11.3.2 GDP Growth Rate

Recent Economic Data:

(a) In the 1980s and 1990s, China experienced a growth rate of 10.3% in its GDP. India and Pakistan had almost the same growth rate during this period.

(b) While many developed countries struggled to achieve a 5% growth rate, China consistently maintained a growth rate close to double digits for over two decades.

Table 11.1 (b) Annual Growth Rate of Gross Domestic Product (%)


Source: World Development Report 2014

(c) In 2012-13, China and India experienced a decrease in their GDP growth rates, while Pakistan saw an increase. Some experts attribute this rise in Pakistan to the reforms implemented in 1988.

11.3.3 Sectoral Distribution of Output and Employment

Economic Sectors Comparison:

(a) Agriculture:

China and Pakistan have more city-dwellers compared to India. China, with challenging landscapes and climate, can use only 10% of its total land for farming. In 2012, about 34.8% of China’s workforce was in agriculture, contributing 10% to its GDP. In India, the contribution is 17%, and in Pakistan, it’s 21%. In Pakistan, 44.7% work in agriculture, while in India, it’s 47.2%.

(b) Industry and Services:

Looking at the output and jobs, all three economies show that industry and services have fewer workers but contribute more to the output. In China, manufacturing makes up 46% of the GDP, while in India and Pakistan, the service sector leads. In 2012, India employed 24.7%, China 29.5%, and Pakistan 20.1% in the secondary sector.


Source: HDR 2015

In the 1980s, Pakistan was shifting its workforce to the service sector faster than India and China. During that time, India, China, and Pakistan had 17%, 12%, and 27% of their workers in the service sector, respectively. By 2012, these numbers rose to 28.1%, 35.7%, and 35.2%, respectively. China maintained a double-digit growth rate in the industrial sector, while India and Pakistan saw a decline. India increased its service sector growth in the 2000s, whereas China and Pakistan reduced their growth in this sector. China’s growth mainly comes from manufacturing, while India’s growth is driven by the service sector. In the same period, Pakistan slowed down in all three sectors.

11.3.4 Human Development Parameter

Human Development Parameters:

  • HDI (Human Development Index):
    • Value: Higher values are better.
    • Rank: Lower ranks are better.
  • Life Expectancy:
    • Higher life expectancy is better.
  • Adult Literacy Rate:
    • Higher adult literacy rates are better.
  • GDP per Capita (PPP US $):
    • Higher GDP per capita is better.
  • Percentage of Population Below Poverty Line (on $1.25 a Day):
    • Lower percentage is better.
  • Infant Mortality Rate (per 1000 Live Births):
    • Lower infant mortality rates are better.
  • Maternal Mortality Rate (per 100,000 Live Births):
    • Lower maternal mortality rates are better.
  • Percentage of Population with Access to Improved Sanitation:
    • Higher percentage with access is better.
  • Percentage of Population with Access to Improved Water Source:
    • Higher percentage with access is better.
  • Percentage of Population Undernourished (% of Total):
  • Lower percentage is better.

Table 11.2 Some Select Indicators of Human Development, 2014

1.(a) Human Development Index (Value)0.6090.7270.538
(b) Rank13090147
2.Life expectancy at birth (Years)68.075.866.2
3.Adult literacy rate (% ages 15 and older)62.895.154.7
4.Gross National Income (GNI) per capita (PPP $)5,49712,5474,866
5.People below income poverty line (on PPP $1.25 a day) %23.66.312.7
6.Infant Mortality Rate (per 1000 live births) (2013)41.410.969.0
7.Maternal Mortality Rate (deaths per 100,000 live births)19034170
8.Population with access to improved sanitation (%)366548
9.Population with access to improved water source (%)939291
10.Children undernourished (% of children upto age 5) 2005-1243.53.430.9

Source: Human Development Report 2015 From the latest data, it is clear that:

(a) China is doing better than India and Pakistan in many aspects of human development. This includes factors like income (GDP per capita), the percentage of people living in poverty, and health indicators such as mortality rates, access to sanitation, literacy, life expectancy, and malnourishment. In 2013, both India and China were in the medium human development category, while Pakistan was in the low human development category.

(b) Pakistan is ahead of India in a few areas like reducing the proportion of people below the poverty line, decreasing child malnourishment, lowering the percentage of people living below the international poverty rate of $1.25 a day, and increasing the population’s access to improved water sources.

(c) Pakistan faces challenges in areas like maternal mortality rate, infant mortality rate, and Gross National Income (GNI) per capita.

(d) In China, only 34 women out of one lakh births die, whereas in India, 190 women die, and in Pakistan, 170 women die.

(e) India is facing challenges compared to the other two countries, especially concerning children’s malnourishment, people with access to improved water sources, and those below the income poverty line.

(f) The liberty indicator is included to measure the extent of democratic participation in social and political decision-making, but it doesn’t carry extra weight in the analysis.

Objective Type Questions

1. What was the average GDP growth rate in China during the 1980s and 1990s?

A) 4.8%

B) 5.3%

C) 7.7%

D) 10.3%

Answer: D) 10.3%

2. Which country experienced an increase in GDP growth rate from 1980-90 to 2012-13?

A) China

B) India

C) Pakistan

D) No change

Answer: C) Pakistan

3. In 2012-13, which country had the highest percentage of its workforce engaged in agriculture?

A) China

B) India

C) Pakistan

Answer: B) Pakistan

4. What sector contributed the most to China’s GDP in 2012?

A) Agriculture

B) Industry

C) Services

Answer: C) Services

5. In the 1980s, which country had the highest percentage of its workforce in the service sector?

A) China

B) India

C) Pakistan

Answer: C) Pakistan

6. Which sector showed a decline in growth rate for India and Pakistan in the 2000s?

A) Agriculture

B) Industry

C) Services

Answer: B) Industry

7. What is the purpose of the Human Development Index (HDI)?

A) To measure GDP growth

B) To rank countries based on life expectancy, education, and income

C) To assess industrial output

D) To determine agricultural productivity

Answer: B) To rank countries based on life expectancy, education, and income

8. Which parameter indicates better human development in terms of life expectancy?

A) Higher life expectancy

B) Lower life expectancy

Answer: A) Higher life expectancy

9. What does a lower percentage of the population below the poverty line indicate?

A) Better economic conditions

B) Worse economic conditions

Answer: A) Better economic conditions

10. What is the significance of a higher percentage of the population with access to improved water sources?

A) Better healthcare

B) Poor sanitation conditions

C) Improved living standards

Answer: C) Improved living standards

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