India Pakistan Comparison

These figures are of 2009

ECONOMIC PERFORMANCE INDICATORS

India Pakistan
GDP Per Capita, in US$ 1100 1022
in PPP$ 2972 2,644
GDP Growth Rates 7.2 % 2.7 %

COMPARATIVE SOCIAL INDICATORS

(Most Recent Estimates)
India Pakistan
Life Expectancy (in years)(2007) 63.4 66.2
youth Literacy male(2007) 87% 80%
youth Literacy female(2007) 77% 60%
Inflation rate (consumer prices) 10.7% 14.2%
Exchange rate(2009) for US dollar 46.78 81.41
Population growth rate 1.407% 1.555%

Infant Mortality (per ’000 births) 2007 72 90

Unemployment rate 10.7% 15.2%

Population below poverty line(2009) 41.6% 22.6%

Gini index 36.8 30.6

Industrial production growth rate 7.6% 3.6%

Under weight children (under 5) 46% 38%

Common successes of two nations:

6. Doubling Per Capita Income: Despite the prophets of gloom and doom on
both sides of the fence, both India and Pakistan have succeeded in more than
doubling their per capita incomes. This is a remarkable feat considering that the
 population has increased fourfold in case of Pakistan and threefold in India.
Leaving aside the countries in East Asia and China, very few large countries have
been able to reach this milestone. Per capita incomes in both nations have more
than doubled in the last ten years, in spite of significant increases in population.
7. Significant Economic Reforms: The cracks in the dualistic nature of the
economy -- a well-developed modern sector and a backward traditional sector --
are appearing fast in both the countries. A buoyant middle class is emerging. The
use of modern inputs and mechanization of agriculture has been a leveling
influence in this direction. . India's economy has grown more rapidly than
Pakistan's in the last ten years. However, both nations have accepted and
implemented significant economic reforms that have opened up their economies
and brought about rapid growth
8. Greater FDI inflows: Though the level of globalization of the two nations
remains well below China's, both India and Pakistan have made significant strides
in this direction. In Pakistan, exports account for less than 15% of gross domestic
product, compared with about 25% in India and 40% in China, according former
Musharraf economic adviser Salman Shah. The policy changes in both nations
have also opened up greater FDI inflows, though Pakistan's FDI has declined in
the last two years due to security perceptions, after several years of strong FDI
inflows, particularly in banking, telecommunications, real estate and oil and gas
sectors.
9. Improved Banking Sector: In the last 10 years, The banking sectors in both
nations have seen major improvements in delivery of new services. India and
Pakistan have ranked 31 and 34 respectively, out of 52 countries in the World
Economic Forum's first Financial Development Report leaving behind Russia and
other large countries.

Failures of 2 countries:
10. Inefficient Private Sector: In the 1st 50 years, The relatively inward-
looking economic policies and high protection to domestic industry did not
allow them to reap the benefits of integration with the fast-expanding and
much larger world economy. This has changed particularly since 1991 but the
control mind-set of the politicians and the bureaucrats has not changed. The
centrally planned allocation of resources and "license raj" has given rise to an
inefficient private sector that thrive more on contacts, bribes, loans from
public financial institutions, lobbying, tax evasion and rent-seeking rather than
on competitive behavior.
11. Increasing Poverty: Both nations are suffering from poor governance
resulting in lack of responsiveness to the basic needs of the vast majority of
their people. In fact, the latest Human Development Report for 2009 shows
that both major South Asian nations have slipped further down relative to
other regions of the world. Pakistan's HDI ranking dropped 3 places from 138
last year to 141 this year, and India slipped six places from 128 in 2008 to 134
 this year.
12. Fiscal Deficits: In terms of fiscal management, the record of both the
countries is less than stellar. Higher fiscal deficits averaging 7-8 percent of
GDP have persisted for fairly long periods of time and crowded out private
capital formation through large domestic borrowing. Defense expenditures
and internal debt servicing continue to pre-empt large proportion of tax
revenues with adverse consequences for maintenance and expansion of
physical infrastructure, basic social services and other essential services that
only the government can provide. The congested urban services such as water,
electricity, transport in both countries are a potential source of social
upheaval. India's fiscal deficit for 2008-2009 stood at 6.5 percent of gdp and it
is rising, according to Bloomberg. Pakistan has said its fiscal deficit will
widen to as much as 4.9% of gross domestic product in 2009-2010, according
to the Wall Street Journal.

India Surpassed Pakistan:

13. Better Higher Education : India remains significantly ahead of Pakistan
in higher education, with six universities, mostly IITs, ranked among the top
400 universities of the world versus only one from Pakistan, National
University of Science and Technology(NUST) ranked at 350, up from 375 last
year.There is little doubt that the scientific and technological manpower and
research and development institutions in India are far superior and can match
those of the western institutions.
14. Bigger IT Industry: Pakistan's information technology industry is quite
young. It is in very early stages of development compared to the much older
and bigger Indian IT industry, which had a significant headstart of at least a
decade over Pakistan. During the lost decade of the 1990s under Bhutto and
Sharif governments, Pakistani economy stagnated and its IT industry did not
make any headway. However, the industry has grown at 40% CAGR during
the 2001-2007, and it is estimated at $2.8 billion as of last year, with about
half of it coming from exports. This pales in comparison to over $5 billion
revenue a year reported by India's Tata Consulting alone.
15. High Economic Growth: Although Pakistan's economy has more than
doubled in the last decade, the nation's economic growth has been slower than
India's since the 1990s. Since 2008, Pakistan's economy has, in the words of
the Economist, returned to the "bad old days" of the lost decade of 1990s.
16. High level of Export earning : While it lags behind China, India now
exports a larger percentage of its GDP than Pakistan. In Pakistan, exports
account for less than 15% of gross domestic product, compared with about
25% in India and 40% in China, according former Musharraf economic
adviser Salman Shah.
17. Large Savings: At 30% of GDP, Indians continue to save twice as much as
Pakistanis who save about 15%. Indians' private savings provide a much
larger pool for domestic investments than the much smaller private savings in
Pakistan.
Pakistan performed better than india
1. Better Health Facilities: A basic indicator of healthcare is
access to physicians. There are 80 doctors per 100,000 population in
Pakistan versus 60 in India, according to the World Health
Organization. For comparison with the developed world, the US and
Europe have over 250 physicians per 100,000 people. UNDP
recently reported that life expectancy at birth in Pakistan is 66.2
years versus India's 63.4 years.
2. Less Poverty: There is far less poverty on show in Pakistan than
in India, fewer beggars, and much less desperation. In many ways
the infrastructure of Pakistan is much more advanced: there are
better roads and airports, and more reliable electricity. Middle-class
Pakistani houses are often bigger and better appointed than their
equivalents in India.
3. Higher Performance in Stock Exchange: 825% increase in
KSE-100 from 1999 to 2009, which makes it a significantly better
performer than the BRIC nations. BRIC darling China has actually
underperformed its peers, rising only 150 percent compared with
energy-rich Brazil (520 percent) and Russia (326 percent) or well-
regulated India (274 percent),