India vs. China
NY Times – Once a Close Economic Rival of China, India Falls Behind
The Indian economy has a few genuine bright spots. Pockets of high-tech prosperity have popped up in two southern cities, Bangalore and Hyderabad.
These have benefited from India’s willingness to allow free trade and minimal regulation for new industries, often involving computer software, telephone service centers for financial institutions and other service industries that do not involve moving goods on India’s poor roads.
But success stories like Bangalore and Hyderabad remain a tiny part of the overall economy, because software companies hire workers by the hundreds and not by the tens of thousands, as manufacturers do.
“You look around and the rest is a disaster,” said Joydeep Mukherji, an Asia analyst with Standard & Poor’s. “One billion people are not going to be programming computers; they’re going to be making shoes and cars, and serving coffee.”
Good overview of the differences between the growth of China and India.