Part B: Indian Economic Development

Chapter 8: Comparative Development Experiences Of India And

Its Neighbours
Q. QUESTION MARKS
NO
1 Read the following statements: Assertion (A) and Reason (R). Choose the correct 1
alternative from those given below :

Assertion (A): Inspite of being the world’s most populous country, China’s annual
growth rate of population(0.46) is lower than India’s annual growth rate of
population(1.03) and Pakistan’s annual growth rate of population(2.05)

Reason (R): The one child policy was part of a birth planning program designed to
control the size of the rapidly growing population of China.

Alternatives:
a)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A).

c)Assertion (A) is true, but Reason (R) is false.

d)Assertion (A) is false, but Reason (R) is true.

2 Introduction of Economic Reforms in China took place in the year ________. 1
(i) 1978
(ii) 1988
(iii) 1991

3 1
Special economic zones were set up in China to attract____investors.

(domestic/foreign)
4 (Higher/Lower) ……….. value of HDI implies higher growth and development level of a 1
nation

5 During 1980 to 1990, which country (among India, Pakistan & China) was having 1
double--digit growth of 10.3%?

6 Assertion and Reason : 1

Assertion (A): In the late 1970s, China’s population growth rate had sharply declined.
Reason (R): one child policy and better health services attributed to the low growth of
population in China.
Alternatives –
a. Both assertion and reason are true and reason is the correct explanation of
assertion.
 b. Both assertion and reason are true and reason is not the correct explanation of
assertion.
c. Assertion is true but Reason is false.
d. Assertion is false but Reason is true.

7 1. From the set of events given in column I and corresponding facts given in column 1
II choose the correct pair of statement.
Col I Col II
(i)Human development index A.Highest in China

