"Connecting communities, empowering nations: Unifying the Regional and Global Economy ."

India has made significant progress over the last 75 years, but its growth trajectory has not matched the rapid rise of Southeast Asian nations or China. Countries like South Korea, Singapore, Taiwan, and Hong Kong—often referred to as the “Asian Tigers”—have witnessed remarkable economic transformations. Similarly, China’s unprecedented growth since the late 20th century has positioned it as the world’s second-largest economy. Why has India, with its vast resources and intellectual capital, not kept pace?

A Comparative Framework: The Rise of the Asian Tigers

To understand India’s relative lag, it is essential to examine the development strategies of the Asian Tigers. These countries faced severe challenges in the mid-20th century, including colonial rule, wars, and political instability. Yet, they managed to transform themselves into economic powerhouses by focusing on four core pillars:

1. Education – These countries prioritized mass education and skill development, ensuring a high-quality workforce ready for industrial and technological advancements.

2. Healthcare – Investments in public health led to longer life expectancy, reduced child mortality, and a healthier workforce.

3. Infrastructure – Robust investments in roads, ports, and power generation facilitated industrialization and global trade.

4. Openness to Trade and Investment – They embraced foreign capital, integrated into global supply chains, and promoted exports.

China’s Unique Growth Model

China’s rise since the late 20th century presents another key comparison. It undertook rapid industrialization, welcomed foreign investments, and focused on large-scale infrastructure projects. Additionally, the government played an active role in directing resources toward strategic sectors like manufacturing, technology, and logistics. Its model, though state-driven, maintained flexibility for market-based reforms.

India’s Development Path: Strengths and Shortcomings

India’s post-independence development was driven by a strong state-led approach, focusing on import substitution, heavy industries, and self-sufficiency. However, compared to its Asian counterparts, India’s progress has been slower due to several critical factors:

1. Delayed Economic Reforms

Unlike the Asian Tigers, which embraced liberalization early, India remained a closed economy until 1991. The license raj (a complex system of permits and regulations) stifled private sector growth, limiting entrepreneurship and foreign investment. By the time reforms were introduced, India had already lost decades of potential high growth.

2. Slow Infrastructure Development

While countries like South Korea and Singapore invested heavily in modern infrastructure, India’s infrastructure development has lagged. Inadequate transport networks, unreliable power supply, and bureaucratic inefficiencies have slowed industrial growth and global competitiveness.

3. Limited Focus on Human Capital

Education and healthcare remain underfunded in India compared to its peers. Literacy rates and access to quality education have improved, but gaps persist in vocational training, digital literacy, and higher education. Meanwhile, public healthcare infrastructure is inadequate, contributing to lower productivity and economic inefficiencies.

4. Policy Uncertainty and Bureaucracy

Frequent changes in economic policies, regulatory hurdles, and complex taxation systems have deterred investors. Compared to China’s streamlined decision-making process, India’s democratic governance, while a strength in many ways, has often resulted in slow reforms and inconsistent economic policies.

5. Limited Integration into Global Supply Chains

The Asian Tigers and China capitalized on global trade by becoming major exporters. India, despite its large market, has not fully integrated into global value chains. Export-oriented industries, particularly manufacturing, have not grown as rapidly due to protectionist policies and inadequate infrastructure.

Lessons from the Asian Tigers and China

For India to bridge the gap, it must adopt a strategic approach focusing on:

Education and Skill Development – Prioritizing vocational training, STEM education, and digital literacy.

Healthcare Investments – Strengthening public health infrastructure to ensure a productive workforce.

Infrastructure Expansion – Modernizing transport, energy, and logistics to boost industrial growth.

Trade and Investment Reforms – Encouraging foreign investment and improving ease of doing business.

Policy Stability – Reducing bureaucratic hurdles and ensuring consistent long-term economic policies.

India’s journey has been unique, marked by democratic governance and diverse socio-economic challenges. While progress has been substantial, it has not matched the rapid economic transformations seen in Southeast Asia and China. By focusing on structural reforms, investment in human capital, and integration into the global economy, India has the potential to achieve sustainable and inclusive growth in the coming decades.