NCERT Solutions for Class 11

Social Science - Indian Economic Development

Chapter 10 – Development Experiences of India:

A Comparison with Neighbours

1. Why are regional and economic groupings formed?

Ans: Different nations throughout the world are motivated to form regional and
global economic groups such as SAARC, European Union, ASEAN, and others in
order to better grasp diverse means and plans for economic strengthening. Such
formations allow member countries to learn about the development methods and
policies used by other members. This allows them to assess their strengths and
weaknesses and, as a result, adopt strategies to expedite social growth and cultural
development among its member countries. Second, another key reason for the
formation of these associations is to maintain the member countries' peace and
stability. Furthermore, these organizations provide a common forum for people to
unite and speak out on shared issues in order to protect their common interests.

2. What are the various means by which countries are trying to strengthen
their own domestic economies?
Ans: The following are the different methods through which nations are attempting
to boost their domestic economies:
(i) To boost their economies, nations are joining numerous regional and economic
groups such as SAARC, the European Union, the G-8, the G-20, and ASEAN. These
organizations provide a shared forum for member countries to speak out on common
concerns in a cohesive voice in order to protect their common interests.

(ii) They are also interested in learning about the developmental processes used by
their neighboring countries in order to assess their own strengths and flaws. As a
result, they adopt strategies to enhance social and cultural growth among member
countries.

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(iii) Furthermore, governments are liberalizing their economy. This reduces the
government's involvement in economic activity. The economy is governed by
market forces, i.e. demand and supply factors.

(iv) Nations also use the globalisation process to open up their economy and create
a large worldwide market to their domestic producers.

3. What similar developmental strategies have India and Pakistan followed for
their respective developmental paths?
Ans: Both India and Pakistan have pursued a similar developmental agenda. The
following are the primary similarities between the developmental strategies:

i. Both India and Pakistan began development programs based on economic planning
soon after their independence in 1947.

ii. Both countries rely on the public sector to kickstart the growth and development
process.
iii. They have both followed the road of a mixed economic structure, involving both
the state and the private sector.
iv. They both implemented economic changes at the same time in order to develop
their economies.

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

Ans: The Great Leap Forward (GLF) was a Chinese movement that began in 1958.
The following are the campaign's objectives:

1. The campaign's goal was to kickstart large-scale industrialization in the country,

focusing not just on urban but also on rural areas.
2. People in cities were encouraged to start businesses in their own backyards.

3. The Commune System was adopted in rural regions. People engaged in collective
farming under this method.

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5. China's rapid industrial growth can be traced back to its reforms in 1978. Do
you agree? Elucidate.
Ans: Yes, China's rapid industrial expansion cannot be ignored as a result of the
different economic reforms implemented in stages since 1978. Reforms were
undertaken in the agriculture, foreign trade, and investment sectors during the early
period. The Commune Method, a collaborative farming system, was adopted. Land
was divided into tiny plots and assigned to individual households under this method.
After paying taxes to the government, these households were allowed to keep the
remainder of their land revenue. Reforms in the industrial sector were undertaken
later in the phase. Dual pricing was also incorporated in the revisions. Dual pricing
implies that farmers and industrial units were forced to acquire and sell a
predetermined quantity of inputs and output at a government-determined price,
while the remaining quantities were sold at market prices. The changes also included
the establishment of Special Economic Zones in order to attract foreign firms. As a
result, China's rapid industrial expansion can be attributed to the success of various
stages of its economic reforms.

6. Describe the path of developmental initiatives taken by Pakistan for its

economic development.
Ans: a) In order to achieve economic development, Pakistan developed a mixed
economy model in which the private and governmental sectors coexist.

b) During the 1950s and 1960s, Pakistan used a range of controlled policy
frameworks for import substitution and industrialization. This entails creating items
at home to replace imports, so inhibiting imports while boosting and expanding
indigenous industry.

c) Tariff barriers were erected as a policy instrument to protect domestic companies

manufacturing consumer products.

d) The introduction of the Green Revolution mechanised agriculture, resulting in an

increase in food grain output.

e) In the 1970s, mechanisation of agriculture was followed by nationalisation of

capital goods industries.
f) In the late 1970s and early 1980s, Pakistan switched its policy orientation by
denationalizing the thrust areas, thereby supporting private sector growth.