(ii)Fertility rate B. Highest in China

(iii)Density of population C. Highest in China
Growth rate of population D. Highest in China
Alternatives –
a. (i ) --- A
b. (ii ) --- B
c. (iii) --- C
(iv) --- D
8 Choose the correct alternative showing chronological order of the following events. 1
1. One child policy
2. Economic reforms in Pakistan
3. New economic policy in India
4. Commune system in agriculture in China
Alternatives –
A. 2, 4, 3, 1
B. 4, 2, 1, 3
C. 3, 4, 1, 2
4, 1, 2, 3
9 ‘’Between 1966-76 , Mao introduced this movement under which professionals and 1
students were asked to work and learn from real life situations in the countryside of
China”. Identify the correct alternative for the statement .
(i) Commune system
(ii) Great Leap Forward
(iii) Open door policy
(iv) Great Proletarian Cultural Revolution
10 Special economic zone was set up in China to attract domestic investors. (True/False) 1
11 “In 1990,India’s and China’s manufacturing sector were comparable and significantly 1
India was slightly ahead in manufacturing and capital goods during that times.”
From the above statement choose production in which goods India was ahead as
compared to China:
a) Consumption goods c) Capital goods
Machinery products d) Both (b) and (c)
12 “Low skill services and agriculture, which have been providing many jobs so far, have 1
limited potential for high wages.”
 India must create job opportunities in _______ sector to enable wage levels to rise.
(choose the correct option)
a) Agriculture c) Manufacturing
Service sector d) Low skill services sector
13 “China created Special Economic Zones(SEZs) to push to manufacturing and export 1
oriented industries. India’s SEZs that came up decades later lacked such push and better
incentives to attract foreign investors in numbers and size to give China a competition.
India encouraged capital intensive industries that came at a cost of loss of potential
employment to millions of job seekers.”
As compared to China, India failed to give encouragement to Industrial development due
to ____________(From the above paragraph choose the correct option)
a) Capital intensive technique which caused unemployment and poverty
b) SEZs in India were established decades later than China
c) Indian SEZs had much better incentives than China to attract foreign investments
Both (a) and (b)
14 “Multiple reasons for economic slowdown and re-emergence of poverty in Pakistan may 1
be enumerated.”
Identify which of the following might not be one of them.
i)Rising dependence of foreign loans
ii)Stable macroeconomic indicators
iii)Unstable agricultural growth
Alternatives
a) (i),(ii),(iii) c) (i) and (iii)
(ii) and (iii) d) Only (ii)
15 Identify the correct alternatives for the statement given below. 1
“Between 1966-76, Mao introduced this movement under which professional and
students were asked to work and learn from real life situations in the countryside of
China.
a) Commune system c) Open door policy
Great Leap Forward d) Great Proletarian cultural revolution
16 India had ranked 130 in 2018 in Human Development Index(HDI) and dropped one spot 1
in 2020 according to the report released by UNDP.
India’s HDI ranked in 2020 was(Choose the correct option)
a) 128 c) 130
129 d) 131
17 “Despite a lower fertility rate, India’s population is still growing. Yet, calls for a ‘One 1
Child Policy’ in India are misguided at best and dangerous at worst.”
Which of the following country first adopted One Child Policy norm to curb population
growth:
a) India c) Pakistan
China d) Bangladesh
18 “Leaders from the BRICS economic alliance are gathering in Johannesberg’s financial 1
district of Sandton for a 3 day summit.”
Which of the following country is not the member of BRICS alliance.
a) India c) Pakistan
China d) Russia
19 “The current situation in India is that the growth rate of services has overtaken both 1
agriculture and Industry and is now contributing to more than 50% of GDP.”
The contribution of service sector to GDP (in%) is the highest in:
a) India c) Pakistan
 China d) Russia
20 “The combination of the world’s factory and the world’s back office will produce the 1
most competitive production base.”
Which countries are referring to by this statement:
a) India and Pakistan
b) India and China
c) Pakistan and China
China and USA
21 Under the Great Leap Forward (GLF) campaign in China initiated in 1958, people were 1
encouraged to set up industries in their backyards. Identify the primary goods these
backyard industries would have produced.
(a) perishable food items
(b) small car parts
(c) plastic toys
(d) textiles
22 Identify the developmental initiatives oriented by Pakistan during the 1970s and 80s that 1
helped the country in stimulating economic growth.
(a) agrarian reforms
(b) de-nationalisation
(c) import substitution
(d) investment in education and health
23 __ and _____ are the reasons for the slowdown of the Pakistan economy since 1
independence.
I. political instability
II. over-dependence on remittances from abroad
III. stable performance of agriculture sector
IV. growth of service sector
Alternatives: a) I and II
b) II and III
c) III and IV
d) I and IV
24 ‘China has performed exceedingly well in various health and economic indicators Identify 1
which of the following is not a health indicator?
a) Infant Mortality Rate (per 1000 live births)
b) Life Expectancy at Birth (years)
c) Percentage of people below poverty line (National)
d) Maternal Mortality Rate (per 1 lakh births)
25 Under _________ in China, farmers and industrial units were required to buy and sell fixed 1
quantities of inputs and outputs on the basis of prices fixed by the government and the rest
were purchased and sold at market prices. (Choose the correct alternative to fill up the
blank)
a) Commune System
b) Great Leap Forward
c) Dual Pricing
d) Great Proletarian Cultural Revolution
26 _______may be defined as the measure of the extent of demographic participation in the 1
social and political decision making. (Choose the correct alternative to fill up the blank)
a) Economic indicator
b) Liberty indicator
c) Health indicator
 d) Demographic indicator
27 There are two statements given below, marked as Statement (1) and Statement (R). Read 1
the statements and choose the correct option.
Statement (1): Both India and China initiated industrial reforms with the creation of
agricultural communes.
Statement (2): Both countries are primarily agrarian in nature with all sectors depending
on the primary one.
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false
28 From the set of the events given in column I and corresponding facts given in Column II, 1
choose the correct pair of statements:
Column I Column II
A. Adoption of I The common
mixed development
economic policy of India and
system China
B. Introduction II Imposed by World
of Bank
economic
reforms in
China
C. Great Leap III Focussed on
Forward massive
Campaign industrialization
D. First Five IV Announced in
Year Plan 1953
of Pakistan
Alternatives: a) A-I
b) B-II
c) C-III
d) D-IV
29 India is not a member of which of the following regional / global economic groups? 1 1
(a) European Union
(b) BRICS
(c) G20
(d) SAARC
30 Identify the correct alternative with reference to the following statement: 1
“Between 1966 – 76, Mao introduced this movement under which professionals and
students were asked to work and learn from real life situations prevailing in the countryside
of China”.
(a) Commune System
(b) Great Leap Forward
(c) Open Door Policy
(d) Great Proletarian Cultural Revolution
31 In 1965, Mao introduced the ----------under which students and professionals were sent to 1
work and learn from countryside.
(a)Economic reforms
(b) Great Leap Forward campaign
 (c ) Great Proletarian Cultural Revolution
(d) Special Economic Zones
32 Arrange the following events of China in Chronological order and choose the correct 1
alternatives:
(i) Special Economic Zones
(ii) Great Proletarian Cultural Revolution
(iii)Commune System
(iv) Establishment of People‘s Republic of China
Choose the Correct Alternatives:
(a) (ii),(iv),(iii),(i)
(b) (iv),(iii),(ii),(i)
(c) (ii),(iv),(i),(iii)
(iv),(i),(ii),(iii)
33 A campaign in China in 1958 where people were encouraged to set up industries in their 1
backyard was named as :
(a) Great Leap Forward
(b) Great Proletarian cultural Revolution
(c) Anti-Rightist movement
(d) Four Pests Campaign
34 Which of the following countries adopted” One Child Policy”? 1
(a) India
(b) China
(c) Pakistan
(d) None of these
35 Match the correct sequence of options in Column I by matching them with options given 1
in Column II and choose the correct alternative:
Column I Column II
A. Establishment of (i) 1979
peoples Republic of
China
B. Adoption of One (ii) 1993
Child Policy
C. Introduction of
Economic Reforms in (iii) 1949
India
D. Foundation of (iv) 1991
European Union

