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India, China and Pakistan Compared for CUET Economics

About 5 min to learn · 57 questions

Why India compares itself with its neighbours, the development paths of India, Pakistan and China since 1947–49, China's Great Leap Forward, Cultural Revolution and 1978 reforms, Pakistan's mixed economy, and how the three compare on population, growth, sectors and human development, with worked examples and the traps CUET sets.

Syllabus area
Indian Economic Development
On this page · 12 sections
  1. 01The core idea
  2. 02Starting points
  3. 03China's path
  4. 04Pakistan's path
  5. 05Population
  6. 06Growth and sectors
  7. 07Human development
  8. 08Lessons
  9. 09Exam shortcuts
  10. 10Common mistakes
  11. 11Quick revision
  12. 12Check your understanding

The core idea

India, Pakistan and China started from similar points around 1947–49, all planned, and until about 1980 had similar growth rates and incomes. Then their paths split. Comparing them shows India its own strengths and weaknesses.

Nations also work together in groupings: SAARC (1985) for South Asia, which China is not in, and BRICS, which includes India and China.

Starting points

EventIndiaPakistanChina
Independence or republic194719471949 (People's Republic)
First Five Year Plan19511956 (Medium Term Plan)1953
Market reforms199119881978

China's path

  • Great Leap Forward (1958): industrialisation on a massive scale, with industries even in backyards and communes, in which people farmed land collectively. A severe drought and the withdrawal of Soviet experts after a quarrel brought heavy losses.
  • Great Proletarian Cultural Revolution (1966–76): students and professionals were sent to the countryside to work and learn.
  • Reforms from 1978, introduced without outside pressure:
    • commune land split into plots that households could use, keeping all income after set taxes;
    • private firms and township and village enterprises (run by local collectives) allowed, and state firms made to compete;
    • dual pricing: a fixed quantity traded at state prices, the rest at market prices;
    • Special Economic Zones to attract foreign investors.

Pakistan's path

Pakistan followed a mixed economy, with import substitution and protection in the 1950s and 1960s and its own green revolution. It nationalised capital goods industries in the 1970s, then shifted to denationalisation and the private sector. Western aid and remittances from workers in the Middle East supported growth. Reforms came in 1988, under balance of payments pressure, with the World Bank and IMF involved.

Population

IndicatorHighestLowest
Population densityIndiaChina
Population growthPakistanChina
Fertility ratePakistanChina
UrbanisationChina

China's one-child norm (from the late 1970s) is the main reason its population grows slowly. It also lowered the sex ratio and means China will have more elderly people in proportion to the young; couples were allowed two children from 2016. The sex ratio is low and biased against females in all three.

Example 1 · Population density

Country X has 120 crore people on 30 lakh sq km.

  1. 120 crore = 1,20,00,00,000; 30 lakh sq km = 30,00,000 sq km.

  2. Density = 1,20,00,00,000 ÷ 30,00,000.

Answer

400 persons per sq km

Growth and sectors

  • China's GDP is by far the largest of the three, and it grew at double-digit rates in the 1980s.
  • China's growth was led by manufacturing, and later services; workers moved from agriculture to industry and then to services.
  • In India and Pakistan, output moved more directly from agriculture to services, which absorbed fewer workers.
  • Pakistan's growth slowed after the 1990s: political instability, reliance on remittances and foreign aid, and a volatile farm sector.

Human development

On the UNDP's Human Development Index, which combines life expectancy, education and income per head, China ranks highest, then India, then Pakistan. China had already invested heavily in health, education and land reform before 1978, so growth turned into better lives quickly.

Watch out

The HDI does not measure liberty. India's democracy, its free press and the freedom to take part in decisions do not show up in it, though they matter to development.

Lessons

  • Early investment in health and education pays off when an economy opens.
  • Services-led growth creates fewer jobs than manufacturing-led growth.
  • Growth built on aid and remittances is fragile.

Exam shortcuts

  • China: PRC 1949, First Plan 1953, GLF 1958, Cultural Revolution 1966–76, reforms 1978.
  • Pakistan: First Plan 1956, reforms 1988. India: First Plan 1951, reforms 1991.
  • Density: India highest, China lowest. Growth and fertility: Pakistan highest.
  • HDI: China > India > Pakistan.

