NCERT Solutions for Class 11 Economics Indian Economic Development Chapter 8: Comparative Development Experiences of India and its Neighbours

Chapter at a glance

Exercise Questions

Answer

Nations form regional and economic groupings (such as SAARC, ASEAN, European Union, G-20, BRICS) to:

1. Strengthen their own economies by cooperating with neighbours.
2. Face competition from developed nations and from one another in a globalised world.
3. Promote trade among members by reducing barriers.
4. Share technology, resources and markets.
5. Gain a stronger, collective voice in international affairs.

To strengthen domestic economies, expand trade and cooperation, and meet global competition with a collective voice.

Answer

1. Forming regional and global economic groupings (EU, ASEAN, SAARC, G-20).
2. Economic reforms: liberalisation, privatisation and opening up to foreign investment.
3. Understanding the development strategies of neighbours to learn from their strengths and weaknesses.
4. Investment in infrastructure, human capital and technology.
5. Promoting exports and attracting FDI.

Through regional groupings, economic reforms, studying neighbours’ strategies, and investing in infrastructure, people and exports.

Answer

1. Both started planned development through five year plans (India in 1951, Pakistan in 1956).
2. Both adopted the mixed economy model with public and private sectors.
3. Both gave the public sector a leading role in industry.
4. Both followed import substitution and protection of domestic industry.
5. Both introduced the Green Revolution for food self-sufficiency.
6. Both introduced economic reforms (Pakistan in 1988, India in 1991) under pressure from international agencies.

Planning, mixed economy with a leading public sector, import substitution, Green Revolution, and later economic reforms.

Answer

The Great Leap Forward (GLF) was launched in 1958 by China’s leadership to industrialise the country on a massive scale.

1. People were encouraged to set up industries in their backyards.
2. In rural areas, communes were started, under which people collectively cultivated land.
3. In 1958 there were about 26,000 communes covering almost all the farm population.

Outcome: the campaign faced many problems. A severe drought caused havoc, killing about 3 crore people. When Russia had conflicts with China, it withdrew its professionals, who had been sent to help. The GLF largely failed.

A 1958 drive to industrialise China rapidly through backyard industries and rural communes; it largely failed due to drought and withdrawal of Soviet help.

Answer

Yes, largely. In 1978 China introduced reforms in phases:

1. Agriculture: commune lands were divided into small plots allotted to individual households (the responsibility system). Farmers could keep income after paying taxes; output rose sharply.
2. Industry: private firms and township and village enterprises were allowed to produce goods; state enterprises had to face competition.
3. Dual pricing: farmers and firms bought and sold fixed quantities at state prices and the rest at market prices.
4. Special Economic Zones (SEZs) attracted foreign investment and technology.

These raised investment, exports and manufacturing growth (often about 10 % a year).

However, the reforms built on the pre-reform foundations — infrastructure, land reforms, health and education created earlier — which made the rapid growth possible.

Yes; the 1978 reforms (household farming, TVEs, dual pricing, SEZs and FDI) drove rapid industrial growth, helped by pre-reform investment in people and infrastructure.

Answer

1. Pakistan followed a mixed economy model with public and private sectors.
2. It introduced tariff protection for import substitution of consumer goods in the late 1950s and 1960s, along with direct import controls.
3. The Green Revolution led to mechanisation and public investment in infrastructure, raising food output and changing the agrarian structure.
4. In the 1970s, nationalisation of capital-goods industries took place.
5. In the late 1970s and 1980s, the policy shifted to denationalisation and encouragement of the private sector, with financial support from Western nations and remittances from emigrants to the Middle East.
6. In 1988 reforms were introduced under pressure from international agencies.

Mixed economy and import substitution, Green Revolution, nationalisation in the 1970s, denationalisation later, and reforms from 1988.

Answer

The one-child norm, introduced in China in the late 1970s, arrested population growth (China’s population growth is now negative, about –0.10 % a year).

Implications

1. A low sex ratio (898 females per 1000 males), indicating a preference for sons.
2. Over a few decades, there will be a larger proportion of elderly people than young people, so China must provide more social security for the old with fewer workers.

China has since relaxed the norm.

It slowed population growth sharply but led to a low sex ratio and an ageing population with fewer workers.

Answer

Select demographic indicators, 2021–23

Observations: India has the largest population and highest density; China has negative population growth and the lowest fertility, but the highest urbanisation; Pakistan has the fastest population growth and highest fertility rate. The sex ratio is low in all three, lowest in China.

India: largest population and density; China: falling population, lowest fertility, highest urbanisation, lowest sex ratio; Pakistan: fastest population growth and highest fertility.

Answer

Sectoral shares (%) in 2022

Comparison

• In both, services contribute the most (54 %) to GVA.
• Agriculture gives 18 % of India’s GVA but employs 43 % of workers; in China it gives 8 % with 23 % of workers.
• Industry contributes 38 % in China but only 28 % in India.

