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 is the feature pertaining to the economies of China after its independence?

  • One-child policy
  • High degree of urbanization
  • Capitalist economy
  • Low density of the population 
  • Growth induced by the service sector
Options:

2,3 and 5

1 and 5

2 and 3

1, 2 and 4

Correct Answer:

1, 2 and 4

Explanation:

The correct answer is Option 4: 1, 2 and 4

  • One-child policy (Correct): September 25, 1980, is often cited as the official start of China's one-child policy, although attempts to curb the number of children in a family existed prior to that. The policy was introduced to curb the growing rate of population in China.

  • High degree of urbanization (Correct): China has undergone one of the fastest urban shifts in history. While it started as a rural agrarian society, rapid industrialization led to a massive movement of the population to cities.

  • Capitalist economy (Incorrect): Historically, China was a Command Economy (Socialist). While it introduced market reforms in 1978, it is officially a "Socialist Market Economy" where the state still holds significant control, rather than a pure Capitalist economy.

  • Low density of population (Correct): Although China has the second-largest population in the world, it also has a vast land area. Compared to India, China's population density is significantly lower because its population is spread over a much larger geographic territory.

  • Growth induced by the service sector (Incorrect): Unlike India, whose growth was led by the Service sector, China’s growth was primarily Manufacturing-led. China became known as the "World's Factory."