India has finally acknowledged the significant gap between itself and China. On November 14, Indian Foreign Minister Subrahmanyam Jaishankar stated that when Rajiv Gandhi visited China in 1988, the two countries’ economies were roughly comparable in size. However, China embarked on a comprehensive modernization and industrialization drive during the 1980s, while India “missed the train.” Although India undertook some economic reforms in the 1990s, these efforts were neither sustained nor fully implemented.

While India has long regarded China as a strategic competitor and sees itself as a major player on the global stage, Jaishankar’s remarks represent a rare acknowledgment of the current economic reality—that India lags behind. His comments appear aimed at urging domestic recognition of this disparity, as well as promoting a comprehensive and deep reform agenda to advance India’s own modernization and industrialization goals.

From an economic data perspective, India’s performance has been notably strong since 1990, with an average annual growth rate of around 6%. Its GDP has expanded from approximately $300 billion to over $3.7 trillion today—an impressive increase. However, India’s most pressing challenge remains its low share of manufacturing in GDP, which has remained consistently around 15%, far below China’s near-30% level. In fact, India’s economic growth has primarily been driven by services such as software outsourcing, finance, and trade.

It is clear that the Indian government is aware of these structural constraints. In 2014, the Modi administration launched the ambitious “Make in India” initiative, aiming to raise manufacturing’s share of GDP to 25%. More than a decade later, progress has been minimal. On the surface, India’s industrialization appears underdeveloped—but the root causes lie in persistent challenges related to land acquisition, labor regulations, infrastructure deficiencies, and an unfavorable business environment, all of which continue to hinder the expansion of manufacturing. India may possess ambition, but overcoming these systemic obstacles proves difficult.

Original source: toutiao.com/article/1881909865389123/

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