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g) All of the preceding actions established an environment suitable to launching the
economic changes that were eventually launched in 1988.

7. What is the important implication of the one child norm in China?

Ans: The significant impact of China's one-child policy is the country's low
population growth. This approach also resulted in a decrease in China's sex ratio, or
the proportion of females per thousand males. However, the country believes that in
the following decades, there will be a greater proportion of elderly people than young
ones. As a result, the country will be forced to implement social security measures
with fewer personnel.

8. Mention the salient demographic indicators China, Pakistan and India.

Ans: Select democratic indicators, 2013

Countr Estimated Annual Density Sex Fertility Urbanisati

y populatio growth of (per (ratio) Rate on
n (in population sq.km)
million) (2001-
2010)

India 1252 1.24 421 934 2.6 32

China 1357 0.49 145 929 1.6 53

Pakista 182 1.65 236 947 3.3 38

n

Based on the data shown above, we can deduce that China has the largest population,
closely followed by India. Pakistan's population is quite small, accounting for around
one-tenth of that of China or India. China has the lowest population density and India
has the greatest. China's one-child policy has slowed the country's population growth
pace. Since society is biased against women and male dominated, the sex ratio is
low in all three countries. Pakistan has the highest fertility rate and China has the
lowest, whereas China has the highest degree of urbanization when compared to
India and Pakistan.

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9. Compare and contrast India and China's sectoral contribution towards GDP
in 2003. What does it indicate?

Ans:

Sectors Contribution to GDP in % (2003)

India China

Primary (agriculture) 23 15

Secondary (industry) 56 53

Tertiary (Service) 51 32

According to the above figures for India and China's sectoral contributions to GDP
in 2003, agriculture contributed 15% to GDP in China while it contributed 23% to
GDP in India. Manufacturing, on the other hand, provides the most to GDP in China,
at 53 percent, while the service sector contributes the most in India, at roughly 51
percent. Economic expansion has resulted in a significant shift in the sectoral
proportion of output and employment. The primary sector's proportion of overall
output and employment is decreasing, while the secondary and tertiary sectors' share
is increasing. This suggests that both the economic and social conditions are
improving. China's experience is comparable to that of other industrialized countries
throughout the world. According to the experience of industrialized countries, the
secondary sector, followed by the tertiary sector, emerges as the major sectors of the
economy. In comparison to China, India saw a direct shift from the primary to
tertiary sectors. This is owing to the rapid integration of these two economies with
the rest of the world's market economy.

10. Mention the various indicators of human development.

Ans: Human development indicators include:

i. Expected Life Expectancy.

ii. Rate of Adult Literacy.

iv. Rate of Infant Mortality

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iv. The proportion of the people living in poverty.
v. Gross Domestic Product (GDP) Per Capita Income

vi. The proportion of the population who has access to improved sanitation.

vii. The proportion of the population who has access to upgraded water sources.

11. Define liberty indicator. Give some examples of liberty indicators.

Ans: The Liberty Indicator can be characterized as a measure of population
engagement in social and political decision-making. In other words, it is a metric for
measuring people's involvement in decision-making. Some examples of liberty
indicators include measures of the extent to which people' constitutional rights are
protected, as well as the extent to which the judiciary's independence and the rule of
law are protected by the constitution.

12. Evaluate the various factors that led to the rapid growth in economic
development in China.
Ans: China's rapid economic progress is the result of the gradual implementation of
reforms beginning in 1978. The following are the numerous reasons that contributed
to China's rapid economic development:
1. Initially, reforms in agriculture, foreign trade, and investment were implemented.
The Commune Method, a collaborative farming system, was adopted. Land was
divided into tiny plots and assigned to individual households under this method.
After paying taxes to the government, these households were allowed to keep the
remainder of their land revenue.

2. Later in the phase, reforms in the industrial sector were begun. During this period,
private corporations, village and township enterprises, and village and township
enterprises were permitted to manufacture goods and services and compete with
State Owned Enterprises.

3. The dual pricing was put in place. This means that farmers and industrial units
were compelled to acquire and sell a predetermined number of inputs and output at
a government-determined price, while the remaining quantities were sold at market

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prices. With the tremendous expansion in aggregate output in later years, the
quantities sold in the market multiplied many times over.

4. The changes also included the establishment of Special Economic Zones to attract
international businesses and boost exports. As a result of the combined focus of all
of these economic changes, China has experienced fast industrial expansion and
economic development.

