Corruption

Both India and China are corrupt. However, China is less and the top is prosecuting some corrupt officials - it could be just getting rid of the political enemies.

India's protectionism is the reason for their poor product quality.

China is corrupt but in a efficient way as evidenced by the huge infrastructure in the last 30 years. If there is no major project, there is no corrupt money to pass thru. India just has its FIRST subway recently that cannot even compete with the second tier cities in China.

The policy from the top are mostly well thought out. However, when we pass it to local governments and everyone tries to suck money. It is a human nature. Passing a good policy is not enough and enforcing it is more important.

Corruption has many levels. Yes, US is corrupt too, but it is less open. Here is one
http://bit.ly/shql8b