Question of 17
Q.How China achieved rapid growth ?
(OR)
What strategy of development India adopted after independence ?
Jammu Kashmir JkboseJKBOSE Class 11 (Commerce) 2022Subjective· 6mImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →China's rapid growth came from 1978 market reforms and export orientation; India after independence chose a planned, mixed-economy, import-substitution strategy.
How China achieved rapid growth:
- 1978 economic reforms: under Deng Xiaoping, China moved away from a fully centrally-planned, collectivised economy to a 'socialist market economy' combining planning with market mechanisms.
- Decollectivisation of agriculture: the Household Responsibility System replaced collective farming, giving farmers direct incentives tied to their own output, sharply raising agricultural productivity.
- Opening to the world economy: China opened up to foreign trade and investment, establishing Special Economic Zones (SEZs) along its coast that attracted massive foreign direct investment and became export manufacturing hubs.
- Export-led industrialisation: China became the 'factory of the world', building a vast, competitive, labour-intensive manufacturing-for-export sector.
- Dual-track price liberalisation: prices were gradually freed from state control rather than all at once, allowing a smoother transition to a market system.
- Heavy investment in infrastructure and human capital: large-scale investment in roads, ports, power, and in education/health, supported rapid industrial expansion and productivity growth.
- High domestic savings and investment rates: China maintained very high rates of savings and capital investment, fuelling sustained rapid GDP growth for decades. …
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