India vs Pakistan Economic Comparison

Reviewed by:

Nafeez Khan

Which Countries Were Developed After Independence?

India and Pakistan are considered two of the biggest nations in South Asia. Both these countries started their economic voyage around the same time after gaining their own independence, despite this fact, India is far heightened in terms of the economy than Pakistan. Our motive in this content is to update students about the general knowledge, facts, and figures of how our country is doing in comparison to our neighbor– Pakistan. In India Vs Pakistan Economic Comparison, we will not only compare the ‘GDP of Pakistan Vs India’ but also compare every facet of the economies.

India Vs Pakistan Economy

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Image: India Vs. Pakistan

Currently speaking, the size of our Indian economy is almost ＄2088 billion, attaining the position of 7th largest economy in the entire world. While, compared to this, the size of Pakistan's economy is only about ＄273 billion. Thus, we see, India's GDP is approximately 7 times larger than that of Pakistan's economy.

In this section of India Vs Pakistan Economy, we will compare both these economies on the basis of economic parameters like Gross Domestic Product, Per Capita Income, foreign debt, and their defense budget and equipment. Literally speaking, after studying the following facts and figures you will feel Pakistan is no more than a little droplet of water in front of a giant ocean which is India.

GDP of Pakistan Vs India
Pakistan: has＄ 273 billion (which accounts for 0.44% of the world economy)
India: has ＄2088 billion (we are the world's seventh-largest economy, while this accounts for 2.7% of the entire World Economy). Thus, from the GDP of Pakistan Vs India we see India scores higher than Pakistan.
Per Capita Income of 2018
Pakistan: Rs.180,204 in a single year
India: Rs 1,12,835 in a single year
Foreign debt:
Pakistan: has Rs.29.861 trillion of which is approximately 86.8 percent of its GDP.
India: While India has US＄ 529.7 bn.
Gold Reserves:
Pakistan: have 64.50 tonnes of gold reserve.
India: While, we have 557.77 tonnes (also a fact - India is the largest consumer of gold in the world)
Foreign Exchange Reserves:
Pakistan: have the US ＄6.9 bn
India: have the US ＄ 400 bn
FDI: (as per 2017):
Pakistan: have ＄ 27.61 billion
India: that of India has ＄ 43.48 billion
Growth Rate comparison:
Pakistan: 5.7%
India: 7.4% (and thus scores the highest in the world)
Unemployment Rate:
Pakistan: have 5.9%
India: have around 6.1%
Literacy Rate (as per 2011):
Pakistan: 60%
India: 74.04%
Poverty:
Pakistan: have 24.3%
India: have 28% (as per the UNDP Report 2018)
Inflation rate:
Pakistan: 4.78%
India: 2.49%
Size of the population:
Pakistan: have 1970 million
India: have 1362 million (this is second in the world)
Military expenditure:
Pakistan: has Rs. 1.1 trillion (in the year 2018)
India: has 3.18 lacs crore (this is the budget of the year 2019)
Corruption Rank (as per the records of 2016):
Pakistan: 116 (Score 29/100) – this score shows that Pakistan has more corruption in comparison to India.
India: 79 (Score 38/100)
Ease of Doing Business Rank:
Pakistan: 144 (as of 2016)
India: 130 (as of 2017)
Contribution of Agriculture in Gross Domestic Product:
Pakistan: has 25.03%
India: has 14%
The population who survived in agricultural activities:
Pakistan: 43.50%
India: 50%
Road Coverage:
Pakistan: 264,401 km (2018)

India: has 5.5 million km (2018).

Railway Tracks:
Pakistan: 11,881 km.
India: 115,000 km
Global Terrorism Index as per 2018:
Pakistan: 8.18
India: 7.57 (this data shows that India is less terrorize than Pakistan)

Pakistan Economy Vs Indian Economy

Apart from discussing the India GDP Vs Pakistan GDP, in this section, we will talk about both these economies as a whole. By studying this chart students will be clear on the subject matter of India Vs Pakistan comparison.

Indian Economy

Pakistan Economy

To start talking about the Indian Economy, let us start with the traditional village farming, modern agricultural activities being infused, handicrafts industries, and a wide variety of modern industries.
In our country more than half of the population is engaged in agriculture and its related activities.
While services lead the rank in terms of economic growth of India. It accounts for about two-thirds of India’s output.
India took the lead with its English-speaking population to become a major exporter of IT services, business outsourcing services, and software workers.
India is gradually developing into an open-market economy.
Economic liberalization, industrial deregulation, privatization of state-owned enterprises, all led to less control of foreign trade and investments.

