Key Economic Development Indicators & Growth Rate

The Growth Rate Indicators can be broken down into various categories, showcasing different aspects of economic development.

Here are some key growth rate indicators:

GDP Growth Rates: China, India, Pakistan Comparison

• China has the second-largest GDP (PPP) globally at $22.5 trillion, followed by India at $9.03 trillion, , with Divergent Growth Rates; Pakistan at $0.94 trillion (approximately 11% of India’s GDP).
• India’s GDP is about 41% of China’s GDP.

Annual Growth of Gross Domestic Product (%), 1980–2017

Evolution of Growth Rates: A Historical Perspective on China, India, and Pakistan in the 1980s and 2015–17

• In the 1980s, China maintained a near double-digit growth rate while Pakistan was ahead of India. 
• However, by 2015–17, there was a decline in Pakistan and China’s growth rates, while India experienced a moderate increase.
• Some scholars attribute Pakistan’s declining growth rate to reform processes and prolonged political instability.

Sector-wise GVA Contributions: Analyzing Growth Rates in Agriculture, Industries, and Services Across China, India, and Pakistan(Refer Table 16.5)

• Agriculture:
  • In China, 26% of the workforce is engaged in agriculture, contributing 7% to GVA.
  • In India and Pakistan, agriculture contributes 16% and 24% to GVA, with a higher proportion of the workforce (43% in India and 41% in Pakistan) engaged in agriculture, impacting the sector’s growth rate dynamics. 
• Industries:
  • China’s industries contribute 41% to GVA, employing 28% of the workforce.
  • In India, industries contribute 30% to GVA, employing 25% of the workforce.
  • Pakistan’s industry workforce accounts for 24%, contributing 19% to GVA.
• The Service Sector: It is the largest contributor to GVA in all three countries.

Service Sector Growth and Employment Shift: A Glimpse at China, India, and Pakistan’s Growth Rate 

Sectoral Share of Employment and GVA (%) in 2018–2019

• Economic Transition and Growth Rate Dynamics
  Agriculture to Industry to Services: Countries typically shift employment and output from agriculture to industry and then to services. 
  • This pattern is evident in China.
  • In the 1980s, Pakistan showed a faster shift to the service sector, employing 27% of its workforce, compared to India (17%) and China (12%).
• Service Sector Employment: In 2019, the service sector employed 35% of Pakistan’s workforce, 32% in India, and 46% in China.

Decades-long Growth Rate Trends: Analyzing Patterns in Economic Development

• Agriculture Sector Growth Rate: Over the last five decades, the growth of the agriculture sector, which employs the largest proportion of the workforce, has declined in all three countries (Refer Table).
• Manufacturing and Service Sectors Growth Rate: China’s growth is contributed by the manufacturing and service sectors, while India’s growth is mainly attributed to the service sector.
• Pakistan has shown deceleration in all three sectors during this period.

Trends in Output Growth in Different Sectors, 1980–2015

Human Development Indicators: Growth Rate Differences in China, India, Pakistan

• Table indicates that China is outperforming India and Pakistan across various human development indicators, including income indicators (GDP per capita), poverty rates, health indicators (mortality rates, access to sanitation), literacy, life expectancy, and malnourishment.
• Progress in Poverty Reduction and Sanitation: Both China and Pakistan are ahead of India in reducing the proportion of people below the poverty line and achieving better sanitation outcomes.
• Maternal Mortality Rates and Growth Rate Differences: 
  • China has a significantly lower maternal mortality rate compared to India and Pakistan. For every one lakh births, only 29 women die in China, 
  • While in India and Pakistan, the figures are about 133 and 140, respectively.
• Access to Improved Drinking Water: Surprisingly, all three countries report providing improved drinking water sources for most of their populations.
• Proportion of Poverty Rates: China has the smallest share of the poor among the three countries.

Some Selected Indicators of Human Development, 2017-2019

Beyond Growth Rates: Assessing Challenges and Limitations in Human Development Indicators

• Beyond Human Development Indicators: Exploring Growth Rate Challenges and Limitations –  While human development indicators are crucial, they may not be sufficient for a comprehensive assessment.
• Need for Liberty Indicators: 
  • The limitations include the absence of what are referred to as liberty indicators.
  • It encompasses aspects like democratic participation, constitutional protection of citizens’ rights, and independence of the judiciary and the rule of law.
• Thus, The construction of a human development index may be considered incomplete without these liberty indicators, and their importance in the overall assessment is emphasized.

Development Strategies: Growth Rate Dynamics in India, Pakistan, and China

Conclusion

• In this chapter, we have explored critical facets of India’s economic landscape, focusing on Growth Rate in rural development and food security, while also drawing comparative insights from the developmental paths of China and Pakistan. 
• India’s path reflects its commitment to democracy and inclusive growth, with a focus on addressing rural disparities and food security. 
• As India continues to navigate the complexities of rural development, food security, and its broader developmental path, the lessons learned from its own history and those of its neighbors can provide valuable insights into shaping a sustainable and equitable economic future. 
• These experiences serve as critical reference points in the ongoing pursuit of prosperity, social equity, and food security in the South Asian region.