India vs Pakistan Economy 1970 to 2030

India and Pakistan present a fascinating case of two neighboring nations with shared history but divergent economic trajectories. India’s GDP has grown rapidly since the 1990s liberalization, and by 2024 it stands above 4 trillion USD, making it the fifth largest economy in the world. Pakistan, while showing steady progress, remains at around 370 billion USD, considerably smaller in scale. The size difference is stark, but it reflects India’s larger population, broader industrial base, and deeper integration with global markets.

GDP per capita paints another layer of contrast. India’s average income per citizen is roughly 2,800 USD in 2024, showing strong gains from under 100 USD in the 1970s. Pakistan, at around 1,600 USD, has also grown substantially, but its per capita gap compared to India has widened in recent years. Part of this divergence is linked to differing growth rates, with India maintaining higher annual expansions, especially in services and technology sectors, while Pakistan’s economy has been more constrained by structural issues and balance-of-payments challenges.

Population dynamics add further perspective. India’s population exceeds 1.4 billion, while Pakistan’s is about 240 million. Both countries experienced rapid demographic expansion since 1970, but India’s sheer scale magnifies both its challenges and opportunities. Urbanization, migration, and a rising youth population are key drivers shaping both nations, yet India’s larger domestic market provides it with more room for economic diversification. Pakistan, with a smaller base, faces tighter constraints but still benefits from a youthful demographic profile.

When zooming into capital cities, the GDP per capita figures are far higher than national averages. New Delhi’s residents enjoy an estimated per capita GDP above 10,000 USD, fueled by government institutions, high-end services, and connectivity with India’s broader economic hubs. Islamabad, Pakistan’s planned capital, records a smaller figure of around 5,000–6,000 USD per capita, though still several times the national average. These capital-city gaps highlight how wealth and infrastructure tend to concentrate in political and administrative centers, creating sharp contrasts with rural hinterlands.

Overall, the India–Pakistan economic comparison illustrates how two nations with shared starting points in 1947 have taken different development paths. India has leveraged scale, reforms, and global integration to emerge as a major economy, while Pakistan’s progress has been steadier but more vulnerable to shocks. Both continue to grow, but the divergence in GDP size, per capita income, and urban concentration underscores the long-term structural differences that shape their futures.