Beyond the Hype: Is India Truly Ready to Industrialize or Just Dream Big?

By Mukesh Devrari 

It has been repeated quite often in our media that the economies of India and China were almost equal in size nearly three decades ago. However, today China’s economy is more than six times larger than India’s. The remarkable success of China’s economy has not only changed the global economic landscape but has also pushed the frontiers of human achievement in various areas, including space exploration, artificial intelligence, and manufacturing. Perhaps the most significant impact of China’s economic development has been the lifting of more than 800 million people out of poverty—an unprecedented achievement in human history. As a result, the entire developing world now looks up to China in an attempt to understand how such an economic transformation was made possible. Many countries in Southeast Asia, most prominently Vietnam, are actively replicating China’s development model. Meanwhile, India continues to struggle with industrialization and is attempting to emulate China’s success story. This raises a critical question: Can India achieve a similar transformation? If yes, then how can it be done?

It is important to understand that the world has significantly changed over the last thirty years. China emerged as the greatest beneficiary of globalization—a process that was championed by the United States and other Western powers for decades. The entire Western propaganda machinery, including mainstream news media, think tanks, prestigious universities, and even films, played a role in promoting the virtues of globalization to the developing world. There was a prevailing belief that globalization-induced free trade, privatization, and cross-border investments would mostly benefit the already established economic powers of the world.

Left-leaning thinkers, however, have long argued that globalization was fundamentally a mechanism to preserve the existing global economic hierarchy and to maintain the unequal distribution of wealth among nations. With the benefit of hindsight, it is difficult to argue that their skepticism was entirely baseless. Nonetheless, the economic success of China suggests that with visionary leadership, long-term planning, and a disciplined execution of national goals, developing countries can indeed leverage globalization to their advantage.

China’s meteoric rise has also unsettled the United States. Alarmed by China's growing influence, the U.S. has increasingly distanced itself from the once-cherished narrative that globalization is the key to global progress and human welfare. Today, there is a growing consensus within the American political establishment that China’s emergence as the world’s largest economy is not aligned with the strategic interests of the West. Consequently, a concerted effort to contain China’s influence has already begun.

In this new geopolitical context, India cannot expect to receive the kind of unrestricted support from industrialized nations that China once enjoyed. The Chinese model of promoting domestic firms capable of replacing multinational companies is unlikely to be tolerated or encouraged by the Western powers in India’s case. Multinational companies are increasingly wary of transferring cutting-edge technology and intellectual property to countries that might one day compete with them. However, these companies are still willing to invest—provided that India offers a business-friendly environment.

To make itself more attractive to global investors and achieve sustained economic growth, India needs to focus on five major areas.

First, India must make massive investments in physical infrastructure. This includes building highways, railways, airports, seaports, and inland waterways that provide seamless connectivity for domestic and international trade. While the Modi government has indeed accelerated the construction of highways and expressways, the pace of development in other critical infrastructure sectors remains less than satisfactory.

Second, India must shift away from the protectionist mindset of artificially promoting domestic companies by restricting opportunities for multinational firms. Instead, India should welcome foreign companies that are willing to invest in the country. These investments can lead to job creation, increased tax revenues, and the development of local supply chains, ultimately benefiting the broader economy.

Third, the process of doing business in India must be drastically simplified. This includes streamlining procedures for setting up businesses, acquiring land, hiring and letting go of employees (through more flexible labor laws), and ensuring transparent and time-bound mechanisms for dispute resolution and business closures. Long-term policy consistency and reduced bureaucratic red tape are critical to attracting both domestic and foreign investors.

Fourth, there must be a radical change in attitude across the board—from bureaucracy to media, from politicians to the general public. A pro-business mindset and a national consensus on the importance of economic development need to be cultivated. This cultural shift is essential to reducing resistance to economic reforms and increasing public support for growth-oriented policies.

Fifth, increased investment in education and skill development is non-negotiable. A well-educated and skilled workforce is essential for supporting industrialization and technological advancement. The government must invest heavily in higher education, vocational training, and public awareness campaigns. Mass media can play a crucial role in educating the public about the long-term benefits of trade, investment, and globalization.

India has a unique advantage—it is now the most populous country in the world, offering a massive consumer base that no global company can afford to ignore. This demographic edge must be converted into economic leverage. However, to do so, India needs to invest hundreds of billions of dollars and apply an equal amount of strategic focus, energy, and reformative intent toward building world-class infrastructure, improving education, changing national attitudes, and simplifying the ease of doing business.

Only then can India realistically aspire to achieve what China has accomplished over the past thirty years.

(Mukesh Devrari is based in New Zealand. He writes about India’s economy, global politics, and development issues from an independent, patriotic perspective. He can be reached at devrarix@gmail.com.)