Pakistan has witnessed internal political disputes for ages and thus there exists a low level of foreign investments, which led to the under-development of Pakistan.
Pakistan has a large English-speaking population that allows the country to serve the foreigners via BPO and other ways.
Despite the progress made recently, lack of electricity, challenging security environment, hectic investment climate all lead to being a disadvantage to the investors.
Agriculture in this country accounts for one-fifth of the output and two-fifth of employment in this country.
In Pakistan, textile and apparel bring half of Pakistan’s export earnings.
Pakistan has failed in its export market drastically.
Pakistan’s GDP is slowly increasing back from 5.3% in the year 2017. In this economy, human development lags behind the most.

Analysis of the Study and Why Pakistan has been Having Such Bad Times for Decades?

After studying the above figure and facts, this can be said that Pakistan lacks the potentiality to compete with India in terms of income, GDP, foreign exchange reserves, or in regards to the military strength that India holds.

Pakistan lags far behind in terms of the above-mentioned parameters. And do you know the main reason for such lagging? The main reason behind this pitiable scenario of Pakistan is that it does not have a good human development structure. The vibe of Pakistan gauges with terrorism. The government of Pakistan wastes its resources in encouraging and funding terrorism against India and against all other developing nations. Due to the bad situations of terrorism in the economy, Pakistan is unable to go in the path of development, rather it is going towards the path of destruction.

Thus, for all these reasons Pakistan, today is facing global criticism for failing to control its homegrown terrorists. India, on the other hand, has successfully become the global leader. Recently India has surpassed the UK to become the fifth-largest economy in the entire world. Thus, from this study, it is clear that Pakistan’s unstable government, support to the terrorists, and also involvement in the global terror strikes like 26/11 and 9/11 had bled and crippled the entire economy to the extent that it could not stand up against and compete with a giant economy like India.

Did You Know?

Pakistan Economy Vs Indian Economy 2020 - In the year 2020, with earning ＄2,709 bn, India's GDP is approximately ten times higher than that of Pakistan's GDP which is ＄263 bn.
A fact that is not generally known is that in the times of 1960s, Pakistan’s per capita GDP was higher than that of India, but for many years now India has not only beat Pakistan via per capita GDP but also taken the upfront lead in each and every sector of the economy.
India won the war of 1947. The result of the war could not be concluded. However, after much analysis and assessments, this is agreed that India was the victor of the 1947 war as India successfully defended about two-thirds of its state, including the Kashmir Valley, Jammu, and Ladakh.
There is the frequent occurrence of violent crime, which includes armed robbery, assaults, carjacking, and also kidnapping, all these bad deeds occur across the country Pakistan. The risk of kidnapping is much higher in Balochistan and also in Khyber-Pakhtunkhwa. Traveling to these places is only safer if you get professional security advice.
Aside from a few areas, which is mentioned above, traveling in Pakistan is nothing too dangerous. It is similar to traveling in India. But for women, it is said that Pakistan is actually safer than India.
India can be a safe country to live in or for traveling purposes if you have enlisted all the precautions along with you. Nevertheless, to speak honestly, traveling in India is never 100% safe.
Pakistan is a very beautiful country. Pakistan has about 108 peaks which measure above 7,000 meters, the country has K2, the south Asian country's mountain scenery is stunning out here. Places from Islamabad and Lahore to the valleys in its north Pakistan offer a unique and beautiful gateway to travelers.

FAQs on India vs Pakistan Economic Comparison

1. Can Pakistan be classified as a 3^rd world country?

Pakistan shows visible progress in all the economic sectors except for labor. Index studies show Pakistan has a well economic status in the 3rd world. Also, in the aggregate socioeconomic index which marks the growth and development, Pakistan has the strongest position in the 3rd world economy.

2. What is the condition of the Indian economy in 2020?

India is called the world’s largest democracy. India is defined as a federal republic with 29 states coupled with seven union territories. For such a huge population, as accounted for by India, the country is termed as one of the developing countries in the world as the data is based on the income and gross national product per capital.