Both India and Pakistan got their independence in 1947 and by this time India was above all indicators of the economy while Pakistan’s future economy was disbelieved, and an economic collapse was predicted as well. I don’t see many similarities of the economies between the two countries but Pakistan starting from the very little is now the 34th largest economy in the world having a per capita income of $1050 while India is the 10th largest economy in the world have a per capita income around $1100 which is very close to Pakistan’s. By now Pakistan is in the few developing countries having a declining poverty and an annual growth rate of over 5%. However, there could be several significant differences and one of them could be that India’s private sector is more successful compared with Pakistan where Indian companies invest billions of dollars in firms all around the world that are related with IT services, automobile workings, consumer goods and medicines. Most the Indian companies are developed to Multinational corporations. Pakistan on the other hand, the business leaders use the influence of politics and pull out concessions from the government. National Commercial banks were not repaid for the loans taken and the under and over-invoiced tradable goods were widespread, the incomes were hidden, and false claims were made to get the refunds.
Practices like this became a major reason for gaining wealth to the country rather than risk taking, innovating or entrepreneurship. Chances such as getting help to become competitive markets from investing in labor training, introducing skills and managers while paying market rates were missed. Another difference is that India is way up higher compared with Pakistan when it comes to technology and scientific researchers. India has twice the number of engineers and scientists in Pakistan.
While Pakistan’s spending is 0.2% of its GDP on research and development India spends on average of 0.5%. Most of the Multinational corporations are setting their research and development centers in India with access to an enormous number of highly qualified engineers or scientists.
When it comes to physical geography India and Pakistan is been divided by a border by the British rule and although they are nearby countries due to the conflicts between the Hindus in India and Muslims in Pakistan over the northern part of Pakistan Kashmir which was an unclear zone that was the main reason for the conflict between two countries, slowed down the communications , trade, information and cultural knowledge transfer between the countries. Therefore, both countries are missing a chance of sharing trade and better economic development between the borders.