CHENNAI: India may lag behind China in terms of physical infrastructure, but its policies on social sector development, particularly those seeking inclusive growth, are bound to position the country better in the long run, according to an expert in international management.

The rise of India provides an alternative model and shows that democracy can work, said Yasheng Huang, Associate Professor of International Management at the Massachusetts Institute of Technology Sloan School of Management. A research scholar on international business, political economy and institutional issues, he has authored `Selling China,' a book examining the institutional drivers of foreign direct investment in China.

India's emphasis on inclusive growth was delivering results, one being the relatively less income inequalities, he said. The China-born former consultant to the World Bank said Indian solutions were not flashy and involved the private sector.

The returns on investments in infrastructure projects in India were comparatively better and backed by economic justification, he said. Most skyscrapers in China, often projected as a symbol of Chinese growth, belonged to the government and some promoted by the local government as a "showcase [of] their achievements."

Apart from creating infrastructure critical to business, India should focus on social infrastructure development, especially education and healthcare. Policy changes from the hitherto emphasis on FDI "at the expense of domestic companies" were taking place in China. It included agricultural policy changes a few years ago that among others reduced rural taxes and proposed to roll out an insurance scheme for farmers.

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