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"The Chinese manufacturing success story has a lot to do with a physical infrastructure that is better," said economist Bibek Debroy, who has studied both economies, of New Delhi-based think tank Centre for Policy Research.
In 2005 Indian spending on infrastructure was equivalent to 5.
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9 percent of its gross domestic product compared to 14.
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6 percent for China, according to India's Infrastructure Development Finance Co. chief executive Rajiv Lall.
But just over half of the funding for China's infrastructure projects came from state-owned enterprises, a model which he said could not be copied by India, he added.
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"China has very peculiar and unorthodox institutional arrangement," he said.
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Debroy said China has also benefited from reforms of its labour market carried out in the mid-1990s which allowed for the greater use of contract workers.
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"China has a very flexible labour market, India's labour market is very rigid," said Debroy who prepared a study comparing China and India's labo