For any country to move forward, it has to strengthen its economy. In the last 25 years, the Indian economy has progressed rapidly, today is the 5th largest Indian economy in the world, and preparations to reach the third position in the next few years are complete.
But there are also some countries in the world, which have been promoting terrorism for decades instead of economy, Pakistan’s name is also included in this list. India continued to move forward on the path of progress for the last two decades and during this time Pakistan has been engaged in a conspiracy of terror, due to which the country has reached the verge of Kangali, people are craving for pie.
It is not that Pakistan always had a similar situation, at one time the per capita income of Pakistan was more than India. But now Pakistan cannot compete with India in any way. India’s economy is strong, while Pakistan is in debt.
Actually, in the last 25 years, there has been a lot of difference between the economies of India and Pakistan. Pakistan continued to backward and India continued to move forward, in the year 2000, India and Pakistan were very close on the economic scale, both of them had the same economic health. But now India has left Pakistan far behind in economic, social and defense sectors.
Economic Comparison (2000-2025)
GDP (GDP)- in the year 2000:
In the year 2000, India’s GDP was around $ 468 billion, according to this India was the 13th largest economy in the world at that time.
In the year 2000, Pakistan’s GDP was around $ 74 billion, and was the 45th largest economy in the world.
Per capita income (year 2000)
In 2000, India’s per capita income was $ 442 against the GDP. While Pakistan’s per capita income was $ 733. That is, 25 years ago, Pakistan’s per capita income was more than India.
What difference in the year 2025 (India vs Pakistan):
Today, India’s economy is about 4 trillion dollars, and is the 5th largest economy in the world.
– Pakistan’s economy is in a bad state and is currently just $ 386 billion. Is far away from India in the world rankings.
Per capita income (year 2025)
India’s GDP is now about 10 times more than Pakistan. If we talk about per capita income against GDP, then India’s per capita income is $ 11,110, while Pakistan’s per capita income is $ 6,720.
Forex reserves:
In the year 2000, India’s foreign exchange reserves were $ 38 billion, and Pakistan had just $ 1.3 billion at that time.
In the year 2025, India’s foreign exchange reserves are $ 686.14 billion, while Pakistan’s foreign exchange reserves are just $ 15 billion. In such a situation, India’s foreign exchange reserves are 45 times more than Pakistan.
Currency value:
Year 2000: 1 USD = 45 INR, 12 PKR (Pakistani currency value was high.)
Year 2025: 1 USD = 84.54 INR, 280.82 PKR (Pakistani rupee value has decreased significantly)
Unemployment and poverty:
– The unemployment rate in India was 7.3% in the year 2000, which has now come down to 4.9%. Excessive poverty rate was only 2.3% in 2025. During this time 171 million people have come out of poverty.
– The unemployment rate in Pakistan in the year 2018 was 4.5%, which has now increased to 6-8%. Excessive poverty rate was 42.4%.
Stock market:
– The market cap of the Indian stock market has increased to $ 4 trillion. More than 180% returns have been received in the last 10 years.
Currently, the capitalization of the Pakistani market is less than $ 100 billion and in the last 10 years, only 35-40% returns have been received.
Defense Budget:
In the year 2025, India has a defense budget of $ 81 billion. While Pakistan’s defense budget is only $ 10 billion, India’s defense budget is 8 times more than Pakistan.
Economic growth rate:
– India has made economic growth in the last 20 years on an average of 6-7% annual rate. At the same time, Pakistan has been an average of 3-4% economic growth.
How did Pakistan lag behind?
There are many reasons for Pakistan’s economic decline, including policy failures, political instability and geopolitical mistakes. In the last two decades, there have been frequent military coup and unstable governments in Pakistan. Military strength has dominated Pakistan’s politics. The policy of supporting Pakistan’s terrorist organizations discouraged foreign investment. The companies of the world are hesitant to do business there. Whereas India took a tough stand against terrorism and gained credibility globally, which increased investment.
Debt has divided Pakistan:
– Pakistan has taken heavy debt from IMF, World Bank, China and other countries. In 2025, his debt is about 91% of GDP. While India controlled the debt, and currently GDP has 64% debt.
Excellence of industries:
– Industries in Pakistan are on the verge of ruin. Big businessmen are leaving the country. At the same time, India attracted investment in manufacturing and tech sector. India began economic liberalization in 1991, in which trade obstacles were reduced, promoted foreign investment, and the private sector moved forward rapidly. Due to which exports increased and foreign exchange reserves increased.
Backward Pakistan in education too:
India invested on education and skill development in the last two decades, which prepared a major workforce. India’s literacy rate in 2025 is 80%. While Pakistan’s literacy rate is less than 60%.
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