Alternatives:
(a) A-(iii), B-(i), C-(iv) D-(ii)
(b) A-(ii), B-(iv), C-(i), D-(iii)
(c ) A-(iv), B-(iii), C-(i), D-(ii)
(d) A-(iv), B-(i),C-(ii), D-(iii)
36 In China, commune system is related -------- sector. 1
(a) agriculture
(b) industry
(c) service
(d) informal
37 Study the following information and fill in the blank by choosing the correct alternative: 1
Country A Country B Country c
 Human
Development 0.648 0.759 0.562
Index
(HDI)Value
Country ---------- can be termed as the best on the HDI indicator.
(a) A (b) B (c) C (d) D
38 Assertion (A): During 1980s economic growth rate of Pakistan was more than that of 1
India.
Reason (R) : Pakistan followed the Path of mixed economic structure with equal
participation of the public and the private sector.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are
True but Reason (R) is not the correct explanation of Assertion(A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason is true
39 Statement1: Special Economic Zones (SEZs) policy has led to huge Foreign Direct 1
Investment (FDI) flow to China.
Statement2: China’s rapid industrial growth was the result of its economic reform in
1981.
Alternatives:
(a) Statement 1 is true and statement 2 is false.
(b) Statement 1 is false and statement 2 is true.
(c) Both statement 1 and 2 are true.
(d) Both statement 1 and 2 are false.
40 Identify the issue depicted in the given image. 1

(a) Demographic dividend

(b) Exponential population growth
(c) Aging of population
(d) None of these
41 Discuss the great “proletarian cultural revolution” introduced in China. 3

42 Explain the concept of ‘dual pricing’ adopted by China 3

43 Which factors help China to attract more FDI as compared to India and Pakistan? 3

44 Discuss the concept of Dual pricing in the reform process of China 3

45 Do you agree with the statement that India has failed as fast as China because it has failed 3
to check the growth rate of its population? Write your view in brief.
46 China’s rapid industrial growth can be traced back to its reform in 1978. Do you agree? 3
Elucidate
47 Why did China introduce structural reforms in 1978? Explain. 3
48 Now-a-days, nations are forming regional and global economic groupings such as the 3
SAARC, European Union, ASEAN, G-8, G-20, BRICS etc.
Answer the question as: Why are such regional and economic groupings formed?
49 Compare and analyse the following information related to Imports and Exports of the 3
three neighbouring nations:

Country Exports from India (in ₹ Imports to India (in ₹

Crore) Crore)
2004- 2018-19 Annual 2004- 2018-19 Annual
05 rate of 05 rate of
growth growth
(%) (%)
Pakistan 2,341 14,426 3.7 427 3,476 5.1
China 25,232 1,17,289 2.6 31,892 4,92,079 10.3
50 What similar developmental strategies have India and Pakistan followed for their 3
respective developmental path?
51 What is the important implication of the “One child norm” in China? 3
52 On the basis of the following data answer the following questions. 3
Country Urbanization Infant mortality rate(per
1,000 live births)
India 33 38

Pakistan 39 66

(a) Comment on the infant mortality rate among India and Pakistan.
“Pakistan is more urbanized than India.” Do you agree?
53 Compare and contrast India and China’s sectoral contribution towards GDP in 2003. Give 4
the indications.
Contribution to GDP ( in %) 2003
Sectors INDIA CHINA
Primary 23 15
Secondary 26 53
Tertiary 51 32
54 Give reason for the slow growth and re-emergence of poverty in Pakistan 4
55 Discuss the various means by which countries are trying to strengthen their own domestic 4
economies ?
56 Compare and analyze the given data of India and China with valid arguments 4
Annual Growth of Gross Domestic Product(%),1980-2017

Country 1980-90 2015-2017

 India 5.7% 7.3%
China 10.3% 6.8%
57 “India, China and Pakistan have travelled more than seven decades of developmental path 4
with varied results.” Explain the given statement with valid arguments.
58 Compare and analyze the given data of distribution of workforce (in 2018-19) with valid 4
reasons:

Country Agriculture Industry Services

(%) (%) (%)
India 43 25 32
China 26 28 46
Pakistan 41 24 35
59 Given below are some statistics related to India, China and Pakistan. 4

Country Population Fertility Urbanisation

(in Rate (%)
millions)
India 1352 2.2 34
China 1392 1.7 59
Pakistan 212 3.6 37

Compare and contrast China's demographic statistics with its neighbours.

