Comparing industrial development in India and China

This article reviews three recent books on the comparative political economy of China and India. Each book addresses the ability of both countries to sustain rapid economic development. Specific issues include the comparison between software and hardware production, the relationship between import substitution and ‘openness’, the emergence of innovation-oriented policies and the role of research in the development process. The article finds that both countries – but India in particular – face obstacles in upgrading to an ‘nnovation-intensive’ model. This concern, however, has to compete for attention with uncompromising arguments against India's labour market regulations and a one-sided approach to trade and investment openness in both countries. The article also reflects upon the basis for comparative studies of China and India.