Common mistakes

  • Placing the Great Leap Forward after the 1978 reforms.
  • Saying Pakistan had communes.
  • Putting China in SAARC.
  • Reading a higher HDI as a sign of more democracy.

Quick revision

Paths

  • China: communes, GLF, Cultural Revolution, 1978 reforms
  • Pakistan: mixed economy, nationalisation, remittances
  • Reforms: China 1978, Pakistan 1988, India 1991

Indicators

  • Density: India highest
  • One-child norm: slow growth, ageing
  • HDI: China, India, Pakistan

All of Indian Economic Development's dates and facts are on one page in the IED timeline and facts sheet.

Next · 11Quick revision

Check your understanding

57 questions, grouped by type, easy to hard. Pick an answer and check it. The worked solution opens when you ask for it.

Why compareQ1 of 57Q1

Why compare

5 questions

Why is it useful for India to compare its development with that of its neighbours?

Options for question 1

Show the explanationHide the explanation

AnswerB · To learn from their strengths and weaknesses

  1. Countries that started from similar points but took different paths show what worked and what did not.

Which of these regional groupings includes India, Pakistan and other South Asian nations?

Options for question 2

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AnswerD · SAARC

  1. The South Asian Association for Regional Cooperation (SAARC), formed in 1985, groups the South Asian nations.

India and China are both members of which grouping of large emerging economies?

Options for question 3

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AnswerA · BRICS

  1. BRICS began with Brazil, Russia, India, China and South Africa; China is not a member of SAARC.

Assertion (A): Nations form regional and global economic groupings.

Reason (R): Groupings help members strengthen their economies by working with neighbours.

Options for question 4

Show the explanationHide the explanation

AnswerA · Both A and R are true, and R is the correct explanation of A.

  1. Trade, investment and cooperation within a group raise each member's strength.

  2. R explains A.

Assertion (A): China is a member of SAARC.

Reason (R): SAARC brings together the nations of South Asia.

Options for question 5

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AnswerD · A is false, but R is true.

  1. China is not a South Asian nation and is not a member of SAARC, so A is false.

  2. R is true.

Development paths

22 questions

Arrange these in chronological order.

A. India's First Five Year Plan begins

B. India and Pakistan become independent

C. China's First Five Year Plan begins

D. The People's Republic of China is set up

Options for question 6

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AnswerC · B, D, A, C

  1. India and Pakistan 1947; PRC 1949; India's First Plan 1951; China's First Plan 1953.

China began its market reforms in

Options for question 7

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AnswerB · 1978

  1. China's reforms began in 1978; Pakistan's in 1988; India's in 1991.

Pakistan announced its first Five Year Plan, also called the Medium Term Plan, in

Options for question 8

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AnswerC · 1956

  1. India's First Plan began in 1951, China's in 1953 and Pakistan's in 1956.

Read the two statements and choose the correct option.

I. India, Pakistan and China all began their development by planning.

II. Until the 1980s, the three had broadly similar growth rates and per capita incomes.

Options for question 9

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AnswerC · Both I and II

  1. All three drew up five year plans: I is true.

  2. They started from similar positions and stayed close until about 1980: II is true.

China's Great Leap Forward, launched in 1958, aimed to

Options for question 10

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AnswerB · industrialise the country on a massive scale

  1. People were urged to set up industries even in their backyards, and in villages communes were started to farm the land collectively.

Under the commune system in China,

Options for question 11

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AnswerC · people cultivated land collectively

  1. Under the commune system, the people worked the land together.

During China's Great Proletarian Cultural Revolution (1966–76), students and professionals were

Options for question 12

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AnswerD · sent to work and learn in the countryside

  1. Mao's Cultural Revolution sent students and professionals to the countryside to work with and learn from the peasants.

Arrange these events in China in chronological order.

A. The Great Leap Forward

B. Market reforms begin

C. The People's Republic is set up

D. The Cultural Revolution begins

Options for question 13

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AnswerC · C, A, D, B

  1. PRC 1949, Great Leap Forward 1958, Cultural Revolution 1966, reforms 1978.

Arrange the start of market reforms in the three countries in chronological order.

