Class 12 Indian Economic Development Notes · CBSE

Comparative Study - India, China & Pakistan

Comparison of demographic indicators, GDP growth trends, sectoral composition and human development indicators across India, China and Pakistan. CBSE Class 12 IED notes

Notes

Comparative Study — India, China & Pakistan

CBSE Class 12 Indian Economic Development — demographic, growth, sectoral, and human development indicators compared across three nations.

Demographic Indicators

India, China, and Pakistan together account for over one-fourth of the world's population. Out of every six persons living in this world, one is an Indian and another is Chinese. The three countries differ significantly in population size, growth rate, density, sex ratio, fertility, and urbanisation.

Table 8.1: Select Demographic Indicators, 2017-18 — Source: World Development Indicators 2019
IndicatorIndiaChinaPakistan
Estimated Population (millions)1,3521,393212
Annual Growth of Population1.03%0.46%2.05%
Density (per sq. km)455148275
Sex Ratio924949943
Fertility Rate2.21.73.6
Urbanisation34%59%37%

Density

China has the lowest density (148 persons/sq. km) being the third largest country by area. India has the highest at 455 persons/sq. km — nearly three times China's density.

Sex Ratio

India has the lowest sex ratio at 924 females per 1,000 males. China: 949. Pakistan: 943. All three countries show a bias against females due to son preference.

Fertility Rate

China's fertility rate fell from over 3 births per woman in 1980 to just 1.7 — the lowest among the three. Pakistan has the highest at 3.6.

Urbanisation

China leads urbanisation at 59%. Pakistan is at 37%. India has the lowest urbanisation at 34% — reflecting its agrarian roots.

Exam-critical: The One-Child Policy led to: (a) reduction in population growth rate, (b) increased proportion of elderly people, (c) decline in sex ratio due to female foeticide.

Launched in 1979 to control population size and growth rate. Modified in the mid-1980s to allow rural parents a second child if the first was a daughter. Reversed to a two-child limit in late 2016. In 2021, China allowed all married couples to have three children.

The 4-2-1 Problem

The only child bears the responsibility of supporting both parents and sometimes all four grandparents in old age. If the only child dies before the parents and grandparents, there is nobody to support them. This creates enormous economic and emotional pressure on a single individual.

Growth Indicators — GDP Growth

The annual growth of GDP reflects how well a country's economy is expanding. During 1980-90, China achieved double-digit growth of 10.3%, while India had the lowest at 5.7%. By 2015-17, the picture changed — India surged to 7.3%, China slowed to 6.8%, and Pakistan declined to 5.3%.

Table 8.2: Annual Growth of GDP in Percent (1980-2017)
Country1980-902015-17
India5.7%7.3%
China10.3%6.8%
Pakistan6.3%5.3%
What is PPP?Purchasing Power Parity shows the equality of purchasing power among countries — the quantity of goods and services that can be bought with a unit of money. Since the US Dollar is universally accepted, GDPs are expressed in 'PPP US $'.

GDP (PPP) Estimates

China

$22.5 trillion

2nd largest in the world

India

$9.03 trillion

About 41% of China's GDP

Pakistan

$0.94 trillion

About 11% of India's GDP

Exam-critical: China maintained near double-digit growth for more than two decades. India recorded an increase from 5.7% to 7.3%. Pakistan met with decline due to political instability, overdependence on remittances and foreign aid, and volatile agricultural performance.

Sectoral Contribution — Agriculture, Industry & Services

The sectoral distribution of GVA (Gross Value Added) and workforce reveals how each country allocates its economic resources. A key insight: India and Pakistan shifted directly to services, skipping the manufacturing phase that China went through.

India

GVA Contribution

16%GVA

Workforce Engaged

43%of total workforce

43% workforce contributes just 16% GVA

China

GVA Contribution

7%GVA

Workforce Engaged

26%of total workforce

Government shifted workers to manufacturing

Pakistan

GVA Contribution

24%GVA

Workforce Engaged

41%of total workforce

Highest agricultural GVA share among the three

Sectoral Output Growth Trends

CountryAgri 1980-90Ind. 1980-90Srv. 1980-90Agri 2014-18Ind. 2014-18Srv. 2014-18
India3.1%7.4%6.9%3.1%6.9%7.6%
China5.9%10.8%13.5%3.1%5.3%7.1%
Pakistan4.0%7.7%6.8%1.7%4.8%5.0%
Key conclusion:Agriculture's contribution to GVA has declined in all three countries. China maintained double-digit industrial growth in the 1980s but showed decline recently. India's service sector showed positive growth.

Human Development Indicators

The Human Development Index (HDI) captures life expectancy, education, and income — providing a broader picture of development than GDP alone. Along the HDI scale, China ranks highest (87th), while Pakistan ranks lowest (154th) among the three.

Exam-critical: A higher HDI rank indicates lowersocio-economic development. China (87th) > India (130th) > Pakistan (154th). Remember: rank 1 = best.
Table 8.4: Some Selected Indicators of Human Development, 2017-2019
IndicatorIndiaChinaPakistan
Human Development Index (Value)0.6450.7610.557
Rank (Based on HDI)13087154
Life Expectancy at Birth (Years)69.776.967.3
Mean Years of Schooling (% aged 15+)6.58.15.2
Gross National Income Per Capita (PPP US$)6,68116,0575,005
Percentage Below Poverty Line (National)21.9%*1.7%**24.3%*
Infant Mortality Rate (per 1,000 live births)29.97.457.2
Maternal Mortality Rate (per 1 lakh births)13329140
Population using Basic Sanitation (%)607560
Population using Basic Drinking Water (%)939691
Undernourished Children (%)37.98.137.6

* For 2011; ** For 2015. Sources: Human Development Report 2019, 2020; World Development Indicators; Key Indicators for Asia and Pacific 2019, ADB.

HDI Rank

India130th
China87th
Pakistan154th

Rank among ~191 countries. Higher rank = lower development. China ranks highest (87th), Pakistan lowest (154th).

Life Expectancy

India69.7 yrs
China76.9 yrs
Pakistan67.3 yrs

Average years a person is expected to live. Higher = better health infrastructure and living standards.

GNI Per Capita

India$6,681
China$16,057
Pakistan$5,005

Gross National Income per capita in PPP US$. Higher = greater purchasing power and economic well-being.

Infant Mortality Rate

India29.9
China7.4
Pakistan57.2

Infants dying before age 1 per 1,000 live births. Lower = better healthcare, nutrition, and sanitation.

Liberty Indicators

Human development indicators are extremely important but not sufficient. Along with these, we also need liberty indicators — a measure of the extent of demographic participation in social and political decision-making.
Liberty Indicators
The measure of the extent of demographic participation in social and political decision-making. They reflect the degree of civil liberties, political rights, and economic freedom within a society.

Examples of Liberty Indicators

Constitutional Rights

Measures of the extent of Constitutional Protection Rights given to the citizens.

Rule of Law

Extent of Constitutional Protection of the independence of the Judiciary and Rule of Law.

By including liberty indicators, policymakers gain a more holistic understanding of an economy's development status. Without these, the construction of a Human Development Index may be said to be incomplete.