Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Comparative Development Experiences of India and its Neighbours

Question:
In the 70 years since independence, India has made the most progress in improving life expectancy, literacy, but has been slower in improving the level of income, and reducing infant mortality rates when compared to five other nations. On the eve of independence day, we compared the progress India has made in improving income, health, education and in preserving its forests, to five countries–China, Pakistan, Malaysia, South Korea and Brazil. We chose China because it had roughly the same per capita income in 1960 as India did. Even though China and India are constantly compared, until now, China has outperformed India across most wealth and health indicators. We used Pakistan to compare progress in a country that shares the same history and culture, and was formed at the same time as India. India’s Gross Domestic Product (GDP) per capita (current US dollars)–which is the average income of each citizen and reflects the well being of the population–increased, according to World Bank estimates. But India made slower progress as compared to China, Malaysia, Brazil and South Korea. The GDP per capita is calculated by dividing the country’s GDP by its population. The gap in per capita GDP has increased most between India and China. In 1960, China’s GDP per capita (89.5 dollars) was 9% more than India’s. But now the gap has widened drastically. This widening gap could be attributed to greater increases in productivity of the Chinese labour force and more capital per worker, according to an opinion piece published by The Hindu in January 2015. Among the five countries used for comparison, India’s progress in raising the average life expectancy at birth comes second to that of only China. In 1960, with an average life expectancy of 43 years, China’s position was close to that of India. Whereas, Pakistan’s progress was on par with that of India. 

Which of the following statement is incorrect in the context of developmental experiences of India and its neighbours?

Options:

In both India and Pakistan, in 2018-19, the contribution of agriculture to GVA were 16 and 24 per cent, respectively, but the proportion of workforce that works in this sector is more in India.

In Pakistan, about 41 per cent of people work in agriculture, whereas, in India, it is 43 per cent in the year 2018-19.

In China, about 26 per cent of people work in agriculture in the year 2018-19 while the contribution of agriculture in GVA was only 7%.

None of the above

Correct Answer:

None of the above

Explanation:

The correct answer is Option 4: None of the above
In 2018-19, in both India and Pakistan, the contribution of agriculture to GVA were 16 and 24 per cent, respectively, but the proportion of workforce that works in this sector is more in India.

In Pakistan, about 41 per cent of people work in agriculture, whereas, in India, it is 43 per cent. Twenty four per cent of Pakistan workforce is engaged in industry but it produces 19 per cent of GVA.

In China, about 26 per cent of people work in agriculture in the year 2018-19 while the contribution of agriculture in GVA was only 7%.

In India, industry workforce  account for 25 per cent but produces goods worth 30 per cent of GVA. In China, industries contribute to GVA at 41, and employ 28 per cent of workforce. In all the three countries, service sector contributes highest share of GVA.