Pakistan faced unstable growth because of harvest dependence, remittances and foreign loans, though recovery has begun.
  • India's BoP crisis highlighted the need for sustainable manufactured exports.
  • India's trade with China is much larger than with Pakistan, especially imports.
  • Different political and economic strategies produced different development outcomes.
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