CBSE 2023 Class 12 Economics Delhi Set 1

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Question : 42
Total: 49
Compare and analyse the following information related to Annual Growth of Gross Domestic Product (GDP) of India and China:
Annual Growth of Gross Domestic Product
 Country  1980-90  2015-17
 India  5.7  7.3
 China  10.3  6.8

(Source: Asian Development Bank, Philippines, World Development indicator - 2018)
Solution:  
Comparison and analysis of GDP growth of India and China:
(i) In 1980-90, India's GDP growth rate was 5.7% and in 2015-17, India's GDP growth rate was 7.3%.
(ii) In 1980-90, China's GDP growth rate was 10.3% and in 2015-17, China's Growth rate was 6.8%.
(iii) In 1980-90, China was ahead of India i.e. China's GDP growth rate was double as of India's GDP growth Rate. It was due to the fact that China had started economic reforms in 1978 when India had not even started economic reforms.
(iv) China focused on manufacturing sector and SEZ for Foreign Investment. During that time, India was suffering from industrial sickness because of heavy dependence on PSUs.
(v) In 2015-17, India was ahead of China but not by major difference. It was only 0.5%. It was due to the fact that India focused on manufacturing in the country through Make In India Project.
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