13. Group the following features pertaining to the economies of India, China
and Pakistan under three heads
• One-child norm

• Low fertility rate

• High degree of urbanisation
• Mixed economy
• Very high fertility rate

• Large population

• High density of population

• Growth due to manufacturing sector • Growth due to service sector

Ans:
• One-child norm: China

• Low fertility rate: China

• High degree of urbanization: Pakistan and China

• Mixed economy: India and Pakistan

• Very high fertility rate: Pakistan

• Large population: India and China

• High density of population: India

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• Growth due to manufacturing sector: China
• Growth due to service sector: India

14. Give reasons for the slow growth and re-emergence of poverty in Pakistan.
Ans: The following are the primary causes behind Pakistan's slow growth and re-
emergence of poverty:

1. Greater Dependence on Public Sector Enterprises: The fundamental reason for

Pakistan's poor economic growth is the country's increased reliance on Public Sector
Enterprises. Pakistan relied heavily on a protectionist policy, with the Public Sector
Enterprises playing a prominent role. The operational inefficiencies of public-sector
enterprises, as well as the misallocation of scarce resources, resulting in a sluggish
economic growth rate.

2. Traditional Agricultural Practices: Pakistan's agricultural practices were

primarily reliant on traditional methods and the vagaries of climatic circumstances,
resulting in low productivity. As a result, the agricultural industry was unable to
thrive to the amount that was anticipated.

3. Underdeveloped Manufacturing Sector: Remittances from Pakistani laborers

in the Middle East and exports of highly volatile agricultural items accounted for the
majority of Pakistan's foreign exchange revenues. This is one of the reasons behind
the slowing economic growth. This is because the inflow of foreign cash in the form
of remittances has replaced the necessity for the manufacturing sector to flourish in
order to earn foreign exchange by exporting manufactured goods.
4. Growing Reliance on Foreign Loans: There was a growing reliance on foreign
loans to cover foreign exchange obligations. During the years of agricultural failure,
Pakistan experienced increasing difficulties repaying these loans, as well as the
mounting interest liabilities. Pakistan's economic growth potential has been
hampered by the increasing burden of large foreign loans.

5. Lack of Political Stability: The country's lack of political stability necessitated

massive public expenditure to maintain law and order. This massive governmental
expenditure depleted the country's economic resources.

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6. Inadequate Foreign Investment: Pakistan has also struggled to attract adequate
foreign investment due to a lack of political stability, a low level of international
credibility, and a lack of well-developed infrastructure.

15. Compare and contrast the development of India, China and Pakistan with
respect to some salient human development indicators.
Ans: The indicators of human development are following below:

i. Life Expectancy

ii. Adult Literacy Rate

iii. Infant Mortality Rate

iv. Percentage of the population below poverty line

v. GDP per capita

vi. The proportion of the population who has access to improved sanitation.

vii. The proportion of the population who has access to better water sources. A
Human Development Index (HDI) was created using individual indices of these
characteristics. The higher the HDI rating, the greater a country's degree of growth
and development. The rankings are assigned to countries based on their HDI. China
was rated 81st, India was ranked 128th, and Pakistan was ranked 136th. China's high
ranking is attributable to the country's higher GDP per capita. Furthermore, the one-
child policy resulted in a steady increase in GDP, and as a result, China was ranked
higher in HDI than India and Pakistan.

16. Comment on the growth rate trends witnessed in China and India in the last
two decades.
Ans: India, with democratic institutions, performed moderately, although
agriculture remains the primary source of income for the vast majority of its people.
Many regions of the country lack infrastructure. The country used the market system
without sacrificing political commitment and succeeded in increasing growth while
alleviating poverty. China took advantage of the market mechanism to develop new
social and economic prospects. The government has also maintained collective

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farming, known as the Commune System, to ensure social stability in rural areas.
Prior to the implementation of economic reforms, public investment in social
infrastructure produced positive effects in China's human development metrics.

17. (a) First Five Year Plan commenced in 1956. (Pakistan/China)

(b) Maternal mortality rate is high in. (China/Pakistan)

(c) Proportion of people below the poverty line is more in. (India/Pakistan)

(d) Reforms were introduced in 1978. (China/Pakistan)

Ans: (a) Pakistan
(b) Pakistan

(c) India
(d) China

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