 "ILLUSTRATION: BINAY SINHA")
In 1978, a new development approach was introduced by Deng Xiaoping in China. A centrally planned, public-sector oriented and inward-looking economy was transformed to one that relied on attracting foreign corporate investors, promoting local private corporations, and rapid export growth. In India, the major policy shift came later in 1991 with delicensing, major financial sector reforms, and enhanced links with the global economy.
The difference between the two economies has widened since these basic policy shifts. Until 1978, China’s per capita gross domestic product (GDP) was below India’s. Thereafter, it rose rapidly and had reached twice India’s per capita GDP
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