A. India's GST

B. India

C. Pakistan

D. China

Options for question 14

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AnswerA · D, C, B, A

  1. China 1978, Pakistan 1988, India 1991, and India's GST much later, in 2017.

In the first phase of China's reforms, commune land was

Options for question 15

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AnswerB · split into plots for households to use

  1. Households were allocated plots (for use, not ownership) and could keep all income after paying the set taxes.

China set up Special Economic Zones (SEZs) mainly to

Options for question 16

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AnswerA · attract foreign investors

  1. SEZs offered foreign firms special terms, bringing in capital, technology and export markets.

In the later phase of China's reforms, which were allowed to produce goods alongside state-owned firms?

Options for question 17

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AnswerD · Private and township-village enterprises

  1. Private firms and township and village enterprises (owned and run by local collectives) began producing goods, and state-owned enterprises had to face competition.

Pakistan's development model was

Options for question 18

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AnswerB · a mixed economy with public and private sectors

  1. Like India, Pakistan followed a mixed economy in which the public and private sectors co-existed.

Pakistan's growth in the late 1970s and 1980s was helped by

Options for question 19

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AnswerC · Western aid and remittances from the Middle East

  1. Financial support from Western nations and steadily rising remittances from emigrants to the Middle East supported growth.

Match each country with a feature of its development path.

List IList II
A. ChinaI. Reforms after the 1991 crisis
B. PakistanII. Communes and the Great Leap Forward
C. IndiaIII. Special Economic Zones
D. China after 1978IV. Remittances from the Middle East
Options for question 20

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AnswerB · A-II, B-IV, C-I, D-III

  1. Each feature belongs to one country's story: communes and SEZs to China at different times, remittances to Pakistan, the 1991 reforms to India.

Assertion (A): Pakistan adopted the green revolution.

Reason (R): Pakistan nationalised its farms under a commune system.

Options for question 21

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AnswerC · A is true, but R is false.

  1. Pakistan, like India, introduced new farm technology, which raised food grain output: A is true.

  2. Communes were China's system; Pakistan had a mixed economy. R is false.

Which of these was a problem faced by the Great Leap Forward?

Options for question 22

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AnswerA · A severe drought and the loss of Soviet experts

  1. A severe drought caused great loss of life, and a quarrel with the Soviet Union led it to withdraw the professionals helping China industrialise.

Under China's dual pricing system,

Options for question 23

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AnswerD · a fixed quantity was traded at state prices and the rest at market prices

  1. Farmers and firms had to buy and sell set quantities of inputs and outputs at state-fixed prices; anything beyond that was traded at market prices.

In the 1970s, Pakistan

Options for question 24

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AnswerC · nationalised its capital goods industries

  1. Capital goods industries were nationalised in the 1970s; from the late 1970s Pakistan shifted to denationalisation and encouraged the private sector.

Assertion (A): China's reforms were introduced without pressure from outside agencies.

Reason (R): Pakistan and India both began reforms partly under balance of payments pressure and with the World Bank and IMF involved.

Options for question 25

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AnswerB · Both A and R are true, but R is not the correct explanation of A.

  1. Both statements are true.

  2. What drove reform in India and Pakistan does not explain why China's reforms came without outside pressure, so R does not explain A.

Assertion (A): The Great Leap Forward was launched after China's market reforms of 1978.

Reason (R): The Great Leap Forward aimed at rapid industrialisation.

Options for question 26

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AnswerD · A is false, but R is true.

  1. It was launched in 1958, twenty years before the reforms, so A is false.

  2. R is true.

Read the two statements and choose the correct option.

I. China's SEZs were set up to attract foreign investment.

II. Township and village enterprises in China were owned by foreign companies.

Options for question 27

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AnswerA · Only I

  1. I is true.

  2. They were owned and run by local collectives, so II is false.

Population

12 questions

Of India, China and Pakistan, which has the lowest population density?

Options for question 28

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AnswerD · China

  1. China's population is spread over a much larger area, so it has the fewest people per square kilometre; India has the most.

Of the three countries, which has the highest rate of population growth?

Options for question 29

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AnswerA · Pakistan

  1. Pakistan's population grows fastest; China's slowest, after decades of the one-child norm.

China introduced the one-child norm in

Options for question 30

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AnswerD · the late 1970s

  1. The one-child norm came in the late 1970s and is the main reason for China's low population growth. It was relaxed to two children from 2016.

Of the three countries, which has the lowest fertility rate?

