Question

Compare the economic liberalization experiences and socio-economic achievements of India and China. Answer in not less 400 words.

Answer 1

Economic liberalisation in India got a push with the liberalisation-privatisation-globalisation reforms in 1991 to reform the economy and make it more market friendly as it tried to encourage FDIs , incentives and make the economy free from all the unnecessary regulations.Chinese government in the reign of Deng Xiaoping introduced similar economic reforms in 1978 and made it a market economy.if we compare these two economies in terms of liberalisation and socio -economic achievements we find many similarities and differences .

Similarities:-1) liberalisation provided for the increasing productivity levels in agriculture in both countries 2) investment barriers had been abolished to maximum extent 3)tried to increase the money flow 4)social struggles like poverty and unemployment had been curtailed to some extent.5) it provided for making these two countries in the global economic competition.6) industrialization​ got spread with the increased investments and providing infrastructure facilities for foreign investors 7) though almost all sectors got liberalised in China and India some industries like railways ,army etc were not given a liberalised touch .8) tariffs and taxes had been decreased in order to encourage foreign firms .

Differences:-1)though liberalisation is implemented chinese government has a strict control over foreign firms and industries where as in India they are subjected to supervision of the government but not restricted by it.2) liberalisation didn't do much to the agricultural sector in India as compared to t China where productivity levels are high compared to india 3) china made its economy as market economy where india made it as mixed economy 4) liberalisation made Chinese economy the second largest economy in the world where as the government policies are better implemented compared to India's .5) compared to india social integration was made possible in China to some extent such as mitigation of poverty and unemployment and increasing the average per capita income etc.6) in india liberalisation worked more in service sector compared to industrial sector where as in China both the sectors got developed.