C/B/359. What would make India more attractive for FDI than China?

Since the economic reforms in China began in 1978, China has shown rapid economic progress. India on the other hand, began its economic reforms very late but with development of a strong IT base and with possibilities for large labour market and huge consumer base, it is slowly transforming itself as one of the most attractive regions for investment options in Asia leaving behind China in its ability to attract FDI. This study compares the advantages and disadvantages of investment in India and shows why MNEs may consider India as a better option for investment than its neighbouring China. The social, cultural, political, economic and cultural factors are highlighted in the discussion.