Last week's issue of the Economist has this to say in the same context:
"Administration makes moving atoms very expensive in India compared to
moving bytes."

PS: It's not an exact quote - I don't have this issue with me right now.
Something to this effect.

billu23 wrote:
> Cheap manufacturing in China extracts its own cost. India is the
> knowledge hub, but I feel it could have been a manufacturing hub too.
> It isn't because of lack of political will and drive.
>
> ...
>
> Let our first priority be good transport, power and water, and the
> industry will build itself out of nothing to compete with China.

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