Question

Read the following text carefully and compare the impact of subsequent reforms initiated by China and India.
China underwent substantial policy changes to stimulate their economy. China's economic growth was rapid in the late 1970s across various sectors. However, India had to wait much longer for its economic transformation. India's significant economic progress was only realised after the economic reforms of 1991, which were implemented out of compulsion.
On the basis of given text and common understanding, compare the impact of subsequent reforms initiated by China and India.

Hint:

China’s early and aggressive reforms led to faster growth. India’s reforms were successful but more gradual in impact, with strength in services rather than manufacturing.

Answer 1

China initiated major economic reforms in the late 1970s, focusing on liberalization, opening to foreign trade and investment, and allowing private enterprise. These reforms were proactive and voluntary, enabling China to rapidly industrialize and grow economically, with early and sustained success across multiple sectors.
India, on the other hand, implemented its economic reforms in 1991 in response to a balance of payments crisis. These reforms were more reactive than proactive. India's reforms focused on liberalization, privatization, and globalization (LPG model). The outcomes were positive but slower compared to China.
Comparison of Impact:

• China: Achieved high GDP growth, global manufacturing dominance, and large-scale poverty reduction. The reforms transformed China into an economic powerhouse.
• India: Showed steady growth, especially in the service sector. While India's growth improved post-1991, the impact was not as immediate or large-scale as China's.