COMPARATIVE DEVELOPMENT EXPERIENCES OF INDIA AND ITS NEIGHBOURS
The journey of economic development varies from country to country, influenced by policies, political structures, and regional and global affiliations. Over the past couple of decades, the wave of globalisation has had sweeping effects on nations, including India. Countries are focusing on strengthening their domestic economies while also understanding their global positioning through affiliations like SAARC,European Union,ASEAN,G-8,G-20, and BRICS.
In such a complex scenario, it becomes vital for nations, particularly developing ones, to understand the developmental processes followed by their neighbours. This not only helps in understanding one’s own strengths and weaknesses but also aids in gauging competition, especially for developing nations who operate in a rather constrained economic space.
In this chapter, we’ll delve into a comparative analysis of the developmental strategies of India, Pakistan, and China — three major economies in South Asia, each distinct in its governance and economic models.
1.India: Boasting the title of the world’s largest democracy, India has been following a secular and deeply liberal constitution for over half a century. India started with a mixed economy model post-independence, which has gradually liberalised, especially after the economic reforms of 1991. It has a diverse economic base, ranging from agriculture to a robust service sector, especially IT.
2.Pakistan: Unlike India, Pakistan has frequently been under military rule and has a history of militaristic governance. The economy is largely agrarian, with a significant role of the manufacturing and service sectors. Security issues and political instability have often acted as constraints to economic growth.
3.China: Known for its command economy, China has only recently begun to shift towards a more open and market-driven economic structure. The country has seen rapid industrialisation and holds a significant share in global manufacturing. China’s developmental model is distinct, focusing on state ownership in crucial sectors and inviting foreign investment selectively.