60 “In the late 1970s, China introduced the One-Child norm policy that led to arrest in the 4
population coupled with skewed sex ratio.” Justify the given statement with valid
arguments in support of your answer.
61 Read the following schedule carefully: 4
Trends in Output Growth in Different Sectors, 1980 – 2015
1980-90 2011-2015
Country
Agriculture Industry Service Agriculture Industry Service
India 3.1 7.4 6.9 2.3 5 8.4
China 5.9 10.8 13.5 4.1 8.1 8.4
Pakistan 4 7.7 6.8 2.7 3.4 4.4
Analyse the output growth trend in the three sectors over the given years between India
and Pakistan.

62 Explain the Great Leap Forward Campaign of China as initiated in 1958. 4

63 Why are regional and economic groupings formed? 4
64 Read the following case study carefully and answer the questions that follow. 4
Special Economic Zones (SEZs) are intended to function as zones of rapid economic
growth by using tax and business incentives to attract foreign investment and technology.
The first four economic zones were created in 1980 in southeastern coastal China and
consisted of what were then the small cities of Shenzen , Zhuhai, and Shantou in
Guangdong province and Xiamen in Fujian province. In these areas, local governments
have been allowed to offer tax incentives to foreign investors and to develop their own
infrastructure without the approval of the central government. Business enterprises have
made most of their own investment, production and marketing decisions and foreign
ownership of such ventures have been legalized. Though some of them began a little
more than small towns, the new SEZs soon attracted foreign investment and became
boom towns , with rapidly expanding light and consumer goods industries and growing
 population. Encouraged by the zones success, the Chinese government in 1984 opened 14
larger and older cities along the coast of foreign trade and investment. In 1988, Hainan
Island was made a separate province and a special economic zone, and in 1990 the
Pudong are within the Shanghai municipality became a special economic zone with
policies even more flexible than those already in force in the original four Special
Economic Zones (SEZs).
(a) What were Special Economic Zones (SEZs)? Name any two cities in which
special economic zones were started in China in 1980.
When were economic reforms initiated in China? What autonomy was given to local
government for motivating foreign investors in China under special Economic Zones?
65 1. Read the following case study carefully and answer the question i) and ii) based 6
on the same.
India and Pakistan have very much in common, however, at present Indian
economy seems to be in the lead. As a growing focus on solving poverty in
developed countries this year, we provide suggestions for policy makers of poorer
countries based on our analysis. India’s higher savings rate, lower population
growth and superior productivity are also factors that contributed to its economic
growth. In contrast, Pakistan’s related economic torpor can be attributed to its
political instability, which hinders any long run economic development plans.
Furthermore, Pakistan has a lower saving rate, high population growth and
inferior productivity. For these reasons, India has experienced significantly higher
levels of economic growth than Pakistan for both countries the political and
economic components affecting economic growth were examined. However,
these two factors are not equal in magnitude.
----Terry Qi, India versus Pakistan and evolution of long run Economic growth
with respect to Solow growth model, 2020.
i. Write three observations on the common success stories of India and
Pakistan.
Write three observations pointing through common failures of India and Pakistan.
66 6
Evaluate the various factors that led to the rapid growth in China.
67 Compare and analyze the given data on the distribution of workforce(in 2018-19) with 6
valid reason.
Country ⬇️ Agriculture Industry (%) Service (%)
(%)
India 43 25 32
China 26 28 46
Pakistan 41 24 35
Source : NCERT

68 Give an appraisal of development strategies adopted by China. 6

69 Explain briefly any six indicators of human development in India, China and Pakistan. 6
70 Do you agree with the opinion that structure of Growth is more complementary with the 6
GDP growth in China than India?
71 India has an edge over Pakistan, but China has an edge over both India and Pakistan in the 6
area of growth and development.
Explain this fact, using indicators of growth and development.
72 (a) Compare and contrast the development of India, China and Pakistan with respect 6
to some salient human development indicators.

What does the liberty indicator measure?

73 (a) What similar developmental strategies have India and Pakistan followed for their 6
respective developmental paths?

Describe the path of developmental initiatives taken by Pakistan for its economic
development.
74 Interpret the given image on account of population policy and resultant effects in China. 6

75 Evaluate the various factors that led to the rapid growth in Economic development of 6
China.
76 Group the following features pertaining to the economies of India China and Pakistan 6
under three heads:
a)One Child Norm
b) Low literacy rate
c) high degree of urbanization
d) Mixed economy
e) Very high literacy rate
f) Large population
g) High density of population
h) Growth due to manufacturing sector
i) Growth due to service sector

ANSWER
1 a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).

