Chasing the Dragon: Will India Catch Up with China?

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A Retrospective Survey: Comparing and Contrasting Sino-Indian Performance (Post-1980 Period)

A striking aspect is that both China and India gradually abandoned their earlier autarkic economic philosophy for a more outward-looking model, though more aggressively pursued by the former. Prior to the onset of reforms, both had sought to emulate the Soviet strategy, with a focus on heavy industries via their famous Five Year Plans.¹ Both employed a strong centralized approach to developmental strategies and resource mobilization through macroeconomic management (i.e., nationalized banks, control over trade) and microeconomic management (i.e., price controls, business licenses).

The general underlying motivations for changing course were similar ...