Till 2014, India watched as China dominated. But in 2014, everything changed.
What made the world’s most complex democracy finally outpace the “unstoppable” China?
This wasn’t just a policy shift, but a national reset. Here’s how the tables truly turned 🧵👇
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Oct 28, 2025 · 12:26 PM UTC
Why China Was Winning (2000-2013)
China had a simple formula:
- Build factories → Create jobs → Export everything
- Invest massively in roads, trains, ports
- Peak growth: 14.2% in 2007
The world called it the "Chinese Miracle"
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Why India Was Losing (2000-2013)
India had problems everywhere:
- Reforms announced but never implemented
- Policy paralysis from 2011-2013
- Ease of Doing Business rank: 142nd out of 190 countries
- Scams and corruption killed investor confidence
India was stuck.
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The Real Problem: Infrastructure
By 2014, India had the world's 2nd-worst infrastructure deficit:
- Government spent only ₹1.12 trillion on infrastructure
- Roads, power, and ports - terrible
- Investors' confidence down
India was massively underinvesting in growth.
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The Hidden Crisis (2011-2013)
India's economy was collapsing:
- GDP growth fell to just 5.0% by 2013
- Banking sector drowning in bad loans
- Inflation eating people's savings
- The government couldn't pass new laws
India needed a complete reset.
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2014: The Game-Changer Begins
New government, new thinking. Instead of complaining, India started fixing everything at once.
Here's the 3-move strategy that changed everything:
Move 1: Fix Bureaucracy
Move 2: Build Infrastructure
Move 3: Modernise the Economy
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Move 1: Make Business Easy
The biggest blocker? Bureaucracy and regulations
Before 2014:
- To start a business: 29 steps
- To get electricity: Wait 5 months
- Rank in ease of doing business: 142nd
Nobody wanted to invest in India.
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The Transformation
The government said, "Businesses shouldn't suffer. We'll make the rules simple."
In just 5 years:
- Start a business: 8 steps (71% easier)
- Get electricity: 2 months (faster)
- Ease of Doing Business rank: 142nd → 63rd
Jump of 79 positions.
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What did this mean?
Suddenly, foreign investors noticed India:
FDI Inflows:
- 2013-2014: Low
- 2014-2024: ₹667,410 crore total
67% of the last 24 years' FDI came in just 10 years
Companies started saying, "Let's invest in India."
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Move 2: Build Like Never Before
Remember that ₹1.12 trillion was spent on infrastructure in 2014?
The government said, "That's not enough. We need 10x more."
Infrastructure spending:
- 2014: ₹1.12 trillion
- 2026: ₹11.21 trillion
A 10x explosion in 12 years.
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With this money, India built at an incredible speed:
- 33.8 km of highway PER DAY
- Modern airports in every region
- Metro systems in 20+ cities
- Railway modernisation across the country
- Ports upgraded for global trade
- Roads, trains, power all at the same time.
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Move 3: Modernise the Economy
GST (2017): One tax, one market.
Insolvency Code (2016): ₹4T recovered.
Labour Codes (2020): 29 laws → 4 clear codes.
FDI Liberalisation: ₹667K crore inflow.
Make in India: Manufacturing boom.
From chaos to systematic modernisation.
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The Digital Revolution
- UPI: 100+ billion transactions per year
- 450+ million people got bank accounts
- Poor people could now transfer money instantly
- Businesses could go online
India leapfrogged into the digital age while others were still struggling.
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The Result: India Took Off
After 2014, here's what happened to India's growth:
2013: 5.0%
2014: 7.3%
2015-19: 6.6% average
2020-24: 7.5% average
2024-2026: 6.4%
India went from crisis to becoming the world's fastest-growing major economy.
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