2 1978
3 Foreign
4 Higher
5 China
6 (a) both assertion and reasoning are true and reason is the correct explanation of assertion.
7 (a) i --- (A)
8 (d) 4 , 1 , 2 , 3
9 (iv) Great Proletarian Cultural Revolution
10 False. Special Economics zone was set up in China to attract foreign investor.
11 d) both (b) and (c)
12 c) manufacturing sector
13 d) both (a) and (b)
14 d) only (ii)
15 d) Great proletarian cultural revolution
16 d) 131
17 b) China
18 c) Pakistan
19 c) Pakistan
20 b) India and China
21 A. perishable food items

22 A. agrarian reforms

23 a) I and II

24 c) Percentage of people below poverty line (National)

25 c) Dual Pricing
26 b) Liberty indicator

27 B. Statement 1 is false and Statement 2 is true.

28 c) C-III

29 (a) European Union

30 (d) Great Proletarian Cultural Revolution

31 C)-Great Proletarian Cultural Revolution
32 b) -(iv),(iii),(ii),(i)
33 a) -Great Leap Forward
34 b)-China
35 a)-A-(iii),B-(i), C-(iv), D-(ii)
36 a)-Agriculture
37 b)-B
38 c)-Assertion(a) is true and Reason(R) is false
39 a)-Statement 1 is true ,Statement2 is false
40 c)-Aging of population
41 Great proletarian cultural revolution- in 1965, Mau Seng introduced the great proletarian
cultural revolution (1966-67) , under which students and professionals were sent to work and
learn from the countryside.
42 The system of dual pricing was introduced. Farmers and industrial units were required to make
sale and purchase on the basis of price structure as fixed by the government. Market prices
 (prices determine by the supply and demand forces) were allowed to operate for all other
transactions in the economy.
43 China was able to attract more FDI due to its liberal policies, setting up of special economic
zones allowing 100% of equity investment to the foreign investors and providing them with
developed infrastructural facilities.
44 The reform process in China involved dual pricing that means fixing the prices in two ways.
Farmers and industrial units required to buy and sell fixed quantity of input and output on the
basis of prices fixed by the government. For other transactions, the inputs and outputs were
purchased and sold at market prices.
45 It is true that china has succeeded in controlling the growth rate of its population, while India
has failed. Owing to unbridled growth of population, the government in India has failed to
reduce the BPL population. This has led to a huge expenditure by way of food subsidy, besides
the expenditure related to health, housing and education of the BPL population. While, all such
expenditures are welfare- oriented, these are non- productive. Such expenditures do not add to
production capacity of the nation, rather they tend erode it. Accordingly, growth process is
adversely affected. This is one of the important reasons why India is lagging behind China in
the area of economic growth.
46 Yes, I agree with the given statement. The present day fast industrial growth in China can be
traced back to the reforms introduced in phases in 1978. China introduced reforms in phases.
1. In the initial phase, reforms were initiated in agriculture, foreign trade and investment
sectors. In agriculture, commune lands were divided into small plots which were allocated
(only for use and not as ownership) to the individual households. They were allowed to
keep all the income from the land after paying stipulated taxes.
2. In the later phase, reforms were initiated in the industrial sector. Private sector firms and
township and village enterprises (enterprises which were owned and operated by local
collectives) were allowed to produce goods. At this stage, enterprises owned by
government (known as state owned Enterprises or SOEs) , were made to face competition.
3. The reform processes also involved dual pricing. This means fixing the prices in two
ways: (a) Farmers and industrial units were required to buy and sell fixed quantities of
inputs and outputs on the basis of prices fixed by the government; (b) For other
transactions, the inputs and outputs were purchased and sold and market prices.
In order to attract foreign investors, special economic zones were set up.
47 The new leadership at that time in China was not happy with the slow pace of growth and lack
of modernisation in the Chinese economy under the Maoist rule.
Maoist vision of economic development based on decentralisation, self-sufficiency and
shunning of foreign technology, goods and capital had failed.
Despite extensive land reforms, collectivisation, the Great Leap Forward and other initiatives,
the per capita grain output in 1978 was the same as it was in the mid-1950s.
48 The regional and economic groupings are essential for developing countries as they face
competition not only from developed nations but also amongst themselves in the relatively
limited economic space enjoyed by the developing world.
49 The above table shows that during the given periods the Exports from India to Pakistan have
increased at an annualized rate of 3.7 % while the same with China shows 2.6% of growth. On
the other hand, India’s import from China accounted for a massive 10.3 %. The corresponding
