Why India Can’t Replace China: The Barriers to New Delhi’s Next Boom

Arvind Subramanian and Josh Felman

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With China’s status as the “workshop of the world” marred by rising political risks, slowing growth, and increasingly untenable “zero COVID” policies, no country seems more poised to benefit than India. In May, The Economist ran a cover story about India, asking whether this was the country’s moment—and concluded that yes, it probably was. More recently, Stanford economist and Nobel laureate Michael Spence declared that “India is the outstanding performer now,” noting that the country “remains the most preferred investment destination.” And in November, Chetan Ahya, Morgan Stanley’s chief Asia economist, predicted that the Indian economy