I don't know why you are getting downvoted; you're absolutely correct. Note that while the below sounds racist; I'm referring explicitly to the governments them

I don't know why you are getting downvoted; you're absolutely correct. Note that while the below sounds racist; I'm referring explicitly to the governments themselves. > There are challenges to investing in either China or India, but the reasons behind those challenges are about as different as you can get. The underlying issues in the two countries are dramatically different. I agree; and you probably know this all, so it's for others' benefit. China is a centrally-planned economy that has transitioned to a capitalist-style oligarchy. Culturally, they value society as a whole as being more important than the individual or individual groups. The Chinese government is still the ultimate authority, though many factions exist within the Communist party. Everything coming from the central Communist party is reviewed and OKed by a dozen officials to ensure a consistent story - so any bad numbers are a result of deliberate overstatement at some level. It also means that stakeholders at every level have the opportunity and incentive to falsify numbers (because missing your numbers means losing your job and ending up in poverty). It's not a giant conspiracy; but there is little downside to falsifying accounting numbers (which will get you a prison sentence in the US). India is on the opposite end of the spectrum - it's basically a free-for-all with a bunch of very different groups of people pushed together to try to make it work. There are thousands of ethnic groups, many of whom hate each other. So in order to keep the peace, they have to allow each ethnic group a wide berth. This means that when you say "the Indian government" you're talking about an entity that is a multi-headed hydra (or even multiple hydras). There are many competing desires and biases present in the Indian government, and it's politically difficult to deal with those problems when your population is as fragmented as India's is (and why the election of a more modern leader with a global focus like Modi was a huge step forward).