figure with Pakistan witnessed an average of 5.1% respectively.
The situation indicates that Indian imports from China are too high in comparison to the
exports to China. This shows that Indian economy was over-dependent on Chinese economy
for goods and services, over the given period of time.
50 Ans : - (i) Pakistan like India followed mixed economy model, with the co-existence of public
and private sector.
 (ii) Pakistan’s and India’s shift has been directly from agriculture to service sector.
(iii)Pakistan’s and India’s manufacturing sector show a decline in the growth rate.
51 Ans.:- The important implication of the one child norm in China is the low population growth.
This also led to the decline in the sex ratio. After a few decades in China there will be more
elderly people in proportion to young people. As a result China will be forced to take step to
provide social security measures with fewer workers.
52 Ans :- (a) Infant mortality rate is very high in Pakistan(66) as compared to India (38) This is
because of large sized families and leading to more undernourished children and poor health
of the mothers.
(b) Indeed Pakistan is more urbanized as 39% of the people living in urban areas in India.
53 Contribution of primary sector: the contribution of agriculture to GDP was 15% in case of
China whereas, it was 23% in case of India.
Contribution of secondary sector: the secondary sector contributed the highest to China's GDP
at 53% .Whereas, in India the share was only 26%.
Contribution of service sector : the service sector contributed highest to India's GDP at 51%,
whereas in China, the share was 32%.
54 The reasons for the slow growth and re-emergence of poverty in Pakistan's economy are---
i) agriculture growth and food supply situation was based on good harvest and not on a good
institutionalized process of technical change..
ii) foreign exchange is an essential component for any country and it is always preferred to
build foreign exchange reserves through exports of manufactured goods. However, in Pakistan
most of the foreign exchange earnings came from remittances from Pakistani workers in the
middle-East and the exports of highly volatile agricultural products.
iii) there were growing dependents on foreign loans on the one hand and increasing difficulty
in paying back the loans on the other.
55 Undertaking various economic reforms, analyzing their strengths and weakness, forming
regional and global economic groupings etc..
56 The given data shown that China has gained economic strength over the years. When many
developed countries finding it difficult to maintain the growth rate of even 5%, China was able
to maintain near of 6.8%, over the period 2015-17.
In the recent past, India has posted a decent rise in the growth rate. While India had maintained
a reasonable growth rate of 5.7% in the decade of 1980s, it has shown the great caliber an
character in the period 2015-17 by registering an average of 7.3%, over the period 2015-17.
Nevertheless Indian elephant has to travel a long distance before it could present itself as a real
threat to the growth story of Chinese dragon.
57 1. Till the late 1970s, all the three countries were maintaining the same level of low
development.
2. Over the last three decades, the three countries have taken different levels of development
(a) India has performed moderately over the years. Majority of its people still depend on
agriculture. Infrastructure is lacking and more than 1/4th of its population live below poverty
line.
(b) Pakistan performed low because of political instability, over dependence of remittances
and foreign aid along with volatile agriculture.
(c) China has used the market system to succeed in raising the rate of growth in economy with
stress on alleviation of poverty.
58 As evident from the table, the percentage of a work force engaged in agricultural sector is the
highest in case of India, which stands at 43 percent. The corresponding rates for China and
Pakistan are 26 percent and 41 percent respectively.
The percentage work force engaged in industry is the highest in China, which stands at 28
percent. The corresponding rates for India and Pakistan are 25 percent and 24 percent
respectively.
The percentage of work force engaged in services sector is again the highest in China, which
stands at 46 percent. The corresponding for India and Pakistan are 32 percent and 35 percent
respectively.
These observations point to a fact that China is far ahead of India and Pakistan in
industrializing its production activity which is a sign of long period growth and development.
Higher percentage of work force in services sector in China is also a sign of its faster growth
compared to India and Pakistan. However, the fact should also be not ignored that Pakistan has
taken over India as regards the growth of services sector. This points to rapid urbanization.
59 • Total population in millions is the highest in China, followed by India and Pakistan.
• The fertility rate is low in China and very high in Pakistan as compared to India.
• Urbanisation is high in China with India having 34 per cent of its people living in
urban areas.

