India and China are two fast growing economies of the world and need large skill based manpower to sustain the economic growth. The existing formal higher educational system in these countries will not be able to meet the demand of the economy. The paper will try (i) to compare the development of economy and distance education in India and China with reference to policy perspectives; (ii) to examine the course design, development and delivery of distance education programmes in national open universities of India and China i.e. Indira Gandhi National Open University of India (IGNOU) and Open University of China (OUC); (iii) to analyze the trend of enrollment in IGNOU and OUC; and (iv) to compare the recognition /accreditation and quality control process of distance learning in both these countries. The paper highlights the policy strategies of two countries towards quality control mechanism as par with conventional system.