India and China Follow Different Governance Paths, Experts Say at JLF Session
India and China have pursued fundamentally different models of governance according to speakers at a Jaipur Literature Festival session held on Thursday. The discussion highlighted how these contrasting approaches shape economic development and political systems in both nations.
Democracy Versus Performance-Based Governance
India operates as a constitutional democracy with regular elections and strong protections for individual freedoms. China functions as a one-party state that speakers described as increasingly practicing what they called performance-based democracy. This term refers to a system where governance effectiveness and economic results take priority over electoral processes.
Arun Maira, former Planning Commission member and author of 'Reimagining India's Economy', drew sharp contrasts between the two approaches. "The Chinese politician excels at the politics of implementation," Maira stated. "Our Indian politicians demonstrate exceptional skill in the politics of elections."
Short-Term Politics Versus Long-Term Institution Building
Maira argued that India's intense political competition often encourages short-term populist measures. This focus on immediate electoral gains comes at the expense of long-term institution building. Decision-making processes remain highly centralized in India according to the analysis presented.
The former Planning Commission member identified several persistent challenges hindering India's industrial expansion:
- Weak contract enforcement mechanisms
- Complicated land acquisition procedures
- Inadequate urban infrastructure development
- Limited autonomy for local government bodies
Maira pointed to China's effective local governance as a key factor behind that nation's economic success. Local authorities in China possess greater implementation capabilities according to the analysis presented.
Divergent Approaches to Public Sector Reform
Privatization emerged as another significant point of contrast during the discussion. Maira noted that China did not dismantle its public sector banks or strategic industries. Instead, Chinese authorities implemented reforms that strengthened these institutions while ensuring greater accountability and introducing competitive elements.
Fellow panelist A K Bhattacharya, a senior journalist, offered perspective on India's approach. "In India, privatization has frequently been driven by fiscal pressures rather than strategic capability building," Bhattacharya observed.
Economic Divergence Since the 1990s
The economic paths of India and China diverged significantly following the 1990s according to session participants. China successfully scaled up its manufacturing sector, boosted exports dramatically, and empowered local governments to drive development.
India's manufacturing sector presents a different picture. Its share of GDP has remained stagnant at approximately 15 to 17 percent. This level proves insufficient to absorb surplus agricultural labor transitioning from farming occupations.
Speakers highlighted that nearly half of India's workforce remains engaged in agriculture. This sector contributes only about 16 percent to the national economy. Manufacturing activity concentrates heavily in just a few states, leaving large geographical regions underdeveloped.
China achieved a different outcome by moving millions of workers from farms to factories. Bhattacharya explained why India struggled with similar transitions. "I believe we failed to focus adequately on primary education," he said. "We also failed to prioritize skilling and re-skilling initiatives sufficiently." These educational shortcomings prevented surplus agricultural workers from transitioning into manufacturing employment.
Import Dependence and Manufacturing Challenges
Session participants also flagged India's growing dependence on imports of industrial goods. Electronics and machinery imports from China represent particular areas of concern. Despite government initiatives like Make in India, the country continues to lack deep manufacturing ecosystems and component-level strength according to the analysis presented.
The discussion concluded that these governance differences continue to shape economic outcomes in both nations. While India maintains its democratic framework with electoral competition, China's performance-oriented approach has delivered different economic results according to the perspectives shared at the Jaipur Literature Festival session.