60 • One of the stringent measures to control population in China is one-child norm.

• The one-child norm introduced in China in the late 1970s as the major reason for low
population growth. This measure led to a decline in the sex ratio, the proportion of
females per 1000 males.
• The implications of this policy is after a few decades, in China, there will be more elderly
people in proportion to young people. This led China to allow couples to have two
children.

61 • It is seen from the table that in both India and Pakistan, the service sector is emerging
as a major player of development.
• In the last four decades, the growth of agriculture sector, which employs the largest
proportion of workforce in all the three countries, has declined.
• In the industrial sector, China has maintained a near double-digit growth rate whereas
for India and Pakistan growth rate has declined.
In case of service sector, China was able to raise its rate of growth during 1980–2015, while
India and Pakistan stagnated with its service sector growth.
62 The Great Leap Forward (GLF) was a campaign initiated in 1958 in China. The aims of this
campaign are as follows:
1. The aim of the campaign was to initiate large scale industrialization in the country
concentrating not only in the urban areas but also in the rural ones.
2. The people in the urban areas were motivated to set up industries in their backyards.
In the rural areas, Commune System was implemented. Under this system, people were
engaged in collective farming.
63 With the objective of understanding various means and strategies to strengthen the
economies, different nations of the world are motivated to form regional and global
economic groups like SAARC, European Union, ASEAN, etc. The formation of such regional
and economic groups helps the member countries to know the development strategies and
measures adopted by other member countries. This enables them to analyse their strength
and weakness and, thereby, formulate policies to accelerate social progress and cultural
 development among its member countries. Secondly, another important purpose behind
setting up of these groups is maintenance of peace and stability of the member countries. In
addition to this, these groups provide a common platform to raise their voice in a unified
manner on common issues to safeguard their common interests.
64 a) A special economic zone (SEZ) is an area in a country that is designed to generate positive economic
growth. An SEZ is normally subject to different and more favorable economic regulations compared to
other regions in the same country, including tax incentives and the opportunity to pay lower tariffs.
The first four economic zones were created in 1980 in China were the small cities of Shenzen
, Zhuhai, and Shantou in Guangdong province .
b) In late 1978. In these areas, local governments have been allowed to offer tax incentives to
foreign investors and to develop their own infrastructure without the approval of the central
government.
65 i) following three observations highlight the common success story of India and Pakistan
A. Indian Pakistan both have succeeded in more than doubling their per capita income.
B. The incidence of absolute poverty has also been reduced significantly in both the countries.
C. A well developed modern sector (along with a backward traditional sector) has emerged in
both the countries.

ii) following three observations highlight the common failures of India and Pakistan.
A. The relatively inward looking economic policies and high protection to domestic industry
did not allow India and Pakistan to take timely advantage of globalisation.
B. Both the countries recorded this small performance in terms of fiscal management.
C. Urban services are deficients in both the countries which are a big hurdle in their processes
of growth and development.
66 Great Leap Forward1958,Commune system, Great Proletarian Cultural Revolution, Economic
Reform, Dual Pricing and SEZ etc with brief explanation of each.
67 As evident from the table, the percentage of workforce engaged in the agriculture sector is
highest in India, which stands at 43%. The corresponding rates for China and Pakistan are 26%
and 41% respectively.
The percentage of workforce engaged in industry is the highest in China which stands at 28%.
The corresponding rates for India and Pakistan are 25% and 24% respectively.
The percentage of workforce engaged in the service sector is again highest in China, which
stands at 46%. The corresponding rates for India and Pakistan are 32% and 35% respectively.
These observations point to a fact that China is far ahead of India and Pakistan in
industrializing its production activity which is a sign of long period growth and development.
Higher percentage of the workforce in the service sector in China is also a sign of its faster
growth compared to India and Pakistan. However, the fact should also be not ignored that
Pakistan has taken over India as regards the growth of the service sector; this points to rapid
urbanization in Pakistan.
68 Pre-Reform Period
 The new leadership in China was not happy with slow growth rate and lack of
modernization in the Chinese economy.
 Despite the land reforms,collectivization, the GLF campaign etc.,the per capita grain
output in 1978 was the same as it was in mid 1950s
 There was already massive extension of basic health services in rural areas.
 Commune system of farming allowed equitable distribution of foodgrains
Post Reform Period
 It was observed that establishment of infrastructure in the areas of education and health
had helped positively in improving the social and income indicators.
  Reforms in agriculture created conditions for the growth in rural industries.
 There was exponential increase in the rate of economic growth

