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 commenced significant economic policy changes in the late 1970s, prioritizing deregulation, engagement with international commerce and capital, and permitting private ventures. These policy shifts were deliberate and self-initiated, facilitating China's swift industrialization and economic expansion, marked by consistent early achievements across various industries.
India, in contrast, enacted its economic policy adjustments in 1991, prompted by a fiscal deficit emergency. These policy changes were more reactive than preemptive. India's reforms concentrated on deregulation, asset divestment, and global integration (LPG strategy). The results were favorable, though less rapid than China's.
Comparison of Impact:

• China: Attained substantial GDP expansion, worldwide manufacturing leadership, and extensive poverty alleviation. The policy changes established China as an economic titan.
• India: Demonstrated consistent growth, particularly within the service sector. While India's expansion accelerated after 1991, the effects were neither as swift nor as widespread as China's.