Options for question 31

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AnswerC · China

  1. China's fertility rate is the lowest of the three, and Pakistan's the highest.

Of the three countries, which has the highest degree of urbanisation?

Options for question 32

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AnswerB · China

  1. A much larger share of China's people live in towns and cities than in India or Pakistan.

Read the two statements and choose the correct option.

I. The sex ratio is low and biased against females in all three countries.

II. China's one-child norm raised its sex ratio well above that of India.

Options for question 33

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AnswerA · Only I

  1. All three have fewer females than males per thousand: I is true.

  2. The one-child norm is linked with a fall in China's sex ratio, not a rise. II is false.

Data for three countries:

CountryPopulation (crore)Area (lakh sq km)Population growth (% a year)
X120301.2
Y140960.4
Z2282.0

Using the data for the three countries, what is the population density of country X?

Options for question 34

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AnswerD · 400 persons per sq km

  1. 120 crore = 1,20,00,00,000 people; 30 lakh sq km = 30,00,000 sq km.

  2. Density = 1,20,00,00,000 ÷ 30,00,000 = 400 persons per sq km.

Worth noting

4 forgets that a crore is a hundred lakh; 146 is country Y.

Read the two statements and choose the correct option.

I. India has the highest population density of the three countries.

II. Pakistan has the lowest fertility rate of the three countries.

Options for question 35

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AnswerA · Only I

  1. I is true.

  2. Pakistan's fertility rate is the highest; China's is the lowest. II is false.

A likely long-term effect of China's one-child norm is

Options for question 36

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AnswerA · more elderly people in proportion to the young

  1. With fewer children born each year, the share of old people rises over time, which is why China later allowed couples two children.

Data for three countries:

CountryPopulation (crore)Area (lakh sq km)Population growth (% a year)
X120301.2
Y140960.4
Z2282.0

Using the data for the three countries, which country has the lowest population density?

Options for question 37

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AnswerB · Y

  1. Density = population ÷ area: X = 120 ÷ 30 = 4 crore per lakh sq km (400 per sq km); Y = 140 ÷ 96 ≈ 1.46 (146); Z = 22 ÷ 8 = 2.75 (275).

  2. Y has the most people but the most land, so its density is lowest.

Worth noting

Z has the fewest people, but it also has the least land.

Data for three countries:

CountryPopulation (crore)Area (lakh sq km)Population growth (% a year)
X120301.2
Y140960.4
Z2282.0

Using the data for the three countries, roughly how many people does country Z add in a year?

Options for question 38

Show the explanationHide the explanation

AnswerA · 44 lakh

  1. 2% of 22 crore = 0.44 crore.

  2. 0.44 crore = 44 lakh.

Worth noting

4.4 crore takes 20% instead of 2%.

Assertion (A): China's population growth is the lowest of the three countries.

Reason (R): China followed a one-child norm for several decades.

Options for question 39

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AnswerA · Both A and R are true, and R is the correct explanation of A.

  1. Limiting families to one child cut the birth rate and so the growth of population.

  2. R explains A.

Growth and sectors

8 questions

Of India, China and Pakistan, which has the largest GDP?

Options for question 40

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AnswerD · China

  1. China's GDP is the largest of the three by a wide margin; Pakistan's is the smallest.

In the 1980s, which of the three countries grew at double-digit rates?

Options for question 41

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AnswerC · China

  1. After its 1978 reforms, China grew at around 10% a year in the 1980s, far ahead of India and Pakistan.

China's rapid growth has been driven mainly by

Options for question 42

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AnswerD · manufacturing

  1. Manufacturing, and later services, led China's growth; agriculture's share of output is small although many still work in it.

India's growth since the 1990s has been led mainly by

Options for question 43

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AnswerB · the service sector

  1. Services such as IT, finance and trade drove India's growth, while manufacturing grew more slowly than in China.

Pakistan's growth slowed after the 1990s mainly because of

Options for question 44

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AnswerC · political instability and reliance on aid

  1. Political instability, over-dependence on remittances and foreign aid, and a volatile farm sector held back Pakistan's growth.

Assertion (A): Pakistan's economy has been heavily dependent on remittances.

Reason (R): Many Pakistanis work abroad, especially in the Middle East, and send money home.

Options for question 45

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AnswerA · Both A and R are true, and R is the correct explanation of A.

