In 2011, the inflection point occurred! India surpassed Pakistan! A momentous point in history still affecting the present!
How did this happen? Let me guess it is considerably due to failed leadership in Pakistan.
The chart below shows GDP per capita in constant US dollars from 1960-2023 for these two countries.
"... But the 1970s marked a turning point. The loss of East Pakistan in 1971 reduced output and stability. Under Zulfikar Ali Bhutto, large-scale nationalisation scared away investors and slowed growth to levels closer to India’s. ...
Under Rajiv Gandhi, India began liberalising through modest deregulation, reduced import controls, and partial privatisations. A fiscal crisis in 1991 accelerated reform. India dismantled the ‘Licence Raj,’ removed import restrictions, cut tariffs, liberalised capital markets, and began privatising state monopolies. These reforms drove annual growth rates to 6–7%, putting it on the path to becoming an emerging economic power. ..."
Source: Federal Reserve Bank of St Louis
Credits: A Path to Peace and Prosperity in Pakistan
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