As a rational citizen of a country, it is crucial to have a deep understanding of the developments in your country. In fact, it is also very important to learn about the developmental processes of your neighbouring countries. Not only citizens but countries are also eager to understand the developmental system of their neighbours. This understanding enables comprehension of strengths and weaknesses of yours as well as the neighbouring countries. Due to the process of globalization, it is essential for every nation to compete with developed countries. Hence, it is important to study the comparative development of India and its Neighbours. Indian and its neighbours – Pakistan and China, have very similar development strategies as an economy as a whole. A few such similarities in their development strategies are that all three countries, India, Pakistan and China began towards their economic development at the same time. In addition, India and Pakistan attained independence in the year 1947. However, China was an independent economy in the year 1949. India and Pakistan began with similar strategies for creating larger public sector units. And soon began working on raising public expenditure on social development. All the countries began planning their development strategies in a very similar fashion. India made an announcement of its first 5-year plan in the year 1951. However, Pakistan made its 5-year plan announcement in the year 1956. China, on the other hand, had made this announcement in the year 1953. Up until the 1980s, all 3 countries had very similar growth rates and per capita incomes. Economic reforms took place in all the 3 countries – India, China and Pakistan.