NCERT Solutions for Class 12 Indian Economic Development Chapter 10 MCQ Comparative Development Experiences of India and its Neighbours for new session 2024-25. All the multiple choice questions based on class 12 Economics chapter 10 are given here with important explanation and answers.

Class 12 Indian Economic Development Chapter 10 MCQ


Reforms in ______ were introduced in 1978

[A]. China
[B]. Pakistan
[C]. India
[D]. None of these

First five-year plan of _______ commenced in the year 1956

[A]. India
[B]. Pakistan
[C]. China
[D]. India and China

Proportion of people below poverty line is more in

[A]. India
[B]. Pakistan
[C]. China
[D]. All of them

Reforms in ________ were introduced in 1988

[A]. China
[B]. India
[C]. Pakistan
[D]. None of them

Development Strategies – An Appraisal

It is common to search out developmental strategies of a rustic as a model to others for lessons and steering for his or her own development. It’s notably evident when the introduction of the reform method in several parts of the globe. So as to find out from economic performance of our neighbouring countries, it’s necessary to possess an understanding of the roots of their successes and failures. It’s conjointly necessary to differentiate between, and distinction, the various phases of their methods. Although countries bear their development phases otherwise, allow us take the initiation of reforms as some extent of reference.

Reforms for sustainable growth of economy

We all know that reforms were initiated in China in 1978, Pakistan in 1988 and India in 1991. Allow us to shortly assess their achievements and failures in pre- and post-reform periods. Why did China introduce structural reforms in 1978? China failed to have any compulsion to introduce reforms as set by the World Bank and International Monetary Fund to India and Pakistan.

Class 12 Indian Economics Chapter 10 Multiple choice questions


_______ programme was started in China with the aim of industrialization

[A]. One child policy
[B]. Great Leap Forward
[C]. Great Proletarian Cultural Revolution
[D]. None of these

Which economic sector is the highest contribution to GDP in India, Pakistan and China

[A]. Agriculture
[B]. Industries
[C]. Services
[D]. All in equal form

In which of the following areas, Pakistan has an edge over India

[A]. Export of software after economic reforms
[B]. No. of Ph.D.’s produced in science and engineering every year
[C]. Reducing the population growth rate
[D]. Reducing the proportion of population below poverty line

Which type of economic system is followed in China?

[A]. Mixed
[B]. Socialist
[C]. Capitalist
[D]. None of these

Criticising the slow development by China

The new leadership at that point in China wasn’t proud of the slow pace of growth and lack of modernisation within the Chinese economy underneath the Maoist rule. They felt that Maoist vision of economic development supported spread, autonomy and rejection of foreign technology, merchandise and capital had unsuccessful. Despite in depth land reforms, constitutions, the Great Leap Forward and alternative initiatives, the per capita grain output in 1978 constant because it was within the mid-1950s. Students argue that in Pakistan the reform method led to worsening of all the economic indicators. We’ve got seen in an earlier section that compared to 1980s, the expansion rate of GDP and its sectoral constituents haven’t yet improved.


What are we learning from the developmental experiences of our neighbours? India, China and Pakistan have travelled seven decades of developmental path with varied results. Until the late 1970s, all of them were maintaining an equivalent level of low development. The last 3 decades have taken these countries to totally different levels. India, with democratic establishments, performed moderately, however a majority of its folks still rely upon agriculture. India has taken several initiatives to develop the infrastructure and improve the quality of living. Students are of the opinion that political instability, over-dependence on remittances and economic aid beside volatile performance of agriculture sector are the explanations for the hold-up of the Pakistan economy.

Class 12 Indian Economic Development Chapter 10 Important Question Answers

What was ‘Great Leap Forward’?

The Great Leap Forward (GLF) campaign initiated in 1958 aimed at industrialising the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under the Commune system, people collectively cultivated lands. In 1958, there were 26,000 communes covering almost all the farm population. GLF campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflicts with China, it withdrew its professionals who had earlier been sent to China to help in the industrialisation process. In 1965, Mao introduced the Great Proletarian Cultural Revolution (1966-76) under which students and professionals were sent to work and learn from the countryside.

Compare India and Pakistan’s agricultural workforce.

In both India and Pakistan, the contribution of agriculture to GVA were 16 and 24 percent, respectively, but the proportion of workforce that works in this sector is more in India. In Pakistan, about 41 percent of people work in agriculture, whereas, in India, it is 43 per cent. 24 percent of Pakistan workforce is engaged in industry but it produces 19 per cent of GVA. In India, industry workforce account for 25 percent but produces goods worth 30 percent of GVA. In China, industries contribute to GVA at 41, and employ 28 percent of workforce. In all the three countries, service sector contributes highest share of GVA.

How did China maintain its industrial sector?

Though China has followed the classical development pattern of gradual shift from agriculture to manufacturing and then to services, India and Pakistan’s shift has been directly from agriculture to service sector. China’s industrial sector has maintained a high growth rate while it is not so in both India and Pakistan. This led to rapid increase of the GDP per capita in China than in India and Pakistan. China is ahead of India and Pakistan on many human development indicators. However, these improvements were attributed not to the reform process but the strategies that China adopted in the pre-reform period.

When were the reforms launched in India, Pakistan and China?

Reforms were introduced in 1978 in China, in 1988 in Pakistan and in 1991 in India. China introduced structural reforms on its own initiative while they were forced upon India and Pakistan by international agencies.

Why did China introduce structural reforms?

China did not have any compulsion to introduce reforms as dictated by World Bank and International Monetary Fund to India and Pakistan. The new leadership at that time in China was not happy with the slow pace of growth and lack of modernisation in the Chinese economy under Maoist rule. They felt that Maoist vision of economic development based on decentralisation, self-sufficiency and shunning of foreign technology, goods and capital had failed. So, it launched structural reforms.

Assessing Chinese economic growth

Yet, last 5 years, several economic science indicators began showing positive and moderate growth rates reflecting the economic recovery. In China, the shortage of political freedom and its implications for human rights are major concerns; however, within the last four decades, it used the market system while not losing political commitment and succeeded in raising the extent of growth beside alleviation of economic condition. You may conjointly notice that in contrast to India and Pakistan, that are trying to denationalize their public sector enterprises, China has used the market to make further social and economic opportunities.

By holding collective possession of land and permitting people to cultivate lands, China has ensured social security in rural areas. Public intervention in providing social infrastructure even before reforms has led to positive leads to human development indicators in China.