69 1. Life Expectancy:
 China has the highest life expectancy of 76.9 years among the 3 countries.
 Life expectancy for both India and Pakistan is 69.7 years and 67.3 years respectively.
2. Mean year of schooling: This data is 6.5% for India, 5.2% for Pakistan and 8.1% in China
3. GNP per capita(PPPUS$): In 2018, China’s GNP per capita is estimated at US$16057
while for India and Pakistan it is US $6681 and US $ 5005 respectively.
4. People below poverty line: 21.9% people in India (2011), 1.7% people in China(2015) and
24.3% people in Pakistan (2011) were below poverty line.
5. Infant mortality rate: IMR is lowest in China with 7.4 infants dying before attaining one
year of age per 1000 live births. The corresponding figures for India and Pakistan are 29.9
infants and 57.2 infants respectively.
6. Maternal mortality rate: For 1 lakh births ,29 women die in China whereas in India and in
Pakistan this rate is 133 and 140 respectively.
70 It is true that the structure of growth is more complementary with the GDP growth in China
than India. Historically,the structure of growth has shown a shift from the predominance of
agriculture to the predominance of Industry in GDP growth of the country.This process of
transformation has seen a very effective absorption of the surplus labor force(in agricultural
sector) by the industrial sector of the economy. China’s growth story reveals a similar process
of transformation. On the contrary,Indian growth story reveals that predominance of
agricultural sector(In GDP growth) has given way to the predominance of tertiary sector,
rather than the Industrial sector. While the % share of agriculture in GDP has tended to fall,
the % share of tertiary sector risen more significantly than the % share of Industrial sector.
Thus, the structure of growth has been less complementary with the GDP growth in India
(compared with China).
71 • China has the second largest GDP (PPP) of $19.8 trillion, whereas, India’s GDP (PPP)
is $8.07 trillion and Pakistan’s GDP is $ 0.94 trillion, roughly about 12 per cent of India’s
GDP.
• India’s GDP is about 40 per cent of China’s GDP.
• When many developed countries were finding it difficult to maintain a growth rate of
even 5 per cent, China was able to maintain near double-digit growth for one decade.
In the 1980s, Pakistan was ahead of India; China was having double-digit growth and India
was at the bottom. In 2015–17, there has been a decline in Pakistan and China’s growth rates,
whereas, India met with moderate increase in growth rates.
72 (a)
• China is moving ahead of India and Pakistan in respect of human development indicators
such as: GDP per capita, or proportion of population below poverty line or health
indicators such as mortality rates, access to sanitation, literacy, life expectancy or
malnourishment.
• Pakistan is ahead of India in reducing proportion of people below the poverty line and
also its performance in sanitation.
• But neither of these two countries have been able to save women from maternal
mortality. In China, for one lakh births, only 27 women die whereas in India and
Pakistan, about 178 and 174 women die respectively.
• Surprisingly all the three countries report providing improved drinking water sources for
most of its population.
• For the proportion of people below the international poverty rate of $ 3.20 a day, India
has the largest share of poor among the three countries.
 (b) Liberty indicator measures‘the extent of Constitutional protection given to rights of citizens’
or ‘the extent of constitutional protection of the Independence of the Judiciary and the Rule of
Law’.

73 (a) India and Pakistan became independent nations in 1947. India and Pakistan adopted
similar strategies, such as creating a large public sector and raising public expenditure
on social development. Both India and Pakistan introduced five year plans. Pakistan
follows the mixed economy model with co-existence of public and private sectors.
(b) In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework
(for import substitution-based industrialisation). The policy combined tariff protection
for manufacturing of consumer goods together with direct import controls on competing
imports.
The introduction of Green Revolution led to mechanisation and increase in public
investment in infrastructure in select areas, which finally led to a rise in the production
of foodgrains.
In the 1970s, nationalisation of capital goods industries took place.
Pakistan then shifted its policy orientation in the late 1970s and 1980s when the major thrust
areas were denationalisation and encouragement of private sector. During this period, Pakistan
received financial support from western nations and remittances from continuously increasing
outflow of emigrants to the Middle-east.
74 a) It shows the vast worker pool powered explosive growth of export driven economy. Lack of
skilled workers and labour shortage because of one child norm since late 1970s is pushing up
wages and adding to the burden of companies already facing shrinking global markets.
b) For China demographics pose a huge challenge requiring difficult and innovative decisions
in terms of policies and social welfare funding, population control and employment and labour
development.
c) This leads china to allow couples to have two children first (2016) and then three children
(2021).
75 1. China’s rapid economic development is an aggregate outcome of the introduction of
the reforms in phases since 1978. The following are the various factors that led to the
rapid growth in the economic development in China:
2. In the initial phase, reforms were initiated in agriculture, foreign trade and investment
sectors. The system of collective farming known as Commune System was
implemented. Under this system, land was divided into small plots that were allocated
to the individual households. These households were allowed to keep the remaining
income from land after paying the taxes to the government.
3. In the later phase, reforms were initiated in the industrial sector. During this phase, the
private firms, village and township enterprises were allowed to produce goods and
services and to compete with the State Owned Enterprises.
4. The dual pricing were implemented. This implies that the farmers and the industrial
units were required to buy and sell a fixed quantity of inputs and output at the price
fixed by the government and the remaining quantities were traded at the market price.
Gradually, with rapid increase in aggregate production in the later years, the quantities
traded in the market increased by many folds.
5. The reforms also included setting up of Special Economic Zones to attract foreign
investors and to encourage its exports.

Therefore, the aggregate focus of all these economic reforms resulted in rapid industrial
growth and economic development in China.
76 A) China
i) One Child Norm
ii) Low fertility rate
iii) High degree of urbanization
iv) Growth due to manufacturing sector
v) Large population
B) Pakistan
i) High degree of urbanization
ii) Mixed economy
iii) Very high fertility rate
iv) Growth due to service sector
C) India
i) Mixed economy
ii) High density of population
iii) Growth due to service sector