Why India is Not Able To Do What China Has Pulled Off

Business Standard     27th February 2021     Save    
QEP Pocket Notes

Context: The recent announcement by Xi Jinping for China to have abolished poverty shines a light on the comparative human developmental challenges in India.

India vs China: An overview

  • Divergence: India and China were at comparable levels of development and income 40 years ago.
    • China has 2.7 times India’s per capita income (in Purchasing Power Parity (PPP) dollars)
    • China reached India’s current per capita income and Human Development score 15 years ago.
    • United Nations index for Sustainable Development Goals (with 17 parameters), India is unlikely to get to China’s current index level for another decade.
  • Pandemic drag: Even in the pandemic year, China continued to grow despite the negative dip in India and the world.

India’s achievement story

  • No longer the country with the largest number of absolutely poor people.
  • Steadily improving score on the Human Development Index.
  • Economic Survey 2020-21 has pointed out by using a Bare Necessities Index (a composite of water supply, electricity, sanitation, housing, etc.), the picture has improved quite noticeably in recent years.

Concerns and Bottlenecks

  • Data related issues
    • 2017-18 personal consumption survey withheld on the grounds of reliability, but leaked numbers suggest a decline from the level six years earlier.
    • Last detailed poverty headcount numbers go back almost a decade.
  • Loss of momentum: Centre for Monitoring Indian Economy (CMIE) numbers showed a dip in the employment rate even before the pandemic.
  • Low development indicators than developing peers: Sustainable development goals, India ranked 117 in 2019, below neighbours like Bangladesh, Nepal and Myanmar.
QEP Pocket Notes