Indication

• China has followed the classical development path: a shift from agriculture to manufacturing and then to services.
• India has moved directly from agriculture to services, skipping a strong manufacturing phase; too many Indian workers still depend on low-productivity agriculture.

China’s growth is manufacturing-led with fewer people in farming; India shifted straight from agriculture to services and still has 43 % of workers in agriculture.

Answer

1. Human Development Index (HDI) value and rank.
2. Life expectancy at birth.
3. Mean years of schooling and literacy.
4. GNI per capita (PPP).
5. Percentage of people below the poverty line.
6. Infant mortality rate and maternal mortality rate.
7. Access to sanitation and safe drinking water.
8. Prevalence of undernourishment.

HDI, life expectancy, schooling, per capita income, poverty, infant and maternal mortality, sanitation and water access, and undernourishment.

Answer

Liberty indicators measure the extent of freedom enjoyed by people: how far they can participate in social and political decision-making and enjoy civil rights.

Examples

1. The extent of democratic participation in social and political decision-making.
2. Measures of constitutional protection of the rights of citizens.
3. Measures of the independence of the judiciary and the rule of law.
4. Freedom of the press and of expression.

These are not included in the HDI, but they are important for a full picture of development.

Indicators of people’s freedom: democratic participation, constitutional protection of rights, judicial independence and rule of law, press freedom.

Answer

1. Pre-reform foundations: land reforms, communes, wide spread of education and health care, and infrastructure built before 1978.
2. 1978 reforms: the household responsibility system in agriculture raised farm output and rural incomes.
3. Township and village enterprises and private firms boosted manufacturing.
4. Dual pricing allowed a gradual shift to market prices.
5. SEZs attracted huge foreign investment and technology.
6. Export-led manufacturing with a large, disciplined workforce.
7. The one-child norm slowed population growth, raising income per head.
8. Strong state direction and high savings and investment.

Strong pre-reform foundations, the 1978 reforms (household farming, TVEs, dual pricing, SEZs, FDI), export-led manufacturing and population control.

Answer

(India and Pakistan both have mixed economies and service-led growth; India and China both have large populations.)

India: mixed economy, large population, high density, service-led growth. China: one-child norm, low fertility, high urbanisation, manufacturing-led growth. Pakistan: mixed economy, very high fertility, service-led growth.

Answer

1. Agricultural growth was not based on technical change but on good harvests; it was unstable and fluctuated.
2. Growth relied on foreign remittances and foreign aid rather than on a strong domestic base, so it was not sustainable.
3. Political instability and the domination of the army over long periods.
4. Weak manufacturing sector; growth was mainly in services.
5. Rising foreign debt, and the need to repay loans; low investment in human capital.
6. High population growth.

Many of these began in the 1990s, causing growth to slow and poverty to re-emerge.

Unstable agriculture, dependence on remittances and foreign aid, political instability, weak industry, foreign debt and high population growth.

Answer

Selected human development indicators (2017–2023)

Observations

• China leads on every indicator: highest HDI, income, life expectancy and schooling, and the lowest mortality and poverty.
• India is ahead of Pakistan on most indicators: HDI, life expectancy, schooling, income, infant and maternal mortality, sanitation and nutrition.
• Both India and Pakistan still have high maternal mortality and undernourishment compared to China.

China leads on all human development indicators; India is ahead of Pakistan on most, but both lag China, especially in mortality and nutrition.

Answer

Annual GDP growth (%)

• China grew at double-digit rates (about 10 %) in the 1980s and for long after, the fastest in the world, led by manufacturing; but its growth has slowed in recent years (6.8 % in 2015–17 and 5.0 % in 2024).
• India had moderate growth in the 1980s but has improved after the reforms; it grew faster than China in 2015–17 (7.3 %) and in 2024 (6.5 %), led mainly by services.

So China’s growth has been decelerating while India’s has been relatively steady and is now higher.

China’s very high growth has slowed (to about 5 %), while India’s has risen and is now higher (about 6.5–7.3 %), led by services.

Answer

1. Pakistan (China’s First Plan began in 1953).
2. Pakistan (154 per lakh births against 23 in China).
3. Pakistan is the expected answer, based on earlier data (24.3 % against India’s 21.9 %). In the current Table 8.5 both countries show 21.9 %.
4. China.

1. Pakistan (b) Pakistan (c) Pakistan (on earlier data; both 21.9 % in Table 8.5) (d) China

Topic checklist

• Regional and economic groupings
• Development paths of India, China and Pakistan
• Great Leap Forward, Cultural Revolution and 1978 reforms
• Demographic indicators and the one-child norm
• GDP growth and sectoral composition
• Human development and liberty indicators

Total questions answered: 17 of 17