  1. Earnings sent home by workers abroad form a large flow of income for the economy.

  2. R explains A.

Read the two statements and choose the correct option.

I. In China, the workforce moved from agriculture into manufacturing and then into services.

II. In India and Pakistan, the shift of output was more directly from agriculture to services.

Options for question 46

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AnswerC · Both I and II

  1. China followed the classic path, with a large manufacturing phase: I is true.

  2. India and Pakistan moved towards services without a large manufacturing phase: II is true.

Assertion (A): Agriculture's share of China's GDP is small.

Reason (R): A large share of China's workforce still works in agriculture.

Options for question 47

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AnswerB · Both A and R are true, but R is not the correct explanation of A.

  1. Both are true.

  2. That many people farm does not explain why farming's share of output is small; the reason is that manufacturing and services grew much larger. R does not explain A.

Human development

5 questions

Of India, China and Pakistan, which ranks highest on the Human Development Index?

Options for question 48

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AnswerA · China

  1. China ranks well above India, and India above Pakistan, on the UNDP's Human Development Index.

Which of these is NOT one of the three dimensions measured by the Human Development Index?

Options for question 49

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AnswerB · Military strength

  1. The HDI combines life expectancy, education (years of schooling) and income per head.

Critics say that comparing countries only on income and the HDI leaves out

Options for question 50

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AnswerD · democratic participation and civil rights

  1. Life expectancy, schooling and income are in the HDI. Freedom to take part in decisions is not, though it matters to development.

Assertion (A): China's human development indicators improved faster than India's.

Reason (R): Before its market reforms, China had already invested heavily in health, education and land reform.

Options for question 51

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AnswerA · Both A and R are true, and R is the correct explanation of A.

  1. That base of healthy, educated people let growth after 1978 translate into better lives quickly.

  2. R explains A.

Read the two statements and choose the correct option.

I. The Human Development Index does not measure political freedom or democratic rights.

II. India's democracy is reflected in a higher HDI rank than China's.

Options for question 52

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AnswerA · Only I

  1. The HDI covers health, education and income only: I is true.

  2. India ranks below China on the HDI, and the HDI does not count democracy at all. II is false.

Lessons from the comparison

5 questions

A main lesson from China's experience is that

Options for question 53

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AnswerA · early investment in health and education helps later growth

  1. China built social infrastructure first; when it opened up, a healthy, educated workforce made its reforms pay off quickly.

Read the two statements and choose the correct option.

I. Pakistan's reforms were introduced largely because of a balance of payments crisis.

II. China's commune system was designed to give each family private ownership of land.

Options for question 54

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AnswerA · Only I

  1. Pakistan reformed under balance of payments pressure, with the World Bank and IMF involved: I is true.

  2. Communes meant collective farming, the opposite of private ownership. II is false.

Assertion (A): India's growth has not reduced the share of people depending on agriculture as much as China's has.

Reason (R): India's growth has been led by services, which absorbed fewer workers than China's manufacturing.

Options for question 55

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AnswerA · Both A and R are true, and R is the correct explanation of A.

  1. Manufacturing pulled workers off the land in China; India's service-led growth did so far less.

  2. R explains A.

Assertion (A): India has mostly been governed democratically since independence.

Reason (R): China has grown faster than India since 1980.

Options for question 56

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AnswerB · Both A and R are true, but R is not the correct explanation of A.

  1. Both are true.

  2. China's faster growth does not explain India's democratic rule, so R does not explain A.

Match each country with a weakness noted in its development record.

List IList II
A. PakistanI. An ageing population after the one-child norm
B. ChinaII. Slow growth under the commune system
C. IndiaIII. Dependence on remittances and aid
D. China before 1978IV. Too few jobs outside agriculture
Options for question 57

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AnswerC · A-III, B-I, C-IV, D-II

  1. Each weakness is drawn from that country's path: aid-dependence in Pakistan, ageing in China, jobs in India, and slow growth in China before reform.

NTA's Economics syllabus is three courses: Introductory Microeconomics, Introductory Macroeconomics and Indian Economic Development, each split into units with a list of topics. It prints no chapters and no split of the 50 questions across the courses. So the areas here are NTA's three courses, and the chapters inside them are ours: a unit that covers several ideas, such as consumer behaviour and demand, is split into a chapter for each, so that a chapter can be practised in one sitting. All three courses are here.