Question

China and India are the two most populous countries in the world and have also grown very rapidly in recent years. From 1978 to 2004, GDP in China grew at an astounding rate of 9.3 percent per year while India's GDP grew at a lower but still robust rate of 5.4 percent per year. Why did China grow faster than India over this 26-year period?

a) China had a larger labor force.
b) India had better infrastructure.
c) China invested more in education.
d) China adopted economic reforms and opened up to the global market.

Answer 1

China grew faster than India from 1978 to 2004 primarily due to its economic reforms and opening to the global market.

Step-by-step explanation:

In the period from 1978 to 2004, China experienced faster economic growth compared to India. This can be attributed to several factors, but the primary reason for China's faster growth was its adoption of economic reforms and opening up to the global market. China enacted market-oriented economic reforms in 1980, which led to increased foreign investment, export growth, and industrialization. These reforms allowed China to take advantage of global trade and attract investment, resulting in significant GDP growth. India, on the other hand, had slower growth due to factors such as political instability, bureaucratic hurdles, and protectionist policies.